> Teacher: But the insurance industry creates many products, doesn't it?
Hi Paula:
What are the 'products' being produced by the insurance industry?
That is a topic which I have already discussed - as you know
since it was in answer to a question of yours in this very discussion.
http://archives.econ.utah.edu/archives/ope-l/2010m10/msg00013.htm
Guard labor and advertising are also sold on the market but they
do not represent production. The one is used to protect the legal
title and ownership of wealth and the other is to sell products.
There is no new 'product' which is being produced by the insurance
industry. The point of insurance is to legally protect the assets of
owners and to cover them for legal liability in the event of unforeseen
circumstances. This is true even with car insurance: even where the
state doesn't require car operators to have insurance they are legally
unprotected in the event of an accident if they don't have insurance
which covers liability coverage. What new 'product' is related when
homeowners purchase insurance against theft? This is not production.
I think any teacher or student who is not an apologist for the
insurance industry will see this.
In solidarity, Jerry
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Received on Sat Oct 30 10:45:01 2010
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