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Frankie-C!
05-03-2007, 02:25 PM
In Australia at least, the government requires that medical practioners of any denomination take out insurance cover against indemnity. Now this wouldn't be such a bad idea, if doctors weren't being forced to fork our ridiculous amounts of cash for this kind of cover. For instance, a radiologist (someone who looks at x-rays), at the lower end of the spectrum, is paying at minumum about $3000 a fortnight in indemnity insurance, which in the long term is probably more than they would ever have to compensate a patient for should they happen to sue - and it is very difficult for a radiologist to make a mistake - their cases are literally black and white.

Now this occurs for two reasons:

1) We're starting to adopt the American way of suing innocent people for stupid amounts of cash for arbitrary reasons and

2) Insurance companies are run to benefit share holders - as are banks.

With absolutely no industry regulation, these pigs have basically been given a free license to print money. And it's not just doctors that are affected by this, for instance the gay and lesbian mardi gras - perhaps sydney's largest tourist attraction - has almost been forced to shut down for the last several years due to the incredible insurance rates they have to pay to protect themselves against liabilty. Other instances I can think of are horse-riding trainers and cable-car operators who've been forced to shut down completely because of unaffordable insurance premiums.

On top of this, we're told in Australia that our economy is performing better than it ever has before. Meanwhile interests rates here are among the highest in the developed world. Now how the **** a healthy economy benefits the majority of the population who now can't afford to buy a home ever is one issue - why the **** they need to raise interest rates when our banks are posting record profits year after year is another.

The motivation behind this I gather is the benefit of the shareholders; people who already have money and are looking to become fatter. But then isn't the idea behind a bank or an insurance company is that they take the money you've given them and to invest it in other shares?

The answer, perhaps i may be naive in saying so, would be privatisation. If these corporations were run only to benefit customers, then surely the whole of our society would be better off for it. But then I know nothing of economics. Can somebody please explain to me how the overall profit of a company and it's dividends outweighs the benefits that the general community might gain from a privately run company?

ringworm
05-03-2007, 02:42 PM
privatisation is not the answer to fix things

it only brings in more greed and rarely helps anyone but the company and the original provider who still receives aid even though he isnt providing the coverage

its being done here in the states with highways and is just beginning to get attention

if the highways are privately owned, tolls roads will skyrocket because the officials that previously controlled them kept them low so votes werent discouraged, a private company wont have that burden and can do as they please

Frankie-C!
05-03-2007, 02:48 PM
By privatisation i mean not listed on the stock exchange. Perhaps if insurance companies were run by executives on fixed wages rather than profit-based, the scenario might be different?

griftadan
05-03-2007, 03:13 PM
tort reform and ending frivilous lawsuits will go miles to solve this problem, but the lawyers lobby will never let it happen.

and i don't think that interest rates alone are really an indicator of anything about the health of an economy economy.

Frankie-C!
05-03-2007, 03:26 PM
tort reform and ending frivilous lawsuits will go miles to solve this problem, but the lawyers lobby will never let it happen.

and i don't think that interest rates alone are really an indicator of anything about the health of an economy economy.

Litigation lawyers form more of a commercial enterprise than a political force here.

And 2) I wouldn't have thought so either, but a growing economy and keeping inflation down is the reason that the reserve bank tends to cite for raising interest rates a quarter of a percent every 3 months. Does that mean that when our economy starts to weaken, interest rates will start to fall?

Smokey D
05-04-2007, 12:53 AM
In Australia at least, the government requires that medical practioners of any denomination take out insurance cover against indemnity. Now this wouldn't be such a bad idea, if doctors weren't being forced to fork our ridiculous amounts of cash for this kind of cover. For instance, a radiologist (someone who looks at x-rays), at the lower end of the spectrum, is paying at minumum about $3000 a fortnight in indemnity insurance, which in the long term is probably more than they would ever have to compensate a patient for should they happen to sue - and it is very difficult for a radiologist to make a mistake - their cases are literally black and white.

Now this occurs for two reasons:

1) We're starting to adopt the American way of suing innocent people for stupid amounts of cash for arbitrary reasons and

2) Insurance companies are run to benefit share holders - as are banks.

With absolutely no industry regulation, these pigs have basically been given a free license to print money. And it's not just doctors that are affected by this, for instance the gay and lesbian mardi gras - perhaps sydney's largest tourist attraction - has almost been forced to shut down for the last several years due to the incredible insurance rates they have to pay to protect themselves against liabilty. Other instances I can think of are horse-riding trainers and cable-car operators who've been forced to shut down completely because of unaffordable insurance premiums.

This happens because people sue like crazy.

There are problems with it, but New Zealand has an alternative which denies the right to seek compensation in the event of an accident. That is, hte ACC scheme, where you receive compensation from the government but can't sue the person directly (I think the government takes money off that person if guilt can be proved).

On top of this, we're told in Australia that our economy is performing better than it ever has before. Meanwhile interests rates here are among the highest in the developed world. Now how the **** a healthy economy benefits the majority of the population who now can't afford to buy a home ever is one issue - why the **** they need to raise interest rates when our banks are posting record profits year after year is another.

Australia's economy is doing phenomenally. Interest rates aren't raised for the sake of the banks; they're controlled by the Bank of Australia to control inflation. Inflation is usually higher in times of growth (especially export growth or property booms which are the main engines in the Australian economy at the moment), which requires the BoA to raise interest rates.

Of course, sometimes the government can screw things up and get the interst rates to spiral upwards with no benefit to the economy, but that's not what's going on now.

The motivation behind this I gather is the benefit of the shareholders; people who already have money and are looking to become fatter. But then isn't the idea behind a bank or an insurance company is that they take the money you've given them and to invest it in other shares?

Nope.

The answer, perhaps i may be naive in saying so, would be privatisation. If these corporations were run only to benefit customers, then surely the whole of our society would be better off for it. But then I know nothing of economics. Can somebody please explain to me how the overall profit of a company and it's dividends outweighs the benefits that the general community might gain from a privately run company?

Er, banks have always been privately owned.

Reaganista
05-04-2007, 02:34 AM
1) We're starting to adopt the American way of suing innocent people for stupid amounts of cash for arbitrary reasons and
being horribly mutilated or robbed of a breadwinner by someone else's gross negligence is incredibly far from an arbitrary reason

SippyCup
05-04-2007, 08:48 AM
Insurance companies and banks, one word: EVIL

griftadan
05-04-2007, 11:14 AM
Litigation lawyers form more of a commercial enterprise than a political force here.

And 2) I wouldn't have thought so either, but a growing economy and keeping inflation down is the reason that the reserve bank tends to cite for raising interest rates a quarter of a percent every 3 months. Does that mean that when our economy starts to weaken, interest rates will start to fall?

if the reserve bank deems necessary and increases the money supply than yes