103: ‘Quicksand’ or Sound Law?
Benjamin Zycher, economist and scholar, writes “The Mystery of Prop. 103 Is Why the Voters Bought Such Outrageous Claims” (Op-Ed Page, Aug. 25), extolling the virtues of the insurance industry and decrying us deluded folk who voted for Prop. 103.
Either Zycher is living in a dream world or he is in the pay of the insurance companies or he is just plain stupid.
Zycher says, “Some consumers will be forced to subsidize other consumers.” Of course we do. Consumers always subsidize other consumers. That is exactly what insurance is all about. Some poor guy has his house destroyed by fire, and it is everybody else’s money that builds him a new house.
Zycher also says, “Does that mean that insurance consumers should bear the losses of such (insurance industry) investments gone sour?” Are you kidding? What do you think happens to us consumers now? They lose and they cover their bad bets by raising our rates.
GEORGE MARGO
Malibu
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