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.
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:
- 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
- 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:
- All employees would have been able to obtain medical coverage; and
- 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 amRepublicans have long tried to prevent or eliminate programs that aid the poor and middle-class, including:
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.
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.
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