As a young college graduate, my first job was as an insurance agent. My family
had always considered insurance to be a good thing and, so far as I know, both
my father and mother had insurance on their lives all the time I was alive. In
the short time I worked for an insurance company I never saw or heard of any
attempt to cheat the people to whom we sold insurance. In fact, one of the agents
got in trouble because he paid some premiums for some of the poor people who
had policies through him when they couldn't make the premium payments some months.
Insurance is available to provide protection against all sorts of unpleasant
contingencies. If one has property one can get insurance against its being
damaged, destroyed, or stolen. One can get insurance against one's death or
illness. The forms of insurance that are available are many and varied and
much of modern business would be difficult to carry on if it were not for insurance.
It is, of course, a feature of a POM (physical object money) economy.
In a non-POM economy, there is no insurance at all of any kind for anybody.
This is because money cannot be transferred from one account to another in
a non-POM economy. Money comes into existence in one's account when earned
and ceases to exist when spent. Therefore, one could not pay premiums and one
could not collect money from a policy. Does this mean that people are defenseless
against disaster? How does one mitigate the consequences of unfortunate events?
Let's consider life insurance first. One buys life insurance in a POM economy
in order to provide for one's dependents in the event of one's death. In a
non-POM economy, one's dependents will be just fine so long as material possessions
are concerned. They will be given food, clothing, shelter/housing, medical
care, and education without having to pay for it because those who gave them
these things would be paid for doing so whoever they are. Though no one is
obligated to give necessities to them, they will be paid for such giving which
is enough to see that they will have the necessities. Also, if one's dependents
have earned money, they will not need to spend any of that money if they don't
want to. Therefore one doesn't need life insurance.
What about medical insurance? People will still get sick and become injured.
But medical care is one of the necessities of life and those who practice medicine
will be paid for doing so. Thus, one needs no medical insurance either. Medical
treatment doesn't cost money in a non-POM economy.
But what about insuring property? Well, what about it. If the property is
necessities one gets them without paying. If the property is capital goods,
one gets them without paying also. All that's left is luxuries. If one doesn't
want one's luxuries destroyed one will have to be careful with them. Protecting
one's luxuries is up to the owner, of course. But providing places of safekeeping
for valuable objects is a beneficial service for those who own very valuable
luxuries so one would be paid for providing such places. Thus, the property
owner can store that jewelry or that painting in a vault and pay a rental.
Fortunately, theft in a non-POM economy is quite rare so that is of small concern.
Finally, the loss of luxuries, though regrettable, is hardly going to damage
the economy or result in harm to others.
What about the various kinds of business insurance? Those policies are insurance
against damage or destruction of capital goods such as buildings, equipment,
or products. Again, we note that money doesn't buy such things so there would
be no point in a policy which gave one money for their loss.
The absence of insurance eliminates an entire category of POM economy crime
from non-POM economies. The resources which are devoted to the insurance industry
in a POM economy are devoted to production in a non-POM economy. Much more
attention is paid to preventing loss rather than to recovering money to compensate
for loss. The lawsuits which today are a by-product of insurance are completely
absent in a non-POM economy.
Previous: Non-POM and the Military
Next: Non-POM and Sports
Care to comment? Please click here to email us!