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The Sleazy Corruption of Obamacare

The Sleazy Corruption of Obamacare

Posted on May 26, 2011 by Dan Mitchell

Michael Barone of the American Enterprise Institute goes to town on the selective, discriminatory, and politically motivated dispensation of Obamacare waivers. I particularly like how he zings the left by asking why, if Obamacare is so wonderful, so many millions of people trying to escape the President’s new scheme. But the more important message in his article is how arbitrary application undermines the rule of law.

1,372 businesses, state and local governments, labor unions and insurers, covering 3,095,593 individuals or families, …have been granted a waiver from Obamacare by Secretary of Health and Human Services Kathleen Sebelius.

All of which raises another question: If Obamacare is so great, why do so many people want to get out from under it?

More specifically, why are more than half of those 3,095,593 in plans run by labor unions, which were among Obamacare’s biggest political supporters? Union members are only 12 percent of all employees but have gotten 50.3 percent of Obamacare waivers.

Just in April, Sebelius granted 38 waivers to restaurants, nightclubs, spas and hotels in former House Speaker Nancy Pelosi’s San Francisco congressional district. Pelosi’s office said she had nothing to do with it.

On its website HHS pledges that the waiver process will be transparent. But it doesn’t list those whose requests for waivers have been denied.

…One basic principle of the rule of law is that laws apply to everybody. If the sign says “No Parking,” you’re not supposed to park there even if you’re a pal of the alderman.

Another principle of the rule of law is that government can’t make up new rules to help its cronies and hurt its adversaries except through due process, such as getting a legislature to pass a new law.

…Punishing enemies and rewarding friends — politics Chicago style — seems to be the unifying principle that helps explain the Obamacare waivers, the NLRB action against Boeing and the IRS’ gift-tax assault on 501(c)(4) donors. They look like examples of crony capitalism, bailout favoritism and gangster government. One thing they don’t look like is the rule of law.

A few months ago, I had a post about cronyism and corruption crippling Argentina. Sadly, the same thing is now happening to America.

My contention is that this is the inevitable result of giving more power to Washington. And this gives me an excuse to reuse my video showing the link between big government and corruption.


big government corruption Cronyism Discrimination government-run healthcare Obama Obamacare
May 26, 2011
Dan Mitchell

Dan Mitchell

Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.

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