I seriously doubt you’d find anyone willing to shed tears over the sacking of former General Motors CEO Rick Wagoner. His forced retirement pushed out by the Obama administration with its $20 million payout will make his golden years a bit more golden than the tens of thousands of GM employees who were shown the door as a result of Wagoner’s mostly feckless leadership.
But let me say this: Wagoner was right. Absolutely.
Not about wagering the company’s fate on impractical, inefficient SUVs. That was dumb long before gas reached $4 per gallon. Not when he strong-armed unions into give-backs on wages and benefits, and then shuttered their factories anyway. And not when he dragged his feet on electric- and hybrid-powered consumer vehicles. Or on any of the dozens of other bonehead decisions he presided over that hastened the downfall of what was once the cornerstone of the American manufacturing-based economy.
He was right about this: if the government cannot resolve the crisis of spiraling health care costs and its impact on the business of doing business in America, soon there will be no business.
In August 2004, Wagoner reportedly said that regardless of who won the presidential election two months later, fixing health care would have to be a top priority because paying for health benefits for employees, dependents and retirees was putting American carmakers at a severe disadvantage to foreign competitors.Shortly after President George W. Bush’s second inauguration, Wagoner repeated the point in Chicago. GM’s $5.2 billion annual bill for health care, Wagoner said, raised the price tag for a new GM vehicle by $1,500. Asian and European car manufacturers don’t face the same expenses because their governments pick up a huge portion of health care and pension costs, Wagoner explained.
And Wagoner wasn’t alone. Verizon CEO Ivan Seidenberg said in 2004 that health care for his company’s 800,000 employees, retirees and dependents came at a cost of $3 billion. In fact, a range of employers from small businesses to large-scale manufacturers are calling for health care reform.
And you don’t even have to ask about labor unions, do you? Nobel laureate Paul Krugman has been writing about the imminent
crisis for years.
But despite the near-universal opinion, the problem persists. It is the problem that everyone recognizes but no one will step up to solve.
In my tenure as Communications Director for the United Electrical, Radio and Machine Workers of America (UE), I noticed a distinct pattern in contract negotiations. It was hardly a keen insight on my part—you’d have to be oblivious not to notice.
In every case—EVERY case—the major sticking point was health care. Grievance procedures, seniority, discipline, holidays,vacation, whatever… all of that could be resolved amicably, but inevitably there would be a battle over who would pay for health care and how much.
And once that battle ended, with no winner, the negotiators from both sides would lament that the health care problem is a chokepoint for progress and a flashpoint for labor unrest.
My idea then, and it’s available to anyone who wants it, free of charge, was for the union and management to sign a joint statement acknowledging that the failure of government to enact comprehensive health care reform was contributing to workplace strife, and that the continued health of the business was contingent upon a resolution of that problem that took the bosses’ and the workers’ heads out of the health care noose.
Get enough of those statements together, from unions and employers all over the country, and take them to Congress and say, “Here’s your political cover. Now fix it.”
That, I think, is where the problem lies.
The insurance industry is a behemoth with a lot of political clout, and politicians are in no itching hurry to challenge it. No matter how much sense it would make to tear the whole thing down….
You’ve probably never heard of Tommy Douglas, but he did just that, and in doing so earned probably the highest accolade a Canadian could ask for the people of Canada named him the best person ever in its history (Neil Peart didn’t even crack the top ten). Douglas was the premier of Saskatchewan, a fairly bland place all things considered, and hardly the place where you’d expect the greatest anything to come from (except, of course, the greatest wife, Hi, Honey!). In 1962, he stood toe-to-toe with the insurance industry and doctors, who went on strike for fear of losing their financial privilege, and won. Saskatchewan socialized its health care system, and soon was followed by the rest of Canada.britney spears circus download
It was a tough and bitter fight, dramatized in the CBC biopic Prairie Giant. (A fine film, but good luck finding it. It was considered to defame one of Douglas’s political rivals, and the CBC pulled all copies of it.) Despite the strike, scare tactics, red-baiting and personal attacks, Douglas and his supporters stood their ground, and now all of Canada doesn’t have to fear that a broken leg or a sudden illness will lead them to financial ruin.
While the American medical establishment boasts of its whiz-bang technology and a tummy-tuck in every pot, none of my Canadian in-laws would trade their health care cards and supposed waiting lists for the “convenience” and expense of American-style medicine.
And yet the United States, all can-do attitude and we’re-number-one bravado, can’t find a way to ensure that its people don’t suffer from treatable illnesses or lose their homes as a result of untimely injury because they, or their employer, can’t afford health care.
And when its major industries are drowning in health care-induced red ink, can’t we finally acknowledge as a nation that subjecting health care to the unfettered market is killing our economy?
It’s too late to save Rick Wagoner’s job (if anybody but Mrs. Wagoner cared to) and maybe too late to save GM. But can we please have some American somewhere stand up and channel his or her inner Tommy Douglas and demand that every American get real
health care, not one person excluded?
If that happens, I will personally head up the effort to name him or her the Best American Ever.
Dave Saldana is a journalist, civil rights attorney, media critic and satire aficianado based in Washington, D.C..
Tags: american healthcare system, general motors ceo, GM's annual bill for health care, labor unions, paul krugman, rick wagoner, rick wagoner right about healthcare


Thank you for pointing out that political changes that help workers, that help everyday American people, help the country. Everyday Americans, _are_ the country. Helping them, helps business too.
Now is the time to do this. We are in crisis and need brave solutions. FDR was willing to try one bold move after another in attempts to get the country out of the depression.
Why is it a radical view to argue that no American should be bankrupted so that an insurance company can profit off their injury or illness? Especially when there are a variety of examples of other countries, without American wealth or power, that have managed to care for the health and well being of their citizens.
Insightful article that brings much needed perspective to the health care crisis. The cost of health care in this country diverts billions of dollars from business, individuals, and government to one business sector. The result: the leading cause of personal bankruptcy in this country is medical expenses. Just today the Seattle Times lead with the news that more than 40,000 working poor would lose state-subsidized health insurance in the new state budget.
This disease has infected the body societal for a long time, as this article nicely emphasizes, and now, in it’s acute stage, whether the patient will continue to endure the pain much longer or seek better treatment is a decision it is fast approaching.
Thank you for an interesting perspective on a shameful situation that has been under the radar way too long. Thank you for the kind words about Canadians–but let me tel you, our health care system is being eroded by the “free enterprisers” in a systematic manner.
I am old enough to remember the bitter struggle over “socialized” health care in Saskatchewan. There were black and white TV commercials showing mothers with very sick and crying children going from one doctor’s office to another only to find them locked because the doctors had left the province. My own father who was a kind and compassionate man would have gone to his grave believing that Tommy Douglas was a pinko communist if his third grandchild (my daughter) hadn’t been diagnosed with late stage Hodgkin’s Lymphoma. It was borderline terminal. The first year of treatment cost about $200,00 (in 1987). I explained to my late father that he could have sold his house and I could have sold mine and we wouldn’t have had a hope in hell of paying such a bill. Today, my daughter is healthy, vibrant, and beautiful–in the process of repaying society many times over for the efforts that were made on her hehalf.
LAND OF THE FREE, aye? Free from what? There are millions of Amnericans who are virtual slaves to their employers because they fear losing their health coverage. There are millions of Americans living in fear of getting sick because their coverage is substandard, in jeopardy, or non-existent. And there are those who are getting Third World care. Such a system cannot help but damage the moral fibre of a nation–and its economy–as Mr. Saldana so ably points out.
The Canadian system is not perfect but it costs about half as much per capita as the American system and there is no fear. Even so, there are those who point to the private hospitals in America where the waiting rooms are adorned with oak and marble accoutrements and the care is “instant” for those who can afford it. We need another Tommy Doublas–and a few more Mr. Saldanas who tell it like it is.
Every politician should have been born an orphan and remain a bachelor.
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