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Edward Cone: It's time to stand up to big business

Sunday, September 27, 2009
(Updated 3:00 am)

 

Wendell Potter looked at the health care bill proposed by Senate Finance Committee chairman Max Baucus and saw within it "more than the insurance industry could have hoped for."

Potter is a former executive at Cigna who has become a vocal critic of his old industry and its attempts to manipulate reform. The Baucus plan, he says, is the result of a political process dominated by corporate interests, complete with language that could have been written by lobbyists. And Potter is far from alone. There is little doubt who calls the tune in Washington.

Remember, this is a bill floated by the Democrats, who were supposed to offer some improvement over the previous Republican Congresses, which operated proudly as wholly owned subsidiaries of Big Business. So far there's been more hope than change, and a K Street address still awes our elected representatives.

That's one reason the health care debate is so important. Vital as it is to bring our insurance system up to standards taken for granted in the rest of the industrialized world, the fight over reform also serves as a proxy for a larger battle under way about the role of government.

I'm not talking here about the road to socialism, although some people have an ideological aversion to any government role in health care beyond the popular programs that already serve millions of Americans, and do so without turning us all into Bolsheviks. There is another critical question, not so much about the size of the public sector as whom the public sector serves -- whether we have a government by the people and for the people, or one that serves corporations, often at our expense.

We are as a nation suspicious of power. It's a distrust encoded in our political DNA, dating back to the founding of the republic, and deeply ingrained in our culture. Most often, we think in terms of political power and its threats to liberty, and with good reason.

But government is not the only power to be reckoned with, and sometimes it serves as a necessary counterbalance to other forms of influence.

Suspicion of commercial interests was evident in the days of the Founders (they also believed that government could be too weak, which is why they took a mulligan and wrote the Constitution after the Articles of Confederation proved inadequate). Thomas Jefferson said that he hoped to "crush in its birth the aristocracy of our moneyed corporations." His successors, including Teddy and Franklin Roosevelt, achieved greatness -- and helped save capitalism -- by standing up to corporate power.

Now, after a generation in which the clout of big business has grown enormously, and respect for the useful machinery of the marketplace has mutated in some quarters into something close to idolatry, we need to rethink the common belief that says government is always the problem.

You might suppose that the implosion of the financial sector, a catastrophe enabled to a great degree by the deregulators and market worshippers, would have made this clear, but received wisdom does not die easily.

Talk about socialism: We've been so busy making sure that bankers stay rich that we have yet to reform their industry. And of course those moneyed corporations keep flogging their self-serving mythology through the think tanks they fund, and the rallies they help underwrite, and the political influence they buy in bulk. These folks spend billions each year on advertising; they know something about shaping public opinion.

Anyone who has dealt with the phone company, or a big bank, or, yes, a health insurer, knows that corporate bureaucracy and red tape are no great improvement over the government variety. And because business is about making money, not serving the needy or the common good, there is reason to think that the profit motive simply fails to address all of the contingencies found in the health care realm.

The larger issue here, though, goes beyond customer service, or accountability, or access to primary care. It's the question of who really controls our government, and what master government serves -- the people or the moneyed interests. However powerful business might be, allowing it to set government policy is like putting it on steroids.

The most famous warning of this danger was sounded by President Dwight Eisenhower, a Republican war hero who cautioned against the rise of a "military-industrial complex." Looking at the close relationships today between big government and agribusiness, oil companies, private security firms, the prison industry, and many others, Eisenhower would think we ignored him completely.

Insurance companies do a lot of good things, and a lot of good people work for insurance companies. Government is not the solution to every problem, and the reforms most likely to be adopted for our health care system involve substantial private-sector options. There will never be a perfect balance between power centers, and there will always be a need to test and realign the balance between them over time.

But at this moment, in this fight for reform, it's clear that the corporations are the ones with too much power.

Edward Cone (www.edcone.com,efcone@mindspring.com) writes a column for the News & Record on alternate Sundays.
 

Comments

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jstevenh1952

September 27, 2009 - 9:55 am EDT

C'mon Cone. Can you get just a little more bias in your left wing blubbering? Wendell Carter (oops Freudian slip) I mean Potter, is one of the largest proponents of the Public Option in the healh care reform battle. His nose is so far up Pelosi, Reid and the rest of Democracts that he can't blink his eyes. And you cite him as a watchdog for freedom and unbias?

Read his comments on Michael Moore's movie SICKO. Get real, this guy was a communications director. You make him out to be an executive "who saw the light". Rubbish. This guy is nothing more than a disenfranchised idividual, who now clammors for the support of the left. Hardly a spokesman for reform, unless you think the left is reform.

Oh yeah, hows that "Hopey Changy thing workin'?" Can you at least develope your own opinions with out towing the far lefty line? MMM.....MMM....MMM...the One will fix it....MMM...MMM....MMM.

jbcarper

September 27, 2009 - 10:03 am EDT

As is the case with so many on the left AND the right, parties want to jump straight to solutions without clearly defining the problem to be solved.
What exactly is the problem with health care that government is seeking to remedy? If the problem is that health-care is too expensive, just what does that mean? Does too expensive mean that each person in the health-care industry is making too much money, the nurses, doctors, clerical assistants, insurance executives, researchers, etc? Or does it mean that, on whole, too much of our societal resources are being used up providing health benefits? Does it mean that getting an appointment to have your child checked for the flu is too expensive, or that treatment for cancers or liver diseases are costing more than we can afford?
Is the problem that too many people can't afford health related treatment? Is the problem income or the fact that too many people have excessive debts that chew up their income?
Different problems require different solutions. Define the problem first. The solution will follow.

jstevenh1952

September 27, 2009 - 10:17 am EDT

Very good point. Unfortunately too many words. All good ones though. It is amazing how the public-owned insurance companies, our neighbors posing as doctors and nurses are the problem based on their "cost". The crux of this "health care reform" can be narrowed to one cause, our Government's desire to control more of our lives. Let's all read between the lines. If Medicare is wasting 500 billion, fix it. If insurance companies can't compete for small busines, fix it. Fix the things we can first, then develop a plan. Not a massive Government program that will ceretainly break our country. These challenges can be met without the Government becoming a bigger part of our lives.

jbcarper

September 27, 2009 - 10:41 am EDT

We seem to be unwilling or unable to seriously discuss issues in this country. Whether it is Sarah Palin calling them 'Death Panels' or the health care bill calling for 'end of life counselling', we lack the ability to rationally discuss dying. From what I have read, a major portion of our health care dollars is being spent during the last few years of an individuals life. How do we talk with individuals and families about the relative value of keeping a person alive for 6 months, 1 year, 5 years? It's easy to say that we should spend every resource available to keep people alive as long as possible. It's easy, that is, if it's not your dollar.
Collectively we don't seem to want religion to interact with government, but when it comes to this type of issue, all sources of moral values have to be considered. Religion has historically been a very significant source of moral compass.
If we are going to control health care costs, or welfare costs, or educational costs, we have to start rationally defining problems and outlining the moral imperative that says we collectively need to share resources towards the solution.

Panacea

September 27, 2009 - 11:52 am EDT

The problem has been well defined for years. It is long past time to act.

We spend 16% of the GDP on health care, as opposed to 7% in 1970. It is expected that number will rise to 20% by 2020. Insurance premiums have risen a staggering 73% since 2000. A third of the the 47 million Americans who are uninsured make $50,000 per year.

Part of the problem is insurance companies who cancel policies of the sick, or refuse to pay for treatment after the customer has spent years paying into the plan. Part of the problem is a reimbursement system that favors high priced and unproven treatments at the expense of cheaper, proven treatments: great for specialists and hospitals, bad for primary care docs and patients.

Our society can afford to give great health care to its citizens. The problem is, the system is riddled with waste and political influence designed to maintain the status quo and keep the bucks flowing to the deep pockets of Big Pharma, Hospital CEO's, and specialists. Money drives the decisions made in our health care, and we the consumer have no voice or control over the choices in insurance we have, and little recourse when claims are denied.

A public option will force the insurance industry to compete fairly with consumers. It will set standards and protections for patients so they are not denied care when they need it most.

Bob Muir

September 27, 2009 - 11:12 am EDT

Jbcarper is correct to point out that the problem(s) should be clearly identified, but I believe a more important thing to identify is a fundamental principle upon which to design an adequate system of providing and funding health care. Then the real problems can be more easily identified.

I strongly recommend that everyone read The Healing of America: A Global Quest for Better, Cheaper, and Fairer Health Care, T. R. Reid.

Please do not reply to this with accusations of “socialism”, especially if you have not read the book.

Reid took a personal ailment to numerous countries including France, Germany, Japan, the UK, Canada, India, Sweden & others to determine the kind of diagnosis he would receive, the recommended treatment, the cost, and the "waiting period". While in these countries he interviewed providers, citizens, bureaucrats, and government officials to determine how the various systems work and how well they were working.

He found that none of them are perfect, but that all in the "developed" countries the health care systems are preferable to ours and cost less. They are all based on the concept of equality of their people.

Remember the Declaration of Independence says “…all men are created equal…” and “…pursuit of Happiness…”. Also, the U.S. Constitution says “…promote the general Welfare…”.

I take these passages and conclude that all persons in the U.S. should have equal access to a suitable minimum quality of health care. People cannot be happy nor can they be in a general state of welfare if they are suffering or dying because of lack of access or will have to declare bankruptcy in order to obtain medical care.

We should be able to move to a U.S. health care system that benefits from the best practices of the other developed nations, but fits our national needs, but we need the basic principle of equality upon which to develop such a system.

jbcarper

September 27, 2009 - 11:31 am EDT

Your interpretation of the general welfare clause has been used for decades as a justification for involving government in every aspect of our private lives. Please justify that interpretation. It's not in the Constitution.
Why should I be responsible for your, or others, health care issues? I may choose to help as a matter of charity or self-imposed moral obligation. But on what principle(s) do you justify forcing me, through legislation and the power of the state, to participate in taking care of others? If you want me to read the writings of Mr. Reid, perhaps I can suggest that you read Bastiat's analysis of legalized plunder.

Panacea

September 27, 2009 - 11:58 am EDT

You contradict yourself: first you admit and to promote the general welfare is in the Constitution, then you say it isn't. which is it?

Why is using that clause to support legislation that helps and protects the public wrong? When you look at the Founding Father's fear of a "moneyed aristocracy", the clause makes perfect sense.

jbcarper

September 27, 2009 - 12:11 pm EDT

Please excuse the wording. The interpretation of the general welfare clause as authorizing the government to take over welfare, health care, etc. is not found within the wording of the Constitution. That interpretation came through Supreme Court decisions that general welfare really meant 'do whatever Congress wants to as long as they have the votes'.

dcolin

September 27, 2009 - 9:40 pm EDT

You are complicating it.

If it is not found unconstitutional by the courts?
Congress can pass and have enforced any regulations/laws they deem necessary.

It is that simple. No?

jbcarper

September 27, 2009 - 12:26 pm EDT

The only thing wrong with the government approving legislation that helps and protects the public is that they forget that the public needs to be protected from the government as much as anything. Our Founding Fathers didn't just fear the moneyed aristocracy, they feared the rabble masses just as much. That's why presidents are elected by the Electoral College instead of popular vote. That's why, until the 17th amendment, the Senators represented the State Legislators, not the public voter. Checks and balances to ensure that the government did not become a major player in the day to day life of the citizen.
I don't necessarily feel that having government involved in Health Care is inherently bad. I do think it should be done by the States instead of at the Federal level.

Mostly I believe we need to openly discuss why we need to force our citizens to care for each other instead of allowing free will choice to provide this care through charity.

Ed Cone

September 27, 2009 - 12:19 pm EDT

I'm making the arguments about excessive corporate power made throughout American history, from Jefferson to Eisenhower. Ignoring that tradition seems more radical to me than considering it.

Healthcare problems are pretty clear: for those with insurance,. we lack portability from job to job, which impairs freedom and entrepreneurship; ditto lack of coverage for preexisting conditions. And insurance often fails to cover what it should. For people without insurance, the problems are even more obvious. And the costs are a drag on the economy.

Other countries manage to have effective, less-costly systems, often with significant private options. I believe our country can do the same.

jstevenh1952

September 27, 2009 - 7:47 pm EDT

Yes, but you use Wendell Potter as a point of reference and positive position. Mr. Potter's entire premise is the taking apart of the heath care establishment in favor of a government controlled system. In fact in a recent article in Forbes Magazine, it was pointed out that our survial rates from major diseases such as cancer and heart disease are significantly better than most all nations having a Government controlled heath care system. In fact it is the left, which you represent in your article cite that our mortality is lower than those with "Government systems". But the fact is the OCED reports that our mortality rates for all cancers is 166 to 100k. This is lower than the average for all and much lower that the 179 per 100k for Canada.

This were the divide is drawn, you and the ilk of Potter want to remove that choice and impose a Government takeover of all our economy, not just health care. This week the government will announce that for the next two years, that social security payments will exceed the inflow from workers. Reforming the system will not be proposed as an option, but an increase in taxes. This a system that the left continually cites as a "great accomplishment". Were is the corporate greed here? We do not need more Government programs that will certainly bankrupt our country beyond the realities that we can never imagine.

Cone, we have issues in our system, Government regulation can fix some of it, but in the end our system is a free system one that is dictated by the demand for quality and the freedom to choose lifestyles. Replacing this with a Government controlled system as Potter suggests, removes more of our freedoms. Liberty is not equality and neither can we be free to make our choices if the Government controls the outcome for the few. Potter is a poor reference for reform, unless you consider more Goverment involvement in our lives reform. Maybe you do, so this is moot.

Ed Cone

September 27, 2009 - 8:45 pm EDT

"you and the ilk of Potter want to remove that choice and impose a Government takeover of all our economy, not just health care."

Well, no. That's something you are making up. Perhaps you believe it, or perhaps you just don't want to discuss the issue at hand. In any case, it does not represent my own views.

Potter is a former health care exec. He's familiar with the anti-reform arguments the industry makes, and his change of heart after years of pushing the company line is interesting to consider.

The fact is that a healthcare system that relies on the profit motive alone doesn't address the needs of people who may not be profitable customers. This is one of the areas, like public safety, where the market alone does not seem to offer a solution for all needs.

You can dismiss Potter, and you can dismiss me, but the problems with our system remain, as do the questions about excessive corporate power raised by everyone from Jefferson to TR to Eisenhower. Ignore those questions at your peril, and the peril of our freedom.

jbcarper

September 27, 2009 - 8:57 pm EDT

It seems to me that we would simply trade the peril of big corporations for the peril of government. At least big business can't stick me in jail for not obeying them.

jstevenh1952

September 27, 2009 - 11:07 pm EDT

Amen. Quoting my words back resembles a lack of fortitude backed by limited intelligence. Our Government wants nothing more than to impose more control in our lives. I am tired of the populist jabber busting "big corporations". All owned by the public, employing tens of thousands of citizens and providing significant benefit to the communities they serve. It seems the solution to our problems is to replace our corporations with the Government, that really makes sense.

Left wing "journalists" like Cone, aspire to ideals that if they can throw one historical figure into their cause they are justified.

Potter was a communications person, not a CEO or other policymaker with CIGNA or Humana or any of the other companies he worked for decades.

Two things, Cone look who quotes him and read his texts. I would hardly call Bill Moyer objective, much less the Center for Media and Democracy.

Here is a recent quote from a trip to DC mid September speaking of health care corporations...

"It's also why people stand in line to be treated in pig stalls.

"This is the real world for so many Americans," Potter said, "and it will be the real world for a lot more Americans if we don't have some real reforms."

Now how many folks do you know in our community are being treated in "pig stalls"? C'mon.

This guy is a left wing wacko, a proponent of the liberal machine that wants more control in all our lives. I think before you cite a reference like Potter, study up. You sound a little biased, unless it doesn't really represent your views?

Ed Cone

September 29, 2009 - 4:53 pm EDT

Quoting your words is simply a way to make comments intelligible as the conversation jumps around.

The reference to pig stalls came from Potter's visit to a free, traveling medical clinic, which drew hundreds of people when it came to SW Virginia, near his parents home. The same clinic recently made headlines when it came to Los Angeles. This is the reality of our current healthcare system.

You can call names all you like, but that doesn't refute the historical reality embodied in those quotes from Jefferson and Eisenhower. As I said in the column, we fear too much government power with good reason, but sometimes government is the necessary bulwark against other forms of power.

I believe the American people can strike the balance between various power centers. It's a messy process, and it plays out over time, but we've done it many times in the past.

Bob Muir

September 27, 2009 - 12:22 pm EDT

jbcarper: Please provide a specific reference to "analysis of legalized plunder". I admit I don't know the works of Bastiat's works. He seems to be a fundamental capitalist. As we have seen in the U.S. absolute capitalism does work especially well, since as Bastiat believed, people are fundamentally driven by self interest and those with the capital subjugate those without it. His world view was based on what he knew in the early 1800s. It would be interesting if we could know what his economic theories would be today.

Please don't call me a socialist or a communist.

jbcarper

September 27, 2009 - 12:29 pm EDT

Frédéric Bastiat (1801-1850) was a French economist, statesman, and author. He was the leader of the free-trade movement in France from its inception in 1840 until his untimely death in 1850.

You can find a lot of references to Bastiat on the internet including some free mp3's of his books. I'll try to research and post a link later this afternoon.

jbcarper

September 27, 2009 - 4:39 pm EDT

Some links to Bastiat's writing called The Law:

http://www.constitution.org/law/bastiat.htm
http://bastiat.org/en/the_law.html
http://www.freeaudio.org/

The last link is for MP3 audio's of The Law. It's free.

Quotation from The Law:

Property and Plunder

Man can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of property.

L.21
But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder.

L.22
Now since man is naturally inclined to avoid pain—and since labor is pain in itself—it follows that men will resort to plunder whenever plunder is easier than work. History shows this quite clearly. And under these conditions, neither religion nor morality can stop it.

L.23
When, then, does plunder stop? It stops when it becomes more painful and more dangerous than labor. It is evident, then, that the proper purpose of law is to use the power of its collective force to stop this fatal tendency to plunder instead of to work. All the measures of the law should protect property and punish plunder.

L.24
But, generally, the law is made by one man or one class of men. And since law cannot operate without the sanction and support of a dominating force, this force must be entrusted to those who make the laws.

L.25
This fact, combined with the fatal tendency that exists in the heart of man to satisfy his wants with the least possible effort, explains the almost universal perversion of the law. Thus it is easy to understand how law, instead of checking injustice, becomes the invincible weapon of injustice. It is easy to understand why the law is used by the legislator to destroy in varying degrees among the rest of the people, their personal independence by slavery, their liberty by oppression, and their property by plunder. This is done for the benefit of the person who makes the law, and in proportion to the power that he holds.

L.26

Victims of Lawful Plunder

Men naturally rebel against the injustice of which they are victims. Thus, when plunder is organized by law for the profit of those who make the law, all the plundered classes try somehow to enter—by peaceful or revolutionary means—into the making of laws. According to their degree of enlightenment, these plundered classes may propose one of two entirely different purposes when they attempt to attain political power: Either they may wish to stop lawful plunder, or they may wish to share in it.

L.27
Woe to the nation when this latter purpose prevails among the mass victims of lawful plunder when they, in turn, seize the power to make laws!

L.28
Until that happens, the few practice lawful plunder upon the many, a common practice where the right to participate in the making of law is limited to a few persons. But then, participation in the making of law becomes universal. And then, men seek to balance their conflicting interests by universal plunder. Instead of rooting out the injustices found in society, they make these injustices general. As soon as the plundered classes gain political power, they establish a system of reprisals against other classes. They do not abolish legal plunder. (This objective would demand more enlightenment than they possess. ) Instead, they emulate their evil predecessors by participating in this legal plunder, even though it is against their own interests.

L.29
It is as if it were necessary, before a reign of justice appears, for everyone to suffer a cruel retribution—some for their evilness, and some for their lack of understanding.

L.30

The Results of Legal Plunder

It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder.

L.31
What are the consequences of such a perversion? It would require volumes to describe them all. Thus we must content ourselves with pointing out the most striking.

L.32
In the first place, it erases from everyone's conscience the distinction between justice and injustice.

L.33
No society can exist unless the laws are respected to a certain degree. The safest way to make laws respected is to make them respectable. When law and morality contradict each other, the citizen has the cruel alternative of either losing his moral sense or losing his respect for the law. These two evils are of equal consequence, and it would be difficult for a person to choose between them.

L.34
The nature of law is to maintain justice. This is so much the case that, in the minds of the people, law and justice are one and the same thing. There is in all of us a strong disposition to believe that anything lawful is also legitimate. This belief is so widespread that many persons have erroneously held that things are "just" because law makes them so. Thus, in order to make plunder appear just and sacred to many consciences, it is only necessary for the law to decree and sanction it. Slavery, restrictions, and monopoly find defenders not only among those who profit from them but also among those who suffer from them.

Bob Muir

September 27, 2009 - 5:58 pm EDT

jb, Thanks. I didn't know the topic of plunder was in The Law.
Bastiat was a very insightful man. Many of his comments on the nature of man ring reasonable to true.
Our current problem is how to straighten out the functioning of U.S. government, Wall Street, big corporations, and those who have been unable or unwilling to ween themselves from "the dole".

What kinds of solutions are proposed, should go back to the fundamental concept of equality of all persons regarding fundamental rights.

It certainly wont be quick or easy to straighten things out. Even though I am usually a pretty optimistic person, alas, here I am pretty pessimistic.

Bob Muir

September 27, 2009 - 6:05 pm EDT

My pessimism comes from the observed behavior of so many persons railing against attempts to reform health care without having read any of the proposed bills with an open mind, but apparently accepting the disingenuous and incorrect criticisisms many "talking heads" have made. Too many people are expressing unfounded opinions without doing any research.

jbcarper

September 27, 2009 - 6:45 pm EDT

It's hard not to whine against legislation when it is only half written to start with and the part that is written is so fuzzy that it could mean anything. And yet the proposal that said legislation would have to be written and presented 3 days prior to voting in the committee was defeated. I confess to feeling that Congress is trying to hide what they are doing from the American people.

jstevenh1952

September 27, 2009 - 10:47 pm EDT

This guy rarely gets 22 hits. And on a Sunday.

tledford

September 29, 2009 - 10:21 am EDT

Everyone knows Eisenhower was a commie pinko. :-D

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