Industry Insider Had Attack of Conscience, Was Called “Traitor” & Was Ostracized (Cancel Culture) – Page 2

Deadly Spin

The Book of the Week is “Deadly Spin” by Wendell Potter, published in 2010. This is a book that explains how health insurance companies engage in unethical behavior in the name of profit, that results in needless deaths in the United States.

It follows then, that serving as a top executive at a health insurance company requires sociopathic tendencies, favoring money over people. One reason the insurance companies are so obsessed with their bottom lines (aside from the greed of their top executives) is that they have to answer to Wall Street.

Potter worked for Humana and then CIGNA a combined approximately twenty years as head of their public relations departments. By the late 1980’s, Humana realized it had a conflict in running a for-profit hospital and a managed-care plan simultaneously. The hospital was more than happy to maximize the stays of its most lucrative patients, while the plan’s goal was to minimize costs through preventive health care– promoting wellness.

The author learned to play the game of maximizing his employer’s profits through fighting legislative changes to his industry; and protecting, defending and enhancing his employer’s reputation. For, there was a direct relationship between his employer’s profits and his raises and bonuses. He therefore emotionally detached himself from health insurance plan members, and focused specifically on actuarial tables and legalese to help him project an image of his employer as a reasonable, if not caring participant in patient care.

Whenever a threat to his former employers’ profits arose, such as the movie “Sicko” or proposed legislation that financially favored patients, his former employers hired a big-name, monster-sized public relations firm, and secretly co-funded and co-founded a political front group, such as “Health Care America” that publicly pretended to favor health care consumers, but truly sought to maximize insurance industry profits. The group was a propaganda machine, and an object lesson in how to lie with statistics.

Other tricks of the trade include: “…rescinding individual policies, denying claims, cheating doctors, pushing new mothers and breast cancer patients out of the hospital prematurely and shifting costs to consumers.”

Read the book to learn additional details of the hegemony of the health insurance companies. One interesting endnote: “Obama opposed any requirement that everyone buy insurance, one of the few points on which he disagreed with Hillary.”

Indecent Exposure

The Book of the Week is “Indecent Exposure, A True Story of Hollywood and Wall Street” by David McClintick, published in 1982. This volume with the provocative but misleading title had nothing to do with sex. It actually consisted of a suspenseful, albeit long story seen mostly through the eyes of Alan J. Hirschfield, the CEO and officer at Columbia, the movie company. It was about how a lack of honesty, the power of propaganda, and clashing egos basically resulted in the redistribution of wealth among the wealthy. This sort of thing happens all the time.

In February 1977, then-famous actor Cliff Robertson received a document saying he owed taxes in connection with a check he never received. He later found out that the check had been forged and cashed in his name, by David Begelman, a high-level executive at the aforesaid Columbia. Robertson became the victim of cancel culture, for NOT being a tax cheat in Hollywood.

It was common practice for Hollywood studios to send movie actors checks for thousands of dollars (usually unreported to the IRS) that defrayed a small portion of their promotion expenses for a new picture. The IRS had just then begun cracking down on that taxable income. Robertson’s reaction set in motion a series of consequences that affected thousands of people; mostly financially.

Columbia was a public company, and the bad publicity resulting from news of a serious crime committed by one of its executives was a serious public relations problem. Hirschfield, who was on the board of directors, was told by an attorney that he had a duty to inform the executive committee, corporate counsel and the SEC after an internal investigation had been conducted.

As has been the case since the discovery of journalism/tabloidism, (supposedly said by Mark Twain), “A lie can travel halfway around the world while the truth is putting on its shoes.” Begelman’s friends in the Hollywood community (of which the check forger had many) rushed to his defense, having heard only vague rumors that described his transgressions in euphemisms. They really had no clue that he had actually committed several felonies, it turned out. They didn’t want to know.

The friends planted tabloidy messages in the media making the excuse “Everybody Does It” because they took unethical liberties with their own expense accounts, and made Hirschfield the villain, saying he was a power-hungry, vindictive executive, as he technically did compete for power with Begelman in the company hierarchy. Hollywood’s and the public’s gullibility in automatically believing in Begelman’s innocence and Hirschfield’s treachery is human nature.

At the board meeting that initiated the long, heated discussion that would determine whether Begelman was fired, Begelman acted like a prisoner on death row who had suddenly found religion. He implied he might kill himself if removed from his primary job. But actually, anyone who knows this kind of person knows that he would be too arrogant to kill himself.

A preliminary inquiry into Begelman’s history yielded more than one serious crime during his Columbia tenure, and previous lying and other worse misdeeds. Hirschfield argued for termination, saying Begelman was unlikely to change his spots, as dishonesty was a lifelong habit with him. Over the next few years, the Hollywood community and the public, however, still having heard only distorted soundbites that minimized Begelman’s sins, fooled itself into believing they weren’t that bad, and continued to defend him.

Interesting sidenote: In 1982, in a joking context, Hirschfield exclaimed to a female friend who was high on the corporate ladder, in front of some colleagues: “Female executives suck!” She laughed. Clearly, if that was uttered in 2018, hilarity would NOT ensue.

Read the book to learn of the consequences of the stupid actions taken by most of the main characters of this entertaining saga.

The Place to Be – BONUS POST

The Bonus Book of the Week is “The Place to Be– Washington, CBS, and the Glory Days of Television News” by Roger Mudd, published in 2008. The author was a TV journalist. The “glory days of television news” of fifty years ago was comprised of the same kind of sleaze that is current politicians’ public and personal behavior (i.e., the Democrat or Republican-funded publicity stunt of the week– they take turns, especially during election season).

Born in 1928 in Washington, D.C., Mudd began his career in 1953. At CBS, in July 1961, he got his first opportunity to report news on camera. Later, he was assigned to cover Capitol Hill, an inferior territory compared to the White House. In autumn, 1963, the duration of a television news show increased from fifteen to thirty minutes. That was a big deal. Thereafter, more people chose to get their main source of news from TV rather than newspapers and radio.

Because public viewing of the 1952 House Un-American Activities Committee hearings proved to be an embarrassment to the U.S. government, House Speaker Sam Rayburn banned the presence of TV cameras from House Committee sessions until 1970, and live coverage, until 1979; in the Senate, until 1986.

In December 1970, Mudd unwisely delivered a speech at Washington and Lee University, stating his opinion that radio and TV news were information sources inferior to print; the former appealed to the audience’s emotions in short sound bites; the latter, to intellect and in depth.

CBS didn’t take kindly to Mudd’s truthful assessment. Of course, his career suffered after that. He was passed over to fill in for Walter Cronkite during the summer, and later, to become the one anchorman on the evening news. Vice President Spiro Agnew at the time had been on the rampage, attacking the media for attacking the government.

Read the book to learn of additional similarities between TV “news” of Mudd’s generation, and now.

Parting With Illusions

The Book of the Week is “Parting With Illusions” by Vladimir Pozner, published in 1990. This is the autobiography of an American Soviet, and vice versa.

Born in April 1934 in Paris, Pozner lived most of his life in the former Soviet Union but spent his early childhood in the United States. He attended City and Country grammar school in New York City. In the 1940’s, the school’s caring teachers taught hands-on trades such as printing, woodworking, ceramics, retailing and post-office management– and their history. At Stuyvesant high school, indifferent teachers marginalized Pozner in his forty-student classes.

Both Pozner’s parents were film-industry workers. His father was a high executive, and Soviet citizen. His mother was French. His much younger brother was born in the United States. In 1948, the family was faced with the option of moving to France without the father, or moving all together to the USSR, or staying in America, where they would be harassed unmercifully because their head of household was a Communist. A job was supposedly waiting in Moscow for him, but they ended up staying in Berlin for four years first.

In the immediate postwar years, there was extensive capital flight and brain drain going from East Germany to West Germany. Pozner attended a school that taught him the Russian language. Writing exercises consisted of robotic transcribing of verbatim material from a textbook or teacher; he was supposed to “…walk the mental straight and narrow, never digressing, never introducing any of your own ideas.”

In his career in the 1950’s through the 1980’s as a print and radio journalist in the USSR, because he was speaking to foreign audiences, Pozner was allowed to cover whichever topics he wanted to– but he still refrained from discussing certain subjects for fear of rocking the boat. However, when it is one’s daily job to be a propagandist, sooner or later, he is going to say what he really feels and get in trouble. Unless he’s a pathological liar. Even in the United States.

Read the book to learn of the author’s experiences as a pro-Soviet, pro-Communist, pro-Socialist journalist, translator, and Jew, radio commentator, etc.

Doctored

The Book of the Week is “Doctored” by Sandeep Jauhar, published in 2014. This is an eloquently written autobiographical slice of life from a cardiologist in Long Island, NY, within the last decade.

Dr. Jauhar suggests that America’s broken health care system is the fault of all parties involved– the government, the doctors, the insurance companies and the patients. He writes that his specialty, heart failure, actually generates losses for the hospital at which he is employed. The money is in the installation and monitoring of stents and pacemakers, not prolonged hospital stays of patients. He resists going into private practice because he would be a “…grunt, overtesting, kissing ass for referrals, fighting insurers to get paid” not to mention being forced to pay the out-of-pocket, astronomical cost of medical malpractice insurance. Medical school doesn’t show students the real-world worries of practicing medicine in the United States. One of countless worries of doctors is of lawsuits brought by litigious patients, notwithstanding the malpractice insurance.

Doctors have to deal with a slew of issues peripheral to treating patients; among them, that doctors these days have trouble making a living due to the facts that reimbursement of Medicare and insurance companies to doctors are at an all-time low, and doctors have the burden of student loans while possibly trying to move into their own home and raise a family. This puts pressure on them to engage in the behaviors of private practice mentioned above.

The pay of even an “attending physician” (employee) such as Dr. Jauhar, fluctuates with the amount of revenue he generates for his employer. He writes, “Insurers can make doctors jump through hoops to get paid… tell patients which doctors they can see… restrict medications. But they still cannot…” control the referrals doctors make to other doctors.

Read the book to learn about the (sleazy) strategies used by the medical community to protect itself against (stingy and at times, unreasonable) insurance companies, the author’s moral dilemmas on his own situation told through real-patient anecdotes, and the author’s family life.

Side Note: Despite the flaws in the way health care is provided in the United States– as John and Hank Green (YouTube Nerdfighters) directly or indirectly remind viewers in every video they make lately– people born in the United States have won the world birth lottery, and thus have access to the best life-saving and life-prolonging technology, procedures and treatments, due ironically to the profit motive.

Why I Left Goldman Sachs

The Book of the Week is “Why I Left Goldman Sachs” by Greg Smith, published in 2012.

This career memoir details how the author experienced the change for the worse in corporate culture of stock brokerage Goldman Sachs (GS) over the course of a little more than a decade, from 2000 to early 2012. The company lost its way in terms of its mission and values, which embodied fiduciary duty and integrity.

In 2000, the author completed the selective, elitist, highly coveted summer internship program at the brokerage. He saw how principled the money managers were in recommending truly suitable transactions to their clients; not necessarily the most profitable ones.

When he began working there as a full-fledged staff member the following year, he took to the work, possessing the right combination of talents, skills and abilities to focus for long hours on conferring with clients and doing what was financially best for them. The goal was to build trust in order to foster a long-term relationship. It stands to reason that that is a more profitable course of action than seeking to rake in maximum money in the short term– which would provoke disloyalty from the client, when the client realizes he’s been taken advantage of.

Smith writes that a gradual change was occurring at his workplace around the start of 2005. At the time, he admittedly was “drinking the Kool Aid” like everyone else. The megabucks were multiplying because conflicts of interest were increasing betwen the brokerage and the government and other entities with which the brokerage was associated in various ways. The CEO and COO of GS were all for it. Their yearly letter to shareholders reasoned that such conflicts were inevitable, and were a sign that business was good. A telling example: GS netted approximately $100 million when it helped its client, the New York Stock Exchange merge with publicly traded, electronic exchange Archipelago in a $9 billion deal.

In the early 2000’s, one trend in the securities industry that would contribute to huge financial losses for the big firms including GS, was automated trading via software. The autotraders of the different firms were programmed to engage in largely the same behavior. They sought to trade in obscure, off-the-beaten path investments in markets in which it was difficult to find a buyer when it came time to sell. And they were all trying to sell at the same time. That was not a condition the autotrader creators had anticipated.

Another aspect of the big picture was that the people selling the financial products– more specifically, derivatives– did not themselves, understand what they were selling. It might be recalled that a derivatives debacle plagued the securities industry in 1994. Apparently, in 2007-2009, the greedy people involved in this rerun of a financial catastrophe failed to read their history, or had short memories. And governments of entire countries like Libya, were suffering losses of billions of dollars, thanks to GS, in 2007.

Read the book to learn much more about the outrageous occurrences borne of avarice witnessed by the author and the world during what became for him, an ordeal, characterized by the saying, “The fish rots from the head down.”

The Snowden Files

The Book of the Week is “The Snowden Files: The Inside Story of the World’s Most Wanted Man” by Luke Harding, published in 2014. This ebook eloquently describes how Edward Snowden became a whistleblower, and the immediate consequences of his actions.

President Barack Obama vowed to curtail intrusive collection of personal data from and on the American people during 2008. A set of policies passed after 9/11, the Patriot Act, originally allowed certain kinds of spying. The goal was to root out terrorists. Instead of curbing the program, Obama authorized the National Security Agency (NSA) of the United States government to become an all-out global spying operation. By 2009, it was collecting metadata from millions of American and English citizens, as well as numerous global government officials, through phone records and email. It teamed up with GCHQ, the United Kingdom’s governmental branch that handles intelligence, and later, elicited customer data from the major U.S. tech companies Google, Facebook, Apple and Microsoft. The NSA and GCHQ “…secretly attached intercepts to the undersea fibre-optic cables that ringed the world.”

However admirable the intentions of government officials might be– thinking they are seeking out evil and preventing incidents of terrorism, their actions are misguided. They might contend that there have been no terrorist attacks on American soil since 9/11, so therefore, the program is working. This erroneous reasoning is like the stupid joke: A man is sitting outside on a city street waving around an odd contraption. Someone walks by and asks him what it is. The man tells them it’s an elephant repellent. He is asked how he knows it’s working. He says, “It must be working. Do you see any elephants around here?”

This blogger believes that the privacy violations– arguably unconstitutional– are a secondary reason why the nature of the NSA’s actions are so dangerous. One major aspect that makes the spying so dangerous is that comprehensive searches can be done on electronic-records literally at the speed of light.

Excuse the cliche, but “Absolute power corrupts absolutely.” Abuse of power is inevitable. For instance, there have been incidents involving the TSA. Throughout history, only bad publicity generated by whistleblowers who have made serious sacrifices– their livelihoods and/or their lives– has stemmed the tide of the evildoing. The same is true with this NSA/GCHQ situation. This ebook likened the spying to the East German Stasi prior to the fall of Communism. This blogger thinks eventually, absent a whistleblower, there would have emerged an individual with the mentality of Stalin or the late U.S. Senator Joseph McCarthy. Fortunately, Snowden found a way to act on the conviction of his beliefs in a mature, if illegal, way. He communicated with the right individuals at The Guardian, “… the third largest newspaper website in the world.”

A minor side effect of the collection of massive amounts of data, even if only a fraction of it is looked at– is that mistakes of honest ineptitude will be made. Lives have been greatly inconvenienced at best, due to the erroneous data in credit records, and those whose names have been mistakenly placed on a “no-fly” list, among various other cluster screw-ups of record-keeping entities.

Read the book to learn of the different media cultures in the U.S. and U.K., and the details of this suspenseful saga.