When William J. Casey was a young attorney during the Great Depression, he learned an important lesson.
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.
At first, he thought they wanted detailed legal commentary on the meaning of the new legislation.
But then he quickly learned a blunt truth: Businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism. And they didn’t want legal commentary.
Instead, they wanted to know: “What must we do to achieve minimum compliance 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 deliberately violated Congress’ ban on funding the “Contras,” the Right-wing death squads of Nicaragua.
Casey gave lip service to the demands of Congress. But privately, with the help of Marine Lieutenant Colonel Oliver North, he set up an “off-the-shelf” operation to provide arms to overthrow the leftist government of Daniel Ortega.
It was what President Ronald Reagan wanted. So Casey felt he had a duty to get it done.
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:
- 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?
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.
To counter that, he need only 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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NEGOTIATING NAZI-REPUBLICAN STYLE: PART ONE (OF SEVEN)
In Bureaucracy, History, Politics, Social commentary on August 6, 2013 at 10:00 pmAdolf Hitler, Germany’s Fuehrer for 12 years, had a favorite phrase: “So oder so.”
It meant: “One way or the other.”
That might sound innocuous. But, in Hitler’s case, it carried a sinister tone–as did nearly everything else about the dictator who ruled Germany from 1933 to 1945.
Adolf Hitler
When Hitler faced what he considered a problem, he said he would solve it “one way or another.” Which meant that if he didn’t get his way, he would apply whatever means it took until he did.
Indiana State Treasurer Richard Mourdock, who unsuccessfully campaigned in 2012 to become the Republican U.S. Senator from Indiana, had a similar view toward compromise.
Appearing on the May 9, 2012 edition of right-wing “Fox & Friends,” Mourdock said:
Richard Mourdock
“I have a mindset that says bipartisanship ought to consist of Democrats coming to the Republican point of view.”
Robert Payne, author of the bestselling biography, The Life and Death of Adolf Hitler (1973), described Hitler’s “negotiating” style thusly:
“Although Hitler prized his own talents as a negotiator, a man always capable of striking a good bargain, he was totally lacking in finesse. He was incapable of bargaining. He was like a man who goes up to a fruit peddler and threatens to blow his brains out if he does not sell his applies at the lowest possible price.”
Now, consider the similarity between Payne’s description of Hitler and Mourdock’s description of what “bipartisanship” means to him:
“I’ve said many times through this campaign that one of the things I hope to do is to help build a conservative majority in the United States Senate and continue to help the House build a Republican majority and have a Republican White House and then bipartisanship becomes having Democrats come our way.”
A classic example of Hitler’s “negotiating style” occurred in 1938, when he invited Austrian Chancellor Kurt von Schuschnigg to his mountaintop retreat in Obersalzberg, Germany. Hitler, an Austrian by birth, intended to annex his native land to Germany.
Schuschnigg was aware of Hitler’s desire, but nevertheless felt secure in accepting the invitation. He had been assured that the question of Austrian sovereignty would not arise.
By studying Hitler’s mindset and “negotiating” methods, we can learn much about the mindset and “negotiating” style of our own Republican party.
Shuschnigg opened the discussion with a friendly compliment. Walking over to a large window, he admired the breathtaking view of the mountains.
HITLER: We haven’t come here to talk about the lovely view or the weather!
Austria has anyway never done anything which was of help to the German Reich….I am resolutely determined to make an end to all this business. The German Reich is a great power. Nobody can and nobody will interfere if it restores order on its frontiers.
SCHUSCHNIGG: I am aware of your attitude toward the Austrian question and toward Austrian history….As we Austrians see it, the whole of our history is a very essential and valuable part of German history….And Austria’s contribution is a considerable one.
HITLER: It is absolutely zero—that I can assure you! Every national impulse has been trampled underfoot by Austria….
I could call myself an Austrian with just the same right—indeed with even more right—than you, Herr Schuschnigg. Why don’t you once try a plebiscite in Austria in which you and I run against each other? Then you would see!
SCHUSCHNIGG: Well, yes, if that were possible. But your know yourself, Herr Reich Chancellor, that it just isn’t possible. We simply have to go on living alongside one another, the little state next to the big one. We have no other choice.
And that is why I ask you to tell me what your concrete complaints are. We will do all in our power to sort things out and establish a friendly relationship, as far as it is possible to do so.
HITLER: That’s what you say, Herr Schuschnigg. And I am telling you that I intend to clear up the whole of the so-called Austrian question–one way or another. Do you think I don’t know that you are fortifying Austria’s border with the Reich?
SCHUSCHNIGG: There can be no suggestion at all of that—
HITLER: Ridiculous explosive chambers are being built under bridges and roads—
This was a lie, and Hitler knew it was a lie. But no matter. It gave him an excuse to threaten to destroy Austria—as he was to destroy so many other nations during the next seven years.
* * * * *
Lest this comparison be thought an exaggeration, consider this:
Republicans used precisely the same “negotiating” style during the summer of 2011 to threaten the United States with financial ruin unless they got their way in budget negotiations.
And they are threatening to do the same again this fall.
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