Why is Obama weighing in on CVS ending tobacco sales? Crony capitalism
This is a place where the president has no business at all.
Just because CVS has decided not to carry tobacco any longer and to instead focus on the other highly addictive drugs which are prescribed by doctors every day, doesn’t mean the president has to toss in his 2 cents. It’s a business decision and shouldn’t be any of the president’s.
But there’s more to the story than just the president sticking his nose again into the real economy.
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CVS wants Obamacare clinics in its stores which means no tobacco. This way though the pharmacy chain may lose $2 billion annually in the first year or two from this decision, in the long run it thinks it wins. The company has secured the praise of the government in a very public way which protects it to a degree from government scrutiny and probably even actively helps the company with regulators and other political favors.
But more importantly CVS secures a stream of taxpayer dollars going to its bottom line through the Obamacare program. CVS will continue to be a drug dealer, just now the drugs are paid for by the American people. Tobacco, as good a revenue stream as it is can’t compete with dollars flowing straight from Washington.
“As one of the largest retailers and pharmacies in America, CVS Caremark sets a powerful example,” he said in a statement early Wednesday morning. “Today’s decision will help advance my Administration’s efforts to reduce tobacco-related deaths, cancer, and heart disease, as well as bring down health care costs.”
Basically its play and be praised or don’t and be demonized and scrutinized by an activist federal government. Great choice. I’m sure the shareholders love it.
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About Nick Sorrentino
Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.