Outrage, Bought and Paid for.

“The two primary groups — Americans for Prosperity and FreedomWorks — actually grew out of the 2003 breakup of an outfit called Citizens for a Sound Economy that had been integral in the fight against Hillarycare. Indeed, the same ‘Tobacco Strategy’ memo in which Philip Morris boasts of shaping McCaughey’s writings also reveals that the tobacco giant paid Citizens for a Sound Economy to engineer a “grassroots” revolt against health care reform by staging demonstrations in the home districts of key congressmen.

In Rolling Stone, Tim Dickinson follows the money to expose the Republicans’ recent astro-turfing campaign against health care reform. In short, it’s the “Brooks Brothers Riot” all over again. In fact, “Americans for Prosperity, which has taken the lead in the current fight against reform, is a front group for oil billionaires David and Charles Koch, co-owners of the world’s largest private oil and gas conglomerate…Matt Schlapp, one of the original ‘Brooks Brothers rioters’…now serves as director of federal affairs for Koch Industries, orchestrating the firm’s political efforts in Washington.

Mr. Wendell.

“With this history, you can rest assured that the insurance industry is up to the same dirty tricks, using the same devious PR practices it has used for many years, to kill reform this year, or even better, to shape it so that it benefits insurance companies and their Wall Street investors far more than average Americans.” Former head of corporate communications at CIGNA, Wendell Potter, the health insurance industry equivalent of Russell Crowe in The Insider, explains in Salon what his former employers are up to, and why our republic appears to be in a spot of trouble:

“During my 20 years in corporate communications and public affairs, I participated in the steady growth and influence of largely invisible persuasion — and at a time when newsrooms are shrinking and investigative journalism seems to be vanishing. The number of PR people long ago surpassed the number of working journalists in this country…The clear winners as this shift occurs are big, rich corporations and other special interests. The losers are average Americans, most of whom are completely unaware how their thoughts and actions are being manipulated to achieve corporate goals on Capitol Hill.

Stuck in the Middle with You.

“That large-heartedness – that concern and regard for the plight of others – is not a partisan feeling. It is not a Republican or a Democratic feeling. It, too, is part of the American character. Our ability to stand in other people’s shoes. A recognition that we are all in this together; that when fortune turns against one of us, others are there to lend a helping hand. A belief that in this country, hard work and responsibility should be rewarded by some measure of security and fair play; and an acknowledgment that sometimes government has to step in to help deliver on that promise.

As I’m sure you know, President Obama delivered his health care reform address to Congress last night. [Transcript.] My thoughts on it are mixed.

On one hand, speaking in terms of rhetoric, style, and delivery, this was an amazing speech, his best since the campaign days. While it’s an open question how long its effects will linger, the address clearly and decisively helped move the reform ball forward. And the emotional closer, featuring Ted Kennedy’s heartfelt final words to the President, was incredibly moving. In sum, it’s the exemplary address we knew Obama had in him on this issue, and he brought it home perfectly.

But, all that being said, I can’t shake the nagging feeling that [a] the policy being outlined last night didn’t quite jibe with the wonderful speech, and, as all too common of late, [b] the president far too readily threw his left flank — the very people who sweat blood and tears to get him elected — under the bus.

To take the second part first, Obama early on indulged in an irritating and textbook case of Beltway false equivalence by setting himself up as the sensible middle between those cuh-rrrrazy single-payer types on the left and the free market fundies on the right. (“There are those on the left who believe that the only way to fix the system is through a single-payer system like Canada’s…“) Uh, yes, and not so long ago, Mr. President, you were among them. I feel like I’ve said this several times recently, but painting the left as dingbats to shore up one’s centrist bona fides is a pretty tired parlor trick at this point, and it never gets any less insulting.

As an aside, on the way into work yesterday, I — and everyone else around the Metro — was accosted by guys in Grim Reaper costumes and bullhorns, telling us all, basically, that violence will erupt and we will all die if this health care bill passes. Y’know, there’s a term for telling people they’ll be killed if a political event happens — We call it terrorism. (As it turns out, there’s a term for wearing a hood while telling people they’ll be killed too.) Well, imagine my surprise to hear — from the president I’ve vocally supported for two years now — that me and my fellow clowns on the left are just as part of the health care problem as these jokers are on the right. I have to admit, it kinda tempers the enthusiasm.

And then there was the discussion of the public option. Yes, the President did make a case for the public option in last night’s remarks: “[A]n additional step we can take to keep insurance companies honest is by making a not-for-profit public option available in the insurance exchange…It would also keep pressure on private insurers to keep their policies affordable and treat their customers better.” In addition, the President correctly pointed out, “It’s worth noting that a strong majority of Americans still favor a public insurance option of the sort I’ve proposed tonight.

But what the President giveth, the President also taketh away. The public option was clearly brought up in the speech after the non-negotiable section. (“While there remain some significant details to be ironed out, I believe a broad consensus exists for the aspects of the plan I just outlined.“)

Indeed, in case we missed the point, President Obama later made it clear: “To my progressive friends, I would remind you that…[t]he public option is only a means to [an] end – and we should remain open to other ideas that accomplish our ultimate goal.

He then went on to float two “compromise” ideas that, for all intent and purposes, are public option killers: (1) a trigger and (2) co-ops. (“For example, some have suggested that that the public option go into effect only in those markets where insurance companies are not providing affordable policies. Others propose a co-op or another non-profit entity to administer the plan.“)

The trigger notion — the idea that if the insurance companies don’t fix the problem themselves, a public option would then be “triggered” into existence — is in effect, as one progressive well put it, a threat made with an unloaded gun. It’s kabuki theater, pure and simple, because everyone knows that Congress never pulls the trigger in question. (See also the cost of prescription drugs in Medicare Part D.) As Slate‘s Tim Noah recently ably pointed out, triggers are used all the time as “compromise” fodder, and what they really mean is we’re going to pretend to have addressed the problem and let things go on as they have. And, really, how much worse would insurance companies have to fail before this trigger kicked in? We’re talking about health care reform right now because the system is already broken.

As for co-ops, there’s a good reason they are the compromise that the insurance industry tends to favor. Most likely, they’ll be too small, weak, and scattered to bring real competition to the market.

So, granted, we don’t have a final bill yet, and there are many strong advocates of a public option in the House who will continue to fight for it. But, if the public option is as expendable to the administration as it seemed last night, then we may have some problems.

To wit, if a health care reform bill passes that has an individual mandate (i.e. everyone has to buy insurance), limited subsidies (to keep costs down), and no public option, than what’s basically happening is this: People are being forced to buy insurance they likely still can’t afford from the very private companies that are making vast amounts of coin from the current, broken system. If this sounds like a huge boon for private insurance companies, it is. (One might even start to think they had a hand in writing the legislation.) Yes, a larger risk pool should make health insurance cheaper — but without a public option keeping rates honest, what guarantee do we have that these savings would be passed on to the consumer?

Along those lines, President Obama also made the case last night for a tax on premium plans to help pay for reform. (“This reform will charge insurance companies a fee for their most expensive policies, which will encourage them to provide greater value for the money – an idea which has the support of Democratic and Republican experts.“) But, again, without a robust public option holding the private industry’s feet to the fire, what will stop said insurance companies from just passing these costs down the line, in the form of higher premiums across the board?

(I’ll confess to being confused about this element of the plan anyway. The article I just linked on this premium plan tax says: “The hope is that employers would buy cheaper, less generous coverage for employees, thereby reducing the overuse of medical services.” Uh…cheaper, less generous coverage for employees? That’s a good thing? And I’m by no means an expert on these matters — far from it — but is “the overuse of medical services” really the main problem afflicting our health care system? It sounds a bit to me like “too many notes.”)

All of which is to say that I really hope the substance of the final plan matches the beauty of last night’s rhetoric. Now, I understand the counter-arguments: As Paul Begala recently reminded us, the Social Security Act of 1935 had serious problems too, and look how that turned out. The great is the enemy of the good. Politics is the art of the possible, etc. etc.

I don’t disagree with any of that. But I also believe that leadership is the art of expanding the horizons of the possible. (Cue RFK: “Some men see things as they are and say why. I dream things that never were and say why not.“) We always knew that the President is a master of oratory, and that he would move us all with his eloquence when the time came. But, in setting their sights so low on this bill, the administration, in my view, have come close to squandering both the historical moment and the president’s once-in-a-generation gift.

A historical puzzle lingers over the entire health care reform enterprise at the moment: How is it, with a Democratic House, a filibuster-proof Democratic Senate, and a Democratic president, that the proposal for health care reform on the table basically remains to the right of Richard Nixon? (See also: The Family Assistance Plan.)

Well, the short answer, imho, is lack of meaningful campaign finance and lobbying restrictions. (A key problem that’s about to get a whole lot worse.) But I would also argue in favor of another cause. For decades now, Democrats have tried to find that safe happy moderate middle, while Republicans — flaks, representatives and presidents alike — have willfully and consistently pushed that center to the right. The president’s address, however magnificent and even moving at times, felt like another step in the same old vicious cycle. And at this crucial historical moment, I strongly believe it would be a better demonstration of “our American character” if we Dems — and this administration — showed the courage of our convictions in words and deed.

The Serpent on the Staff.

“As a society, we trust doctors to be more concerned with the pulse of their patients than the pulse of commerce. Yet the American Medical Association is using that trust to try to block a robust public insurance option as part of health reform. In fact the A.M.A. now represents only 19 percent of practicing physicians…Its membership has declined in part because of its embarrassing historical record: the A.M.A. supported segregation, opposed President Harry Truman’s plans for national health insurance, backed tobacco, denounced Medicare and opposed President Bill Clinton’s health reform plan.

And don’t forget Sheppard-Towner: In his column this week, Nicholas Kristof take aim at the powerful American Medical Association. “‘They’ve always been on the wrong side of things,’ Dr. Scheiner told me, speaking of the A.M.A. ‘They may be protecting their interests, but they’re not protecting the interests of the American public.‘”

Where’s Waldo (the Lobbyist)?

“When 22 senators started working over the first health care overhaul bill on June 17, the news cameras were pointed at them — except for NPR’s photographer, who turned his lens on the lobbyists. Whatever bill emerges from Congress will affect one-sixth of the economy, and stakeholders have mobilized. We’ve begun to identify some of the faces in the hearing room, and we want to keep the process going.” Clever, clever: Also on the health care front, an NPR photographer initiates a game of find-the-health-care-lobbyist. “Know someone in these photos? Let us know who that someone is.

Help: Need Money for Cadre of Lobbyists.

“‘Taxpayers are subsidizing a legislative agenda that is inimical to their interests and offensive to what the whole TARP program is about,; said William Patterson, executive director of CtW Investment Group, an activist group affiliated with a coalition of labor unions. ‘It’s business as usual with taxpayers picking up the bill.” Sigh. The WP’s Dan Eggen reports on GM and a host of financial firms using bailout money to lobby for the status quo. “Major recipients of federal bailout money spent more than $10 million to lobby lawmakers in the first three months of 2009, including arguing against pay limits for corporate executives, according to newly filed disclosure records.

No Better Investment.

“In a remarkable illustration of the power of lobbying in Washington, a study released last week found that a single tax break in 2004 earned companies $220 for every dollar they spent on the issue — a 22,000 percent rate of return on their investment.” A new study by three University of Kansas profs tries to quantify exactly the amount of lucre generated by the lobbyists and influence-peddlers aswarm in Washington for their employers. And the answer? A whole lot. “The paper…examined the impact of a one-time tax break approved by Congress in 2004 that allowed multinational corporations to ‘repatriate’ profits earned overseas, effectively reducing their tax rate on the money from 35 percent to 5.25 percent. More than 800 companies took advantage of the legislation, saving an estimated $100 billion in the process.” [Hattip: Tim C. and Marginal Revolution.]

Hulk Free to Smash Again.

Mr. Holder said in a statement that ‘I have concluded that certain information should have been provided to the defense for use at trial.'” Hmmm. Why does Clay Davis come to mind? After discovering that agents at Justice and the FBI tried to frame a guilty man, as it were, Attorney General Eric Holder drops the prosecution of 85-year-old former Senator Ted Stevens. “The collapse of the Stevens case was a profound embarrassment for the Justice Department, and it raised troubling issues about the integrity of the actions of prosecutors who wield enormous power over people they investigate.” Uh, ok…but why aren’t we seeing this judicious, otherwise laudable commitment to fair play when it comes to state secrets and victims of extraordinary rendition?

At any rate, as official Washington rushes to embrace Stevens once more, let’s keep the big picture in mind: “[E]ven leaving criminal wrongdoing aside, no one disputes that Stevens accepted hundreds of thousands of dollars worth of home renovations and gifts (remember that massage chair?) from a supporter who had a slew of business interests that Stevens was in a position to affect as a powerful federal lawmaker and appropriator. That’s what we call ‘corrupt’. As Melanie Sloan of Citizens for Responsibility and Ethics in Washington put it, according to The Hill’s paraphrase: ‘Holder’s decision in no way should be viewed as a vindication of Stevens but rather as an indictment of the Justice Department’s inability to do one of its most important jobs.‘” True, that.

Public Service Announcement.

Here’s one to grow on: If you’re looking to represent the little people by taking on a cabinet position in our nation’s government, please deign to pay the taxes you owe on your chauffeurs, nannies, sinecures, and assorted other luxuries. Thanks much.

Also, for what it’s worth, I guess it’s possible that Tom Daschle was really God’s Gift to Health Care Reform, as he was recently made out to be when his nomination tanked. (His ideas seem solid, but, his book aside, we didn’t see that much of that side of him when he was Harry Reid 1.0 for years and years.) But I think it’s just as likely that his strong lobbyist ties would’ve made him ineffectual in the post, and the Daschle-friendly administration — a lot of candidate Obama’s core people were Daschle hand-me-downs — wouldn’t ever have been able to cut him loose. So, all the recent teeth-gnashing aside, this might very well have been a blessing in disguise.

Opening Windows, Closing the Revolving Door.

“‘We are here as public servants, and public service is a privilege,’ Obama said, addressing his White House staff and Cabinet on his first full day in office. ‘It’s not about advancing yourself or your corporate clients.'” Also part of President Obama’s very solid first day: An executive order kicking out the lobbyists and imposing a gift ban on White House employees. “‘We need to close the revolving door that lets lobbyists come into government freely and lets them use their time in public service” to promote their own interests when they leave, the president said.” [Official Order.]

And, in another welcome executive order, the new President also overturned Dubya’s secrecy rules with regards to presidential records, thus making life much easier for historians in the future. “[E]very agency and department should know that this administration stands on the side not of those who seek to withhold information, but those who seek to make it known.” (This also means Pres. Obama only has nine more left to overturn on Dubya’s worst ten.)