Whole Foods and the Health Care Fiasco

by Zachary Adam Cohen on August 18, 2009

Posted in: Whole Foods

So the left is all atwitter over Whole Foods CEO John Mackey’s recent op-ed in the Wall Street Journal, in which Mackey argued that the last thing this country needs is another unfunded entitlement program, especially while Social Security and Medicare fast approach insolvency. He writes:

With a projected $1.8 trillion deficit for 2009, several trillions more in deficits projected over the next decade, and with both Medicare and Social Security entitlement spending about to ratchet up several notches over the next 15 years as Baby Boomers become eligible for both, we are rapidly running out of other people’s money. These deficits are simply not sustainable. They are either going to result in unprecedented new taxes and inflation, or they will bankrupt us.

While we clearly need health-care reform, the last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system. Instead, we should be trying to achieve reforms by moving in the opposite direction—toward less government control and more individual empowerment. Here are eight reforms that would greatly lower the cost of health care for everyone

Mackey then goes on to list eight reforms such as tort reform, removing state laws prohibiting insurance companies to compete across state lines and equalizing the tax laws between employer-provided and individually owned health insurance. These are legitimate reforms that are not even being talked about by the Democrats in Congress or the Obama Administration. If they are, I surely haven’t heard about them.

Nevertheless, Mackey has stepped into the spotlight and attacked a Democratic initiative, and not only that, but a Democratic dream for decades, namely, universal health care. His proposed reforms are a wise step in the opposite direction. Reform not rebirth. And so guess what’s happening?

Well for one, Whole Foods’ website has blown up with all kinds of complaints mostly along the lines of this one:

I was so shocked to read Mr. Mackey’s horrible, horrible opinion in the WSJ. 
i have been a loyal WF customer for almost 20 years. 
I am disgusted to find out what the founder’s attitude is. 
I hope this severely hurts his profits. His customer base is mostly liberal Democrats who will, like me, be horrified at what we have been supporting all this time. 

I for one am glad to know. I am so disgusted.

So basically, a portion of the left wants to boycott Whole Foods because their CEO has weighed in on the health care debate in a way that offends them. I think it is silly, but I’ll defend their right to do so. Radley Balko had this to say:

Let me see if I have the logic correct here: Whole Foods is consistently ranked among the most employee-friendly places to work in the service industry. In fact, Whole Foods treats employees a hell of a lot better than most liberal activist groups do. The company has strict environmental and humane animal treatment standards about how its food is grown and raised. The company buys local. The store near me is hosting a local tasting event for its regional vendors. Last I saw, the company’s lowest wage earners make $13.15 per hour. They also get to vote on what type of health insurance they want. And they all get health insurance. The company is also constantly raising money for various philanthropic causes. When I was there today, they were taking donations for a school lunch program. In short, Whole Foods is everything leftists talk about when they talk about “corporate responsibility.”

Indeed. Up till now, liberals owned Whole Foods. It was theirs! But no more. John Mackey has committed the grave offense of dissenting from the march towards bigger and bigger government. It was bad under Bush, but its just exploded with Obama. Liberals aren’t content with the stimulus, the auto bankruptcies in which the Obama Administration broke the law and violated one of capitalism’s sacrosanct principles (that of honoring the claims of senior debt holders), a $3.4 TRILLION dollar budget. Oh and they still want cap and trade. And of course, universal health care. Does anyone else see the hubris involved? Just because our notoriously cyclical economy turned sour its time to throw away decades of wisdom and commitment to capitalist ideals? Really?

No matter, cause I have a fantastic idea! If the left truly wants to put their money where their mouth is they can stop shopping at Whole Foods and do a whole lot more shopping at farmers markets, C.S.A’s, direct from local farms, food co-ops and the like. Of course what that means is that these self-important absolutists, that is in effect what they are claiming to be, will have to spend a lot more of their time and money buying organic food from truly local sources. For this reason alone, I say, go ahead, make my day, boycott Whole Foods.

My guess is the controversy will die down soon enough, and most of the people claiming to boycott Whole Foods either won’t go through with it, once they realize how limited their options are, or never shopped there in the first place and are just lunatic lefties who hate evil right wing CEO’s who have the audacity to pen intelligent, respectful op-eds.

Wouldn’t it be funny if the end result of this fiasco was that Whole Foods shoppers took another look at their favorite food store and decided to spend their money elsewhere? If they ever truly cared about the organic quality of the foods they were buying, and they weren’t simply shopping at Whole Foods because of the symbolism, than all those shoppers can march right over to the farmers markets. I guess some good can come from a right wing nut bag daring to speak truth to power.

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{ 13 comments… read them below or add one }

1 LocalNourishment August 18, 2009 at 8:24 am

And they wonder why the right is silent in the Pro-Food discussion.

2 Lee August 18, 2009 at 10:41 am

Zachary, the conclusion you reach in your post is right on. In fact, many of us buy the Whole Foods illusion – that we can shop the same way we always do in a big supermarket, pay a bit more, and feel good about ourselves. It's been interesting to watch Whole Foods try to find its place in a world where the term “organic” has been co-opted by big business (decidedly NOT by co-ops). Their attempts to reshape their value around the words “local” and “sustainable” have been painful to watch at times.

I think Mr. Mackey's biggest offense was not knowing his customer. If he did – or if he cared – he would have known that many people were buying into Whole Foods because it made them feel good. He would have known that he was selling more than organic produce.

I disagree strongly with Mr. Mackey. Although I defend his right to say whatever he wants, if I were a shareholder, I'd have wished he kept his mouth shut (and his pen dry).

3 Sophy August 18, 2009 at 11:01 am

Zach – Good article with an provocative perspertive although it seemed like a bit of a knee-jerk response to some of the liberal reactions. For someone who proposes reaching across the isle to work together on food reform, this seems like an attack on those whom you wish to work with. “Lunatic lefies”, “absolutists”? Come on, you are doing yourself a discredit.

You group all liberals together with references to “they”, making it a very “us and them” situation. Not all liberals are happy with Obama's proposed healthcare plan, not all of them think that the stimulus bill was a good idea. Just as you dislike your conservative beliefs being clumped together with evangelical Republicans, not all liberals hold the same values.

In my personal experiences with Whole Foods, it is noy solely a liberal bastion. I come from a mostly Republican Town, and it is the wealthy Republican population who drives up in their giant H3's and to do their shopping there. And “daring to speak truth to power”? In your opinion I suppose, it's hardly the first time this debate has come up.

John Mackey certainly has a right to his opinion, as do those who wish to boycott Whole Foods. Maybe it will push more people to shop at farmers markets and join CSAs and I would certainly encourage that. But attacking those who disagree with his stance on health care seems to be counterintuitive to your goal of bringing conservatives and liberals together in the fight for good food.

4 Zachary Adam Cohen August 18, 2009 at 11:36 am

Sophy, good points. In my defense I did say the following “So basically, a portion of the left wants to boycott Whole Foods” trying to distinguish the online activists from the great majority of Democrats, liberals and progressives. To me, the people posting on Whole Foods website are more like the town hall screamers and shouters. They are a constituency of the left, but not its whole.

First off, there is no Obama healthcare plan, so how can you say some liberals aren't happy with. There are 5 bills, none of which emerged from the White House. I think Obama's biggest mistake was outsourcing the writing of the bill to Congress basically saying to them, here is what I like, please please pretty please come up with something decent. Well, the liberal democrats produced their dream bill, the blue dogs shuddered and torpedoed it, Baucus is running his clown show and in the meantime, they broke for recess with no set bill to talk about, and explain. They did this to themself in my opinion. They should scrap everything and start anew.
I don't see myself as attacking the people who didn't like Mackey's article. I see myself as trying to capitalize on their absolutism. And isn't absolutism to say, I won't shop at your store if you won't support my president? Seems pretty absolutist and Zero Sum to me.
Furthermore, it seems extremely narrow minded when these people are attacking a company that fits so many of their ideals, because of a disagreement with their CEO's position on an unrelated issue. That just reeks of political absolutism to me. Am i wrong?
It's just a terrible double standard that exists in this country. When Conservatives object and boycott (for instance Disney) they are labeled ignorant, or scary, or morality police, and when Liberals do the same they are righteous and brave. I am so sick of that. And I am happy and willing to call it out when I see it. Well I see it, but I am still trying to make lemonade, because MY passion is local foods. So, even though I did have adopt a snarky, slightly aggrieved tone in this piece, my conclusion is trying to increase Good Foods.
But i totes get your point. ;)

Thanks for taking the time to post sophy

5 Zachary Adam Cohen August 18, 2009 at 12:31 pm

the whole foods illusion! man i wish i had thought of that before i wrote the darn post, thanks @leezukor

6 Lee August 18, 2009 at 4:15 pm

to be fair, i actually like whole foods, and i think they sell products that are a cut above what you'd find at other grocery chains. do you think mr. mackey knew exactly what he was doing and actually intended to upset the liberal base?

7 Zachary Adam Cohen August 18, 2009 at 4:19 pm

Lee

I think Mr Mackey knows his customer base better than you or I do. I think he knew it was likely to generate a TON of controversy, and I also think he knows two things…1. Any boycott won't work 2. He will attract new customers as conservatives begin shopping there now that they know where he stands…thoughts?

8 Lee August 18, 2009 at 4:25 pm

i generally agree, but i dunno – it feels like a risky move. maybe these are desperate times. i also think it's important for investors to know that mr. mackey is no pushover, which he clearly isn't.

9 Tim August 19, 2009 at 6:42 pm

“Liberals” make a big mistake if they think that “whole foodists” all belong to a monolithic voting block that
wants government involved in ever more increasing aspects of our life.

As a Ron Paul “conservative” I've been a fan of Whole Foods for 15 years and give them credit for having
skin in the natural and organic food game before it was as popular as it is today. We don't have many more options in
the Denver area.

10 Zachary Adam Cohen August 20, 2009 at 4:37 am

true dat my friend, true dat

11 Zachary Adam Cohen August 20, 2009 at 5:41 am

Thanks Tim. I appreciate your honesty and your comment. I honestly
hope that more conservatives will feel enfranchised to shop at whole
foods now that the stigma is broken. Ultimately I'd like to see more
people shopping at farmers markets and direct from the farm but if
they need to spend a few years at whole foods getting acquainted w the
movement and the vocabulary then that is fine w me.
Z

12 seattleandwet September 8, 2009 at 1:26 am

Sad fact for the Libertarian Right: The attack on President Obama's health care proposal by the Whole Foods CEO has done two things which anyone in business can appreciate as a problem:

1) gained new customers in areas where you have few stores and among people who do not share your values.

2) lost the support or diminished the loyalty of thousands of customers who live close to your stores and who share your values (or at least once thought they did).

Terrible judgment. Bad policy suggestions. Lousy time to offend your customers.

13 Californian September 21, 2009 at 6:23 pm

Great article. I disagree with his stance, but I don't know if going to the extreme of boycotting is the right thing to do, as congress isn't approaching healthcare in the manner that is best suited for the country anyway. Until everyone can either work at Whole Foods and have great healthcare, or healthcare companies aren't horrible about coverage (and dropping you/not letting you back at all if you do drop), universal healthcare is a very good option. ~850 billion dollars good? Definitely not. Oh, and without the actual public option *why the hell are we spending so much money to CUT COSTS*? That makes no sense, so I could not boycott all of WF because the CEO disagrees with me (albeit only slightly whereas others who are probably less informed would just follow the Democrats because they're Democrats and not because they understand the bill at all). I hope that some people who are open-minded enough try to understand where the man is coming from and not just have a mob mentality about it.

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