Local Capitalist Predictions for 2013: More Growth, More Profits
With the New Year just around the corner, lots of people are making predictions for 2013.
Lots of people I know are hoping to find work, make enough to take care of their families or to get medical treatment, even though most of the people I know don’t have health care insurance.
I also know people who are hoping that the New Year brings justice to their lives, whether that is justice for the immigrant community, the LGBTQ community or women who continue to fight for reproductive rights and safe communities.
The business community is also joining in on the 2013 predictions, although their predictions and aspirations are much different than the majority of the population.
MiBiz just published their 2013 Crystal Ball edition. In it they ask local CEOs and other managers within the economically privileged sectors of West Michigan to weigh in on what 2013 will bring for them and their interests.
Let’s start with comments from the Chairman and President of Amway Steve Van Andel and Doug DeVos. Amway set a record with more than $10.9 billion in sales last year, the company’s sixth consecutive year of sales growth and its second in a row in which U.S. sales increased. In other words, the DeVos and Van Andel familes continue to add to their already obscene amounts of wealth. Here are perils of wisdom from DeVos and Van Andel.
We tend to be optimists. The economy is going through some tough times, but we really have a lot of faith in it. For us, it’s not only the people here in the States, but it’s the entrepreneurs around the globe. We tend to be optimistic in them and what they do and how well they do. We think that makes a huge difference in the future and in the future of our business. Our business looks good, but we think the economy, on a global basis, has a lot of optimism to it. I think there’s potential everywhere.
Wow. Here is an example of talking, but not saying anything. Of course they are optimistic. The world is ripe for exploiting and they continue to find new markets for their products. Along the way, the DeVos and Van Andel families continue to influence economic policies based on their financial contributions to federal and state lawmakers and political parties.
Other members of the upper crust in West Michigan talked a great deal about the potential for growth. CEO of Wolverine Worldwide Blake Krueger says, “while the footwear industry is not recession-proof, there is always a good deal of consumer ‘need’ as well as ‘want,’ allowing our industry to do relatively well in more challenging times because the purchase of a new pair of shoes can be an easy way for a person to feel good when times are tough.” Apparently, Krueger has no idea what most people do when they are having tough times, but buying a pair of shoes is not even an affordable option for most people in the world who are struggling financially.
Mark Bissell (Bissell CEO) also touts the growth mantra when saying, “International … for us is a growth market. Bissell, which has eliminated hundreds of jobs locally over the past decade is now manufacturing outside the US for increase global sales, brining vacuum cleaners to the world.
Another theme that is repeated by area business people is the idea of creating and retaining talent. People are now seen as talent, instead of unique individuals that have value and worth just for being human.
Birgit Klohs with The Right Place Inc. says, “We’re amping up our marketing both locally in terms of retention and expansion, domestically with site consultants and trade shows and internationally in collaboration with the MEDC.”
The President of GVSU Thomas Haas makes it clear that his university is primarily about creating workers for local and state industry, when he says:
To be in the business of talent development, you have to look ahead and see what types of skills sets and business are out there currently and into the future. We are continually looking at what type of curriculum is broad enough to provide the skill sets that the business community wants.
The new head of the Grand Rapids Downtown Development Authority (DDA), Kristopher Larsen, makes it clear that the DDA’s function is to facilitate profit making for those businesses that operate in the downtown area. He states, “The DDA is interested in furthering its investment and those types of projects that have the ability to catalyze additional investment. Our primary focus is leveraging and how can we spend a dollar and (have) that dollar leverage four. First and foremost, it’s going to be a continued investment in the river, and (projects that don’t) equate to large dollar signs.
These are just some of the comments made by the economic elite and social managers in West Michigan. Nothing they have to say reflects an interest in the well-being of all people in the area, particularly those who don’t have much of a role in growing markets that will bring greater profits for the 1%.
There was nothing terribly revealing in these comments, but it is always good to know what the priorities of the powerful are, especially for those at the grassroots level who are organizing to dismantle such centers of power and create a world that is not dictated by growth and talent.
Presenting America’s Ten Greediest of 2012
This article by Sam Pizzigati is re-posted from Too Much. Editor’s Note: The following article is important, in that it presents some concrete information on CEOs and their treatment of workers. However, we believe that the issue is not so much greed as it is the system of capitalism.
Year in and year out, our greediest grab ungodly rewards for their own labor — and deny their employees anything close to decent compensation for theirs.
The essence of greed? Simple. Greed amounts to taking more than you need when you already have enough — and others don’t. Who among us, by this yardstick, rate as our greediest? Those greediest would be those who have the wherewithal to take whatever they want — and deny others the basics they need.
We abound in these greedy. Most of them wear power suits and dart in and out of the executive suites that sit high atop America’s most elegant corporate towers. Year in and year out, these greedy grab ungodly rewards for their own labor — and deny their employees anything close to decent compensation for theirs.
Without further ado, our fifth annual Too Much list of the greediest of our greedy, those ten deep-pocketed personages who’ve done the most in 2012 to subvert the decency we all like to call, at this time of year, the “holiday spirit.”
10/ Jack Welch: Comforting Comfortables
An oversized ego can be a terrible thing to waste. Jack Welch, the retired General Electric CEO, is doing his best not to waste a bit of his — and pick up a few extras pennies in the process.
Welch, the super CEO of the 1990s, has become a regular on the corporate chattering circuit since he retired in 2001. He collects a sweet $150,000 per appearance.
Not that Welch needs any more money. He left GE with a retirement package worth over $400 million and now divides his time between très chic abodes in Manhattan, Nantucket, and Florida’s North Palm Beach, lapping up luxury while he plots his next moves to protect plutocracy.
Welch particularly enjoys going after Warren Buffett, the billionaire who publicly acknowledges that he and his fellow rich don’t pay nearly enough in taxes. Countered Welch earlier this year: “I don’t feel undertaxed in any way at all.”
Some had hoped that Welch’s retirement would end the actual social damage he could wreak. A reasonable hope. At General Electric, Welch had the power to do everything from nuke 100,000 GE worker jobs to foul the Hudson River with toxic waste. Without that power, what damage could he do? Plenty, turns out.
Much of that damage comes from the wealth of tax-dodging expertise Welch bequeathed his successors at General Electric. In the decade since 2001, one report released this year revealed, GE paid only 1.8 percent of its $80.2 billion overall profits in federal income taxes.
9/ Jamie Dimon: Pounding Reformers
The European Union has just taken a fairly significant step toward limiting excessive banker compensation. Under proposed new rules up for a vote early in 2013, European bankers won’t be able to pocket bonuses greater than twice their straight salary.
Better not try that in the United States, Jamie Dimon — America’s highest-paid bank CEO in 2011 — warned last week. Any limits on Wall Street pay, JPMorgan Chase CEO Dimon intoned, will end freedom as we know it.
“If you don’t want a free society,” Dimon pronounced, “then start dictating what compensation can be.”
And besides, the JPMorgan chief added, any attempt to limit pay would chase talent out of America’s financial system. The banking business, he explained, simply “cannot run” on “second-rate talent.”
For his own presumably “first-rate” talent, Dimon pulled in $23.1 million in 2011, up 11 percent over 2010. The highlight of his first-rate stewardship: JPMorgan suffered a $2 billion trading loss after a bank management blunder that Dimon admitted this past spring he could not “publicly defend.”
That admission left some observers wondering how much the bank would have lost with a second-rate talent in charge.
Dimon hasn’t let JPMorgan’s debacle with risky trades slow his charge against the Dodd-Frank Act, the legislation enacted in 2010 to rein in risky trading after the 2008 Wall Street meltdown. Wall Street’s intense opposition to Dodd-Frank, with Dimon a key ringleader, has so far kept the bulk of the legislation unenforced.
8/ Wilbur Ross: Exploiting the Bankrupt
Remember the bank bailout? Private equity kingpin Wilbur Ross surely does. He spent a chunk of the past year trolling for windfalls on the busted-bank landscape — and found a hot prospect in Ohio. In October, he cut a dealto pick up the troubled First Place Financial at just $45 million.
U.S. Treasury officials balked at the deal. The bank, they complained to the courts, had borrowed $72.9 million from the federal bailout program three years earlier and not yet repaid any of the money.
The deal with Ross would likely “chill bidding” for the bank, federal officials pointed out, and cost taxpayers millions.
Not my problem, retorted Ross. So things might not “work out well” for taxpayers? “Unfortunate,” said Ross. Two months later, the Treasury prediction came true. No other bidders for the bank stepped up, and Ross had another notch in his “vulture investing” belt.
Ross has specialized for decades on buying up companies in or near bankruptcy, then “flipping” them for big profits. The secret to his success: Bankrupt companies can dump their liabilities — like mandates to fund pension plans. Ross has followed this flipping formula to fortune in steel, textiles, and coal. His latest estimated personal net worth: $2.3 billion.
In October, Ross celebrated his fabulous stash with a fundraising dinner at his Florida mansion for GOP Presidential candidate Mitt Romney. The fee to join him: $50,000 a plate. About 150 people, reports the Palm Beach Post, attended.
7/ Samuel Palmisano: Busting Nest Eggs
IBM, the world’s first computer giant, now has just 92,000employees stateside, down from 160,000 back in 2002, the year Sam Palmisano took up the IBM CEO reins.
Palmisano stepped down as chief exec last year and retired as the chairman of IBM’s board at the start of this month, but not before green-lighting a change in the IBM 401(k) plan that sets a damaging precedent for millions of Americans outside the IBM ranks.
Up until now, IBM has been matching employee contributions to 401(k)s on a semi-monthly basis. Starting in 2013, IBM will make only one match a year, on December 31. Workers who leave IBM’s employ next December 15 will get no IBM match to their 401(k) for the entire year, even if they were laid off or had to leave because of a disability.
No major U.S. corporation currently short-changes workers through this sort of maneuver. A good many other large corporations “will be looking very closely” at the IBM move, says Brooks Herman of Brightscope, a financial info firm. If they follow IBM’s lead, notes Reuters, working families throughout America will find it “very difficult to build significant nest eggs through the 401(k) system.”
Sam Palmisano doesn’t have to worry about his nest egg. He’s walking out the door with a package of retirement, bonus, and assorted other benefits one analysis values at $224.7 million.
Palmisano isn’t actually walking out the door. He’ll be consulting for IBM. His rate: $20,000 for any day he puts in four hours. In 2013, observes the Wall Street Journal, Palmisano “could pocket $400,000” for a mere “20 half-days of work.”
6/ Larry Page: Dodging Corporate Taxes
The co-founder — and current chief exec — of Google on a top ten greedy list? How can that be? Hasn’t Google CEO Larry Page’s personal foundation just announced plansto fund free flu shots for every kid in metro San Francisco?
True enough. But no local philanthropic gesture can offset a global greed grab. The same Larry Page who’s fighting flu in San Francisco is running a giant corporation that’s sidestepping billions of dollars in taxes all over the world.
In 2011, Bloomberg reports, Google “avoided about $2 billion” worldwide via just one Bermuda tax dodge alone. On paper, Google is supposed to be paying 39 percent of its profits in combined U.S. federal and state corporate taxes. Last year. Google actually paid federal and state taxes at just a combined 22 percent rate.
If profit-rich corporations like Google don’t pay their tax fair share, notes international tax expert Richard Murphy, “somebody else has to pay or services get cut.” And if services get cut, only a fortunate few — like kids in San Francisco — end up getting served.
Larry Page, by the way, can afford a bit of local beneficence. Forbes estimates his total personal fortune at $18.7 billion.
5/ Steven Cohen: Modeling Lance
At poker, you can’t win a hand unless someone else at the table loses. Same on Wall Street, as billionaire Steven Cohen knows as well as anyone.
The 56-year-old prepped for the financial world at the Wharton business school and spent his spare collegiate hours beating his buddies at the card tables.
Cohen has upped the ante somewhat since then. In the late 1990s, his “super-secretive” hedge fund returned investors an astounding 70 percent a year. For his investing magic, Cohen would eventually be demanding 50 percent of any profits he generated for his deep-pocketed investors.
That hefty profit share would bankroll an anything-goes lifestyle for Cohen. On top of $14 million for a personal manse, he shelled out $300 million on fine art.
By 2006, stock trades by Cohen’s hedge fund were accounting for $2 of every $100 all Wall Street stock traders combined were betting. Admirers began calling basketball fan Cohen the “Michael Jordan” of the financial industry.
The better sports analogy, says ProPublica’s Jesse Eisinger, might be the drug-cheating cyclist Lance Armstrong. Federal regulators and prosecutors have so far snared six of Cohen’s hedge fund operatives for insider trading. All these years, Eisinger suggests, Cohen may have been “cutting corners and pushing employees to the point where they break the law.”
The biggest losers in the Cohen story? American taxpayers. Cohen pays federal income tax on much of his ample annual earnings — $600 million last year alone — at just a 15 percent rate, not the 35 percent rate that faces ordinary income over $388,000, thanks to a special loophole that benefits the movers and shakers who run hedge and private equity funds.
4/ Brian Driscoll: Tanking Twinkies
Should captains go down with their ship? In contemporary Corporate America, captains of industry don’t go down with their ship. They sink it, then jet ski to the nearest yacht.
Hostess Foods, the corporate baker most famous for Twinkies, was already foundering when Brian Driscoll came in as CEO in 2010. Private equity wiseguys had gobbled up Hostess in 2004, loaded the company up with debt, and squeezed $110 million in worker wage concessions.
Driscoll came in with a plan: squeeze workers some more — and raise his own pay to reward the brilliance of his planning. Alas for Driscoll, the plan went awry when Hostess workers refused to cooperate.
Hostess then declared bankruptcy this past January — a move designed to void the company’s union contracts — and went to court to argue that Driscoll still merited a $3.5 million pay deal, with additional annual bonuses.
This CEO pay bid outraged Hostess workers and cost Driscoll whatever corporate credibility he still had left. Amid the resulting furor, Driscoll suddenly resigned. Two months later, in May, he resurfaced as the CEO of Diamond Foods, the Pop Secret popcorn maker, with a three-year pay deal worth over $10 million.
Hostess, meanwhile, is careening toward liquidation. Thousands of Hostess workers have already lost jobs. All Hostess workers have lost wage income and pension savings.
Driscoll, to be sure, hardly deserves all the blame. A half-dozen CEOs have come and gone over the last decade, notes one Hostess worker whose annual take-home has dropped $14,000 since 2005, “and all of them left the company worse than when they took over.”
3/ Jim Skinner: Milking the Minimum Wage
As CEO at fast-food colossus McDonald’s, Jim Skinner didn’t just worry about burgers. He worried about the minimum wage — getting higher. Under Skinner, McDonald’s helped bankroll industry lobbying campaigns against attempts to raise state and federal minimum hourly pay rates.
That lobbying has paid off — for Mickey D’s. In Chicago, not far from McDonald’s corporate global headquarters, a McDonald’s worker with 20 years of experience can still only be earning $8.25 an hour, as economics reporter Leslie Patton devastatingly detailed earlier this month.
McDonald’s CEO Jim Skinner took home $8.75 million last year, a generous sum that equals about 580 times the annual pay of a full-time minimum-wage worker. Just 20 years ago, in 1992, the then-McDonald CEO pulled in 230 times the minimum wage annual take-home.
Skinner retired his CEO perch this past June 30. Unlike many other senior citizens today, he won’t have to take a fast-food job to make any ends meet. He walked off into the sunset with a retirement package worth an estimated $82.3 million.
2/ Larry Ellison: Collecting Oceanfront
Oracle software CEO Larry Ellison has earned, over the years, almost a permanent spot on our top-ten greediest list. His basic corporate m.o.— buy out his rivals, grab their customers, fire their workers — has never changed.
But Ellison, the sixth-richest man in the world, has turned over a new leaf of sorts. He’s actually sharing the wealth. The catch? He’s only sharing with his sidekicks. In the fiscal year that ended this past May 31, Oracle presidents Safra Catz and Mark Hurd each took home $51.7 million.
And Ellison? His 2012 pay: $96.2 million. His total fortune? Forbes tabs that at $41 billion.
With a pile of billions that high, couldn’t Ellison “share” a bit more? Maybe. But Ellison does have some ongoing expenses for annual maintenance. This past fall, for instance, Ellison picked up — for $36.9 million — his ninth luxury property on the stretch of Malibu oceanfront that local wags like to call “Billionaires’ Beach.”
Some of those locals are speculating that Ellison is planning to turn his Malibu beachfront into a private, super-exclusive resort hideaway for the world’s uber rich. But Ellison would be far more likely, other Ellison-watchers posit, to plop that resort on Lanai, the Hawaiian island Ellison also picked up this past year.
So why does Ellison need all that Malibu beachfront? Most likely, the scuttlebutt goes, he just wants to keep the riffraff out of his ocean-view sight-lines.
1/ Sheldon Adelson: Distorting Democracy
Few Americans hold a fortune larger than Sheldon Adelson. In fact, only eleven do. Forbes puts Adelson’s net worthat $20.5 billion. What can you do with over $20 billion? For starters, you can spend $150 million on an election.
Adelson did just that in 2012. No American invested more in politicking this year than he did. The 79-year-old became, as Time magazine notes, “the public face of what critics cast as a plutocrat class trying to buy U.S. elections.”
Get used to that face. Adelson told the Wall Street Journal earlier this month that he plans to spend over twice as much on his favorite candidates the next time around.
How does anyone get rich enough to plop that much money on pols? The bulk of Adelson’s wealth comes from the Las Vegas Sands, the world’s largest casino company. Adelson, the Sands chief exec and top shareholder, essentially treats the company as his own personal ATM. He even outsources to himself.
In 2009, for instance, Adelson had his Sands empire rent corporate jets from two outside companies. The controlling owner of the outside companies: Sheldon Adelson. The transactions netted Adelson $7.45 million.
Just last month Adelson had Sands declare a special dividend. He’ll personally collect $1.2 billion from this distribution — and pay only a 15 percent federal income tax on it. On January 1, with the likely expiration of the Bush-era tax cuts, the dividend tax rate will jump from that 15 to 35 percent. The Sands dividend quickie will save Adelson nearly a quarter-billion in taxes.
But the real key to Adelson’s billions has to be his manic hostility to unions. His flagship casino, the Venetian, currently operates as the only nonunion major casino in Las Vegas. Of the 40,000 Sands workers worldwide, not one is working under a union contract. And Adelson is aiming to keep things that way.
Last year, 130 security guards at Adelson’s new casino in Bethlehem, Pennsylvania, had a different idea. They voted to organize a union. Adelson’s Sands management predictably refused to recognize the union.
The National Labor Relations Board subsequently found Sands guilty of an unfair labor practice and ordered the company to start bargaining. Sands chose instead to start tying up the case in the federal courts.
The security guards make $13 an hour. They think Adelson and Sands can afford to share some wealth. Adelson will share nothing. Who could possibly expect anything else — from 2012’s greediest American of them all?
Democracy & Detroit 2012
This article by Elena Herrada is re-posted from Counter Punch.
Detroit is the largest of the internal colonies of Michigan. It is followed by Benton Harbor, Flint, Muskegon Heights, Pontiac and Highland Park. The aforementioned cities have been occupied by “Emergency Managers” for the past several years.
In 2009 Democratic governor Jennifer Granholm, the first woman governor of Michigan, appointed Robert Bobb over Detroit Public Schools. Two years later, after Snyder was elected (Republican) governor of Michigan, he appointed former GM executive and MGM casino magnate Roy Roberts to the position of Emergency Manager.
Each of these two have caused Detroit Public Schools to go into exponentially greater debt than before the “emergency” was created by the governor and his mouthpiece corporate media. The people of Michigan (82% in Detroit) repealed the Emergency Manager law 52% to 48% when it became clear that the law was nothing more than a license to loot and terminate collective bargaining agreements and sell off public goods to private interests, who do not have to bid or say who they are or where they got their money.
We passed a bond to rebuild our schools in Detroit, only to have them seized by a new separate and unequal school district called “Educational Achievement Authority.” It is a Jim Crow district with no transparency and no public accountability except to shareholders and “non profits” and foundations.
The role of the philanthropic interests is one that requires a deeper investigation than this simple review of 2012 in Detroit can achieve, but one worth pursuing in depth. It is an example of what happens when government is replaced by corporations.
Detroit is the epicenter of the racialized privatization battle going on in Michigan, but it is only one part of the story. The Emergency Manager remains in charge of Detroit Public Schools despite the repeal of the law. Everything the State could do to subvert the vote was done, and when the vote came in at against the Emergency Manager law, the governor ignored the vote and kept the EMs in charge.
There is utter contempt for the people in this lawless corrupt state.
It does not matter if we vote because the results are ignored. It does not matter if we go to court; the judges simply postpone the proceedings.
There is no voice of moral authority in Michigan; there are looters from top to bottom stealing the public treasury and the future of our youth. Schools are so severely underfunded that Teach for America teachers are in front of classrooms of 40 and more students all by themselves.
Millions of dollars have gone missing from the Detroit Public Schools’ classrooms, to the joy of charter operators and new shadow governments in the form of “self-governing schools” and “review boards.”
The Emergency Manager is surrounded by security guards at all times because he and his minions are so despised by the people they rob. It is a good time for a few, but not a sustainable plan.
When the colleges and universities catch on that their future students cannot score high enough on ACT or SATs, they will have to let in only the white students from the suburbs. Then there will be a movement for equity and access and we can start all over again.
Elena Herrada is a Detroit community activist leader, longtime organizer, and member of the Detroit Public Schools board. She can be reached at elenamherrada2@gmail.com.
Restoring Democracy in the Fight Against Fracking
This article by Thomas Linzey is re-posted from EcoWatch.
Same story. Different day.
People are threatened by an activity that will injure them, and they work overtime to pass a law that bans the activity.
An affected corporation—or industry association—then sues the municipality, contending that the community can’t prohibit what the state allows, and that the ban violates the “rights” of the corporation.
The upshot of these machinations is that the municipality then either repeals the ban or is bankrupted trying to defend it. Most likely, the insurance corporation for the municipality brokers a deal in which the municipality agrees not to enforce the ordinance in exchange for the corporation dropping its lawsuit.
Day after day, issue after issue, community after community, this machine has been humming along happily (for some) ever since the late 1800’s. All under a structure of law so perfectly constructed that very few understand how it actually works in practice.
Under a structure of law that lawyers, law professors, elected officials, judges and established activist organizations call “democracy.”
Why the Corporations are Right
The law as it stands is pretty straightforward—communities are prohibited from banning what state government allows. That’s because our local municipal governments (the places where we live) have the status of “children” to the state “parent” under a legal theory called “Dillon’s Rule”—which means that state law, on issues deemed to be of statewide concern—legally overrides local laws. It means that communities can only do what the state legislature explicitly allows them to do.
All of which is privately enforceable by the corporations in any given industry—who can use these doctrines to haul our communities into court. It also means that by investing in the state legislature (a “right” protected under the 1st Amendment to the U.S. Constitution), corporations can curb the actions of all communities within the State in one swoop simply by using State legislature to preempt all communities at one time.
It, of course, gets worse—federal and state civil rights laws treat “discrimination” against a corporation exactly the same way that the laws treat “discrimination” against racial minorities. Consequently, a community attempting to stop a corporation from engaging in a harmful activity that the state has permitted is treated as odiously by the law as a community attempting to ban African-Americans. It works this way because the law treats both corporations and minority members as “persons” for purposes of civil rights laws.
Sometimes, you just can’t make this stuff up. Unfortunately for us, those doctrines have been the law of the land for well over a century.
How did we get to this place? Simple. Corporations—and the people who own and run them—have been very busy manufacturing a structure of law that insulates them from community control. They had a lot of help, of course—mostly in the form of our early constitution-drafters who made critical decisions that elevated property rights above democratic ones. That structure created fertile ground for the trading, energy, agribusiness and waste corporations who then wrapped themselves in constitutional law, while the rest of us struggled for long years trying to secure constitutional protections for ourselves—for women, African-Americans, native peoples, immigrants and gays.
Now we’re faced with a situation in which a corporate few possess greater legal and constitutional rights than community majorities.
Why do we almost never win against corporations targeting our communities? It’s because we focus solely on trying to convince other people how bad an activity is, and the need to ban it. Meanwhile, over at corporate headquarters, they’re laughing at us because they’ve patented the structure of law that is routinely used to preempt and nullify what we do.
In short, they know that they can always play the final card.
How do we get our heads out of our asses?
So how do we change the rules? Well, first we need to understand our own history, and that we’re not the first ones to be faced with a gameboard that has no places for our piece. We need to understand how prior movements—when faced with a system of law that didn’t recognize women or African-Americans as “people”—successfully changed the rules of the game. We can then appreciate why traditional liberal, progressive “pressure” politics have failed so miserably, and why the natural environment is in worse shape today than it was prior to the passage of the “seminal” regulatory laws that environmental groups trumpet.
Second, we need to figure out which doctrines—what parts of the structure of law itself—allow the corporation to do what it does; and what parts authorize our own State government to enable the corporations to do what they do. And then, we must use what we know to build a movement that dismantles that platform of law by collectively refusing to obey it.
Indeed, widespread disobedience is the only thing that’s ever been powerful enough to change unjust laws. While we tend to think of civil disobedience solely in terms of laying down in front of a bulldozer, we must create a higher form—one that collectively harnesses the power of our municipal governments to turn them against the corporations (and our own State governments) and the doctrines that empower them.
Simply put, we must occupy the law.
Ten thousand communities joining together to use their lawmaking powers to frontally and directly challenge the existence of those doctrines could ultimately liberate communities from the state-sanctioned rape that we’ve endured for over a century. That grassroots disobedience to the functioning of the law must then stitch itself together to drive state and federal constitutional change that unrings the bell.
If we don’t, we better get accustomed to living on our knees.
The Longmont saga—opportunities lost
What’s happened in Longmont, Colorado is a perfect example of what activism looks like which fails to understand the tactical situation, and consequently, fails to directly challenge that platform of law.
While the original draft of Longmont’s “fracking” law contained everything necessary to mount a direct attack on preemption and corporate “rights,” the proposed amendment was then unceremoniously stripped of those provisions. They were deemed to be simply “too radical” by the drafters of the measure to be adopted by popular vote.
What could have the Longmont law looked like, if a different strategy had been pursued? Like the one created by the Pittsburgh City Council and now adopted by over a dozen other municipalities—which codified a community bill of rights recognizing peoples’ rights to clean air, pure water and a renewable energy future—and then banned gas drilling as a violation of those rights. The ordinance then stripped gas corporations in the City of the legal rights and powers that would otherwise be used to override the ordinance. The law also nullifies any State-issued permits that would allow fracking to proceed within the City.
Why? Because the overriding issue isn’t “fracking,” it is the denial of local self-government. By failing to address the latter, the focus on the former all but guarantees an organizing dead-end—the same dead-end that has been pursued by environmental and other groups for the past forty years.
Will they be overturned? Perhaps. But in many important ways, it doesn’t matter. While using our municipal governments to adopt local bills of rights is a novel approach, challenges to those laws inherently require the challenging corporation to validate each of the legal doctrines that allow them to override community lawmaking, and for a court to specifically uphold the application of each of those doctrines. In doing so, the process itself begins to reveal the otherwise-invisible apparatus which controls most aspects of our daily lives. The litigation thus becomes part of the organizing, rather than something best left just to the lawyers.
And it’s the very fact that the current machinery is invisible to so many people that allows it to function. Making it work in front of communities intimately affected by the corporate activity—with the eyes of the community on the legal system itself which then requires the injury to occur—will inevitably lead to a movement demanding structural change. It is that focus on structural change that will then take aim at driving changes to the state constitution that embed a right to community self-government at the highest levels. Communities in Pennsylvania, Washington, New Mexico and New Hampshire are now moving in that direction—building statewide organizations which grow stronger with each confrontation between resource corporations and municipalities.
Predictably, the Colorado Oil and Gas Association has sued Longmont using the same platform of law that corporations have been using against other communities for the last hundred years. Included in the lawsuit filed by the Association, on behalf of its member corporations, are claims of state preemption and violation of corporate “rights” that have been driven into both the state constitution and state law.
An opportunity has been lost to question (and openly challenge) the structure that provides the very basis of claimed corporate supremacy over Colorado communities. An opportunity has been lost to draw the parallels between fracking and the hundreds of other issues that communities face across the State—from water privatization and land development to the corporatization of agriculture.
An opportunity has been lost to make visible what has been so carefully camouflaged.
Movements build when opportunities are seized, not lost—when that which is hazy suddenly becomes clear. By framing the problem as “fracking,” and not as the corporate and governmental powers that force “fracking” on unwilling communities, it becomes easy for the gas corporations to divide, conquer, and then dissuade other communities from following.
It’s a revolt that never materializes.
It’s not too late for Longmont, of course. Both the State of Colorado and the corporate frackers, who will pile it on over the course of the next year, have drawn a bullseye around the people and natural environment of Longmont. As it all plays out, as it has a thousand times before in a thousand different places, let’s hope that a frontal challenge to the gas corporations—and the State government which has enabled and empowered them—isn’t far behind.
Why is Snyder not worried about retribution from Right to Work Law?
Recently, the West Michigan business publication, MiBiz, conducted an interview with Michigan Governor Rick Snyder.
In the preface to the interview, the co-authors write, “While many Michiganders may be fuming at the governor as we head into 2013, the business community loves him more than ever.” Such a statement, while not surprising, should make it clear to the majority working class population, that the Governor and the business community don’t give a damn about them.
The interview begins with a fairly substantive question where Snyder is asked about making Right to Work a law and how divisive it is in this state. Snyder replies by mostly avoiding the question and falling back on what he says are his two main issues of focus, jobs and kids.
If kids are a focus for the Governor, how does implementing Right to Work legislation helping children of working class families, since we know that wages on average are lower in Right to Work states? Such a follow up question is not asked, instead MiBiz writer move on to the next question, which was the tired Richard Florida mantra of, “attracting more talent” to the state.
Much of the rest of the interview is what one would expect from the business press, corporate wellness and federal health care policy, but the bulk of the interview is really about Snyder’s business plan for the state. When I say business plan, what I really mean is Snyder implementing what the business community wants him to do, which has been his stated agenda all along.
This business plan includes an end to the personal property tax, which Snyder refers to as a, “really obnoxious tax.” What it translates into is less money for municipal governments and more money directed to the private sector. It is the next logical step in the neo-liberal austerity plan, which is nothing more than austerity for the working class and greater wealth for the rich.
MiBiz does come back to the Right to Work question in the interview by asking, Do you fear there could be any retribution from the right to work vote? Snyder’s response is worth posting in its entirely.
I hope not. You’re going to find some in the shorter term. (The personal property tax) is still a couple of years out. But we’ve already seen some positive steps even while right to work was going on, in the sense that Detroit lighting got approved and the arena got approved with some bipartisan support. One of the questions is: If you’re a public servant, particularly if you’re an elected official, to say you’re not going to work with someone because they have a difference of opinion is not a good answer. I don’t think that’s appropriate because we should all be focused not on our relationships, but on the customers, who are the citizens.
At this point Snyder should be concerned about potential “retribution” for Right to Work and other laws that were rammed through in the legislation just prior to the end of the 2012 political cycle. There is potential amongst the working class populace and various other sectors – women’s groups, racial justice groups, environmental groups, immigrant community, etc – to make life very uncomfortable for the Governor in the upcoming year. However, if the response from union leaders at the December 11 protest is any indication, Snyder might not have much to worry about until the 2014 election, since it seems that Michigan unions will not follow the example of their fellow workers in Wisconsin by occupying the state capitol and shutting down business as usual. What union leaders made clear on December 11, was that they would focus on an electoral strategy, which seems rather ineffective and a waste of funds that could be better spent on organizing.
The interview ends with MiBiz asking the Governor what keeps him up at night. His response is revealing, since he says, “Generally, I do fine.”
Such an admission should be a clarion call to those in Michigan who feel that Snyder is giving the state away to the private sector. The insurgent forces who are and will continue to be negatively impacted by these state policies should make it a goal to make it so that Snyder does not sleep well, nor the capitalist class which put him in the Governor’s seat.
Turning Michigan into Colombia: The Global Assault on Workers and the Prospects for Solidarity
This article by Kevin Young is re-posted from ZNet.
December 11 marked a major defeat for working people in the United States, as a lame-duck legislature made Michigan the twenty-fourth state to pass so-called “right-to-work” legislation. The Orwellian term “right to work” was popularized by employers starting in the 1940s as they sought to roll back the historic gains of labor during the prior decade. Right-to-work (RTW) laws prohibit contracts that require all workers to contribute to the costs of union representation, encouraging “free-riding” and making it much more difficult for unions to survive (unions remain legally bound to represent all workers within a bargaining unit, whether or not they pay their fair share of dues). Michigan’s RTW legislation sends an ominous signal for workers everywhere given the state’s historic reputation as a union stronghold and the fact that a mass protest of at least 10,000 workers at the state capitol in Lansing on December 11 did not succeed in preventing passage.
One of those 10,000 workers was visiting from Colombia, which has long been a poster child for the sort of neoliberal sweatshop economy desired by corporations and international financial institutions. Jorge Parra came to Detroit in September to confront his former employer, General Motors, for firing him and over 200 other autoworkers from its plant in Bogotá after they suffered workplace injuries and illnesses. Parra had sewn his mouth shut and begun a hunger strike on November 20 to publicize the workers’ demand for direct negotiations with GM. Reacting to the news about Michigan’s RTW legislation, Parra says that “I see a clear connection between what’s happening here and what has happened in Colombia.” He notes that the RTW laws in this country “are the same ones that have weakened union activity” in Colombia.
Parra’s comment highlights the transnational nature of the attack on working people and points to the imperative of cross-border solidarity. Parra understands on a profound level what most unions in this country have only started to learn: that “it’s all one fight.” In an era of declining labor rights, precarious employment, and inequality—and soaring corporate profits—international solidarity is more crucial than ever.
Starving for Justice: The Colombian GM Workers
Jorge Parra’s hunger strike hits the five-week mark on Christmas Day, December 25. After five weeks of not eating, the human body begins to risk permanent tissue and brain damage; a week or two after that, organ failure, blindness, and death become more likely with each passing day. 
Parra was driven to this desperate measure by General Motors’ refusal to negotiate with the workers unjustly fired from its Colmotores factory in Bogotá. After Colombia’s institutional mechanisms for redress failed—no surprise given the Colombian government’s corruption and subordination to corporate interest—Parra and his fellow workers formed the Association of Injured and Ex-Workers of General Motors Colombia (ASOTRECOL) and in August 2011 began a tent occupation outside the U.S. embassy in Bogotá, choosing that site because of the U.S. government’s part ownership in GM following the U.S. auto bailout of 2008-09 and the close ties between Colombia and the United States. On December 25 the tent occupation enters its 512th day, with many of the workers there also engaging in hunger strikes in recent months. They are demanding that GM provide compensation for the wrongful firings, comprehensive medical care, and new job placements for those who are still able to work.
The workers’ families have suffered even more than the workers themselves. Some have already been evicted from their homes, by some of the same banks and mortgage companies throwing U.S. families out on the street. Many of the workers have small children. Earlier this month five of the workers’ wives wrote personal letters to GM Vice President of Labor Relations Catherine Clegg, which supporters hand-delivered to Clegg’s mansion in the Detroit suburbs on December 6. The wife of one injured worker told of how her 8-year-old daughter constantly asks why her father “is not happy like he was before, why he has his mouth sewn shut, why she has seen him so sick, and other questions that I do not know how to respond to.” The couple’s other child is a 12-year-old boy named Angel, who has cerebral palsy and is about 98-percent incapacitated. Since his father’s firing Angel no longer receives the medicine and therapy he needs. Such scenes are repeated for many of the workers’ families, who live in a world that GM executives will never see or experience. In 2011 GM recorded a record profit of $7.6 billion, thanks in part to its subsidy from taxpayers.
The struggle of ASOTRECOL is just one piece of a larger and ongoing tragedy in Colombia. The country has long been the most dangerous place in the world for trade unionists, with 29 killed and hundreds receiving death threats in 2011. Peasants, Afro-Colombians, and indigenous people are routinely murdered and displaced by business elites who covet their land and resources. Sexual violence is frequently used as part of this effort. Dozens of priests and human rights defenders are killed each year. And underlying these acts of overt criminality is the structural violence of daily life for the country’s majority: 1.15 percent of landowners control 52 percent of the land, three-quarters of rural residents live in poverty, and about 121,000 Colombians die each year from undernourishment.
But the Colombian government does very well in one respect. In 2010 the World Bank and International Finance Corporation applauded Colombia’s strides toward maintaining a “business friendly environment.” The report ranked Colombia third in Latin America with regard to the “ease of doing business.” Not coincidentally, Colombia has been the United States’ most reliable ally in South America over the past two decades, receiving hundreds of millions of dollars in annual military aid that is used in large part to kill and control Colombia’s hungry majority.
During these same two decades the Colombian government has adhered to the familiar recipe of neoliberal economic policies: reducing spending on social programs, privatizing public resources, lowering corporate tax rates, and deregulating business activity and financial transfers. Colombia’s recent “free-trade” agreements with the United States and the European Union are additional steps in this direction, designed to further liberate big business at the expense of ordinary people in all countries involved. Despite promises to respect workers’ rights—embodied in the “Labor Action Plan” that accompanied the 2011 U.S.-Colombia agreement—the idea of protecting working people runs directly counter to the logic of such trade deals.
Anti-union legislation has played an important role in this neoliberal agenda. The American Center for International Labor Solidarity notes that prior to 1990, “Colombian workers were among the most organized in Latin America.” But since the government passed anti-union legislation similar to RTW in 1990, “Anti-union discrimination by employers” has increased and “employer practices such as the dismissal and blacklisting of union leaders are widespread.” In 2005 the International Confederation of Free Trade Unions gave an overview of labor conditions in Colombia:
The state ministries and bodies responsible for social policy have been weakened, reformed or dismantled…Workers have been sacked or given less secure terms of employment in both the private and public sectors. Both sectors are being restructured using laws that promote labour flexibility and enable employers to evade clear obligations…It is a complex and sometimes impossible task to form trade unions, sign collective agreements or organise strikes…People wanting to set up a union are dismissed, harassed or even threatened with death…Impunity is the norm for those who violate labour rights (including murdering of unions leaders and members), whilst the full force of the law is brought to bear on workers, even where they are acting in full compliance with it.
The report noted that as a result, just five percent of the economically active population belonged to trade unions, and only one percent of Colombian workers were covered by a collective bargaining agreement—even worse than in the United States. But not much worse.
Moving Michigan Closer to Colombia
Twenty-three other U.S. states preceded Michigan in passing right-to-work laws, but most were in the low-wage economies of the South where unions were traditionally rare. Michigan, on the other hand, has the fifth-highest union density in the country. For this reason it was a particular target of right-wing billionaire donors like the Koch brothers, who poured millions of dollars into the state to promote RTW. These forces viewed Michigan as a litmus test for their effort to smash unions, wages, and corporate taxes in other northern states. Their dream is quite clear: an economy and society resembling Colombia’s, where atomized workers are paid starvation wages and work in dangerous conditions while the chosen few gorge themselves on the profits.
The rich have good reason to look favorably on RTW. According to a comprehensive 2011 study by the Economic Policy Institute, annual wages in RTW states are around $1,500 less than in non-RTW states, and the portion of employers who sponsor employee pension programs is 4.8 percent lower. Right-wing demagogues claim that RTW laws “create jobs,” but in fact they are just as likely to do the opposite, by lowering wages and thereby reducing consumer demand. Many workers simply enter the ranks of the permanently-unemployed and expendable population, while whatever jobs are created are typically of the low-wage, highly-precarious sort.
Michigan’s RTW laws are the culmination of a host of anti-union measures imposed in the state in the past two years. The most notorious is the “emergency manager” law that allows the governor to hand over cities and school districts to unelected dictators, who are empowered to dissolve union contracts, lay off workers en masse, and privatize public land and services. After Michigan voters rejected the law in a November referendum, the lame-duck legislature passed a slightly-modified version of the law around the same time it was pushing through RTW. In recent months Michigan’s politicians have also prohibited dues check-off for teachers, eliminated benefits for the domestic partners of state employees, and decreed that research assistants at universities are not workers and therefore cannot unionize. Governor Rick Snyder and his fellowRepublicans have led the onslaught, though sometimes with the cooperation or only tepid opposition of state Democrats.
In Detroit Jorge Parra views these developments with a sad but knowing expression on his face. “The same story is being repeated here,” he says with regard to RTW. “They put this same law into effect in the early 1990s in Colombia, and now it’s practically a death sentence to be a unionist.” Michigan workers do not face the same level of violence and hardship that Colombian workers face, but RTW and other attacks have inched Michigan ever closer to that reality.
Cross-Border Solidarity: Prospects and Obstacles
In this context, cross-border solidarity has become more urgent than ever. Solidarity has a pragmatic as well as moral logic, according to Ron Lare, a retired Detroit autoworker. Lare has been active in both the GM-Colombia solidarity campaign and the fight against RTW in Michigan. He comments that “if conditions in Colombia and other nations do not rise toward the best of U.S. union conditions via international solidarity, U.S. pay and conditions will continue to sink toward those in Colombia and other oppressed nations.” Lare notes that while GM fires injured workers in Colombia, “something approaching this situation is already the case” in many U.S. workplaces that employ temporary and non-union workers. In Michigan auto plants, for instance, “GM-Colombia conditions are already foreshadowed” in the use of temporary workers and the two-tier wage system, sending an ominous signal for the future. For Lare, “the new ‘right to work’ (for less) laws in Michigan show why workers here should care about what is happening to General Motors-Colombia workers.”
Other Michigan autoworkers echo these sentiments. Melvin Thompson was so moved upon meeting Jorge Parra that he staged a 23-day hunger strike of his own to help call attention to General Motors’ crimes. Thompson has witnessed the impact of wage cuts, speed-ups, and dangerous factories on his fellow workers, and says that in GM’s Colombia operation “you can see the parallels to how we do business here. Everything that they endure, we endure to a much lesser extent.” He felt compelled to take such dramatic action “because our struggles are tied together.” Chrysler worker Martha Grevatt says that the “unsafe practices” at her own plant and her experience dealing with company abuses for the past 25 years “tells me that the companies don’t care about workers.” That experience makes it “impossible” for her “not to be interested in and sympathetic with the workers in Colombia.” Given the global nature of the capitalist assault on workers, “the only way we can win is by uniting in common cause and refusing to be divided by borders or language.”
The solidarity campaign waged by these workers and others around the United States is an encouraging sign. Thompson’s hunger strike and the other components of that campaign represent U.S. labor at its best: self-sacrificing, compassionate, angry, and conscious of how global capitalism functions. But any effort to recruit large numbers of U.S. workers into this sort of campaign will have to confront a host of obstacles. Many of these obstacles are reflections of U.S. corporate capitalism and the racism and nationalism within U.S. society, and thus beyond the direct control of labor, while some derive from the structure and ideology of U.S. unions themselves.
Perhaps the greatest barriers to cross-border solidarity are ideological. In this country we are taught from a young age that the lives of U.S. citizens (especially the white middle-class ones) are inherently more valuable than the lives of foreigners. This implicit assumption pervades our school textbooks, newspapers, and television shows, and has a profound impact on us all. And the borders are not just national: the U.S. workforce itself has always been divided along lines of race, gender, sexuality, age, skill, wage levels, immigration and unionization status, and other categories. In this context the old IWW slogan that “an injury to one is an injury to all” is a truly revolutionary statement. “The biggest barrier to solidarity is the ability of the bosses to pit workers here against workers in other countries in competition for fewer and fewer jobs,” says Martha Grevatt. “We have to see that we have more in common with workers in other countries than with the capitalists of our own countries.”
The structural position of U.S. workers also presents certain obstacles to solidarity. As consumers, workers in the United States derive some material benefit from the exploitation of labor and resources in underdeveloped countries (though far less than capitalists do). In the case of the U.S. auto industry, employee stock ownership and profit-sharing arrangements give workers a concrete stake in the prosperity of the companies and, at least potentially, a disincentive to support the demands of other workers like ASOTRECOL in Colombia. The UAW leadership has certainly bought into this idea of shared interest between executives and workers. “Management’s not the enemy,” says one union official in Ohio. “The enemy is the competition.”
As such comments suggest, unions themselves often present institutional obstacles to solidarity. Most U.S. union leaders have done little to foster cross-border ties among workers. Even when denouncing neoliberalism, their posters and campaign literature tend to be filled with nationalistic assertions about “American” jobs. They speak not of the working class but of the “middle class,” a term that reinforces the sense that there is some other class of lazy, undeserving, often-dark-skinned parasites hovering below. This perception leads most union leaders to dismiss foreign workers as well as U.S. service workers, immigrants, domestic laborers, and the unemployed (and also provides much of the basis for right-wing populism in this country). Union leaders even sell out their own constituents by agreeing to “two-tier” wage schemes and other concessions. Their approach tends to rely much more on backroom discussions with bosses and on the concept of “partnership” with employers than on the mobilization of rank-and-file workers to confront the employers. Their political strategy consists of playing lapdogs to the Democrats.
Most Michigan unions exemplify these problems. When several solidarity activists visited a recent meeting of union executives in one Michigan town to request a donation for the families of the Colombian GM workers, most of the union leaders on the council questioned the very idea of aiding anyone but “our workers.” In thinly-veiled racist language, the council’s president worried that if they donated anything they would be “inundated” with hordes of outsiders soliciting assistance in the future. The phrase “working class” was never uttered.
Other examples abound. Many progressive critics point out that union leaders’ constant concessions and failed political strategy helped pave the way for the recent passage of RTW. Ron Lare notes that when they first heard rumors about RTW in late November, those leaders’ first instinct was to “talk to the boss” rather than mobilizing their bases for strikes and civil disobedience; even after RTW’s passage in Michigan, many national labor leaders remain committed to the same failed strategy. The injured GM workers in Colombia have yet to receive any public support from the leadership of the United Auto Workers (UAW) despite countless appeals by Jorge Parra and his fellow workers. Michigan unions’ disinterest in the recent campaign to repeal the “emergency manager” law—which would primarily affect black population centers like Detroit—is yet another telling indication of these same sorts of prejudices. Most labor leaders remain wedded to the traditional model: trying to elect Democrats, “talking to the boss” rather than engaging the rank-and-file, and remaining narrowly focused on the concerns of one’s “own” workers.
Yet if the year 2012 offers one definitive lesson for U.S. labor, it is that a militant, aggressive unionism that emphasizes rank-and-file mobilization and community alliances is the most promising strategy for defending working people. The most compelling evidence comes from the Chicago Teachers Union (CTU) strike in September, which confronted a Democratic mayor and successfully prevented his plans to cut wages and destroy job security and the union. Though public school teachers are commonly vilified by politicians of both parties, the CTU had the strong support of Chicagoans—thanks in part to union outreach to city residents and a “social unionist” perspective emphasizing the need to fight not just for dues-paying members but also for students and the community at large (for instance, by opposing school closures and demanding smaller classes). Soon after, non-unionized manual laborers in Wal-Mart’s supply chain went on strike in Illinois and California and successfully won back pay and improvements in working conditions.
Rekindling this spirit of militant unionism is crucial if U.S. workers are to achieve a decent future for themselves and their posterity. Labor must not only become more aggressive and more member-driven, but, as Martha Grevatt says, must also “build solidarity with the global community of workers who are under attack.” Time is short for a person on hunger strike, necessitating immediate action in solidarity with the GM-Colombia workers. But in this great global race-to-the-bottom, “our time is short as well,” says Ron Lare. “Time is short for us all.”
WAYS TO SUPPORT THE GM WORKERS IN COLOMBIA:
DONATE to the workers’ families by writing a check to Wellspring UCC with “Colombia relief” on memo line, and send to Wellspring UCC, Box 508, Centreville, VA 20122. Or donate at www.wellspringucc.org and write “Colombia relief” on the message subject line.
CALL/EMAIL and TELL THESE PEOPLE TO PUSH GM TO NEGOTIATE (Dial 888-720-3180 to be directed to any of them):US Embassy in Colombia: aquillaal@state.gov (Andrea Aquilla, Labor Officer), Colombian Embassy in DC: vturk@colombiaemb.org (Veronica Turk, assistant to the Ambassador), US Bureau of Int’l Labor Affairs (Jason Kuruvilla): kuruvilla.jason@dol.gov
POST ON TWITTER: @GM @USEmbassyBogota; @BarackObama; @JuanManSantos
POST ON FACEBOOK: GM: www.facebook.com/generalmotors
US Embassy: www.facebook.com/usdos.colombia
For more info visit the workers’ website at www.ASOTRECOL.com and the solidarity campaign’s Facebook page: www.facebook.com/SolidarityWithGMHungerStrikers
U.S. Energy Independence is a Sham
This article by Joshua Frank is re-posted from Counter Punch.Whether it is the hucksters pushing for the Keystone XL pipeline to cut across the Heartland, or the coal barons who are ramping up their exploits in Powder River Basin, a familiar refrain can be heard echoing throughout their propaganda: America must produce its own energy and stop relying on “terrorist” countries to keep our homes heated, cars running and economy kicking.
“The United States consumes 15 million barrels of oil per day and imports 11 million,” Russell K. Girling of the TransCanada Corporation, which is to build the Keystone pipeline, wrote in The Hill. “Keystone XL offers Americans the choice of receiving their oil from a friendly, secure supplier in Canada, instead of importing crude from unstable, volatile foreign nations such as Venezuela, Libya and other areas of the Middle East.”
Despite popular belief, Keystone XL, which is to transport tar sands from Alberta, Canada to Port Arthur, Texas, will be used domestically. Refiners based in Port Arthur, where the oil will end up, are focused on exporting oil to Europe and Latin America. The majority of the heavy tar sands oil extracted in Alberta will never end up being burned in the United States.
“To issue a presidential permit for the Keystone XL, the administration must find that the pipeline serves the national interest,” says Stephen Kretzmann, executive director of Oil Change International. “An honest assessment shows that rather than serving U.S. interests, Keystone XL serves only the interests of tar sands producers and shippers, and a few Gulf Coast refiners aiming to export the oil.”
Additionally, Valero, which is to be one of Keystone XL’s main customers, purchasing 76 percent of initial production, has detailed to its investors that the crude it is to buy is mainly set for export. To top it off, Port Arthur, where the dirty oil is to be refined, is in a Foreign Trade Zone, where the company can operate without paying any U.S. taxes. Valero’s contract is to last until 2030 and the company is to take around 100,000 barrels of tars sands per day.
Despite an outpouring of opposition to the proposed pipeline, which culminated in over 1,200 arrests in late August and early September 2011 outside the White House and ongoing protests in Texas, the Obama administration is slowly moving forward with the deal. President Obama’s jobs advisers are lending support for the pipeline and he is also likely getting pressure from within his own party to give the project a green light.
In 2008 Paul Elliot, who now serves as TransCanada’s chief Washington lobbyist for Keystone XL, served as a national campaign manager for Hillary Clinton’s presidential race. Additionally, as was discovered by anti-Tar Sands activists from Nebraska as they prepared for hearings on the matter at the State Department, the hearings were being held by a company called Cardno Entrix. It turns out that Cardno Entrix is contracted to run the environmental-review for the Keystone XL pipeline, but lists TransCanada as one of its major clients on its website.
“The pipeline company recommended the firm they wanted to review them, a firm that listed the pipeline company as one of their major clients,” writes Bill McKibben and Naomi Klein. “Perhaps–just perhaps–that explains why the review found that Keystone XL would have ‘limited adverse environmental impacts,’ a finding somewhat at odds with the conclusion of 20 of the nation’s top scientists who wrote the president this summer to say it would be an environmental disaster.”
It appears that TransCanada is doing all it can to impact the Obama administration’s decision on the matter by hiring a former Democratic campaign manager, and has certainly pushed Obama’s State Department to hire a company with close ties to the very company it is supposed to independently review. Additionally, some have criticized the job numbers for the project. In 2010, TransCanada said that, “During construction, Keystone XL would create 13,000 jobs and further produce 118,000 spin-off jobs.” But a report from Cornell University says these numbers are inflated, writing that the project will create no more than 2,500-4,650 temporary construction jobs for two years based on the data TransCanada has given the State Department.
Not only will hundreds of thousands of jobs not be created, and not only will tax revenue not help the country get back on track, the majority of the oil from the tar sands will end up not even being used in the United States. Debunking these myths are just one part of the fight for a clean energy future.
And it is not just the tar sands and the Keystone XL pipeline facts that need to be straightened out; the coal industry is currently on a major PR push to pressure the public into believing that locally produced coal is a crucial part of the U.S.’s energy independence. The U.S. is the fourth largest coal exporter in the world and companies are working hard to increase production and shipments.
“America’s abundant coal reserves — and our continued use of coal to generate electricity — also promote greater U.S. energy security,” said American Coalition for Clean Coal Electricity, a front group that is made up of over 40 coal industry companies. “The reason is simple: The coal we rely upon is found right here at home, and we have a more than 200-year supply based upon today’s rate of usage.”
While it may be true that the U.S. has some of the world’s largest reserves, along with Canada a total of 29 percent of the globe’s recoverable coal, major companies like Peabody and Arch Coal are looking more and more at oversees markets and mines to turn a profit. They know the jig is up here at home, where dozens of new coal plant proposals are being tossed in the trash. As such, Asian countries are increasingly coming into play, as China continues to build two mid-size power plants a week. In 2007 the Energy Watch Group reported that China could reach maximum production by 2015, which means they will have to get much of their coal from elsewhere.
This is why companies operating in the coal-rich Powder River Basin are increasingly eyeing potential coal export facilities up and down the West Coast. There are only two coal terminals that ship coal to Asia; one in Seward, Alaska and another major terminal in Vancouver, B.C. Coal exports from the U.S. to Asian markets during the first six months of 2010 increased almost 400 percent compared to the entire year of 2009. It’s one of the only shimmering lights on the horizon for the struggling coal industry, which is facing increased opposition in the U.S. as old power plants are shuttered and new proposals are being met with stiff resistance.
This hasn’t stopped the Obama administration from pumping hundreds of millions into “clean coal” projects or from allowing the Bureau of Land Management from opening up public lands in the Powder River Basin for coal mining. Nonetheless, as awareness of coal’s contribution to global warming and human health impacts grows, American coal companies are going to fight to keep the mines operating and the coal burning. Even it if means helping to fuel one of our country’s main economic rivals, China.
This brings us to the curious case of natural gas, the one fossil fuel that continues to be deemed a clean energy source by many despite the fact that its extraction through fracking could have catastrophic impacts, not to mention global warming causing emissions from leaks and carbon from its burning. There is no doubt there is a natural gas boom taking place across the country, with proposals for new fracking operations spreading from California to New York. But how much of this proposed natural gas will actually be used in the United States in the future is a question that has yet to be answered.
The first natural gas export from the United States was approved for Cheniere Energy in March 2011 by the Department of Energy. It will be the first large natural gas export out of the Gulf of Mexico, with other proposals in the pipeline by companies wanting to sell American natural gas to the global market. Their loyalty isn’t to America, but to their bottom line.
The Keystone XL pipeline saga and the recent misinformation about coal development illuminate how these resource profiteers market their destructive endeavors to normal Americans — as a means of energy independence and national security. Nonetheless, as the U.S. public looks to wean the country off of dirty fossil fuels, it’s a safe bet that the extraction industry will have little problem selling their dirty products to anyone who’s ready to buy.
People Watching is not the same as being a Watchdog: MLive’s 13 Michiganders for 2013
Beginning on Sunday, MLive let its readers know which “Michiganders” we should be watching in 2013.
The MLive posting provides a list of 13 people who are most likely to “make headlines.” The posting does acknowledge that the method they used to pick the 13 was not scientific, but MLive feels their “list covers a pretty wide range of movers and shakers.”
Nowhere in the article does the MLive reporter define what a mover and a shaker is, but it is safe to say that what MLive defines as a mover and a shaker is someone primarily from the business community and is a proponent of “development.”
Indeed, looking at the list of 13, it is disproportionately made up of business people, with a couple of politicians.
Watching or Watchdog?
The idea that news agencies should be watching people is certainly an old notion, but there is a major difference between watching, in a shallow celebrity sense, and being a watchdog, where people with power are monitored and scrutinized.
MLive, and its print sister The Grand Rapids Press, have never really been a watchdog of power, as we have noted in our news analysis section and in the many news reports over the years.
What MLive has demonstrated is a commitment to celebrity news and acting as an apologist for those in power, whether that has been the local 1% or development projects that continue to primarily benefit those who are already obscenely well off.
As an indication, look at the first two profiles already posted in the series of thirteen. On Sunday, MLive posted a profile of Grand Rapids bar owner Mark Sellers and today it posted a profile for billionaire Dan Gilbert.
In both profile, the MLive reporter presents nothing but gushingly positive information about both Sellers and Gilbert, with five fun facts about each of these two businessmen. Again, no information that would question the wealth both of these men have amassed or investigation into their financial practices. MLive readers are instead presented with a perspective, which says that both of these men are making the downtown of Grand Rapids and Detroit exciting places.
When MLive gets to Wednesday and posts a profile of Donald Weatherspoon, emergency manager for Muskegon Heights and Highland Park public schools don’t expect an investigation into Weatherspoon’s background or the very nature of the emergency manager policy that was voted down by the public in November, only to have the State Legislature overturn the public will and pass a new state law that can not be overturned by any ballot initiative.
Such a series focusing on those with power only reinforces and normalizes that these are the only people who really matter and can accomplish anything worth acknowledging. Such a series conversely says working class people and grassroots organizers and organizations don’t count and are not really relevant when it comes to making a difference in the world.
Just one more reason why we need as much independent and grassroots media as possible to counteract the celebrity and power-drunk commercial media in this community.
The 12 Days of a Capitalist Christmas
This article by Paul Buchheit is re-posted from Common Dreams.
On the first day of Christmas my employer gave to me ONE penny for every $3 the richest 130,000 Americans make. It’s been a national tradition since 1980.
On the second day my doctor showed me TWO Americans needing mental health care, but only one of the two could afford treatment. The doctor informed me that the fifty states have cut $1.8 billion from their mental health budgets during the recession, and that the 2013 Republican budget proposes further cuts. “It’s crazy,” I protested. “Some states are allowing guns in schools and daycare centers and churches and bars and hospitals, but they’re cutting mental health care?” The doctor just nodded in frustration.
On the third day The Economist told me that it costs just THREE cents in administrative expenses for every $100 raised through a Financial Transaction Tax (FTT) in the United Kingdom, versus $1.42 for the personal income tax and $1.25 for the corporate income tax. With up to THREE quadrillion dollars in total U.S. financial transactions, we could replace federal income taxes with a tiny FTT.
On the fourth day a food pantry gave me FOUR dollars worth of food. That’s about what food stamp recipients get each day through the Supplemental Nutrition Assistance Program (SNAP). To pay for rent and utilities, a family of three gets $400 per month from Temporary Assistance for Needy Families (TANF), which comes to about FOUR dollars a day per person.
On the fifth day a financial advisor introduced me to his FIVE richest investors, who were the only ones out of 100 Americans to increase their wealth over the past 25 years, by the impressive rate of almost 20%. It’s like that throughout the entire country, the advisor said: only 5% took almost all the gains. Five golden rings, indeed.
On the sixth day, as the traditional 12-day song started to get annoying, Santa appeared to take me by the hand to the U.S. corporate offices, where the tax lawyers gave to me SIX cents for the national treasury. “Hey,” I said, “this used to be twenty-five cents. You’ve doubled your profits in the last ten years, but individual and payroll taxes have to pay 94 cents out of every dollar!” The lawyers just smiled. Santa shook his head in frustration.
On the seventh day a guidance counselor informed me that one out of SEVEN Americans between the ages of 16 and 24 is neither working nor in school.
On the eighth day an IRS agent gave me these matching facts: Over EIGHT percent of the GDP (8.4%) goes for tax expenditures (subsidies provided through the tax code, mostly to the very rich). That’s almost exactly the same amount (8.4% of the GDP) that goes to Social Security and Medicare.
On the ninth day an unemployed dietitian told me that the average male has increased his weight by NINE percent over the past 20 years (180 to 196), and the average female by TWELVE percent (142 to 160). As a NINE dollar per hour food-service worker gave me and Santa our burgers and fries and shakes, my jolly old partner chortled, “Ho Ho Ho, soon you’ll all look like me!”
On the 10th day a Forbes article confirmed that the TEN richest Americans made more than our entire national housing budget in just one year. That’s over $50 billion. The twenty richest Americans made more than our entire education budget. Santa assured me that the transfer of wealth from society’s needs to a few individuals was not the norm around the world.
On the eleventh day a creditor gave me a bill for ELEVEN trillion dollars of debt incurred by the American consumer, including mortgages, student loans, and credit card liabilities.
And on the twelfth day Santa gave me an IOU for TWELVE trillion dollars, the U.S. share of up to $32 trillion held overseas, untaxed. “One problem,” cautioned Santa, “my reindeer haven’t been able to find any of it yet.”
After all this I stood perplexed. “What does it all mean?” I asked Santa.
“Well, that’s capitalism,” I heard him exclaim as he drove out of sight. “It’s all about the individual getting all he can, because that will benefit everyone. And let me tell you,” he added with a twinkle, “those benefits are just as real as I am!”
And with that he was gone.
We Can’t Fix Our Economy Without Confronting White Supremacy
This article by Imara Jones is re-posted from Colorlines.
Regardless of when the president and Congress decide to end their current budget standoff, it is increasingly clear that the emerging deal will do very little to reverse the fiscal wrongs at the heart of the tax code. These wrongs have transformed America’s economy into the least equitable and most racially unfair it’s been in almost a half century.![]()
Our collective denial over the fundamental injustice at the heart of our economic system is a result of white supremacy. The words “white supremacy” are radioactive to be sure. It pains me to write them. However, as a trained economist I go where the facts lead me. Since I have written potentially inflammatory words, let me be clear about what I mean.
White supremacy is a low-level assumption about characteristics that white people allegedly have which transforms inequality between them and everyone else into something natural. It often masks itself as fairness and goes unquestioned as a result. Using this definition, our current tax code is a work of white supremacy.
The fact that we’ve arrived at this point on the watch of the country’s first black president is an irony too large to ignore. Mostly victim, partly complicit, Obama is not fully to blame. Yet, economically speaking, the stubborn fact remains that the country is at a moment of racial injustice not seen in more than a generation. In the last four years, that injustice has only expanded and calcified.
White wealth is double what it was 30 years ago. Black and Latino wealth is at its lowest point ever recorded. These inequitable consequences flow directly from political choices embedded in our tax code. But since 1980 when these choices began to be implemented, we’ve talked ourselves out of race and into a mess when it comes to taxes. In fact the frame for our current fiscal debate has clear white supremacist roots.
Recent Origins
As I’ve written previously, it began in 1980 when Ronald Reagan announced that he wanted to reduce taxes and return money to the states. This was long a demand of southern White Citizens Councils. He did so in a Mississippi county were one of the most brutal murders of the civil rights era took place.
White Citizens Councils, the political wing of the Klu Klux Klan, detested federal taxes because they were used to promote economic fairness for blacks in the South. Government spending on economic opportunity had upset the pre-existing racialized economic order. So in speech after speech, Reagan promised to “turn back the clock” and won in a landslide.
Once in office, Reagan did as promised. He re-constructed a system which took money from the employed poor and working class—who are disproportionately black and brown—and gave it to a mostly white minority who were already wealthy.
The result of Reagan’s policies—which were turbocharged under George W. Bush—is that the top 1 percent have a greater share of national income than at any point in American history. And 97 percent of the top 1 percent are white. Yet poverty is stuck at decades-high levels. One out of three blacks and one out of four Latinos is poor.
Reagan’s policies, largely followed by his predecessors in both parties, have left us a country where a child born in poverty in any other advanced economy on the planet has a better chance of becoming rich than one born in the United States.
This is blatantly wrong to the vast majority of Americans, regardless of race. They would not allow this injustice to stand, if spoken to plainly about it.
But since Reagan’s success in winning office off of white supremacist notions, the U.S. has struggled to be honest with itself about the racial impact of its economic choices. The trouble is that you can’t solve a problem that you don’t admit exists.
A Longterm Legacy
The stubborn truth is that economic white supremacy hangs like poison in the national air. It’s been the default position of the United States since the country came into existence as a slave republic. The only way to neutralize white supremacy is to admit that it still animates many of our basic economic assumptions.
The fact that Oprah and Jay-Z are points of interests because they are people of color with vast wealth makes the point. We’re conditioned to be astounded by the economic success of blacks and more unassuming about the wealth of whites. Our stereotypes about who’s deserving and who’s not are grounded in an ongoing white supremacist paradigm.
You would think that having a black president would help us work through some of this. But President Obama has yet to give one speech dedicated exclusively to the Depression-like economic distress in communities of color nor the three-decades-long government policies which caused it. In his silence Obama extends his party’s complicity in our economic system’s destructive racial aspects.
Democrats argue that they fight for race-blind, middle-class economic policies.
The only problem is that Americans aren’t attune to issues of economic injustice. In our national subconscious, economic inequality is just assumed as a natural result of capitalism. It is not. However, through hundreds of years of struggle, Americans, are actually sensitive to racial injustice.
By not confronting the racial aspects of economic inequality, we’ve actually hardened our former racial caste system, which had economic implications, into an economic caste system that has racial implications. From the perspective of economic rights and wrongs, both approaches appear eerily similar.
Instead of a debate over tax increases or spending cuts, what we need to have is an argument about what kind of country we want to have. We need to ask ourselves whether the past was both right and good enough, and how we can build a better, stronger, and fairer future.
Until we have a real stand-off over our fundamental values, we’ll continue to be stuck in a national economic cul-de-sac shaped by white supremacy. Without real change, we’ll circle there in a fruitless, schizophrenic argument with ourselves.