I just want to know why governments (states and federal) is not allowed to enter into the car insurance business? Or is this also one of the things that gives unfair privilege in this country to those with big wealth? I think that governments, especially the federal government because it has better means to do that, should be allowed to enter and compete in any business. Having the government enter as a competitor can help in to two directions. First,clearly, it can provide a significant help in filling the gaps between product pricing and the paying capabilities of potential buyers and in turn help in keeping the wheel of the economy turning. Second, it may provide a way to prevent monopoly and price fixing among those who are supposed to be competitors in away that even antitrust laws cannot reach.

 

Imagine how this idea can improve the economy:Those who are running businesses should always keep in mind that the government may enter any business if they do not compete in a way sufficient to close the gap that provide an opportunity for such entrance. One of the most obvious and direct implementation for that seems to be in that of car insurance business. What is an insurance business? It is nothing more than some entity saying: Hey I got too much money in case something happen. Who is better equipped to say that than the federal government? An insurance business is just an accumulation of financial power because of which further accumulation is allowed. There is no science or any special capabilities needed.So what prevents the federal government from entering such business other than being on the side of the most wealthy instead of all the people? Look at the prices for car insurances then think if you can even make a claim that there is a serious competition there. Car insurance companies can probably charge less than one forth what they charge and still make big profit. Is there any question that the federal government can compete successfully there?

Also, if I am going to pay more money then why not at least make that goes to where it can help others in the like of food or medicine for those in need rather than making the most wealthy even wealthier through such a business. This is how you improve the economy for any one really interested in that more than he is in serving the most wealthy over everybody else.