Don’t Kid Yourself. It’s Still a Corporate Court. Here are 10 Lessons From CEO Roberts.
Was today's ruling a victory for justice over corporate power? Did Chief Justice John Roberts rise above partisan differences because that's where an honest reading of the law took him?
Nah. The majority on this Supreme Court is a wholly-owned subsidiary of Corporate America. Call it SCOTUS™ Inc., and it's brought to you by the same fine folks that gave you Citizens United and Bush v. Gore. John Roberts is its CEO, not its Chief Justice.
The point isn't to reinforce anybody's cynicism. But you can't be idealistic in an effective way until you see things as they really are.
Roberts Rules
It was a shrewd move. Remember, as CEO of SCOTUS™ Inc., John Roberts is running the subsidiary of a large conglomerate. I've had that job myself, and trust me: you've got to please the parent or you're out of business.
By casting the decisive vote (who knows whether it really was the deciding vote, or whether the right-wing majority made it look that way) Roberts acted in the best interests of corporate conservatism, for-profit healthcare companies, and - most importantly of all - of the far-right political force which is today's Republican Party.
He had three options: Strike down a signature piece of Democratic legislation in its entirety, which would look highly partisan; strike down the individual mandate, which would look even worse since it was a conservative Republican idea; or uphold the law in a way that's designed to do maximum political damage to the Democrats and protect the Court's current corporate status.
Weighing the Options
Striking down the law would have cost the Court immeasurably in what corporate accountants call "good will."It would have widened and deepened the common (and accurate) perception that this Court's majority acts in a partisan, ideological, and pro-corporate manner, regardless of the law. It would have polluted the Court's brand even further.
It also would have given new momentum to the single-payer movement, galvanized Democrats, alienated independents, and strengthened the argument against electing a Republican President who would provide more Justices in favor of Bush v. Gore type decisions.
What about striking down the individual mandate alone? The mandate has provided great rhetorical fodder for the right (we were among the few to predict it would, or to accurately predict the political impact of this law), so why deprive them of such a good political tool? It was never in the GOP's partisan interests to do that. It would have left the bill's most popular provisions intact, giving the Democrats a stronger bill to run on and weakening the GOP's case against it.
Besides, it's a great boon for health insurers. I never believed the court would strike down the mandate and leave the law's other provisions standing. That would be an actuarial nightmare for the insurance industry. They'd never tolerate a move like that.
The Decision
By defending the law, Roberts made the right decision for Corporate America. He was also able to severely limit the Federal government's ability to regulate commerce, which I believe is a major setback in a number of legal areas that's likely to provide a lot of benefit to corporations in the years to come. Since I'm not an attorney, I'll leave that analysis to others. But I'm surprised that aspect of the ruling hasn't received more attention.
Stock prices in the for-profit hospital industry soared, rising 7 percent in heavy trading immediately after the Court ruling. Stocks for the nation's largest health insurers barely moved, despite what must have been some heavy pre-Court betting that the conservative majority would overturn the entire law.
That tells us something important: Roberts' decision to side with the liberals and moderates didn't exactly create a revolution in our health care economy.
Like the head of any subsidiary, Roberts made the choice that was best for his parent. Sure, he's taking some heat from the Right. Like any good executive, he's willing to take one for the team.
He may not be much of a Chief Justice, but John Roberts is a very good CEO.
Red Meat
By joining with the liberals, Roberts was able to write the ruling himself. He did it in a way which the other four disagreed with, but which was designed to provide talking points for Republicans and the Right. He labeled the mandate's penalty a "tax" (which it is; so is the so-called "Cadillac tax" on higher-cost health plans, which Obama campaigned against and then personally inserted into the bill).
That was red meat, and it was immediately gobbled up by the likes of Sarah Palin. "It is a tax," said Palin. "Obama lies; freedom dies." But Palin also "thanked God" for the ruling because she said it would fire up her base. "We did not want this tax," she said. "We can't afford this tax."
Democrats, take heed: That's the battle cry, and the battle plan, for November.
Roberts also used the occasion to savage Medicaid's expansion, by limiting the Federal government's ability to withhold funds for states which do not cooperate. This was apparently the result of some horse trading among the justices, but Roberts seized the opportunity for more incendiary conservative language. He called that kind of withdrawal "economic dragooning" on the part of the Federal government, which is more red-meat rhetoric for Republican campaigns to use in November. In the real world, this decision has precisely the opposite effect: It allows states to "dragoon" Federal funds without provide the full range of coverage for which those funds are intended. (Will that happen? George Zornick has more.)
In case the political nature of Roberts' language was not clear, he added: "“It is not our job to protect the people from the consequences of their political choices."
Who wants to argue that those words don't come from a partisan Court?
10 Lessons for the Battles to Come
There's a corporate war against the middle class and its financial security, with many battles yet to come. Will the left stop waging them from a defensive position? There are ten lessons to be learned from this ruling:
1. Declare victory where victory is real: Democrats should declare victory for the popular provisions of the law: no exclusions for pre-existing conditions, coverage for those who can't afford it, the extension of coverage for children to age 26. Wendell Potter offers a great example of how to "sell" this law to the American people.
2. Don't BS the public: But Democrats would be foolish to oversell this law. In response to the ruling, the President said today that the Court has "reaffirmed a fundamental principle that here in America -- in the wealthiest nation on Earth – no illness or accident should lead to any family’s financial ruin." That's the wrong approach for a number of reasons, one of which is that people still feel that they can't afford health care - and they're right.
A majority of those who declare bankruptcy due to medical expenses already have health insurance, and the protections in this law aren't enough to prevent that from happening. Premiums and out-of-pocket costs continue to rise for insured Americans. Health insurance costs rose more last year than they had in six years, to more than $15,000 for a family of four, and they've risen by 50 percent since 2003. Democrats should acknowledge these problems, discuss ways this law will help and, most importantly, promise to do more in the next term.
3. Pledge to strengthen the law: That means Democrats should promise to improve this law, not attempt to suggest it provides more than it does. They should frame the November elections as choice between "helping us do even more for the American people" or "Republicans gutting your health care today, while you're young, and tomorrow when you reach age 65."
4. Strike back at the "tax" message: Democrats have to forcefully explain that the law's penalties will only apply to a very small number of people before that the right's "we can't afford this tax" mantra takes hold in the public mind. It wouldn't hurt if they reminded people that the penalties are almost unenforceable, too.
5. Keep the pressure on: Independent progressives should press Democrats in Washington for better cost controls, and less corporate power over life-and-death decisions. There are some mild limits on profit-driven healthcare in this bill, but they're not enough. (As a former health insurance insider, I can also tell you that many of them are easily gamed.)
Progressives inside and outside the Democratic Party should keep up the fight to protect health care from rapacious profit-seeking at the expense of the nation's physical and economic well-being.
6. Defend Medicare: The independent left should fight for Medicare - to protect it from the depredations of the Ryan/Romney voucher plan, and to demand that the President and his party defend its benefits without equivocation, waffling, or "deficit" talk. Protecting Medicare means going after the for-profit hospitals and other players in the system who are driving its costs sky-high.
That means that Democrats from Obama to Pelosi need to stop talking the austerity language of "Simpson Bowles," a plan which would cut both Social Security and Medicare, and stake a position as unequivocal fighters for the middle class and lower-income Americans.
7. Expand Medicare: The left should move toward Medicare-For-All, a position I was originally reluctant to take because I thought it was politically unfeasible. This process has made it clear that our system makes anything but Medicare-For-All, or at the minimum a public option plan, politically unfeasible.
That would mean a trillion-dollar change to our economy, so it won't be easy. But that needs to be the next goal. I'm withBernie Sanders and John Nichols on this one. It'll take a while, but it's the right star to steer our ship by.
8. Medicaid is a core part of our values. Our decency, integrity, and stability as a society depends on our ability to ensure that no one dies, is disabled, or suffers needlessly because of economic hardship. Roberts' assault on Medicaid is a warning sign that this program is in danger.
Republicans want to gut Medicaid. Will Democrats stand up for it?
9. SCOTUS™ matters. Whatever disappointments you may have with Barack Obama - and I've had plenty of them - the next President could very well pick several more members of the Court. President Romney would choose judges who are willing to bend the law into a pretzel over and oner, just as Scalia, Thomas, and the others on the right have done, to serve the interests of the corporate class.
10. Don't forget about nutrition. Don't let them gut food programs that are essential to the health of our children. They need a balanced diet to make sure they become strong, healthy, productive adults.
And yes, a balanced diet includes broccoli.
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12 comments on "Don’t Kid Yourself. It’s Still a Corporate Court. Here are 10 Lessons From CEO Roberts."
July 04, 2012 3:26pm
No, Roberts' decision doesn't even make me Hope for justice. Unless we can get Obama some backup with more Senators/Reps/Judges, we won't get any farther next year then the last 4. He's been fighting the New Right - ALEC - Moral Majority - Free Congress Fdn - Heritage Fdn for 4 years! Finding fault with Obama is so condesending. Roberts is taking more heat from his own side then ours - maybe he will wake up and realize that justice & liberty for ALL means he's on the wrong side? Guess not; but, nice thought.
July 03, 2012 9:37pm
You know what? If people cannot find jobs...they cannot pay the fees, fines, penalties or TAX.
So let this Executive Branch, Congress, and Supreme Court set us up for failure!
Heck! If they don't do it, the FED will. With a dollar that is not worth the paper it is printed on....we will ALL look DEATH in the face!
“Indeed, in a free government, almost all other rights would become worthless, if the government possessed power over the private fortune of every citizen.” -Chief Justice John Marshall
"An unlimited power to tax involves, necessarily, a power to destroy; because there is a limit beyond which no institution and no property can bear taxation." --John Marshall, McCullough v. Maryland, 1819
"Giving money and power to government is like giving whiskey and car keys to teenage boys". P.J. O'Rourke
"Spending your way into prosperity is like standing in a bucket, and trying to pick yourself up by the handle."~Winston Churchill
“To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.” ~ Thomas Jefferson
"The problem with socialism is that eventually you run out of other people's money [to spend]." ~ Margaret Thatcher
"Obamacare = Tyranny. " author...ME.
July 03, 2012 9:21pm
Why can't this writer see that Obama is also in the 1%, and is helping out his buddies in Big Pharma and the Corporatists in the Medical arena, and all of those who gave to his campaigns? Big Banks and more!
Don't you ALL see that this law will help the rich get richer, and the middle class and poor, get poorer?
And let's not forget about population control! A very good way to get rid of the population is to tell them..No you cannot get that new hip...go home and die. No...no operation for a brain bleed...go home and die. You are too old..and not giving back to society..go home and die. Do they not realize that one day they will be old too? Oh! That's right ..the Elite can have what ever type of insurance they want, no matter how old they are!
If you have done ANY research you would know the Elite are out to make this a world with a lot less people. You know... the chattel at whom they look down their noses!
The Elite want complete control of everything you do..including what you eat. If you cannot get those mega doses of vitamins, if you cannot get natural medicine, if you cannot get raw milk, and many other devices or treatments...then hey you will just have to die! And think about it...if they can tell you what you can eat and not eat....think Soylent Green!
This is 1984....all over again, but in real time!
Obama and Bush are the same. They are two sides of the same coin. They could care less about the little people.
Just those who are in Unions, in Congress, Muslims, and the various other "special" groups will survive in the long run. They do NOT have to use Obamacare!
And the costs of purchasing medical insurance has quadrupled in the past couple of years. I can no longer afford it! And because of my many pre-existing conditions...NO insurance company will even look at me.
Do you REALLY think that is going to change? Or will Obama and his ilk say...well you will just have to give up "eating or something like that" to pay for those extremely costly insurance premiums! Do you REALLY believe the cost of insurance will go down? If you do...I have a bridge to sell you.
Remember...the corrupt Congress, the corrupt Supreme Court and the Corrupt Executive branch are all buddies and in this to the end...so that the ELITE will have it all...and YOU will have nothing. It does not matter if you are a Republican, or a Democrat, or Independent...if you are not one of the Elite...you are dirt under their feet.
Obama does not care about you. Narcissists care about no one.. just how much power they can have over you. Washington, D. C. is overflowing with Narcissists!
He is not benevolent. He does not know how. He can act like an academy award nominee...but he cannot show you true feelings.
And there are plenty of narcissists in the Republican party, and other parties.
How do I know this...I was married to a narcissist. I learned the hard way. And he considered himself to be a Republican.
And what about the part of the law where the President will have a brand new civilian army with a budget the same as the present military? Who do you think will comprise THAT army? I have some ideas...and they are not pretty.
What about our children having to spend 3 months a year doing "mandatory volunteering" in camps? What do you think your precious, sweet, and innocent little children will be taught?
Where will your parenting rights be?
See..this is not along party lines. This is along US Citizen lines. This is not a Republican or Democrat problem. This is an American problem. And if you do not open your eyes and stop looking at the Red or Blue...there will no longer be a Red, White, and Blue...just United Nations Baby Blue! No sovereignty. No Rights under the Constitution. Walking on egg shells. Afraid to speak. Afraid to think on your own. Just like the victims of Narcissism. Completely controlled. Completely!
Can you...who were born FREE actually stand living under those conditions?
What about your children? Grand Children? What is in store for them?
Without FREEDOM we are nothing but Sheep going to slaughter!
July 03, 2012 10:28am
I've been reading the comments of others about the matter of tax-penalty enforcement and see them as illustrating my contention. Among the inconvenient truths is that "Obamacare" entails a non-progressive sales excise tax on medical devices and CBO estimates that 3 million low-income people who cannot afford insurance will pay the tax penalty. And now comes administration soft-peddling of enforcement, as if to say IRS is inviting people to cheat. It is one thing to represent the pros of Obamacare and to counter misrepresentations of it, but quite another to surrender integrity supporting an argument that is tantamount to a lie.
July 02, 2012 10:32pm
Don't trouble yourself about affording college for your children. Teach them to doff their hats and look at the ground as the new Royals roll by. The peasant minds muck-fed by Fux News are dragging us back to the Good Old Days of feudalism as their masters-to-be chuckle in contempt as they close the net with their irrational demagoguery. Although "Obamacare" writhes thru a couple thousand pages to ward off the army of lobbyists and secure the barest minimum of support from the government owners, it is still vastly superior to the horrors of GopCare -- but then peasants are immanently expendable.
July 02, 2012 6:24pm
Here is Food for Thought: Democrat Pres. Clinton gutted the Medicaid program cutting parents and adults from it to balance the budget and lower the deficit. Now the Democrats are crying about people with no insurance? Even better, they deferred the money saved from all those cuts that use to pay Medicaid and off into Defense and anywhere else but on the People directly! Now they want to add all those people they cut and while they're at it, the trillion dollars it will cost over the first decade will be sucked out of us in taxes. So they think....... 16,000 more Irs agents to enforce this to be hired, order just went out...... not enough jobs to make up for the crippling effect this will put on the country and loss of businesses, loss of jobs, lack of spending because noone will have any to spend in a now stagnate economy already....... Rome Fell in A Day. We will too. It's been couple hundred years, bout that time for it to happen.
July 03, 2012 4:19am
Irishcelts: "Even better, they [Democrats] deferred the money saved from all those cuts that use to pay Medicaid and off into Defense and anywhere else but on the People directly! Now they want to add all those people they cut and while they're at it, the trillion dollars it will cost over the first decade will be sucked out of us in taxes."
Huh?! Democrats deferred the money to defense?! What a fantastic conclusion. "The Decider" put three illegal wars on our credit card, stole $1.4 trillion from Medicare, and gave fantastic subsidies and tax breaks to the 1%, among other things. That's what we got stuck with and there won't be any turning it around for many, many years. What a guy!
July 03, 2012 12:14am
16000 IRS agents, eh?
As a matter of fact, that NEVER happened.
Nor will it.
A simple google will do the trick.
Every time.
Thanks for playing....
http://www.factcheck.org/2010/03/irs-expansion/
The law does make individuals subject to a tax, starting in 2014, if they fail to obtain health insurance coverage. But IRS Commissioner Douglas Shulman testified before a hearing of the House Ways and Means Committee March 25 that the IRS won’t be auditing individuals to certify that they have obtained health insurance. He said insurance companies will issue forms certifying that individuals have coverage that meets the federal mandate, similar to a form that lenders use to verify the amount of interest someone has paid on their home mortgage. "We expect to get a simple form, that we won’t look behind, that says this person has acceptable health coverage," Shulman said. "So there’s not going to be any discussions about health coverage with an IRS employee." In any case, the bill signed into law (on page 131) SPECIFICALLY PROHIBITS the IRS from using the liens and levies commonly used to collect money owed by delinquent taxpayers, and rules out any criminal penalties for individuals who refuse to pay the tax or those who don’t obtain coverage. That doesn’t leave a lot for IRS enforcers to do.
So where does the claim of 16,500 new agents come from?
Starting with a Soft Figure
This figure originated with a report put out by Republicans on the House Ways and Means Committee on March 18. It said:
GOP Analysis, March 18: IRS may need to hire as many as 16,500 additional auditors, agents and other employees.
Notice the words "may" and "as many as." This is the highest figure the GOP analysts thought they could support. Notice also the phrase "other employees," which covers everyone down to file clerks and support staff.
The analysts based their 16,500 figure on an assumption that the IRS budget "could" require an additional $10 billion over the next 10 years as a result of the law, a figure they attribute to the Congressional Budget Office. But what CBO Director Douglas W. Elmendorf actually said in a March 11 letter to congressional leaders is this (with emphasis added):
CBO Director Elmendorf, March 11: CBO has not completed an estimate of all of the discretionary costs that would be associated with H.R. 3590. … [S]uch costs would probably include an estimated $5 billion to $10 billion over 10 years for administrative costs of the Internal Revenue Service (IRS).
Note the words "probably" and "could." And the figure — based on preliminary analysis — could as easily be $5 billion as the $10 billion number the GOP analysts used.
Read the article...you might learn something.
And again, thanks for playing.
July 02, 2012 6:17pm
This Media Article is Horse Puckey. Example: Read above 4. Strike back at the "tax" message: (this states) "It wouldn't hurt if they reminded people that the penalties are almost unenforceable, too." Excuse me? Did you Media People bother to read how Obama sent millions to the IRS to hire 16,000 agents to "enforce" this? ALREADY. Does this sound like it will be uneforceable? What about Tax Evasion? What about nonpayment of taxes plus penalties plus fines and interest? Think again. This makes the rich corporates richer, the 1% richer and the Govt gets oodles of money too. BUT the economy only has so much money and it is in recession & hurting right now. Pull billions of dollars out for health insc, where do you think it will come from? Retail, Fast Food, Car Pymts, and more. Cut the pie so many ways and pull some out that wasn't there it gets sucked from someplace else putting people out of business, loss of jobs etc. Think that's bad? Rising taxes to pay for Free Govt Medical, Veterans Medical, Medicare and Medicaid and now more Medicaid and Now subsidized Govt Health Insc. PLUS you get pay rising premiums that go up to cover a bunch more people normally turned away and all the free tests written in this law. Think insc co's are going to cover that for free. HA NOT! They will roll millions to billions in expenses over on premiums that are already rising. And you still don't have Health Care or caps on Health Care so you are stuck with deductibles and no money to pay them. Bills denied by the insc co. you have no money for attys to fight. Gets worse too... Over a decade your wages don't go up but the cost of living and insc premiums do. Obliterate all of that and make it all free like the Govt Officials and Military have. One Tax, no deductibles, no rising premiums and without 20 different taxes to go in 20 different directions.
July 02, 2012 5:37pm
Yes! A properly skeptical view of the actual vs. the perceived. No one should be under any illusion that the court is not a creature of politics, or more appropriately, a creature of the corporate culture that has overrun our democracy. Whatever calculations Roberts made in siding with the moderates, the long view is still the one that counts and I would be stunned if Roberts did not have the election in view at the very least and the potential to further pad the court/corporate majority and it's implications for enshrining w. bush era corporate policy from government. Obama is way more facile than I would have hoped, or maybe he's just doing the Clinton like triangulation, which is equally objectionable, but I will vote for him one the basis of this one issue. Who will make the next nomination to the Supreme Court?
July 02, 2012 5:34pm
Marjorie Cohn past president of National Lawyers Guild and professor of law has been discussing the Commerce Clause poison pill in the decision over the Pacifica airwaves.
http://www.kpfa.org/archive/id/81995
July 02, 2012 4:31pm
A well-reasoned and authoritative overview, and I hope it chills the rah-rah
about a victory. Both as to SCOTUS and as to reversing the transfer of wealth from the many to the few.
Between the lines it exposes the trade-off of giving the healthcare and health insurance industry a growing share of GDP for years to come (read "further transfer of wealth"), and using incompletely-progressive tax measures to help fund it (read "forcing the poorly-able to buy private insurance or pay a tax-penalty that is not insignificant to the poorly-able"). I'm not arguing the law does not serve most of the many, but rather that we will bane the day we did not hold out for single-payor, and in the interim address the underlying and over-arching problem of tax policy and wealth transfer.
We will now be side-tracked into a confused and confusing political fracas over "Obamacare", and all the while the wealthy will increase their wealth at the expense of the many, even though a clear majority of Americans want repeal of tax cuts for the wealthy and an end to the dodges and subsidies granted job-exporting corporations in general and the financial industry in particular.
I'm saying that priority to Obamacare squandered the opportunity to begin a roll-up of the flanks of the elite right with popular support, and it will continue to do so. A battle was temporarily won but cost us the war, and it will again cost us the war even if the battle is won a second time. Obama and establishment Dems will punt the war in 2012, and even if Obama is re-elected the composition of Congress and state-houses will shift further right, lame-ducking a President with a deserved reputation for duplicitous compromise. Expect to lose ground on every front from Social Security and Medicare to Defense spending and energy policy, and expect the wealth transfer to continue unabated.