December 16, 2011 at 3:21 PM
By Richard Calkins
It’s no accident that conservative George Will, in his Dec. 4 column “Choking over Obamacare”, uses Carl Karcher and his company, CKE, as prime examples of the supposed negative effect of the Affordable Care Act on business. Karcher, an anti-gay, right-to-life supporter of the John Birch Society, grew up in what was then KKK-dominated Anaheim, and was convicted of insider trading in 1988 (among other things), paying a substantial fine to the SEC.
CKE runs several fast food outlets, including Carl’s Jr. and Green Burrito, with the vast majority of the 84% minority employees earning minimum wage without health insurance. Little wonder that actually providing health care, which Will continues to characterize with the tiresomely childish pejorative “Obamacare”, would cost more. Little wonder that CKE restaurants experience a 95% employee turnover, which Will describes as “not bad.” Will decries the regulation, which he mendaciously calls “gargantuan,” that discovered Karcher’s criminal activity. Fareed Zakaria’s December 8 Washington Post column, “The investment gap”, proves that the data does not support the argument that the U.S. is over-regulated, as Will contends. Zakaria cites the World Bank and World Economic Forum, whose studies show that America is the 5th and 4th best environments for doing business (behind comparatively tiny countries), and a Bloomberg News study that indicates the Obama administration has not issued significantly more rules than its predecessors.
Karcher died in 2008, millions of dollars in debt. Karcher’s and CKE’s financial problems started well before the Affordable Care Act, not because of it.
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