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11.12 This Land is Your Land: The Zinke effect: how the US interior department became a tool of industry [behaving ignorantly again...]
11.11 Trump responds to worst fires in California’s history by threatening to withhold federal aid [behaving ignorantly again...]
11.11 Interior department sued for ‘secretive process’ in at-risk species assessment [behaving ignorantly again...]
11.11 Keystone XL pipeline: judge rules government 'jumped the gun' and orders halt [behaving ignorantly again...]
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US Politics, Policy & 'Culture'
11.09 Trump administration blocks asylum claims by those crossing border illegally [Making America Less Great Again...]
11.14 The Guardian view on Yemen’s misery: the west is complicit [WAR CRIMES]
11.10 US stops refuelling of Saudi-led coalition aircraft in Yemen war [But there are a few children still alive. It's too soon!]
Economics, Crony Capitalism
11.05 Under Trump, Corporate Giants See Massive Drop in Penalties: NYT [Mafia-government...]
11.02 Los Angeles’ Measure B Is a Moonshot Aimed at Creating a Public Bank [Could save the public $Billions if setup smartly]
International & Futurism
11.14 'Appalling' Khashoggi audio shocked Saudi intelligence – Erdogan [Exposing a psychopath?]
11.12 With Trump sitting nearby, Macron calls nationalism a betrayal [Trump was confused...; video]
Obamacare and the Facade of Regulation
Our system of regulation isn’t really regulation at all.
First published in his blog Unsilent Generation earlier today, 17 December 2009
To achieve anything similar to French and Japanese health care systems – both have private health industry companies regulated heavily by government to minimize costs to less then half what US citizens pay – a revolution in the US would be required.
Plenty of countries have created excellent health care systems largely through regulation–so why can’t we do the same? The French and Japanese health care systems, for example, do not exclude private industry. They are not socialist in any sense of the word, and even retain a role for private insurance companies. What each system consists of is a regulatory apparatus that serves as the instrument for carrying out national policy–which is providing high quality health care for all the country’s citizens, at a reasonable cost. The regulation works because you can’t get around it, and because it was designed–and actually operates–in the public interest.
To achieve anything similar in the United States, however, would require a virtual revolution in how our government operates. Our system of government regulations isn’t really what we think of as regulation at all. Rather, it throws up a facade of rules, which corporations walk right through. And no wonder, since although the regulations are supposed to be arrived at independently and designed for the public good, corporations have long had a hand in writing them, as well, thanks to the power of lobbying, campaign contributions, and the revolving door between business and government.
Rather than being enacted to protect the public from the limitless greed of private industry, many regulations are actually passed in support of corporations. The worst example is probably the Securities and Exchange Commission, which is just a clubhouse for Wall Street. Another top contender is the Food and Drug Administration. The basic legislation passed by Congress in the 1930s and updated in the early 1960s set policy governing the sale and use of drugs, which demanded that companies demonstrate the proposed product is safe and efficacious. But that policy directive was quickly abandoned. Today the drug manufacturers breeze through the FDA, setting their own rules for use, establishing their own prices, and exercising their monopoly rights within the patent system which in the case of pharmaceuticals is maintained for their benefit.
An excellent article in the December Harpers, “Understanding Obamacare” by Luke Mitchell, provides a better understanding of how the American system of regulation in the corporate interest works. “The idea that there is a competitive ‘private sector’ in America is appealing, but generally false,” writes Mitchell. He continues:
In the case of health care, Mitchell argues, “The health-care industry has captured the regulatory process, and it has used that capture to eliminate any real competition, whether from the government, in the form of a single-payer system, or from new and more efficient competitors in the private sector who might have the audacity to offer a better product at a better price.”
What’s really sharp about Mitchell’s analysis, though, is his recognition that “the polite word for regulatory capture in Washington is ‘moderation.’” As he explains it:
This seems to me an extremely accurate depiction of the forces that have governed our current health care reform–from the start, when Big Pharma struck a secret deal with the White House, right up to the present moment, when Big Insurance’s bag man Joe Lieberman is deciding the fate of hundreds of millions of Americans.
And no wonder, since as Mitchell points out, the “moderation” formula has been perfected not by Republicans, but by Democrats: “The triangulating work that began two decades ago under Bill Clinton,” he writes, ”is reaching its apogee under the politically astute guidance of Barack Obama.”
The piece goes a long way toward explaining how health care reform could have turned out so screwed up despite (or, as the case may be, because of ) Democratic control of the White House and Congress, and is well worth reading in full.
Born in 1936, James Ridgeway has been reporting on politics for more than 45 years. He is currently Senior Washington Correspondent for Mother Jones, and recently wrote a blog on the 2008 presidential election for the Guardian online. He previously served as Washington Correspondent for the Village Voice; wrote for Ramparts and The New Republic; and founded and edited two independent newsletters, Hard Times and The Elements.
Ridgeway is the author of 16 books, including The Five Unanswered Questions About 9/11, It’s All for Sale: The Control of Global Resources, and Blood in the Face: The Ku Klux Klan, Aryan Nations, Nazi Skinheads, and the Rise of a New White Culture. He co-directed a companion film to Blood in the Face and a second documentary film, Feed, and has co-produced web videos for GuardianFilms.
Additional information and samples of James Ridgeway’s work can be found on his web site, http://jamesridgeway.net.
This article is republished in the Baltimore Chronicle with permission of the author.
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Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.This story was published on December 17, 2009.