The Republican Party Deserves Their Bad Election Night

Zombie political culture is still eating brains.

Analysis: How diversity dogma and H-1B visas sank a proud American brand



The United Services Automobile Association is one of the most venerable names in banking and insurance, a company that prides itself on its service to members of the military and their families. In recent years, however, USAA has run into serious financial trouble due to a combination of mismanagement, fashionable diversity, equity, and inclusion policies, and the firm’s increasing reliance on incompetent and untrustworthy H-1B workers, most of whom are from India.

A significant number of current and former USAA employees have come forward to discuss what they describe as a toxic workplace culture, which has led to an alarming number of employee suicides, and the company's outsourcing of critical functions to H-1Bs and Indian consultancies, putting at risk the financial data of its customers, which include high-ranking members of the U.S. armed forces.

What began as a cost-cutting strategy in the early 2000s now threatens the stability of an institution long trusted by veterans.

Insiders granted anonymity to avoid retaliation say USAA’s decline began in the 2000s under then-CEO Robert G. Davis, who outsourced IT and other core functions to H-1B contracting firms such as Tata Consultancy Services. Those firms imposed contracts requiring USAA to maintain minimum staffing levels, creating chronic overstaffing. Idle contractors were reportedly assigned “busywork” to meet quotas, with conference rooms converted into laptop farms where workers sat “packed like sardines.

One insider described the result as “incredibly incompetent” operations. Projects that U.S.-based employees could complete on time were instead handed to H-1B contractors who often lacked the necessary skills and required retraining.

From cost-cutting to collapse

At the same time, USAA repeatedly laid off American staff and replaced them with foreign workers, driving labor costs higher and eroding institutional knowledge. Davis retired abruptly in 2007, but his successors continued his policies, expanding USAA’s offshore footprint with new IT centers in Guadalajara, Mexico, and Chennai, India.

Insiders say H-1B contractors at USAA often lack basic programming skills, compounding inefficiency. In one case, a credit card processing problem baffled contractors for six months until the company brought back a retired American employee, who solved the problem in a matter of days. The constant visa turnover worsens the issue. Skilled H-1Bs leave after six years, draining institutional knowledge. Turnover is even higher at USAA’s Guadalajara facility, where Indian employees reportedly fear cartel violence.

Bureaucratic bloat magnifies these problems. Each team has dual directors, and many systems rely on outdated software. That dysfunction has drawn scrutiny from federal regulators, who fined USAA for failed audits and violations of anti-money-laundering laws. Those failures forced the company to sell off divisions, including real estate, and pushed USAA into persistent losses through much of the decade.

Customers have also felt the effects. Many complain that poorly trained H-1B staff struggle to handle basic service requests. One customer said resolving a fraud alert took hours — and that he now contacts USAA’s top executives directly to get results.

Security risks and cultural decay

USAA’s growing dependence on H-1B contractors and overseas labor has created potential security and compliance risks, according to multiple insiders. The company has outsourced anti-money laundering work to Tata Consultancy Services, which reportedly performs much of that work in India. As a result, the personal financial data of U.S. service members and veterans may be stored or processed abroad.

USAA also shares customer data — including names, addresses, and birth dates — with LexisNexis, with no option for customers to opt out. One customer said he only discovered this practice after receiving a notice in the mail.

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subodhsathe via iStock/Getty Images

Inside the company, these policies have coincided with a marked decline in morale. Mass layoffs of veteran employees have preceded at least three suicides, including one who shot himself in a company parking lot. A former director described intervening to stop another potential suicide. Tensions intensified during the COVID-19 pandemic, when USAA defied Texas Republican Gov. Greg Abbott’s executive order banning vaccine mandates.

Employees describe a sharp cultural shift away from USAA’s traditional military ethos toward a mishmash of corporate diversity programming. The company has hosted Diwali celebrations and mandatory DEI events while facing allegations of religious discrimination against Christian employees. One former employee has taken a case to arbitration. Internal surveys reportedly show employee satisfaction at just 33%.

An institution on the brink

Analysts say the company’s reliance on foreign labor and internal instability have eroded its reputation for customer service and financial stewardship. What began as a cost-cutting strategy in the early 2000s now threatens the stability of an institution long trusted by veterans.

Whether USAA can recover will depend on its ability to restore confidence — both among employees and the members it was established to serve.

The maligned and misunderstood player that Big Pharma wants gone



Last week, a bipartisan group of senators introduced legislation on drug prices that specifically targets pharmacy benefit managers, exactly as Big Pharma prefers. Pharmaceutical companies have spent years trying to convince the public and policymakers that PBMs are the bad guys in the prescription supply chain, shadowy middlemen inflating prices and hurting innovation. That narrative is convenient, but it is also wrong. PBMs are introducing competition, eliminating waste, and driving down prices.

Which is precisely why Big Pharma wants them out of the way.

The truth is that pharmacy benefit managers are effective. And that is exactly why drugmakers are going after them.

The pharmaceutical industry spends more money than any other sector to sway government policy. In 2024, it poured $90 million into campaign contributions and nearly $400 million into lobbying — much of it through former government officials now on the payroll. Drugmakers also shelled out a whopping $11 billion on advertising, a sum that conveniently buys more than consumer attention. It pressures media outlets to look the other way, a racket the Trump administration is finally moving to rein in.

After the black eye of the opioid crisis and the COVID-19 debacle, Big Pharma needs a scapegoat for high drug prices. It found one in a quiet, little-known player most Americans have never heard of, much less understood.

But the numbers are clear. A recent study shows pharmacy benefit managers deliver at least $145 billion in net value every year, even after costs. Compared with a system where manufacturers dictate prices, PBMs create an additional $192 billion in value across the economy. That money doesn’t vanish into corporate coffers. It flows back into businesses, households, and the wallets of working Americans.

PBMs accomplish this by negotiating directly with manufacturers and pharmacies. They aggregate buying power for millions of people. They secure rebates and discounts that most individual plans could never get on their own. In 2020, PBM-managed rebate structures created $51 billion in value for patients and plan sponsors. That is a competitive market in action.

PBMs are expected to save health plans and consumers about $1.2 trillion over the next 10 years, averaging $1,154 per person per year. And for every dollar spent on PBM services, the system saves $10 in return. By steering patients toward generics and bio-similars, PBMs helped the health system save $445 billion in 2023 alone. That is what efficiency looks like.

Perhaps more importantly, they improve health outcomes. When patients can afford their prescriptions, they are more likely to take them. That means fewer hospitalizations and fewer emergency room visits. PBM-driven programs have led to as much as a 16% increase in medication adherence and a 10% drop in inpatient admissions.

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Tom Williams/CQ-Roll Call, Inc via Getty Images

It’s an obvious good to have healthier Americans. But it’s also good for a productive economy.

By lowering premiums and drug costs in public programs, PBMs save taxpayers money as well. This alone accounts for $47 billion in annual savings. And by accelerating patient access to new therapies early in the patent cycle, PBMs support pharmaceutical innovation instead of stifling it.

PBMs currently manage 95% of retail prescriptions and serve 91% of plan participants. That’s because they work. Businesses in the free market use services they value. And they value PBMs because they allow employers to offer more affordable coverage without sacrificing quality.

The truth is that PBMs are effective. And that is exactly why drugmakers are going after them. PBMs bring down net prices and demand accountability. That cuts into Big Pharma’s profit margins. So the industry has launched a campaign to reframe PBMs as a problem rather than a solution.

For example, a Biden-era Federal Trade Commission report that painted PBMs in a negative light should be viewed with skepticism. Even FTC Commissioner Melissa Holyoak emphasized that the report ignores the hard evidence of PBM-driven savings and warned that it was “a premature and deficient report,” adding, “Our job is not to score cheap points for transient political favor.”

“Though facile arguments that rely on ideologically loaded buzzwords such as ‘control’ or ‘power’ may stir emotions and make for entertaining social media posts and television interviews, ideological buzzwords are no substitute for rational, evidence-based research,” Holyoak said.

Sadly, some lawmakers are swallowing Big Pharma’s spin. Bills moving at both the federal and state level would gut PBMs — and hand drugmakers exactly what they want. Even a Brookings Institution analysis found that targeting PBMs won’t lower costs and would only weaken bargaining power against manufacturers.

That isn’t reform. It’s malpractice. Weakening the only players who force price discipline amounts to doing Big Pharma’s bidding at the expense of patients.

This fight isn’t about patients versus middlemen. It’s about competition versus monopoly. It’s about market discipline versus unchecked corporate power.

PBMs work because they negotiate, they drive better drug choices, and they deliver real value. When the most powerful industry in America is desperate to kill them off, you don’t need a think tank study to see what’s at stake. That fact alone tells you everything you need to know.

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How leadership failures fueled the flames in the Golden State



America is no stranger to natural disasters. But it’s not the fires, floods, or earthquakes that are the most devastating — it’s the repeated failures to learn from them, prevent them, and take responsibility for the damage.

My heart goes out to the families who have lost homes, cherished memories, and livelihoods. But if we’re going to help California rebuild and prevent future disasters, we need to confront some uncomfortable truths about leadership, responsibility, and priorities.

California — ironically, in the name of environmentalism — continues to ignore solutions that would protect both the environment and its residents.

While Californians continue to face heart-wrenching losses, those who have the power to enact change are mired in bureaucracy, regulation, and ideologies that do nothing to protect lives or preserve the land. The result? A state that keeps burning, year after year.

Where did all the water go?

We all know that water is essential to life. When NASA searches for signs of life on other planets, it looks for water. Yet, California has spent decades neglecting its water infrastructure. The state hasn’t built a new major reservoir since 1979 — over 40 years ago. Back then, California’s population was roughly half what it is today. Despite massive population growth, the state’s water storage capacity has remained frozen in time, woefully inadequate for current needs.

Moreover, billions of gallons of rainwater flow straight into the ocean every year because no infrastructure exists to capture and store it. Imagine how different things could be if California had built reservoirs, aqueducts, and desalination plants to secure water for its dry seasons.

Water is life, but the state’s failure to prioritize this essential resource has put lives and ecosystems at risk.

Misplaced priorities and critical leadership failure

This neglect of critical infrastructure is part of a larger failure of vision, and in California, the consequences of that failure are on full display.

Consider the progressive leadership in Los Angeles, where the mayor cut the fire department’s budget to fund programs for the homeless, funneling money to NGOs with little oversight. While helping the homeless is a worthy cause, it cannot come at the expense of protecting lives and property from catastrophic fires. Leadership must put safety and well-being over political agendas, and that’s not happening in Los Angeles.

The same misplaced priorities extend to environmental policies. Progressive leaders have blocked sensible forest management practices, prioritizing dead trees over living creatures. They reject controlled burns, forest thinning, and other commonsense measures, bowing to the demands of activists rather than considering real solutions that would protect those they govern.

California’s wildfire crisis is, in many ways, a man-made disaster. Yes, factors like Southern California’s dry climate, strong Santa Ana winds, and little rain play a role, but the biggest contributing factor is poor land management.

The forests are choked with dry brush, dead trees, and vegetation that turn every spark into a potential inferno. The crisis could have been mitigated — if only the state had made forest management and fire prevention a higher priority.

Finland and Sweden, for example, understand the importance of maintaining healthy forests. These countries have perfected the art of clearing underbrush and thinning trees sustainably, turning potential fire fuel into biomass energy. This approach not only reduces the risk of wildfires, but it also creates jobs, boosts the economy, and improves the ecosystem. And yet, California — ironically, in the name of environmentalism — continues to ignore these solutions that would protect both the environment and its residents.

We need to stop pretending that something as devastating as the Palisades and Eaton fires are just “part of life” and hold leaders accountable.

Insurance rules put California residents at risk

California faces another major and often overlooked liability when it comes to natural disasters: insurance.

California’s ongoing disasters make the state an uninsurable risk. Insurance companies are pulling out because the odds of widespread devastation are just too high. This creates a vicious cycle: With private insurers gone, the government steps in to subsidize high-risk areas. This enables people to rebuild in fire-prone zones, perpetuating the destruction. The solution isn’t more government intervention; it’s better decision-making.

This doesn’t mean abandoning people to their fate, but we must address the root of the problem: California’s inadequate disaster preparedness and poor land management. If the state continues to resist commonsense solutions like forest thinning, controlled burns, and better zoning laws, no amount of insurance or government assistance will ever be enough to mitigate the losses. The cycle will repeat until the costs — financial and human — become unbearable. It’s time to stop pretending the risk isn’t real and start making decisions that reflect the reality of California’s landscape.

What’s the solution? California’s government needs to put its people over harmful political agendas that put its residents at risk. Start by managing your forests. Implement controlled burns, remove dead trees, and clear underbrush.

But how you vote matters. California’s progressive policies have focused on political correctness and ideology instead of practical, lifesaving solutions. Until voters hold leaders accountable, the cycle of destruction will persist.

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