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OBAMA’S SIX “OBAMACARE” MISTAKES: PART TWO (OF FOUR)

In Bureaucracy, Business, History, Law, Politics, Social commentary on August 6, 2014 at 11:44 am

In The Prince, his classic treatise on Realpolitick, Niccolo Machiavelli, the Florentine statesman, warned:

“There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.”

This proved exactly the case with the proposed Affordable Care Act (ACA).  Its supporters–even when they comprised a majority of the Congress–have always shown far less fervor than its opponents.

This was true before the Act became effective on March 23, 2010.  And it has remained true since, with House Republicans voting 54 times to repeal, delay or revise the law.

So before President Barack Obama launched his signature effort to reform the American medical system, he should have taken this truism into account.

Obama Mistake No. 3: Failing to consider–and punish–the venom of his political enemies.

The ancient Greeks used to say: “A man’s character is his fate.”  It is Obama’s character–and our fate–that he is by nature a conciliator, not a confronter.

Richard Wolffe chronicled Obama’s winning of the White House in his book Renegade: The Making of a President.  He noted that Obama was always more comfortable when responding to Republican attacks on his character than he was in making attacks on his enemies.

Obama came into office determined to find common ground with Republicans.  But they quickly made it clear to him that they only wanted his political destruction.

At that point, he should have put aside his hopes for a “Kumbaya moment” and re-read what Niccolo Machiavelli famously said in The Prince on the matter of love versus fear:

From this arises the question whether it is better to be loved than feared, or feared more than loved.  The reply is, that one ought to be both feared and loved, but as it is difficult for the two to go together, it is much safer to be feared than loved. 

For it may be said of men in general that they are ungrateful, voluble, dissemblers, anxious to avoid danger and covetous of gain. 

As long as you benefit them, they are entirely yours: they offer you their blood, their goods, their life and their children, when the necessity is remote.  But when it approaches, they revolt…. 

And men have less scruple in offending one who makes himself loved than one who makes himself feared; for love is held by a chain of obligations which, men being selfish, is broken whenever it serves their purpose; but fear is maintained by a dread of punishment which never fails.

Moreover, Machiavelli warns that even a well-intentioned leader can unintentionally bring on catastrophe.  This usually happens when, hoping to avoid conflict, he allows a threat to go unchecked.  Thus:

A man who who wishes to make a profession of goodness in everything must inevitably come to grief among so many who are not good.

And therefore it is necessary, for a prince, who wishes to maintain himself, to learn how not to be good, and to use this knowledge and not use it, according to the necessity of the case.

For President Obama, such a moment came in October, 2013, when House Republicans shut down the government to force Obama to scrap Obamacare.

Obama, a former attorney, heatedly denounced House Republicans for “extortion” and “blackmail.”

Unless he was exaggerating, both of these are felony offenses that are punishable under the 2001 Patriot Act and the Racketeer Influenced Corrupt Organizations (RICO) Act of 1970.

All that he needed do was to order his Attorney General, Eric Holder, to ask the FBI to investigate whether either or both of these laws have been violated.

If violations had been discovered, indictments could have quickly followed– and then prosecutions.

The results of such action can be easily predicted.

  1. Facing lengthy prison terms, those indicted Republicans would first have to lawyer-up.  That in itself would have been no small thing, since good criminal lawyers cost big bucks.
  2. Obsessed with their own personal survival, they would have found little time for engaging in more of the same thuggish behavior that got them indicted.  In fact, doing so would have only made their conviction more likely.
  3. Those Republicans who hadn’t (yet) been indicted would have realized: “I could be next.”  This would have produced a chilling effect on their willingness to engage in further acts of subversion and extortion.
  4. The effect on Right-wing Republicans would have been the same as that of President Ronald Reagan’s firing of striking air traffic controllers:  “You cross me and threaten the security of this nation at your own peril.”

It would no doubt be a long time before Republicans dared to engage in such behavior–if they ever so dared again.

So: Why didn’t the President act to punish such criminal conduct?

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OBAMA’S SIX “OBAMACARE” MISTAKES: PART ONE (OF FOUR)

In Bureaucracy, Business, History, Law, Politics, Social commentary on August 5, 2014 at 8:56 am

A majority of Americans–53%–disapprove of the Affordable Care Act (ACA), better known as Obamacare.

So says a July healthcare tracking poll of the Henry J. Kaiser Family Foundation, a non-profit organization focusing on national health issues

This is clearly a plus/minus situation for President Barack Obama.

On the positive side:  According to the Department of Health and Human Services, Obamacare enrollment has cut the number of uninsured people in the nation by 10 million.

On the negative side: Obamacare has always had weak support among the American public.  Among the reasons for this:

  • Constant Republican attacks labeling the law as “socialistic” (by which they mean “communistic”).
  • Public opposition to the individual mandate that almost everyone obtain coverage.
  • Many Americans think they can’t afford the insurance sold on the Obamacare exchanges–and don’t know that financial aid is available.

Among the poll’s findings:

  • Sixty percent of the public wants Congress to improve the Affordable Care Act, not repeal and replace it.
  • Thirty-eight percent were unaware that the Act offers consumers a choice among private health plans.
  • Less than half of those polled–47%–say they have discussed the law with friends or family.
  • Of that 47%, a majority–27%–say they’ve heard more bad than good about the law in these conversations.
  • Healthcare isn’t a top priority for Americans right now–except for medical care for veterans (71%).

Among those issues the public does rate as highly important:

  • Economy and jobs (70%)
  • Federal budget deficit (68%)
  • Education (66%)
  • Social Security (65%)
  • Illegal imigration (61%)

Click here: Kaiser Health Tracking Poll: July 2014 | The Henry J. Kaiser Family Foundation

Barack Obama is easily one of the most highly educated Presidents in United States history.

He is a graduate of Columbia University (B.A. in political science in 1983).

In 1988, he entered Harvard Law School, graduating magna cum laude–“with great honor”–in 1991.  He was selected as an editor of the Harvard Law Review at the end of his first year, and president of the journal in his second year.

President Barack Obama

He then taught constitutional law at the University of Chicago Law School for 12 years—as a Lecturer from 1992 to 1996, and as a Senior Lecturer from 1996 to 2004.

So where did he go so wrong?   Several ways:

Obama Mistake No. 1: Putting off what people wanted while concentrating on what they didn’t.

Obama started off well when he took office.  Americans had high expectations of him.

This was partly due to his being the first black elected President.  And it was partly due to the disastrous legacies of needless war and financial catastrophe left by his predecessor, George W. Bush.

Obama entered office intending to reform the American healthcare system, to make medical care available to all citizens, and not just the richest.

But that was not what the vast majority of Americans wanted him to concentrate his energies on. With the loss of 2.6 million jobs in 2008, Americans wanted Obama to find new ways to create jobs.

This was especially true for the 11.1 million unemployed, or those employed only part-time.

Jonathan Alter, who writes sympathetically about the President in The Center Holds: Obama and His Enemies, candidly states this.

But Obama chose to spend most of his first year as President pushing the Affordable Care Act (ACA)–which soon became known as Obamacare–through Congress.

The results were:

  • Those desperately seeking employment felt the President didn’t care about them.
  • The reform effort became a lightning rod for Right-wing groups like the Tea Party.
  • In 2010, a massive Rightist turnout cost the Democrats the House of Representatives, and threatened Democratic control of the Senate.

Obama Mistake No. 2: He underestimated the amount of opposition he would face to the ACA.

For all of Obama’s academic brilliance and supposed ruthlessness as a “Chicago politician,” he has displayed an incredible naivety in dealing with his political opposition.

Niccolo Machiavelli (4169-1527), the Florentine statesman and father of modern politics, could have warned him of the consequences of this–through the pages of his famous treatise on the realities of politics: The Prince.

Niccolo Machiavelli

And either Obama skipped those chapters or ignored their timeless advice for political leaders.

He should have started with Chapter Six: “Of New Dominions Which Have Been Acquired By One’s Own Arms and Ability”:

…There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things. 

For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of their adversaries, who have the laws in their favor, and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it.

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GREED WILL FIND A WAY

In Bureaucracy, Business, History, Law, Politics on August 4, 2014 at 10:17 am

When William J. Casey–the future director of the Central Intelligence Agency– was a young attorney, he learned an important lesson.

During the Great Depression, jobs were hard to come by.  So Casey thought himself lucky to land one at the Tax Research Institute of America in New York.

His task was to closely read New Deal legislation and write reports explaining it to corporate chieftains.

He quickly learned that businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism.

Businessmen didn’t want legal commentary.  Instead, they wanted to know: “What’s the minimum we have to do to comply with the law?”

In short: How do we get by FDR’s new programs?

Fifty years later, Casey would bring a similar mindset to his duties as director of the Central Intelligence Agency for President Ronald Reagan.

William J. Casey

He was presiding over the CIA when it repeatedly violated Congress’ ban on funding the “Contras,” the right-wing death squads of Nicaragua.  The resulting scandal almost destroyed the CIA

But the “Casey Doctrine” of minimum compliance didn’t die with Casey (who expired of a brain tumor in 1987).

It’s very much alive among the American business community as President Barack Obama seeks to give medical coverage to all Americans, and not simply the ultra-wealthy.

The single most important provision of the Affordable Care Act (ACA)–better known as Obamacare–requires large businesses to provide insurance to full-time employees who work more than 30 hours a week.

For part-time employees, who work fewer than 30 hours, a company isn’t penalized for failing to provide health insurance coverage.

Obama prides himself on being a tough-minded practitioner of “Chicago politics.”  So it’s easy to assume that he took the “Casey Doctrine” into account when he shepherded the ACA through Congress.

But he didn’t.

The result was predictable.  And its consequences are daily becoming more clear.

Employers feel motivated to move fulltime workers into part-time positions–and thus avoid

  • providing their employees with medical insurance and 
  • a fine for non-compliance with the law.
Some employers have openly shown their contempt for President Obama–and the idea that employers actually have an obligation to those who make their profits a reality.
The White Castle hamburger chain is considering hiring only part-time workers in the future to escape its obligations under Obamacare.

No less than Jamie Richardson, its vice president, has admitted this in an interview.

“If we were to keep our health insurance program exactly like it is with no changes, every forecast we’ve looked at has indicated our costs will go up 24%.”

Richardson claimed the profit per employee in restaurants is only $750 per year.  So, as he sees it, giving health insurance to all employees over 30 hours isn’t feasible.

Nor is Richardson the only corporate executive determined to shirk his responsibility to his employees.

John Schnatter, CEO of Papa John’s Pizza, has been quoted as saying:

  1. The prices of his pizzas will go up–by eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order; and
  2. He will pass along these costs to his customers.

“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”

After all, why should a multi-million-dollar company show any concern for those who make its profits a reality?

 John Schnatter

Consider:

  • Papa John’s is the third-largest pizza takeout and delivery chain in the United States.
  • Its 2012 revenues were $318.6 million, an 8.5 percent increase from 2011 revenues of $293.5 million.
  • Its 2012 net income was $14.8 million, compared to its 2012 net income of $12.1 million.

In May, 2012, Schnatter hosted a fundraising event for Republican Presidential candidate Mitt Romney at his own Louisville, Kentucky mansion.

“What a home this is,” gushed Romney.  “What grounds these are, the pool, the golf course.

“You know, if a Democrat were here he’d look around and say no one should live like this. Republicans come here and say everyone should live like this.”

Of course, Romney conveniently ignored a brutally ugly fact:

For the vast majority of Papa John’s minimum-wage-earning employees-–many of them working only part-time-–the odds of their owning a comparable estate are non-existent.

Had Obama been the serious student of Realpolitick that he claims to be, he would have predicted that most businesses would seek to avoid compliance with his law.

And had he been the ruthless practitioner of “Chicago politics,” as his enemies claim, he would have required all employers to provide insurance coverage for all of their employees—regardless of their fulltime or part-time status.

This, in turn, would have provided two substantial benefits:

  1. All employees would have been able to obtain medical coverage; and
  2. Employers would have been encouraged to provide fulltime positions rather than part-time ones, since they would feel: “Since I’m paying for fulltime insurance coverage, I should be getting fulltime work in return.”

The “Casey Doctrine” needs to be kept constantly in mind when reformers try to protect Americans from predatory employers.

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WHY THE POOR SUPPORT THE RICH: PART TWO (END)

In Bureaucracy, History, Law, Politics, Social commentary on August 1, 2014 at 10:53 am

Republicans have long tried to prevent or eliminate programs that aid the poor and middle-class, including:

  • Social Security – since it began in 1935
  • Medicare  – since it began in 1965
  • Food stamps – since it began in 1964
  • WIC (Women, Infants, Children) – since 1972
  • The Affordable Care Act (Obamacare) – since 2010

So why are so many poor Americans now flocking to this party’s banner?

Two reasons: Racism and greed.  There are historical parallels for both.

Racism:

In 1999, historian Victor Davis Hanson noted the huge gap in wealth between the aristocratic, slave-owning minority of the pre-Civil War South and the vast majority of poor white Southerners.

“Before the war in the counties Sherman would later ruin, the top 10% of the landowners controlled 40% of the assessed wealth.”

In contrast, “more than half of those who were lucky enough to own any property at all still possessed less than 15% of the area’s valuation.”

So Hanson asked: “Why did the millions of poor whites of the Confederacy fight at all?”

He supplied the answer in his brilliant work on military history, The Soul of Battle: From Ancient Times to the Present Day, How Three Great Liberators Vanquished Tyranny.

One of those liberators was General William Tecumseh Sherman, who led 62,000 Union troops in a victorious “March to the Sea” through the Confederacy in 1864.

So why did so many poor Southern whites literally lay down their lives for the wealthy planter class, which despised them?

According to Hanson: “Behind the entire social fabric of the South lay slavery.

“If slavery eroded the economic position of the poor free citizens, if slavery encouraged a society of haves and have-nots…then it alone offered one promise to the free white man–poor, ignorant and dispirited–that he was at least not black and not a slave.”

And the planter class and its allies in government easily fobbed off their poor white countrymen with cheap flattery.  Said Georgia Governor Joseph Brown:

“Among us the poor white laborer is respected as an equal.  His family is treated with kindness, consideration, and respect.  He does not belong to the menial class.  The negro is in no sense his equal.   He belongs to the only true aristocracy, the race of white men.”

The reality of slavery

Similarly, poor whites now flock to the Republican Party–which holds them in equal contempt– in large part to protest the 2008 election of the first black President of the United States.

According to a Pew Research Center study released on July 22, 2011: “Notably, the GOP gains have occurred only among white voters; a 2-point Republican edge among whites in 2008 (46% to 44%) has widened to a 13-point lead today (52% to 39%).”

GOP Makes Big Gains among White Voters | Pew Research Center for the People and the Press

Since the 1960s, Republicans have pursued a campaign policy of “divide and rule”–divide the nation along racial lines and reap the benefits at election time.

  • Republicans opposed the Civil Rights Act of 1964.
  • Republicans opposed the Voting Rights Act of 1965.
  • Republicans, with Richard Nixon as their Presidential candidate in 1968 and 1972, pursued what they called a “Southern strategy”: Use “code language” to stoke fear and hatred of blacks among whites.
  • Republicans have falsely identified welfare programs exclusively with non-whites.  (Of the six million Americans receiving food stamps, about 42 percent are white, 32 percent are black, and 22 percent are Latino—with the growth fastest among whites during the recession.)

Thus, in voting Republican, many of these poor whites believe they are “striking a blow for the white race.”

And they can do so in a more socially acceptable way than joining a certified hate group such as the American Nazi Party or Ku Klux Klan.

Greed:

In the hit play, 1776, on the creation and signing of the Declaration of Independence, there is a telling exchange between John Dickinson and John Hancock.  It comes during the song, “Cool, Cool, Considerate Men.”

Dickinson, the delegate from Pennsylvania, urges Hancock, president of the Second Continental Congress, “to join us in our minuet.”

By “us” he means his fellow conservatives who fear losing their property and exalted status by supporting American independence from Great Britain.

Hancock declines, saying: “Fortunately, there are not enough men of property in America to dictate policy.”

To which Dickinson replies:  “Perhaps not.  But don’t forget that most men with nothing would rather protect the possibility of becoming rich than face the reality of being poor.  And that is why they will follow us.”

Today, poor whites generally identify with the CEOs of powerful corporations.  They believe the Republican gospel that they can attain such wealth–if only the government will “get out of my way.”

They forget–or ignore–the brutal truth that government, for all its imperfections, is sometimes all that stands between them and a wide range of predators.

In return, the CEOs despise them as the privileged have always despised their social and economic “inferiors.”

Unless the Democratic Party can find ways to directly address these bitter, Politically Incorrect truths, it will continue its decline into insignificance.