Saturday, July 3, 2010

Our Government Can't Limit How Much Profit My Business Makes! Or Can it?

If we do a good job at the business we run, we should expect to make a profit. No where in our constitution is the power granted to Government to limit how much profit a business can make. Or does it?

In the new health care bill signed into law this past March, insurance companies are required to meet a medical-loss ratio. The medical-loss ratio is the amount the insurance company must pay out in claims versus the premiums they collect. Regardless of how well an insurance company ran its business in the past, they must now pay out at least 80% of what they collect in premiums towards medical claims.

I am no fan of medical insurance companies. This law, though, effectively limits how much profit the companies can make.

If such laws can be implemented against one industry, what is to stop the government from implementing comparable laws against your industry? Is there no limit to the government's power?

On this Independence Day weekend, Thomas Jefferson's words in the Delcaration of Independence are poignant:
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. ... to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed."

Have we, the governed, consented to granting the government to limit our profits?

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