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Saturday, August 29, 2009
Tom Borelli :: Townhall.com Columnist
The Business Consequences of Challenging Obama's Statist Policies
by Tom Borelli
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The politics of business is getting perilous for CEOs trying to traverse the ideological battle between capitalism and socialism.

Whole Foods CEO John Mackey is under fire for offering free-market solutions to health care while GE CEO Jeff Immelt is benefiting from adopting a strategy in which the government is his partner.

Indeed, the contrasting approaches to Obama’s political agenda offered by Mackey and Immelt illustrate the risks and benefits of dealing with the president’s statist policies.

Culture of Corruption by Michelle Malkin FREE

Whole Foods – the organic grocery retailer – is in the midst of a public relations crisis stemming from a commentary on health care reform by Mackey.

In his strongly worded opinion piece, “The Whole Foods Alternative to ObamaCare,” published in the Wall Street Journal, Mackey rejects Obama’s proposal because it would result in “a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system.”

As an alternative, Mackey recommends a series of free-market ideas, including high-deductible health insurance plans and health savings accounts (HSAs), which his company has adopted.

Mackey also seeks to reduce health care demand by encouraging personal responsibility, “with the realization that every American adult is responsible for his or her own health.”

Mackey’s push for personal responsibility and a free-market solution is not an altruist endeavor, but good business. Mackey built Whole Foods by capitalizing on consumers seeking healthier food, and now he senses another opportunity: in this case, the opportunity to profit from selling foods that help combat obesity and chronic diseases.

Prior to the publication of his commentary, Mackey told the Wall Street Journal he wants the company “to encourage customers and employees to attack the nation's obesity rate, the prevalence of heart disease, diabetes and cancer.”

He envisions meeting that goal by increasing his company’s offering of healthy foods and to educate consumers on having better diets by initiating a Healthy Eating Education program in his stores.

Obviously, this business model could prosper under policies that encourage individual incentives to improve diets.

Mackey’s views spurred outrage among Obama’s left-wing supporters. A Facebook group dedicated to boycotting Whole Foods was created in record time, numerous blogs railed against Mackey and there were protests outside stores in several locations.

With Mackey on the ropes, a union pension fund advocacy group is calling for Whole Foods’ board of directors to dismiss him from the company he founded.

Although Mackey is far from a right-winger, his free-market view of health care and labor made him a target of Obama’s supporters.

In contrast, GE’s Immelt is “all in” with Obama’s policy agenda and it’s paying off handsomely. Continued...

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About The Author

Thomas J. Borelli, PhD. is the editor of FreeEnterpriser.com and Director of the Free Enterprise Project at the National Center for Public Policy Research.

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Is Obama-trol the answer?
if one looks at Ford car sales up 17% while GMC and Chrysler are way down in car sales {facts} the snswer is plain...perhaps President Obama and his advisors/czars should re-visit Adam Smith.

Does GM know something we don't?
If you apply for a position through GE's website you have to agree to a full government background check should, in the future, your position be contracted to, or otherwise be considered as part of, the United States government. There are several other questions asked as if you are applying for a job with the federal government. I have been to this website in the past to apply for jobs and none of this "government" stuff was there.
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