When is Washington going to get real and cut medicare?

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We are lost somewhere in translation because I essentially don't disagree with that you wrote.

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probable true.

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Anything government run that can otherwise be privately run in a market, however, will suffer from a great disadvantage in both pricing and efficiency.

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erroneous and misleading. look at the post office. it appears inefficient, but it is actually the cheapest and one of the most reliable enterprise of its kind.

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I'm clearly not an expert but my overall point was that my gut reaction to solving a problem stems away from turning to a larger, more powerful government.

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this is where you don't agree with me. there are several areas of the market that require either government presence, intervention, or regulation. e.g. utilities, energy, environment, retirement, etc.

allowing the government to run a business vs setting rules under which private businesses provide the same service are both appropriate in different circumstances. you are not giving too much power in either case. look at the oil industry. the power simply belongs to the oil companies that lobby and control parts of the government.