Saturday, April 17, 2010

Three Facts the Obama Administration Needs to Learn

I am sure that there are more, especially matters of basic economics, but I have compiled a list of facts the Obama Administration needs to learn:

Bonuses are not extra pay. They are lump-sum payments that are part of an employee’s annual salary, which is understood by the employee at the time of hiring and often are even part of the conract. Therefore, bonuses are not necessarily awarded for merit, although they often are related to the performance of the company;

The purpose of insurance is to spread risk for future contingencies. A person with a pre-existing condition is, therefore, uninsurable for health. Such an individual does not spread risk because there is no chance that he might be healthy and thus continue to contribute to the pool of money, but instead would certainly receive money without contributing anything to the pool. Therefore, there can be no such thing as “health insurance” for a person with a pre-existing condition. There would have to been another kind of contingency insurance for such individuals with some other name;

Anywhere a terrorist strikes is a battleground, such as aboard an airplane, not just in war zones.

Perhaps you can develop further the list of facts the Obama Administration needs to learn.

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