WSJ: The Obamacare Writedowns
Monday, March 29, 2010 at 2:35PM The damage from the horrendous health care legislation passed last week is already rolling in. Of course, Traitorcrats are shocked at it all. Following is an excellent piece that appeared in yesterday's Wall Street Journal (my comments in italics):
It's been a banner week for Democrats: ObamaCare passed Congress in its final form on Thursday night, and the returns are already rolling in. Yesterday AT&T announced that it will be forced to make a $1 billion writedown due solely to the health bill, in what has become a wave of such corporate losses.
This wholesale destruction of wealth and capital came with more than ample warning. Turning over every couch cushion to make their new entitlement look affordable under Beltway accounting rules, Democrats decided to raise taxes on companies that do the public service of offering prescription drug benefits to their retirees instead of dumping them into Medicare. We and others warned this would lead to AT&T-like results, but like so many other ObamaCare objections Democrats waved them off as self-serving or "political."
This should be criminal. These snakes lied to the American public about the contents of this bill. When they were called on it by the likes of the WSJ, they lied and made political attacks. This is nothing short of traitorous based on the damage this bill could do to our economy.
Perhaps that explains why the Administration is now so touchy. Commerce Secretary Gary Locke took to the White House blog to write that while ObamaCare is great for business, "In the last few days, though, we have seen a couple of companies imply that reform will raise costs for them." In a Thursday interview on CNBC, Mr. Locke said "for them to come out, I think is premature and irresponsible."
Meanwhile, Henry Waxman and House Democrats announced yesterday that they will haul these companies in for an April 21 hearing because their judgment "appears to conflict with independent analyses, which show that the new law will expand coverage and bring down costs."
In other words, shoot the messenger. Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don't like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet.
We are being ruled by a group of far-left thugs who would like nothing more than total control over every man, woman and child in this nation. They are clearly willing to do irreparable damage to this country to get that control. And they wonder why people are mad? Really?
On top of AT&T's $1 billion, the writedown wave so far includes Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks.
As Joe Biden might put it, this is a big, er, deal for shareholders and the economy. The consulting firm Towers Watson estimates that the total hit this year will reach nearly $14 billion, unless corporations cut retiree drug benefits when their labor contracts let them.
What a shock, people will be dumped by corporations onto the government plan, just as about every right-of-center pundit and publication suggested would happen. Of course the Traitorcrats cried that was a big lie. Just who is lying now?
Meanwhile, John DiStaso of the New Hampshire Union Leader reported this week that ObamaCare could cost the Granite State's major ski resorts as much as $1 million in fines, because they hire large numbers of seasonal workers without offering health benefits. "The choices are pretty clear, either increase prices or cut costs, which could mean hiring fewer workers next winter," he wrote.
The Democratic political calculation with ObamaCare is the proverbial boiling frog: Gradually introduce a health-care entitlement by hiding the true costs, hook the middle class on new subsidies until they become unrepealable, but try to delay the adverse consequences and major new tax hikes so voters don't make the connection between their policy and the economic wreckage. But their bill was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.
Based on what I've read, there is a lot more pain coming in short order from this bill. It appears that the Traitorcrats may have overplayed their hand. Not to worry, I'm sure the mainstream media will be there to help them pick up the pieces. Wouldn't want anymore of the truth getting out would we?
Reader Comments (18)
I don't think this thing will last until november for all hell to break lose....Way to go you liberal lemmings, keep shooting yourself in the foot and watch the un-washed kick some a$$ real soon.....As Dear Leader said, Go for it.....
Oh, we're going to go for it alright. I get madder by the day. Enough is enough.
You hit it on the head. This should all be criminal.
Criminal charges is right. It's an outrage and I'm sure more is to come.
Just passing through when I noticed this statement:
"We are being ruled by a group of far-left thugs who would like nothing more than total control over every man, woman and child in this nation. They are clearly willing to do irreparable damage to this country to get that control. "
I don't understand what support you have for this assertion. The massive health care bill is irresponsible -- mostly because it will likely exacerbate our worst-in-the-world cost of health care problem -- but I have no doubt that the people who passed it did so because they were blinded by the "moral obligation" to provide health care to every American. Pie in the sky thinking this may be, but it is not the same as wanting "total control over every man, woman, and child in this country."
What the hell happened to the right wing in this country? There are SERIOUS economic and social consequences to the misguided democrat policies, but instead of discussing these in a reasonable, academic way, many conservatives have decided to start screaming about Obama being a Nazi and a future dictator. How is this going to sway independent and undecided voters in the next election? It's not... You simpletons are digging our grave.
Like it or not, Obamacare was founded on a real, substantive social and political philosophy. We may not AGREE with that philosophy, but when we pretend that it was founded on a desire to take "total control over every man, woman, and child" we do a disservice to democracy, politics, and our hopes of advancing a conservative agenda. We also do a disservice to those of us who have actually lived in real totalitarian regimes, where reasonable, academic conversation was literally impossible. In this country we have the right to discuss political philosophies in such a way. It's a shame that many choose not to exercise this right -- if the US ever does become a totalitarian regime, you will be well acclimated.
Ryan, I not talking about rank and file Democrats who voted for health care as wanting total control. I'm talking about the leadership of the Democrat Party as it exists today, with George Soros pulling the strings behind the curtain. If you want to believe their policies are wrong, but their motives are pure, that is your prerogative, but I do not concur. What we have seen in the last 14 months has opened my eyes - and those of many others - as to what we are up against. I don't believe this is the typical Democrat do-gooder regime. I think this group has far more sinister plans for the country based on the numerous marxists appointments they have made to the government and the frivolous manner in which they have spent our money and immensely increased our debt. That's not opinion, that is fact.
Beyond that, I believe these people are too smart to think that what they are doing will actually help our situation. It's not a leap in my view to discern that they may be trying to implode the system and rebuild it in their own likeness. If you think that's crazy talk, I'd submit you're not paying enough attention. I'm sorry if my opinion offends you, but what the Obama Administration is doing to the United States offends me.
If you haven't noticed, they don't give a damn what we think.
Hey Ryan, there must be a lot of us simpletons out here in the hinterlands. I guess we're tired of talking to a Democrat administration and Congress that have proven time and again they don't care what we think. Why don't you go back to your dinner with Lindsey Grahamnesty and Arlen Specter - I'm sure it's getting cold.
By the way, why don't you check out the post FL Pundit wrote yesterday about your precious independent voters. That will really get you hacked off.
So, the "numerous marxist appointments they have made to the government and the frivolous manner in which they have spent our money and immensely increased our debt" is PROOF that "we are being ruled by a group of far-left thugs who would like nothing more than total control over every man, woman and child in this nation."
I'm sorry, but that is pretty crazy. And the more time blogs like this spend arguing that Obama is a fascist, the less space conservatives have to actually refute the problems with democrat policies. If the goal is to incite an armed rebellion, this type of hyperbole makes sense. If the goal is to win elections, it is self defeating.
I'm impressed that you were able to deduce the entire nature of the site by just dropping by for a few minutes.
Look, last time I checked we lived in a country where people could have their own opinions and I'm absolutely going to have mine. If you don't like them, you're free to move along. If you want to challenge me, I'm fine with that too. I just think you are dangerously naive if you think these folks aren't up to something outside of the norm. You sound like the mainstream media trying to shout down the Tea Party protesters. Quite honestly, I think my opinion is well within the mainstream of conservative thought leaders, though I'm probably a little more direct in how I state my position. If that makes me a militia-crazed kook in your view, then so be it.
Are we on the same site Ryan? This is one of the funnier sites I go to each day, certainly from a conservative standpoint. It's hardly a recruitment tool for Skinheads. I think you're taking one line the Pundit wrote a bit out of context as compared to the site as a whole. I read the site daily and think it is written from a very reasoned perspective.
Ryan
You are neither a conservative are a Independent....You are looking for a fight to get someone
mad so you can run back to your liberal friends at huff po are kos...Please tell us what you think
the liberals are up to and why they are not heading us into a quagmire of debt we can never repay...
I'm sure we have heard the talking points before so please let us have them again....
Not a militia-crazed kook, but a dangerously naive conservative.
When voters next go to the polls the economy will be improved and they will be accustomed to a health care system that allows their kids to receive extended family coverage and that does not permit insurance companies to discriminate against pre-existing conditions. This is a strong foundation for the democrats. And what's the Tea Party's response? That Obama is a fascist who is trying to take over the country.
That strategy didn't work in 1934 and it's not going to work in November. This country is heading for a fiscal disaster, and I don't see too many republicans making a cogent case for conservatism. You probably are in line with mainstream conservative, tea party beliefs -- that's why I'm afraid we are in for a rude shock in November.
What they'll become accustomed to much sooner is the debt fueled rise in interest rates, premium increases and increased costs passed on from companies who have to take massive writedowns due to the impact of the HC legislation on their bottom-line. AT&T just wrote down $1 billion and $14 billion more is projected across a number of other prominent companies. The public will pay for all of that and know it.
They will know it eventually, but not before the next election.
I guess we can agree to disagree... I just feel that our energies would be better focused in other areas. I think I'm right, but who knows... the next election will tell.
Fair enough.
If "affordable health care for all Americans" was the goal, and the president had followed his words from the state of the union address (that the economy was the number one priority), he would have listened to the GOP suggestions and at least incorporated free-market solutions to address the health care "crisis". If you think we had a crisis, wait until you see what the Democrat legislation brings us.
I, and most of the others that post on this site, view the health care bill as a power play. It is about redistributing wealth (if there happens to be any left to distribute).
Ryan, I might upset some fellow FLP posters but I somewhat agree with your premise. The premise being that a segment of the electorate consisting of independents or right leaning Democrats needs to be motivated to vote Republican to turn back the growth in government, taxes, and deficits. Many voters in that segment are concerned about the impressions and imagery they associate with Republicans.
That's where the agreement ends. The disagreement is you're suggesting sites like this, which combine humor with political and social commentary, are driving those negative images. The real driving factor is that the media chooses to focus on the most negative presentation of Republicans and conservatives while cleansing and sterilizing the way Democrats and the left are portrayed.
Case in point, there has been a heavy media focus a few specious claims of death threats to Democrat members of Congress. But you had to look awful hard to find any mentiion of the death threats to Jim Bunning while he held out alone to get the Senate to confirm to the pay go rules they put in place.
This site is merely a vehicle for some law abiding supporters of the Constitution to release the frustration and disgust we have for the current leadership in this country. We're tired of stifling our voices and playing nice, the country we love is being destroyed and our children's futures are being put at risk and you're worried about whether we are exercising the proper level of decorum in our discourse. Well excuse me. Go see your therapist.
Herb: Well stated.
Ryan: I do appreciate you sharing your view points, and I hope you're not put off too much by us. I think that you can clearly see that we're fed up with the direction the government is going, and that we openly air our frustrations.
Do we go too far? Maybe. But I think that is part of the polarization of the nation. The further left the Democrats go, then the further right we must sometimes go to seek some sort of balance.
Right now, we're totally disenfranchised and all we can do is wait for 11/2/10.