In Which I Liken Wal-Mart to Josef Stalin
Well, kinda.
In this oped for Kaiser Health News, I explain how the deals that the Obama administration has struck with (some) drug companies, Wal-Mart, and (some) hospitals are “the same old Washington game of bribes, backroom deals, profiteering and protectionism — and a harbinger of what health care will look like if the president’s reforms succeed.”
Filed under: Government and Politics; Health, Welfare & Entitlements
Who’s Blogging about Cato
Here’s a roundup of bloggers who are writing about Cato research, commentary and analysis. If you’re blogging about Cato, let us know.
- Blogger Melissa Clouthier helps spread the word about Cato’s analysis of Obama’s health plan by posting a video of Cato experts dissecting the ABC special last week.
- David Kirkpatrick examines Obama’s record on civil liberties by quoting Cato scholar Doug Bandow.
- Education blogger Brandon Dutcher links to Neal McCluskey’s analysis of American public schools.
- At the Real Clear World Compass blog, Kevin Sullivan quotes Juan Carlos Hidalgo on the political crisis in Honduras.
- Blogging for Townhall.com, Kevin Glass quotes Michael F. Cannon on Wal-Mart’s support of an employer mandate to provide health care.
- Freedom Politics blogger Thomas J. Lucente Jr. cites foreign policy expert Christopher Preble in a post about the U.S. military withdrawal from Iraq.
- Writing about the political situation in Honduras, Patrick Murphy draws from Juan Carlos Hidalgo’s analysis on the president’s removal.
- At the Americans for Tax Reform blog, Tim Andrews cites David Boaz’s post that lists the “taxes proposed or publicly floated by President Obama and his aides and allies.”
Why Wal-Mart Supports an Employer Mandate
A couple of years ago, I shared a cab to the airport with a Wal-Mart lobbyist, who told me that Wal-Mart supports an “employer mandate.” An employer mandate is a legal requirement that employers provide a government-defined package of health benefits to their workers. Only Hawaii and Massachusetts have enacted such a law.
I couldn’t believe what I was hearing. Wal-Mart is a capitalist success story. At the time of our conversation, this lobbyist was helping Wal-Mart fight off employer-mandate legislation in dozens of states. Those measures were specifically designed to hurt Wal-Mart, and were underwritten by the unions and union shops that were losing jobs and business to Wal-Mart.
But it all became clear when the lobbyist explained the reason for Wal-Mart’s position: “Target’s health-benefits costs are lower.”
I have no idea what Target’s or Wal-Mart’s health-benefits costs are. Let’s say that Target spends $5,000 per worker on health benefits and Wal-Mart spends $10,000. An employer mandate that requires both retail giants to spend $9,000 per worker would have no effect on Wal-Mart. But it would cripple one of Wal-Mart’s chief competitors.
So yesterday’s news that Wal-Mart is publicly endorsing a “sensible and equitable” employer mandate — i.e., a mandate that hurts Target but not Wal-Mart — didn’t come as a surprise to me. It merely confirmed what I learned in a cab on the way to the airport: Wal-Mart has gone native. That great symbol of the benefits of free-market competition now joins its erstwhile enemies among the legions of rent-seeking weasels who would rather run to government for protection than earn their keep by making people’s lives better.
In 2007, Wal-Mart officially joined the Church of Universal Coverage when it entered one of those countless strange-bedfellows coalitions with the Service Employees International Union. At the time, I criticized Wal-Mart for “self-congratulatory puffery” and “jump[ing] on the big-government bandwagon.” I also criticized then-CEO Lee Scott for spouting economic nonsense. (I later learned that Scott was not amused.)
This is so much worse than that.

