False gods leave us defenseless

Religious fundamentalism continues to do great harm throughout the world. But equal damage is done by the worship of “free markets.” This icon is more popular than Jesus—and more devastating than the devil.

Longview Institute’s Ruth Rosen describes “market fundamentalism” as “the exaggerated and irrational belief in the ability of markets to solve all problems.” This rigid religion has brought us catastrophic climate change, helplessness in the face of natural and manmade disasters, U.S. mercenary forces in Iraq and New Orleans, gross negligence of elderly and youth, the bankruptcy of much education “reform,” a widening gulf between rich and poor, and a general destabilizing of the body politic.

No matter how clueless the proposals for tax cuts or privatizing of government functions, George Bush and other local and national leaders are sainted—and too often re-elected—for advancing them. Never mind these companies operate out of our control.

Some have been dragged into the spotlight, like Halliburton; Kellogg, Brown and Root; Blackwater; and Custer Battles. But lesser known government contractors like SAIC, employing 44,000 people and taking in $8 billion last year and exposed in March by Bartlett and Steele, operate out of sight as a “Shadow Government.”

Accountable government is far more likely to serve the public. Consider Medicare, a much-maligned government program, with overhead of less than 4%, compared to health insurance companies who pocket 15 to 25%.

Privatization’s folly is revealed in the Walter Reed Hospital blowup. Part of the Bush wars on Afghanistan and Iraq—and on our soldiers—was the appointment of two cost-cutters to look over “personnel and readiness.” Already ailing military healthcare entered the emergency room under Dr. David Chu, undersecretary of defense and his assistant for “health affairs” and Army hospitals, Dr. William Winkenwerder.

Top Army officials were removed after exposure of Walter Reed’s scandalous conditions. However, more direct responsibility may lie with Bush’s civilian appointees. Chu, directing the $15 billion “Defense Health” program, once advised Reagan’s DOD on military equipment. He shocked vets two years ago, claiming that money spent on vet benefits “took away” from the nation’s ability to buy bullets and bombs. This attitude was reflected in DOD’s counterintuitive, and sharp, decline in permanent disability status granted vets (cut by over two-thirds, from 642 to 209) from 2004 to 2005—during wartime. Vets had been left high and dry for months, even years, before determination of disability cases.

Winkenwerder had been VP of Blue Cross/Blue Shield of Massachusetts, New England’s largest health insurance plan. At a Feb 21 press conference, he diminished hospital deficiencies as “quality of life experience issues.” The White House announced his upcoming replacement the next day. (Mark Benjamin, “Walter Reed, on the Cheap,” Progressive Populist, April 1, 2007, p. 8)

Retired generals complained about Chu and Winkenwerder’s single-minded focus on cost. Paul Sullivan, Veteran’s Affairs project director for data collection on returning vets, said, “they tried to run military healthcare on the cheap—like an HMO,” and the result was “the medical catastrophe and nightmare bureaucracy we see right now.”

Even before the Bush appointments, the Clinton/Gore “reinventing government initiative” forced Walter Reed’s civilian federal workers to compete with private contractors. WR’s employees first won out. Suddenly, however, the Army audit agency switched the award on a technicality, to a company named IAP, awarding it a 5-year, $120 million contract. Morale was devastated, and WR deteriorated with it.

The IAP selection defied logic. IAP botched ice delivery to Hurricane Katrina victims. Awarded a $103 million contract for IRS file management, it failed to have the system ready by its start date. Nonetheless, its federal contracts have gone from $222 million in 2000 to $1.2 billion in 2005. Why? It’s who you know, not what.

On its board are former VP Dan Quayle, a former Marine commandant, and a former vice chief of the Air Force. Its execs are two former Kellogg, Brown, and Root mucky-mucks. One of them, appropriately named, is David Swindle.

It and dozens of other companies are controlled by Cerberus Capital Management, a hedge fund that is now less a conglomerate than an investment vehicle. Cerberus’ new chairman is former Bush Treasury Secretary John Snow, chosen just as IAP pushed for a multi-billion-dollar military logistics contract now held by Halliburton.

If our God has become profit, we should instead choose the prophets. According to one of the best, “No man can serve two masters.” Will we choose God—or Mammon?