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 the he quickly learned a blunt truth: Businessmen neither understood nor welcomed President Franklin D. Roosevelt’s efforts at reforming American capitalism. And they didn’t want legal commentary.
Instead, they wanted to know: “What is the minimum we have to do to achieve compliance with the law?”
In short: How do we get by FDR’s new programs?
Fifty years later, Casey would bring the same mindset to his duties as director of the Central Intelligence Agency (CIA) 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, and Congress be damned.
When news of Casey’s–and Reagan’s–illegal behavior leaked, in November, 1986, it almost destroyed the Reagan administration.
Especially damning: Much of the funding directed to the “Contras” had come from Iran, America’s mortal enemy.
To ransom a handful of American hostages who had been kidnapped in Lebanon, Reagan sold them our most sophisticated missiles in a weak-kneed exchange for American hostages.
Then he went on television and brazenly denied that any such “arms for hostages” trade had ever happened.
Ronald Reagan
But the “Casey Doctrine” of minimum compliance with the law didn’t die with Casey (who expired of a brain tumor in 1987).
It was very much alive within the American business community as President Barack Obama sought to bring 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 fulltime 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’s enemies have long slandered him as a ruthless 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 any obligation to those who make their profits a reality.
John Schnatter, CEO of Papa John’s Pizza, has been quoted as saying:
- The price of his pizzas will go up–by 11 to 14 cents per pizza, of 15 to 20 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 multimillion 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 2014 revenues were $1.60 billion, an increase of 11.1% over 2013 revenues of $1.44 billion.
- Its 2014 net income was $73.3 million, compared to 2013 net income of $69.5 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 his enemies claim he is, he would have predicted that most businesses would seek to avoid compliance with his law.
To counter that, he need only have required employers to provide insurance coverage for all of their employees–regardless of their fulltime or part-time status.
This, in turn, would have produced 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, “I’m paying for fulltime insurance coverage, so 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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SCREEN CRIMINALS AND REAL ONES: PART THREE (END)
In Bureaucracy, Entertainment, History, Law Enforcement, Social commentary, Uncategorized on January 21, 2016 at 12:01 amSean Penn is not the first celebrity to “get close to” a gangster.
Singer Frank Sinatra set the standard as far back as the 1940s when he was often seen in the company of notorious Mafiosi such as Charles “Lucky” Luciano and Willie Moretti.
(It was Moretti who is rumored to have freed Sinatra from his financially-limiting contract with bandleader Tommy Dorsey in the early 1940s.
His alleged method of persuasion: Jamming a pistol down Dorsey’s throat and threatening to kill him. Dorsey eventually sold the contract to Sinatra for one dollar.
But the mobster whom Sinatra was most-often linked with–by gossip and FBI reports–was Sam “Mooney” Giancana.
Giancana started out as a “wheelman” and enforcer for the teenage “42 Gang,” then joined the Chicago mob in the late 1930s. By 1957 he had been appointed its boss.
Sam Giancana
Sinatra often partied with Giancana, both in nightclubs and at his own residence in Palm Springs, California.
In December, 1959, financier Joseph P. Kennedy summoned Sinatra to the family compound in Hyannis Port, Massachusetts. His son, Senator John F. Kennedy, was planning to run for President in 1960. And the elder Kennedy wanted Sinatra’s help.
Sinatra and the Senator were by now well-acquainted. They shared a taste for gossip, nightclubs and beautiful women.
According to Sinatra’s daughter, Tina, the Kennedy patriarch said: “I think that you can help [the campaign] in [the] West Virginia [primary] and Illinois [in the general election] with our friends.
“You understand, Frank, I can’t go. They’re my friends, too, but I can’t approach them. But you can.”
Frank Sinatra
By “our friends,” Kennedy meant the Mafia. Joseph P. Kennedy had done business with the mob as a bootlegger during Prohibition.
Now he wanted the Mafia to pressure local union members into voting for JFK–and making contributions to the Kennedy Presidential campaign.
Sinatra went to his friend, Sam Giancana, and asked for the mob’s support. And Giancana promised to deliver it.
In return, Giancana–and other mobsters–expected to win an ally in the White House. He was later overheard on an FBI wiretap saying he had been promised by Sinatra that “if I even got a traffic ticket, none of those fuckers [the FBI] would know me.”
Since 1959, Giancana and other “Top Hoodlum” mobsters had been under increasingly heavy FBI surveillance. Giancana wanted it stopped.
And Sinatra had assured him that, under a Kennedy Presidency, it would stop.
On Election Night, 1960, John F. Kennedy carried Illinois–and won the White House by a mere 120,000 votes nationwide.
Then, to the horror of the Mafia, JFK installed his brother, Robert Francis Kennedy, as Attorney General. From 1957 to 1959, RFK had pursued gangsters as chief counsel for the Senate Rackets Committee.
Now he declared all-out war on organized crime. Convictions against organized crime figures rose 800% during his four years in office.
Robert F. Kennedy
Sinatra tried to deliver for Giancana. He sent Peter Lawford–his Rat Pack pal and brother-in-law to the President–to talk with Robert Kennedy about laying off on the Mafia don.
Kennedy told Lawford to mind his own business.
Giancana came under even greater pressure. FBI agents put a 24-hour “lockstep” surveillance on him, following him even into church and restrooms.
“I was on the road with this broad,” Giancana raged to his murderous associate, Johnny Formosa. “There must have been 20 guys [FBI agents]. They were next door, upstairs, downstairs, surrounded all the way around!
“Get in a car, somebody picks you up I lose that tail–boom!–I get picked up someplace else! Four or five cars, back and forth, back and forth.”
In another exchange with Formosa, Giancana’s anger at Sinatra boiled over:
“The last time I talked to [Sinatra] was at the hotel in Florida. And he said, ‘Don’t worry about it. If I can’t talk to the old man [Joseph P. Kennedy] I’m going to talk to the man [President Kennedy].’
“One minute he says he’s talked to Robert, and the next minute he says he hasn’t talked to him. So he never did talk to him.”
Formosa suggested a remedy: “Let’s show ’em. Let’s show those fuckin’ Hollywood fruitcakes that they can’t get away with it as if nothin’s happened.
“Let’s hit Sinatra. Or I could whack out a couple of those other guys, Lawford and that [Dean] Martin. And I could take the nigger [Sammy Davis, Jr.] and put his other eye out.”
Giancana refused to issue the contract. But he seriously considered doing so, as he confessed to a Chicago associate named Tommy DiBella:
“One night I’m fucking Phyllis [McGuire, a member of the famous McGuire sisters trio], playing Sinatra songs in the background, and the whole time I’m thinking to myself, ‘Christ, how can I silence that voice?’
“It’s the most beautiful voice in the world. Frank’s lucky he’s got it. It saved his life.”
Sinatra’s Rat Pack “pally,” Dean Martin, summed it up: “Only Frank could get away with the shit he’s got away with. Only Frank. Anybody else would’ve been dead.”
Sinatra survived the murderous anger of a mob boss. It remains to be seen if Sean Penn can do the same.
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