Why The Free Market is Not Made for Insurance Companies

Wealth is generated through innovation. And, it is impossible to create an innovative insurance company.

Think about it. Insurance companies make money by analyzing risk, and taking premiums that add up to more than the cost of acceptable risk. The problem is that there's no way to be innovative about analyzing risk. When you analyze risk, you hypothesize a certain event and count the number of times the event occurs over time. As an insurance company, you have no control over what the event is, or any aspect of it. What you get is reams of data about the event, and the knowledge that such an event is undesirable. Think a broken leg. Insurance companies all know exactly what a broken leg is, and they all have reams of data which count the number of times people tend to break their legs over a given time. Then they take everybody's money and pay money to the people with broken legs. That's all there is to it. Color me second-rater, but it doesn't take a John Galt to do that.

The only possible way for an insurance company to be innovative is to be innovative about analyzing risk. However, the innovation involved here is extremely insignificant. Everyone knows what a broken leg is. It's public knowledge. It's very obvious. And unless you're a Mafioso, it's really really difficult to be innovative about the way people tend to break their legs. The best you can do is count the number of times people break their legs, and factor that into your mind-blowingly simplistic equation for generating profit.

The idea that insurance companies can operate as businesses in the free market is insidious and stupid. Insurance companies calculate risk and take premiums that exceed the cost of acceptable risk. We've already discussed how it is impossible to be innovative about calculating risk. You calculate risk, and if you have enough money, you're correct. That leaves two ways to create profit. Either you 1) increase the cost of premiums, or 2) don't pay out the money you're supposed to. Surprise surprise; this is exactly what health insurance companies were doing before Obama passed the Affordable Care Act. Critics of the Affordable Care Act say that it will kill business. Hopefully, they're correct, because insurance companies shouldn't be businesses. The free market doesn't apply to them. They don't deserve to make profit, because they don't innovate.

A good way to think about it is the difference between reading a book and writing a book. You don't deserve to generate a profit by reading books. It's the writers who sold you the books who deserve to generate a profit. Studying the empirical world is like reading a book. Creating new products is like writing a book. And the moment you turn risk-taking into an innovative endeavor, and begin writing books, you're no longer in the business of insurance; you're in the business of investing.

Jewish Identity Disorder: Psychiatry in Action

We all know that, here in NAZI Germany, there is an epidemic of individuals, invisible to most but tragically evident to some, suffering from a new mental disorder. The very name of the disorder is enough to make you tremble in fear and feel sick to your stomach:

Jewish Identity Disorder.

Here's what we know of the disease. It is generally incurable and chronic. While mostly marked by cognitive features (like believing you're the Chosen People of God, and not believing that Our Savior Jesus Christ of Nazareth came to this world to save us for our sins, and various other beliefs not shared by the common culture), the disease also generally results in physical abnormalities. For example, there's a documented correlation between JID and curly hair and hard noses. Furthermore, there is quite a body of research which shows that JID runs in families. There may be a genetic component as well.

While effective treatment of the disease remains ever elusive, the catastrophic toll of JID across The Fatherland cannot be understated. Every day, thousands of Jews are rounded up by the police and shipped to treatment facilities. Many of them never get out. The ones that do get out generally live a life of terrible poverty and social stigma. The stigma is often described as the worst part: many good Jews understand that they have a serious mental illness and need treatment, often, unfortunately, at national treatment facilities. Despite their cognitive inferiority, they understand that there is something terribly wrong with them and that they'll probably never recover. We have to combat this. The time has come for our society to recognize that the profoundly life-changing diagnosis of JID simply doesn't justify treating them as inferiors, even though they are.

Your friends at the National Socialist Party stress the need for a national strategy to address the JID problem. We must also take into account the growing body of literature on recovery. There is a certain percentage of people with JID who only go to a treatment facility once, and, after professional treatment with Haldol and other psychoactives, they come to the conclusion on their own that they in fact aren't Jewish and never were. We also recognize the role of peers—others who have claimed to be Jewish—in treatment, as long as they follow evidence-based practices proven effective in decreasing the symptoms of JID. Also, strict professional boundaries must be maintained. (For obvious reasons, we can't have outside people with JID making personal friendships with inmates at our state-of-the-art treatment facilities.)

We stress that everyone should read up on the abundant literature regarding Jewish Identity Disorder. The severity of this national problem cannot be stressed enough, and an informed citizen is an empowered citizen. Sieg Heil!

A Note or Two on Yelling at People

A while back I decided to yell at my therapist. We both agreed that a shouting match was the most appropriate thing to do at that time. No, it wasn't one of those sterile, therapist-y agreements—"I want us to try something new. Let's have a shouting match. Don't be afraid; let it all out." We don't do business that way because it doesn't work. My therapist is a straight-up, no bullshit kind of guy. He wanted an emotional response. Well, he got one.

"Nathan," he said, "you just seem to think these psychiatrists all get together and sit around saying, 'Gee, let's see how many people we can hurt and oppress today.' You really think psychiatrists go to medical school for eight years and live on crappy doctors' wages just because they felt like hurting people was a cool thing to do?"

"They don't have to! The entire system is based on fallacious and fundamentally oppressive assumptions. I don't care what kind of person you are, if you believe that people's minds are diseased, you're going to be oppressive! It's the same as saying you're a flawed person!"

"Great. Tell me: when has a psychiatrist ever told you that you're a 'flawed person?'"

"I've been lucky not to have to work with psychiatrists since the mental hospital. But I know people who have. And if people weren't regularly abused like what happened to me, there wouldn't be a consumer survivor movement."

"See? With you it's always 'Oh, I've heard stories.' What about you? I want you to tell me right now, what evidence do YOU have?"

So I told him my story. I told how I went to the doctor for help because I thought I was sick. How he started talking behind my back to my friends and family about how I should probably get on meds. How I started sensing that people were conspiring behind my back. (Because they were.) And how they hit me with, "You have a mental illness. There's something wrong with your mind and it'll never get better. You'll probably live a half life filled with misery and regret, and take these pills which change the way you see the world but don't make anything better. Oh and be sure to talk to your friends and family about it, see what they have to say. That's important, you know."

"So," He said. "You went to a doctor for help, and he gave you help." (Gasp.) "What a surprise."

"How can you call that help??"

"Look, Nathan. It may have hurt. But he did what he thought was in YOUR best interest. But you give him no credit. You think he just did it all because he had some kind of grudge against humanity."

"You know, NAZI's were all ordinary, nice people too. They only became monsters because they were trained that way. Psychiatrists are trained to believe that people—REAL people—can have something FUNDAMENTALLY wrong with them, with their very minds. That's what they believe."

"Tell me, how many years have you been trained in psychiatry?"

No answer.

"Well I have been trained in psychiatry." (He loads a web page about the WRAP program.) "Look at this program that every mental health professional in the State of Idaho is REQUIRED to take."

From there on I was on shaky grounds. I'd never been formally trained in psychiatry, and though I'd heard things about the consumer-directed movement in mainstream psychiatry, I hadn't looked at it much. There was still a thing or two I wanted to say, though.

Emotions were hot, of course, and the fiery exchange went on deep into the night. But there was nothing about the shouting that wasn't congenial and ultimately beneficial. And we concluded with friendly words: about how he liked to see me "all fired up," how angry we never really get, and so on. The point is: it was beneficial. It was positive and wholesome. If I had not decided to get angry, I would've missed the point.

Let me show you something I made:

The execution may not have been the best, but those goddesses are real. They'll come to me, in the middle of the night after a bad day, wrap their beautiful thighs around me, and get right inside my mind.

They're like, "I fucking hate you. You're a terrible person. I wish you would die. You're bad. I hate you. Just die."

They break my neck. They feed me poison and rip my intestines out. They hurt me, and they don't stop.

They're like: "I hate you. Just die. I fucking hate you."

And suddenly, when the world stops, I burst into tears, look her straight in the eyes, and—the love. We cuddle; flowers bloom, babies coo, birds tweedle, and everything's alright.

You know that feeling of grimacing through an unbearably hot sauna then laying down for twenty minutes in 40 degree water, blissed out like you've taken some cocktail of the most amazing drug, only without the addiction or side-effects... kind of like that. Ladies, I'm telling you, it's hard to compete with an experience like this. (Come to think of it, probably shouldn't try either.)

See, in our culture, we're so rational and deliberating and scientific that we forget the heat of emotions. We forget the value of rage and depression, and of tears. I hate it when people say, "Don't cry." Actually I love it, because it makes you cry. The more they say it the more you cry. That's why it's so nice to say. The trick is, don't analyze and deliberate and come to the reasonable conclusion, "She probably doesn't want me to cry. I should stop now." Because tears are the seeds of joy.

I know it's not right to hurt people. I know it's not right to get angry and yell at someone and put them down. But sometimes, if you're extremely careful, it's the best way to show love. If you REALLY love someone, and if you yell at them lovingly, it's like that hot sauna. It opens your pores and all the bad stuff in the world comes out. Then when you cry together, and hug each other, and the birds and the flowers—it's like the cold water. It's bliss. As long as you love, you can't go wrong.

Brandon Raub: It Could Happen to Anyone

Well I was silent on this for a while, but since Brandon Raub got almost half as much attention as a turnip, I have to comment.

It's bullshit.

This kind of indefinite detention happens every day, and would be happening with or without NDAA or the Patriot Act. Where was the Rutherford Institute when it happened to me?

The problem is not the government, but psychiatry, which is, and always has been, fundamentally opposed to a free society. From Foucalt's Madness and Civilization: "[Madness] is at every moment judged from without; judged not by moral or scientific consciousness, but by a sort of invisible tribunal in permanent session." I know what he's talking about, because I've experienced it. Why police, arrest, try, and execute undesirables if you can get them to do all this to themselves? This is the essence of psychiatry. Psychiatry was an evil and illegitimate institution since its inception.

And now people get worked up because they think it might happen to them, under the Patriot Act. Well, sorry to burst your bubble, but if a couple of psychiatrists say it is going to happen to you, it's damn well going to happen to you. That's the way it's always been. But, oh, I thought it was only supposed to happen to those crazy people nobody cares about, not to ME. Again: if psychiatrist says you're crazy, you're crazy, cause psychiatrist says.

Fight the problem at its source: end the institution of psychiatry.

How the Schizophrenic Mind Works

Everything people with schizophrenia do (assuming they are logical people) is absolutely logical. It is consistent with reason, and perfectly sane. A person with schizophrenia who understands the mandates of logic and reason, is skilled in ethics, acute in understanding, perfectly level-headed, with a correct view of the world, will display symptoms of schizophrenia. She will believe people attack them in their sleep. She will stare into space and become unresponsive to stimuli. She will experience anxiety and stress. It is not that she is stubborn. It is not that she is immature. So why do she acts the way she does, if she is perfectly sane?

What would you do in a room with a rapist? You would be very wary of their every move. You would avoid them at all costs, or if you cannot avoid them, you would at least lock your door at night. You would try to reason with them: "If you rape and attack people all your life," you would say, "you won't have many friends. People will call you a rapist. You will go to jail. You will lose your job."

But what is rape? Do you even know? Have you ever been raped? Most people with schizophrenia have never been raped. But they see people nodding their heads. They see people curling their lips into a smile. They see people snapping their fingers and making a pistol of their hand. By the force of logic, this all screams "Rape! Murder! Incest! Conspiracy!"

This seems very illogical. But honestly, what is logic? With no reference point, logic disappears. Suppose you are ten years old, and you have never lost a toy before. You put your toy down on the counter, with the vague feeling that you will remember it when you need it. Next thing you know, you can't find it. Did you behave illogically? Of course not. It is not deductively valid to say that placing toys on the counter leads to losing them—it is a logical fallacy. The best you can do is have a loving parent tell you, "If you don't set aside a place for your toys, you will end up losing them." Now, you have a reference point. You think; "Putting toys in random places —> losing them." At this point it is logically valid to say, "Assuming the counter is a random place, if I put my toy there, I will lose it." This is logic.

Now a person with schizophrenia is a human being. Because she is human, she feels a sense of connection when people smile at her. It creates a special feeling in her mind. So, she knows, "This special feeling is means communication." It is now highly logical for her to say, "If I experience this special feeling, I must be experiencing communication." Similarly, she feels a different kind of connection when people yell at her. This comes with it's own special feeling. And so on for other feelings.

Now television, newspapers, books, etc. give us an image of what the mind of a rapist is like. What they convey has a sense of realism to it. Why? Because it is connected with our personal experiences. Clearly, the person with schizophrenia has the same image. She knows, "When I feel this way, I have had that experience." She knows, "This special feeling generally indicates a communication of lust." Someone nods their head at her. She feels that special feeling. It is LOGICALLY VALID for her to assume that she is in danger of being raped. It is LOGICALLY VALID for her to behave in a paranoid manner. It is LOGICALLY VALID for her to lock her doors, to plead with the person not to rape her, or hitchhike to California. She knows this person must logically be a rapist. It is clear and obvious. Here's the argument in standard form:

1. Special feeling —> communication of that which leads to rape.
2. Special feeling.
   ----------------------
3. Rape is imminent.

Logic is the most valuable tool we have. Why should we oppose logic?

Now, consider the statement: "If the people on TV claim that rapists are commonly jailed, commonly lose their friends, commonly are socially ostracized, and I know rapists who are not jailed, do not lose their friends, are not socially ostracized, then the people on TV are lying." Perfectly reasonable, right? Of course it is. Therefore, for the person with schizophrenia, it is PERFECTLY REASONABLE for her to think, "People on TV lie all the time." It is PERFECTLY REASONABLE for her to think, there must be a conspiracy. It is PERFECTLY REASONABLE for her to believe that all of society is against her.

Now, if all of society is against you, and you know that someone is going to rape you, would you defend yourself? Of course you would. A person with schizophrenia knows by the force of logic that she will be raped, that society is against her, and that it is perfectly reasonable for her to defend herself. So she sprays her best friend with mace. Is this wrong of her? Is this unethical? Of course not. It is ABSOLUTELY UNDERSTANDABLE. 

What does this make the mental hospital? Unjust. It is an enforcement of arbitrary authority. It creates nothing but pure confusion. No one behaves specifically to gain admittance to a mental hospital. They behave logically, reasonably, understandably, and suddenly, they are in a mental hospital. What would you do if someone stalked you, sent you threatening notes, called you on the phone ten times a day? You would call the police. What if you know the police won't come, and the person is in the same room with you, looks at you, and walks toward you, clearly communicating lust? You would spray the person with mace. What would you do if they sent you to a mental hospital? If you get angry at the mental hospital, and they tackle you to the floor and shoot tranquilizers in your ass? You would be bewildered, traumatized, confused. Reality? What reality? Reality makes no sense. There is no justice. There is no comfort.

Medications may help. But they do not cure. So to many people with schizophrenia, they do nothing but confuse. Why am I taking medications? I know that that person was trying to rape me earlier. He may not be trying to rape me now, but what of that? Me taking medications won't make him any less of a rapist. Sure, it may be bizarre that all of a sudden he doesn't have lust. But what does that have to do with me? These medications haven't done a thing. I see things in exactly the same way as before, only now I have side effects. Furthermore, I know society is screwed up, that there are massive conspiracies afoot, and that anyone may be in on it. It's not that they aren't rapists, they're just trying to make me take medications. Screw it, I'm going off my meds.

Sending a person with schizophrenia to the mental hospital will not change anything. Nor will prescribing medications to them. What is the solution? The only solution is to teach them to abandon logic. Abandon comfort. Abandon justice. Accept nothing but pure experience, no matter what the situation. Suppose they will rape you—what of that? People get raped. You just have to deal with it. Suppose you taking medications doesn't make others stop raping people—what of that? The trained psychiatric professional says, you must take your medications. Why not put him in the driver's seat for a while?

Our experiences are fallible. Our communication is arbitrary. Our ideals are empty. There is no truth in thoughts, in words, in objects. The only truth is in the mind. People with schizophrenia, just as everyone else, will do well to learn this. They will stop being paranoid. They will stop spraying people with mace. They will stop being angry. I guarantee the world will be a better place, no matter where they are—mental hospital or elsewhere.