Hillary’s Healthcare Cartel

You know how you get on the internet and start to read story that links to another story that links to another story and so on???  I am easily distracted, so I frequently go from one story to the next when I find something of interest.

 Well this morning, I started out on the Drudge Report and clicked to the Novak story about Saint Hillary having some scandalous info on Obama (that is a story for another blog entry…hopefully I won’t get too distracted in the near future to write about it).  Anyway, that story somehow led me to bloglinks at BuzzFeed on the latest rumor about Hillary having an affair with her aide, Huma Abedin (a woman), that led to more info about this rumor from Ron Rosenbaum on Pajamas Media , that finally got me to a most interesting comparsion of a Vertically Integrated company and what Hillary wants to do with healthcare.

The article starts out with a quick summary……

Gregory Sullivan has been listening carefully to Hillary Clinton, and has a message for her: “I don’t want to stay vertically integrated until I’m horizontal, thank you very much.” Not that he believes that she would actually care what he thinks.

Gregory Sullivan owns a furniture company in Massachusetts.  (Nice stuff, too…..Sippican Cottage Furniture is the company….view it here  if you are interested).  It’s been a while since I have read such wit.  He is funny and interesting and I think his humor will bode very well for his business in the long run…..looking at it as a consumer, his humor seems to set his business apart in the areas of portraying trust, fun, and quality.  I don’t know if he has marketing background, but being a small internet business owner myself, I know that you have to set yourself apart from your competitors.  His wit and writing style do that.

Anyway, the points he makes about Vertically Integrated business and contrasting that to Hillary’s intentions in Healthcare are an angle that I have never considered.  The Vertically Integrated business part I can totally relate to because, even though I do have product suppliers, I do most everything else in my business with the help of about 3-4 other people at any given time.  We do it that way for cost reasons and as the means to get established before we can further outsource other pieces of the business, that I/we don’t do best!

In his piece, Sullivan helps define Vertical Integration with the help of Wikipedia:

…………..the term vertical integration describes a style of ownership and control. The degree to which a firm owns its upstream suppliers and its downstream buyers determines how vertically integrated it is…………A monopoly produced through vertical integration is called a vertical monopoly, although it might be more appropriate to speak of this as some form of cartel.

One of his main points is that a small business often vertically integrates for cost reasons until the business is established and you can mainly focus on what YOU do best.  Then you can afford and trust other entities in your supplier chain to assist in the business entity.    Vertical Integration is not, in most cases, the best approach for growing and maximizing everyone’s talents.  So businesses usually begins to hire out these other pieces of the business once they are successful.

Hillary wants to do the opposite with Healthcare…..First off she wants to CONTROL a huge percentage of the US economy—healthcare.  As Sullivan points out, our economy is not something to be controlled, but something to participate in:

The modern economy is confusing and disturbing to statists. They have a fundamental misunderstanding and mistrust of it. They believe that the economy is being run by a few persons, and they believe themselves bright, so they know they can run it better. The problem is, you can participate in the modern economy, but it can’t be run. Few even know what it’s like to run every aspect of their own business any more, never mind anybody else’s. Except me, of course, and people like me. We understand that we must substitute our own exertions for the paid exertions of others at first. It’s why you hear that people in start-up businesses work so many hours trying to establish themselves. To people like me, watching Michael Keaton in Multiplicity isn’t entertainment, it’s more of a documentary. But since there’s no cloning machine in the modern economy, the only way to “make more people” is to work sixteen hours a day in the short term, (there’s two!) and then go out and hire others to help, eventually. Getting the benefit of other people’s exertions on your behalf takes money to entice them. Or a law, to make them.

Second, she wants to take an established business—Healthcare in this analogy—- and take it backwards to a singular-type control like Vertical Integration….Sullivan writes:

 I’m the president of my business, and I sweep the floor. I do everything that comes in between, too. That’s vertical integration. It’s a symptom that I’m not that successful, yet. I’m forced to do all sorts of things I’d rather not because I can’t afford to hire them out yet. Hillary Clinton thinks whole sectors of our mature economy can, and should be run this way. I’ve noticed that all bad managers crave vertically integrated management (my emphasis). Me, I want to stop sweeping the floor.

I think Sullivan makes a lot of great points.  It probably hits closer to home for me….being in small business.   You should read the full text of his piece, but I think he sums it up greatly in the Hillary quotes he includes at the beginning of his piece and last line of his article.

Hillary says:

“I can’t worry about every small, undercapitalized business in America.”

“I suppose I could have stayed home and baked cookies and had teas, but what I decided to do was to fulfill my profession which I entered before my husband was in public life.”

– Hillary Clinton

 Sullivan’s last line:

Hillary’s already told me to drop dead, figuratively. She’s looking for the power to enable her to tell me to drop dead, literally, now. Wanna give it to her?


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