Sunday, October 23, 2016

Insurance - car, health, life, etc. - uses socialism as its driving principle [COMPACTIDEA]

Insurance essentially is a common pool into which people put money [quantity of money you put in decides how much you can withdraw] without knowing which ones of them will need [a lot more] money later in life. Only a few out of the total group feel the need for money later in life, and these folks get many times more money than they had put in [because they also take those people's money who never needed to access this pool but had put in money].

It's like everyone says that we don't know who among us is going to require lots of money [due to a car accident or a critical illness or maybe death], so let us all put in small amounts to create a big pool and the few who will genuinely require money will each get a large sum.

In this sense the whole concept of insurance policies rests on a very socialism-like system. Even though banking, insurance, mutual funds, etc., are all hallmarks of a capitalist society. So socialism [and maybe communism] very much thrives even today, although as threads within the fabric of an otherwise capitalist society.

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