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The Unintended Consequences Of ObamaCare: A Lesson In Incompetence

As a follow up to my post on ObamaCare Revealed readers should see the next article served up by the Wall Street Journal that reveals that Democrats are shocked (yes shocked!) at the damage they have wrought on corporate earnings and balance sheets. In what can only be described as full on Paul Raines mode, Democrats are outraged that U S corporations are announcing anticipated losses that are the product of the cram down legislation passed last week by House Democrats. This is the best summary I have read anywhere that describes what has happened:

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."

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."

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.

Commerce Secretary Gary Locke's comments are ridiculous. He sounds like the sour city mayor complaining about the rain pouring on the parade he has spent years planning. Here's a question for Secretary Locke (if he can find someone to explain it to him). Where are the Enron accounting vigilanties in the Democratic caucus now that their leadership has declared war on generally accepted accounting rules? We all remember Kenny Boy. I want to know who Henry Waxman's boy is. Who's your boy Congressman Waxman and what does he do for you?

We are witnessing the most cynnical and dishonest behavior at work in a Congress in decades and the incumbents in the Democratic party will certainly pay for their witless, cowardly and irresponsible actions. The fools in the White House, where the lease extends beyond 2010, are ecstatic with their insolence:

After signing healthcare reform into law, agreeing to a new nuclear arms reduction treaty and moving forward with financial reform, President Barack Obama will spend the weekend at the presidential retreat at Camp David, Md.

And top White House aides say, "He knows he has" earned it.

"Best week we've had in a long damn time," one senior administration official told The Hill.

Aides in the West Wing are walking with a noticeable bounce in their step now that the protracted and brutal healthcare debate is behind them.


Heh. The ObamaCare "debate", which was reserved exclusively for the Democratic Party prior to last week's vote, has now encountered the real world of corporate accounting and the likes of Sarbanes Oxley type disclosure, which is too rich to ignore. Corporate chieftains beholden to full disclosure mandated by progressives like Henry Waxman now find themselves summoned to his kangaroo court where they will be questioned for obeying the very laws that undermine Commissar Waxman's political agenda. You can't make this stuff up.


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Comments (15)

It's KARMA, Hugh, KARMA.</p... (Below threshold)
GarandFan:

It's KARMA, Hugh, KARMA.

Hey Barry, your about to find out that REALITY can BITE!

Commerce Secretary Gary ... (Below threshold)
macofromoc:

Commerce Secretary Gary Locke's comments are ridiculous. He sounds like the sour city mayor

err. he sounds like a six year old

Much more incompetence! Fro... (Below threshold)
David Spence:

Much more incompetence! From Jammie Wearing Fool-

After a year of crippling delays, President Barack Obama's $5 billion program to install weather-tight windows and doors has retrofitted a fraction of homes and created far fewer construction jobs than expected.

In Indiana, state-trained workers flubbed insulation jobs. In Alaska, Wyoming and the District of Columbia, the program has yet to produce a single job or retrofit one home. And in California, a state with nearly 37 million residents, the program at last count had created 84 jobs.

Wow, 84 jobs for 37 million people.

The stimulus is working!

The program was a hallmark of the American Recovery and Reinvestment Act, a way to shore up the economy while encouraging people to conserve energy at home. But government rules about how to run what was deemed to be a ''shovel-ready'' project, including how much to pay contractors and how to protect historic homes during renovations, have thwarted chances at early success, according to an Associated Press review of the program.

''It seems like every day there is a new wrench in the works that keeps us from moving ahead,'' said program manager Joanne Chappell-Theunissen. She has spent the past several months mailing in photographs of old houses in rural Michigan to meet federal historic preservation rules. ''We keep playing catch-up.''

The stimulus package gave a jolt to the decades-old federal Weatherization Assistance Program. Weatherization money flows from Washington to the states, where it is passed to local nonprofits that hire contractors to spread insulation and install efficient heaters in people's homes.

Energy officials said the stimulus infusion is on track to create thousands of career-pathway jobs and support an industry that lowers carbon emissions while saving consumers money.

''This is the beginning of the next industrial revolution with the explosion of clean energy investments,'' said assistant U.S. Energy Secretary Cathy Zoi. ''These are good jobs that are here to stay.''

Good jobs that are here to stay, except for those states where zero jobs were created.

But after a year, the stimulus program has retrofitted 30,250 homes -- about 5 percent of the overall goal -- and fallen well short of the 87,000 jobs that the department planned, according to the latest available figures.

In more important news, the genius president managed to correctly pick a No. 1 seed in the NCAA tournament. Is there anything he can't do?

Here's the link for a great visual-
http://jammiewearingfool.blogspot.com/2010/03/another-obama-failure-weatherizing.html

Obama has inherited a count... (Below threshold)
kathie:

Obama has inherited a country and a citizenry by virtue of an election that he has declared war on.

Incompetence can't truely b... (Below threshold)
Don L:

Incompetence can't truely be measured, without first determining if incompetence isn't the intentionally false construct.

It may be that it is designed to appear like incompetence, while deliberately desiring to screw up the nation so badly it will never again embarass the world by out-doing them.

Can't have anyone so much more successful that the other socialist failures, in this egalitarian age, can we?

So all the faux rage about ... (Below threshold)
jim m:

So all the faux rage about Enron and World Com was just that. The dems never cared about the losses or the people hurt. They were just demagoging for the cameras.

I say that because now that companies are paying scrupulous attention to the accounting rules so they do not run afoul like Enron and others did in the past, these companies are being treated like traitors to the nation.

For the dems the laws mean nothing. Obey the laws and make them look bad and you are wrong. Break the laws and make them look good (or pay them lots of money) and you are a saint.

Mitch Daniels has an excell... (Below threshold)
iwogisdead:

Mitch Daniels has an excellent summary of what Obamacare is going to do to Indiana, which has been a very well run state:

http://online.wsj.com/article/SB10001424052748704094104575144362968408640.html?KEYWORDS=MITCH+DANIELS

I wonder if Waxman plans on forcing Daniels to testify.

I sent a note to Deere & Ca... (Below threshold)
alanstorm:

I sent a note to Deere & Caterpillar, asking them to please go to DC and mock Waxman and his cronies as they so richly deserve. (with Verizon and AT&T, It looked like my note would go straight to the digital trash.)

It would actually make CSPAN interesting for a change! I would love to have these businesses demonstrate live how Waxman & Co. have no clue.

This post has been linked f... (Below threshold)
UNRR:

This post has been linked for the HOT5 Daily 3/28/2010, at The Unreligious Right

Incompetence, sloth, carele... (Below threshold)
gary gulrud:

Incompetence, sloth, carelessness, arrogance, obstruction and, not least, moral posturing.

Much of the Federal government provides no useful service to anyone.

LMAOROTF!Hmmm, wha... (Below threshold)
GarandFan:

LMAOROTF!

Hmmm, what's next on the list for the Party of No? What progress can you hold back?

How about $7/gal gasoline. That will do wonders for the economy. Think of all the gas saved from people not having to go to work. Factories not having to open.

As for "immigration". Would that be the "problem that was solved with amnesty back in the 80's"? You might remember Stevie, THE GOVERNMENT PROMISED no more amnesty. Our borders would be protected. No more amnesty.
Yeah. You're checks in the mail.

Speaking of "lies" Stevie. How's that one go about 'illegal aliens'; "We can't FIND THEM!"
That's real easy to say WHEN YOU DON'T LOOK!

More lies? "We'll have the health care debate on C-SPAN". "No earmarks." "No deals behind closed doors."

Want to go on about "lies" Stevie? Or did your Obamassiah just "mis-speak".

s green - "Let's move t... (Below threshold)
Marc:

s green - "Let's move the country forward where Bush tried and failed. "

Funny you left out the part about immigration reform failed then because like the HC controversy the PEOPLE were, in vast numbers, opposed to the reform offered.

Bush, and the then congress listened, obama and this congress didn't and will pay the price in November.

Stevie appears to have left... (Below threshold)
GarandFan:

Stevie appears to have left. If he comes back, he'll probably want to talk about ice cream.

back in the 80'... (Below threshold)
back in the 80's"? You might remember Stevie
How would he remember the '80s? He never remembers the ass-whupping he got the last time he turned up here.

Anyway, like GarandFan says, he's gone now. He's a drive-by tool.

Poor Stevie, still calling ... (Below threshold)
jl:

Poor Stevie, still calling people "racists". How original! Perfect example of "If your ideas don`t sell themselves you need villians" school of dem talking points.




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