The Occupy Wall Street movement drew attention to the plight of the poor and middle class, who had lost income, retirement benefits, jobs, houses, and access to health care while the richest, especially corporate executives, got richer. The less fortunate's anger was not directed indiscriminately at the successful or the rich, but those who got wealthy by gaming the system, or flaunting the rules that lesser mortals had to obey. Perhaps not surprisingly, some of those most vulnerable to such criticism have responded with contempt.
Anonymous or Indirect Defenses of the One Percent
The initial defense of the plutocrats came from some of their political supporters, who denounced their "demonization" (see this opinion piece by Barbara Ehrenreich in September, 2011) or decried the rise of "mob rule" (see this by Paul Krugman in October). Then several articles documented the anonymous complaints of finance insiders about:
a bunch of whiny people who are lazy and incompetent and have nothing to do with their timefrom a Reuters article in October.
a ragtag group looking for sex, drugs and rock 'n' rollfrom a NY Times article in October.
The Plutocrats Strike Back
However, increasingly those in the one percent are willing to be open. In late December a Bloomberg article documented the sentiments of a number of finance and other corporate leaders.
- Jamie Dimon, CEO of JP Morgan Chase, complained:
Acting like everyone who's been successful is bad and because you're rich you're bad, I don't understand it.
- Bernard Marcus, founder of Home Depot:
Who gives a crap about some imbecile? Are you kidding me?
- John A Allison IV, Chairman of BB&T:
'Instead of an attack on the 1 percent, let’s call it an attack on the very productive,' Allison said. 'This attack is destructive.'
- Stephen Schwarzman, CEO of the Blackstone Group:
'You have to have skin in the game,' said Schwarzman, 64. 'I’m not saying how much people should do. But we should all be part of the system.'
- John Paulson, President of hedge fund Paulson & Co:
has also said the rich benefit society.
'The top 1 percent of New Yorkers pay over 40 percent of all income taxes,...'
- Tom Galisano, founder of Paychex Inc:
If I hear a politician use the term ‘paying your fair share’ one more time, I’m going to vomit
- Ken Langone, founder of Home Depot:
I am a fat cat, I’m not ashamed
Considering how Paul Krugman explained the generation of the global financial collapse by
people who got rich by peddling complex financial schemes that, far from delivering clear benefits to the American people, helped push us into a crisis whose aftereffects continue to blight the lives of tens of millions of their fellow citizens.Thus the responses by the very rich above only represent some or more arrogance.
Yet they have paid no price. Their institutions were bailed out by taxpayers, with few strings attached. They continue to benefit from explicit and implicit federal guarantees — basically, they’re still in a game of heads they win, tails taxpayers lose. And they benefit from tax loopholes that in many cases have people with multimillion-dollar incomes paying lower rates than middle-class families.
The Plutocrats as Health Care Leaders
One wonders how much this arrogance carried over into health care. We have noted previously how the leadership of finance has increasingly overlapped the leadership of health care, and how top executives increasingly seem to identify more with each other than with their employees, customers, or other stakeholders. Therefore, it should be no surprise that all but one of the group above also had or have leadership roles in health care organizations.
- Jamie Dimon is on the board of trustees of the New York University Langone Medical Center.
- Bernard Marcus formerly served as the chair of the board of the CDC Foundation.
- John A Allison IV is a member of the board of visitors of Wake Forest University Baptist Medical Center, per his BB&T Corp official biography.
- Stephen Schwarzman's Blackstone Group includes the Blackstone Healthcare Group, which invests in various health care corporations (as of 2010, Nycomed, Gerresheimer, Stiefel Laboratories, and Catalant per this press release), and all of whose members serve on one or more boards of directors of health care corporations (per the press release, Arthur Higgins serves on the boards of Zimmer, Eco Labs, and Resverlogix Corp; Lodewijk J R de Vink serves on the board of Roche; Doug Rogers serves on the boards of Codevax, Charles River Laboratories, and Computerized Medical Systems.)
- John Paulson is on the board of trustees of New York University,
- Kenneth G Langone, is vice chair again of the board of trustees of New York University, and chair of the board of trustees of the NYU Langone Medical Center.
I submit that linking their sentiments above to their leadership roles in health care should be highly disconcerting. Do we want people running medical centers who are proud to be "fat cats?" Do we want people running medical centers who do not understand why people who have lost income, retirement funds, jobs or their homes might be upset? Do we want people running health care corporations who do not think the poor and middle-class have any skin in the economic game? Do we want people running health care foundations who think that those who complain about the current economic situation are "imbeciles?"
The problems of health care increasingly seem to be a part of the larger problems with the global political economy. The problems we have been discussing that affect health care leadership seem to have come out of the culture of what now many are calling the larger plutocracy.
So it now seems that true health care reform will require a larger reform of the political economy. However, we still need leaders who understand the health care context, uphold health care professionals' values, and put patients first. We do not need leaders who are ill-informed, incompetent, self-interested, conflicted, or corrupt. We need governance that is accountable, honest, transparent, ethical, and again puts patients first.