Category Archives: Corporations

The Costs Of Deregulation.

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For nearly 40 years, those politicians who represent big business have been pushing an agenda of deregulation. They want to “get the government out of the way of business.” And they have been amazingly successful.

Since the push for deregulation began, we have deregulated airlines resulting in lost service, rising airfares for many, the demise of regional airlines and the mergers of the few remaining large airlines. We have deregulated commodities resulting in the run-up of costs for everything from electricity and precious metals to oil and grains. We have deregulated banking resulting in predatory loans by banks that are considered too big to fail.

Even for those industries that have not yet been deregulated, we have seen a series of coal ash spills, chemical spills, oil spills, manure spills, fertilizer explosions and mining disasters. We have seen Medicaid and Medicare fraud, abuse in private prisons, tax fraud, commodities fraud, and, of course, the worst economic disaster since 1929…the collapse of our banking system.

Our corporations have imported flammable clothing made in sweatshops overseas. They have imported toys colored with lead paints that are poisonous to children. We have seen the poisoning of our food system by corporations that cruelly confine animals in small cages then pump them full of antibiotics to offset the inevitable danger of diseases. We have seen thousands of consumers poisoned with carelessly handled meats, fish, fruits and vegetables. We have even seen our pets poisoned with pet foods containing uninspected ingredients from overseas.

Despite a growing trend of corporate negligence, fraud and abuse, we hear the constant drumbeat of Teapublicans screaming “over-regulation!” They claim that government oversight and litigation is costing American jobs. They want to give corporations access to the world’s most environmentally sensitive areas in order to extract oil and minerals while leaving behind a toxic wasteland of poisons and destruction. They want to allow oil companies to drill in the Arctic Ocean and along our entire coasts. They want to permit a foreign-owned mining company to extract uranium from the Grand Canyon. They want to permit a foreign-owned oil company to transport the world’s most toxic oil across the length of our nation. They want…they just want.

Even as this is being written, the corporate tools otherwise known as the Republican Party have a case before the United States Supreme Court that would emasculate the Environmental Protection Agency…an agency that is underfunded and overburdened by the callous actions of greedy corporations. If the Republican Party and its Tea Party Parasites have their way, they will not only render the EPA mute. They will further weaken the USDA by allowing meatpackers as well as fruit and vegetable packers to self-inspect their produce. They are already in the process of passing laws forbidding unauthorized recordings of the mistreatment of animals and the mishandling of produce.

There is nothing inherently evil about corporations. Many are socially-aware and contribute a great deal to our society besides jobs. But far too many are only concerned with their bottom lines and will trade long-term consequences for short-term profits. Further reducing or eliminating our watchdog agencies will benefit no one except corporate shareholders.

Illusion Of Democracy.

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The passage of SB 1062 by the Arizona legislature and subsequent veto by Governor Brewer drew national attention. But there’s one aspect of the incident that has gone largely overlooked…the fact that the legislation was not written by an Arizona legislator. It was written by a national stink tank, Alliance Defending Freedom and pushed by the ultra-right wing Center for Arizona Policy. In fact, most state legislation is no longer authored by legislators. The bills are written by lawyers working for the American Legislative Exchange Council, the State Policy Network, lobbyists for large corporations, the National Rifle Association and other conservative stink tanks.

Is it any wonder, then, that our Congress and our legislatures don’t seem to represent the will of the people?

The system of state legislators and congressmen sponsoring bills written by outsiders gives the illusion of representation. But the bills are written for the benefit of a few and to push a narrow ideology. They seldom benefit the majority. For example, the Iowa House recently passed a bill to legalize silencers for guns. How many Iowans will that benefit? The Ohio legislature passed a bill limiting voting hours. How many voters will that benefit? Other states have passed strict voter ID laws despite a lack of in-person voter fraud. The result will be to prevent many of the poor and the elderly from voting. Who will that benefit?

As a result of gerrymandering, issues with voter registration and the dark money used for campaign finance, a study by the non-partisan Electoral Integrity Project as reported by The Washington Post now ranks the US 26th in the world for electoral integrity and worst of all Western nations. And the situation will only get worse if Republicans and their stink tanks continue to push bills intended to rig elections.

How do we stop this blatant takeover of our democracy? Here’s an idea: Let’s ask candidates to reject any bills written by outsiders. Let’s demand that they solve problems for the majority of their constituents. Let’s treat all bills designed to limit civil rights with the same outrage as that for SB 1062. Let’s threaten to boycott states that pass such laws. Let’s refuse to do business with corporations that have co-opted our democracy.

Let’s make our votes count while we still have them.

Five Times The Distance. Five Times The Spills?

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The debate over the Keystone XL pipeline is puzzling on many fronts. We hear that the pipeline will create jobs (although the number has been greatly exaggerated); that it’s safer than transporting oil by train; that it will lessen US dependency on foreign oil. Disregarding the fact that oil from the Alberta tar sands is foreign oil and the fact that most of the oil will be shipped to foreign markets, I have yet to hear anyone address the most obvious issue. The Alberta tar sands are located roughly 2,300 miles from the pipeline’s ultimate destination on the Gulf Coast. Yet the tar sands are just over 400 miles from the Pacific Ocean near Vancouver.

That’s more than five times as far, offering five times the opportunity for oil spills.

Even more puzzling is the fact that there is already a pipeline from the tar sands to Vancouver. If it doesn’t have the capacity to carry as much oil as Trans-Canada would like, why not increase its size? To equal the distance of the Keystone XL pipeline, they could increase the capacity of their Trans Mountain pipeline five-fold and eliminate the political conflict with their neighbor to the south. Instead, the Canadian company is asking US citizens to assume the risks of oil spills on our own pristine lands with few benefits to offset the risk.

This oil is even worse than the gooey, toxic stuff that has already despoiled our Gulf Coast. It’s even more toxic. Moreover, no one yet knows how to clean up the stuff. We’ve already experienced two spills of tar sands oil in US rivers and the so-called oil experts have no advice to offer other than to let it sink to the bottom. Worse yet, when the stuff is refined, one of the by-products is a fine, toxic dust that pollutes the entire surrounding area.

Seriously, Canada, I admire your country. I love your scenic beauty. I love your cosmopolitan cities. I love your people. But if you want to develop your tar sands deposits, you will reap the rewards. You should also reap the consequences.

Arizona Receives A Jolt Of Reality.

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In a rare moment of clarity, Governor Jan Brewer vetoed Arizona’s anti-gay legislation disguised as a “religious freedom” bill. But don’t get the idea that Brewer had an epiphany of tolerance and inclusiveness. What she had was the commercial equivalent of electro-shock therapy. Not only had some of Arizona’s largest corporations – American Airlines, Intel and PetSmart, urged her to veto the bill. So did Apple, which recently agreed to open a plant in the state.

But the group that delivered the biggest jolt was the NFL Super Bowl committee which told her that they were exploring options to move next year’s Super Bowl from the Cardinal’s stadium in Glendale.

I’m guessing that our bleached blonde finger-wagger couldn’t reach for her veto pen fast enough!

So now it will be up to another deep red state to carry forward the Alliance Defending Religion hate bill known as SB 1062. But lest you think that this experience will be enough to bring the Arizona legislature to its senses, I encourage you to look at the steaming pile of bills still stinking up the statehouse. There are enough anti-federal government, anti-abortion, anti-environment, anti-wildlife, anti-voting rights, anti-civil rights, anti-education, anti-science, pro-Christian, and pro-gun bills to give the most ideological right winger an orgasm.

Arizona is a state of great natural beauty and warm weather. But the best part of visiting the state as a tourist is knowing that you don’t have to stay.

Unreasonable Trade-Offs.

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After seeing a headline by David Suzuki “Trading Water for Fuel is Fracking Crazy,” I started thinking about all of the trade-offs we’re being asked to make.  Yes, as Suzuki points out, we are being asked to trade the purity of fresh water in our aquifers that took hundreds and thousands of years to accumulate for the profits of gas and oil companies through the use of toxic chemicals for fracking.

And that’s only one of the trade-offs we’re being asked to make in order to benefit big business.

We’re being asked to trade the beauty of the Appalachians and the area’s pristine waters for the profits of the coal industry through the use of mountaintop removal mining. We’re asked to trade the natural taste and nutrition of fresh fruits and vegetables for the profits of Monsanto, Walmart and large agribusiness companies by allowing the increased use of herbicides, pesticides, fertilizers and GMO (Genetically Modified Organisms) seeds. We’re asked to trade the effectiveness of life-saving antibiotics by allowing large cattle feeders, hog growers and poultry growers to increase profits by adding antibiotics to animal feeds.

In order to increase profits for manufacturers, we’re asked to purchase products made overseas that could be made by workers in the US. So that large corporations can pay employees less than a liveable wage, we are asked to help their employees with food stamps, child care and other safety net programs. In order to increase the profits of corporations, we are asked to lower their income taxes and increase ours.  In order to help billionaires avoid paying income taxes, we are asked to give them a large array of tax breaks, including greatly reduced capital gains taxes.

And, in what is probably the most questionable trade-off of all, we are asked to ignore the very real long-term consequences of climate change for the short-term profits of the fossil fuel industry.

All of these trade-offs and their consequences are avoidable. We simply need the will to change the way we allow corporations to operate. We should demand that they pay for all of the costs of their actions. And that the cost of government subsidies, including the costs to our environment and our health, be included in corporate expenses.

In other words, if corporations truly are people as the US Supreme Court has ruled, we should hold them accountable for their actions.

The Real Cost Of Fossil Fuels.

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The chemical spill in West Virginia that polluted the drinking water of more than 300,000 people should remind everyone of the real cost of fossil fuels. As you know, conservatives are fond of saying that subsidies for research and the expansion of alternative energy are unfair; that they disguise the true cost of solar, wind and other forms of clean, renewable energy. Of course, they never mention the massive direct subsidies our government gives to the coal, oil and gas industries (estimated at $14 billion to $51 billion per year) or the indirect subsidies (the cost of damage to our environment; the cost of health problems that result from breathing polluted air and drinking polluted water; the cost of clean ups of spills; the cost of regulation).

If all of the indirect costs were added, the total subsidies for the fossil fuel industries are almost incalcuable and they’re certain to grow as we deal with the damages caused by climate change.

By comparison, the indirect costs of renewable energy are almost negligible. Wind generators require materials for manufacture and fossil fuels to transport them to their eventual sites. They also reportedly cause the deaths of some birds. But those deaths are dwarfed by the number of birds killed and endangered by oil spills and from drinking chemical pollutants. Solar panels also require manufacture and transportation. But that’s it.

Once in operation, neither add CO2 to the atmosphere. Neither can cause toxic spills. Wind and solar generation is decentralized so there’s less chance of widespread power outages. Both eliminate the need for daily trainloads of fuels. They require no pipelines. There is no need to remove entire mountaintops. No need to pump toxic chemicals into the earth in order to extract wind or sun. And there is no need for waste disposal. When the wind generators and solar panels become obsolete, most of their materials can be recycled.

Best of all, they create jobs in the US, and they would create a lot more if Congress would provide manufacturers with the incentives and protections needed to fend off state-sponsored manufacturers in China. They also reduce the need for fossil fuels, which should make our reserves of oil and gas last well into the future.

So why do Congressional Republicans continue to rubber stamp subsidies for oil, gas and coal while denying much smaller subsidies for alternative energy? The answer, as always, is money.

The majority of fossil fuels are extracted from red states, such as Alaska, Louisiana, North Dakota, Oklahoma, West Virginia and Wyoming. Most refineries are also located in red states – Kansas, Louisiana, Oklahoma and Texas. Oil, gas and coal companies have very deep pockets from decades of favored political status and profiteering. They have one of the largest lobbying groups in Washington. The companies and their billionaire owners are willing to spend whatever it takes to retain their monopolies. Moreover, the Citizens United ruling by the conservative-dominated Supreme Court made it possible for corporations to offer large donations to political campaigns. And politicians are more than willing to accept them.

The Politics Of Division And Deception.

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For many years, the GOP has used so-called “social” issues, such as proposed anti-abortion legislation and “sanctity of marriage” laws to divide the voting populace and fire up their base. The Democratic Party has focused on issues like social safety nets, minimum wages and availability of health care. And the debate has left our government largely paralyzed.

In some ways, arguing about the issues that divide the rank and file of the two political parties is akin to rearranging deck chairs on the Titanic. It’s not that the issues aren’t important. But compared to other issues, they are mere distractions…the political equivalent of a con artist bumping your shoulder while picking your pocket.

The con artists are working for large, multinational corporations and the very wealthy. In order to grow and thrive, these companies need two things: A plentiful supply of natural resources and cheap labor. Over the course of history, those needs have led the wealthy to finance exploration, nations to build wide-ranging empires, and corporations to destroy collective bargaining movements.

Following World War II, the desire for access to oil, rubber, timber, tin and other resources led the British, the US and the Soviet Union to attempt to divide much of the world culminating in the Cold War. The desire to acquire resources led us into conflicts in the Caribbean, Central America, South America, the Middle East and Southeast Asia. It was the cause of the Spanish-American War, the war with Japan, the war in Vietnam, and the war in Iraq. It led our CIA to orchestrate the overthrow of elected leaders in Brazil, Chile, El Salvador, Honduras, Indonesia, Iran, Iraq, Nicaragua and elsewhere.

Similarly, the need for cheap labor led mining companies to create company stores and to build entire towns designed to trap workers into becoming hopelessly obligated to the owners. It caused companies to hire thugs to brutally beat striking workers. It led to shooting wars between corporate interests and labor unions. More recently, it led corporations to move factories to Southern “right-to-work” states then on to Mexico to China to India, Pakistan and Sri Lanka.

The executives behind these actions aren’t evil. They’re just doing business. They claim that it’s not their responsibility to worry about social or environmental problems. They believe that their only responsibility is to increase the return on investment for shareholders by decreasing costs and increasing productivity. To them, picturesque mountains merely cover the precious minerals they covet. Pristine forests are merely the lumber needed for construction. Impoverished people in distant lands are simply motivated laborers.

And so it goes.

While we argue over the debt ceiling, corporations and billionaires quietly park their profits in off-shore tax havens then lobby for a tax “holiday” that will allow them to bring the money home at greatly reduced tax rates. While we argue over extending unemployment benefits, corporations lobby for more subsidies and government giveaways. While we argue over food stamps, corporate agribusinesses pocket billions in taxpayer funds. While we argue over Social Security retirement benefits, too-big-to-fail financial institutions steal trillions from 401ks, IRAs, pension funds and foreclosed homes. At the same time, all of these corporations continue to lobby for reduced government regulation and oversight.

It is because of our inattention that a mere 85 individuals now own as much wealth as half of the world’s population…the equivalent of the populations of China, India, the United States, Indonesia and Brazil combined. It’s why unemployment has grown and why most salaries have not. It’s why a few corporations now control most of our food supply. It’s why those same corporations are able to poison the food supply in search of ever larger profits. It’s why the incidence of chronic disease has skyrocketed despite government-funded technology and research that give us the ability to end it. It’s why our climate is rapidly changing while we continue to subsidize the companies responsible for changing it.

As long as we focus on the distractions instead of the actions, things will only get worse.

An Irresponsible Corporation’s Last Resort.

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Last Friday, it was announced that the company responsible for the chemical spill in West Virginia, Freedom Industries Inc., had filed for bankruptcy protection and is in the process of selling its assets to a newly created corporation headed by (you guessed it) the former CEO of Freedom Industries. What better way for a group of uncaring, money-grubbing individuals to maintain their incomes while avoiding the consequences of their actions? Or should it be inactions? After all, the chemical tank that leaked hadn’t been inspected in decades.

Not surprisingly, the company claims that the leak is not its fault. It claims that “an unidentified object pierced the affected tank” allowing the toxic, but largely unregulated chemical to flow into the river just upstream from the City of Charlotte’s water supply; a chemical that, if ingested, causes severe diahhrea and vomiting; a chemical that, in the words of West Virginia officials, is only good for “flushing.”

By filing for bankruptcy, the company owners are hoping to protect their assets while avoiding any lawsuits from those affected by the spill and fines from the Environmental Protection Agency. To be held accountable, courts will have to find that the former owners of Freedom Industries were guilty of negligence or malfeasance (difficult charges to prove). If not, the company owners will be able to go right back to doing what they were doing…soaking up large sums of money and sticking the public with any clean-up costs.

And that’s not all.

In its bankruptcy filing, Freedom Industries admits that it owes the IRS $2.4 million in back taxes. One assumes that sum is in jeopardy if the bankruptcy court allows the owners to abscond with the company assets while avoiding any and all liabilities. If nothing else, the corporation will likely be able to diminish its tax liabilities through a variety of tax write-offs. And don’t think for a moment that this situation is unique. This has become a common strategy for corporations facing lawsuits for irresponsible activities. Indeed, the advantage of incorporating a business is to create a “corporate veil” that the owners can hide behind if and when things go bad. The belief is that, without the corporate veil, no one would take the risk of starting a business…a belief that I don’t share.

It’s this very protection that belies the conservative fantasy that corporations are people. Yes, they are owned by people and they are run by people. But articles of incorporation give owners an opportunity to simply walk away from problems when they outweigh profits. Individuals and sole proprietorships have no such protections. And, as the result of the Citizens United Supreme Court decision, owners and managers of corporations now have more influence than ever before. They can contribute to political campaigns both as individuals and as corporate officers. Given this disproportionate influence, we are likely to see many more corporations like Freedom Industries.

That’s unlikely to generate any complaints from conservatives.

Conservative idealogues may insist on personal responsibility for individuals…especially those who ar impoverished. But they have no such demands for corporations. After all, they view corporations as “job creators” and they despise government agencies responsible for regulating corporations. Moreover, most corporate political contributions will benefit conservative candidates. Conservatives wouldn’t want to give up those.

Why Teapublicans Are Wrong About Government.

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After all of the GOP talk of “freeing businesses from government regulation” and “shrinking government down to a size small enough to fit in a bathtub,” it’s time to force a dose of reality down their loudmouth throats. No matter how much they rant about the “evils” of government, we need government to do a variety of things the private sector can’t or won’t.

We need government funding and oversight to build and maintain infrastructure – roads, highways, airports, seaports, and more. We need government to protect our borders; to control our monetary system; to negotiate treaties. And, although we live in a nation built on capitalism, government has always been needed to prevent private businesses from taking advantage of our citizens. Whenever new industries are created by business, government eventually has to regulate them in order to keep them from running amok.

For example, before Ralph Nader and his book, Unsafe At Any Speed, American automakers paid little attention to safety. There were no seat belts, no air bags, no crumple zones, no crash tests…no safety standards at all.

Before the Food & Drug Administration, there was no labeling of ingredients for packaged foods ; no bans or warnings for ingredients known to cause harm. Before the Environmental Protection Agency (EPA), large corporations felt free to dump toxic chemicals in our streams and in our drinking water. Before the EPA, large corporations spewed tons of toxins into the air we breathe. Before the Securities Exchange Commission, financial institutions could engage in insider trading and sell any junk securities people could be bamboozled into buying. Before the Mine Safety Act, most miners died from tunnel collapses and black lung disease. Before the US Department of Agriculture and the US Forest Service, lumber companies felt free to clear cut our forests destroying critical habitat for many species and mortgaging our future. Before the Department of Labor, businesses thrived on child and slave labor.

Do you really want to go back to the days of allowing corporations to regulate themselves?

Would you buy meat for your family that had not been inspected? Would you drink water that hadn’t been tested for bacteria and other contaminents? Would you give your child pharamceuticals that were untested? Would you strap your child into a car that had not passed basic safety tests? Would you place your life savings in a bank that did not insure your deposits?

We already know what happens when you replace government functions with private companies. We have abundant evidence that contracting with corporations to operate prisons costs more than publicly-operated prisons. Private prisons have also proven to be less secure. We also know that, on the whole, students in private schools perform no better, and often worse, than those in public schools.

Contrary to President Reagan, government isn’t the problem. Often it’s the solution. Instead of trying to reduce government to some arbitrary size, we should be trying to improve it. Apparently, Teapublicans have never considered that.

Follow The BIG Money.

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In a previous post, I referenced a study from Bulls, Bears and the Ballot Box which found that Democratic presidents have been better for the economy than Republican presidents despite GOP claims to the contrary.

The question is why. After all, isn’t the GOP the party of business? In a word, yes, but only big business…BIG, multinational business. As a result, corporate profits, productivity, stock market prices and plentiful supplies of both cheap labor and cheap raw materials are valued above all else.

One only need look at who contributes the most money to GOP election campaigns to understand that the party doesn’t care about the needs of ordinary citizens. The party’s biggest contributors are large corporations, corporate lobbyists, the US Chamber of Commerce, plus big oil, big Pharma, big banking and other industry organizations, as well as obscenely wealthy individuals such as the Koch brothers. A recent report by The Washington Post stated that a “Koch-backed political network, designed to shield donors, raised $400 million in 2012.”

To the GOP, ordinary citizens are necessary for votes. But their votes can be bought with massive, and deceptive, ad campaigns designed to create a culture of divisiveness, anger and fear.

On the other hand, contributions for Democratic election campaigns tend to come from labor unions representing police, firefighters, teachers, workers and social organizations. The rest of the financing tends to come from individuals of every income strata. As a result, Democratic candidates tend to serve the needs of their constituents. Without their support, the candidates have little chance of being elected.

Obviously, it’s not quite so cut and dried.

Members of both parties can be swayed to pass legislation to benefit large contributors. Democrats can be romanced by large corporations offering to make large investments and to create new jobs in their districts. Such “incentives” can even affect the policies of the White House.

But the point stands. Which party do you think would be more responsive to individuals? The party that receives most of its campaign financing from large, multinational corporations and ideological billionaires? Or the party that receives a large portion of its campaign financing from working people?

I think you know the answer.