Greedy Profits

Some people have a tendency to say a lot about what they don’t understand. Recently, this has been quite visible in the bashing of greedy insurance companies and banks. It is apparent that a lot of people are simply clueless about how the system works. I think they picture greedy CEOs denying coverage to the sick or foreclosing on houses so they can slink away with bags of money. Oh brother!

Here are some things to consider:

  • Insurance companies can’t pay out more than they take in, at least not for long. Ditto for banks.
  • One of the biggest costs in the insurance business is fraud prevention. Why? If it were known that an insurance company was easily defrauded, that company would be toast. That’s why fraud prevention is a huge deal for insurance (life, health, property, etc.) companies. Banks are even touchier.
  • Some CEOs are paid about like major league pitchers, if they’re lucky. Most aren’t that lucky.

I suppose it’s pointless to argue. The facts are easily found, but you have to want to find them. Some people just want to complain and have someone else do the work.

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