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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OBAMA’S SIX “OBAMACARE” MISTAKES: PART ONE (OF FOUR)
In Bureaucracy, Business, History, Law, Politics, Social commentary on August 5, 2014 at 8:56 amA 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:
Among the poll’s findings:
Among those issues the public does rate as highly important:
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:
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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