Gimme a Break! IRS Tax Loophole Can Reward Excessive Water Use in Drought-stricken West

By Abrahm Lustgarten (Reprinted with permission from ProPublica)

ProPublica’s reporting on the water crisis in the American West has highlighted any number of confounding contradictions worsening the problem: Farmers are encouraged to waste water so as to protect their legal rights to its dwindling supply in the years ahead; Las Vegas sought to impose restrictions on water use while placing no checks on its explosive population growth; the federal government has encouraged farmers to improve efficiency in watering crops, but continues to subsidize the growing of thirsty crops such as cotton in desert states like Arizona.

Today, we offer another installment in the contradictions amid a crisis.

In parts of the western U.S., wracked by historic drought, you can get a tax break for using an abundance of water.

That’s a typo, right? A joke?

Ah, no. But we understand your bafflement. The Colorado River has been trickling, its largest reservoirs less than half full. As recently as 2014 parts of Texas literally almost dried up. The National Academy of Sciences predicts the Southwest may be on the cusp of its worst dry spell in 1,000 years. Scientists are warning that the backup plan — groundwater aquifers from California to Nebraska — are all being sucked dry.

But, yes, the tax break exists — in parts of eight High Plains states.

Here’s how it works: Farmers — or anyone who uses water in a business — can ask the Internal Revenue Service for a tax write-off for what’s called a “depleted asset.” In certain places, water counts as an asset, just like oil, or minerals like copper. The more water gets used, the more cash credit farmers can claim against their income tax. And that’s just what almost 3,000 Texas landowners in just one water district appear to have done last year — a year in which nearly half of Texas was in a state of “severe” or “extreme” drought.”

Yikes. How much can they write off?

A bunch it seems, especially if you’re a big farm and own a lot of land. We talked to an accountant in Levelland, Texas. He had a client who wrote off $10,000. “Whenever you buy land, you’re getting the dirt … and of course you are getting the water,” said Sham Myatt, the accountant. And the idea is that that water is part of what you paid for in the land deal. If the aquifer was 50 feet deep at the time of the land sale, and it drops 10 feet in a dry year, then the farmer can deduct one-fifth of the value, and so on, until all the water is gone.

That’s not going to do much to conserve water, is it?

No. It’s not. In fact it’s an incentive to do the exact opposite. A farmer who tries to use less water because of the drought, say, by switching to really efficient irrigation techniques, could actually make less money. His water might last longer, but producing his crop would get a lot more expensive.

We called Nicholas Brozovic, an associate professor of agricultural economics and director of policy at the University of Nebraska’s Robert B. Daugherty Water for Food Institute. He’d actually never heard of the water deduction; it’s that obscure. But he laid out some textbook economics: If you’re overusing your water, then you are depreciating it, he said. And if the government pays for that, they are subsidizing that depreciation. “The more you deplete your groundwater, the higher your tax exemption and that must create an incentive not to conserve,” he said.

Hasn’t the federal government spent billions subsidizing conservation and the protection of the West’s groundwater, in part by building dams and encouraging people to use the water in rivers instead? Why would they forfeit federal tax dollars to do the opposite?

We called the IRS, and they initially shared our doubts. Not because they cared much about groundwater (it’s a tax agency!) but because they said they were pretty sure no such deduction was legal. They pointed us to section 613 of the tax code, and it couldn’t be more explicit: For the purposes of deducting the depreciating value of minerals, the definition “does not include soil, sod, dirt, turf, water, or mosses.” Ok, who would ever have thought of deducting mosses or sod? But anyway. That left us really confused.

Right, there were, after all, those farmers in Texas who seemed to have benefited from what the IRS said was not possible.

We encouraged the IRS to check again. They did. And then they found the provision they thought didn’t exist — right there in the text for Revenue Rule 65–296. An IRS spokesperson laid out for us the specifics: “Taxpayers are entitled to a cost depletion deduction for the exhaustion of their capital investment in the ground water extracted and disposed of by them in their business of irrigation farming specifically from the Ogallala Formation.”

Seems like some follow-up questions were in order.

For sure. We asked for clarification. The IRS said it would try to explain. Most importantly, they wanted to say it wasn’t quite as crazy as it sounded. The deduction is only available for one small part of the country — an area that includes parts of Texas, New Mexico, Oklahoma, Nebraska, Kansas, South Dakota, Wyoming and Colorado. And it should only apply if people are using water from a source that is running dry anyway.

But wait, what? You get a break when you use resources that are already in danger of vanishing?

Yes, that’s why it is what’s called a depleted asset. It’s of less and less value with every day. Your car is worth less the moment you drive it off the lot. Or, more similarly, oil companies track the falling value of their reserves the more they pump out from underground. In fact, energy companies have been taking oil depletion breaks for decades. Texas landowners would say their property is getting less valuable the less water there is to use on it.

Okay, okay, but water isn’t oil. It’s not a commodity. Access to it is a basic right. Yes? Please say that’s right.

Wrong. Ouch. I know, it hurts. But ProPublica last year wrote about all the ways water is coveted and controlled — and then often wasted — by just a few powerful groups. In most of the West, only some people and businesses have rights to it, depending on who showed up to claim it first. One big trend is that water is increasingly being bought and sold — including by hedge funds and big Wall Street investors, and the less water there is, the more the price is going up.

That’s a little scary. Let’s get back to depleted assets. So when did this tax break start?

About 50 years ago. A farmer in the Texas panhandle — along with his local water district — successfully sued the IRS, arguing that the roughly 200 million gallons he drew from his groundwater each year was no different than the depletion of the state’s other great natural resource, oil. He won, and the IRS was obliged to create rule 65–296 — the special allowance for tax credits that the IRS almost forgot about.

Again, it was supposed to be limited — just to a slice of Texas and eastern New Mexico. The court even went so far as to warn that the case shouldn’t become a precedent for groundwater tax claims elsewhere, saying the conditions in that area of the country were unique. But it didn’t take long for the rule to be expanded, albeit just a little bit. By the mid 1980’s any landowner overlying the sprawling Ogallala aquifer — a giant underground vault of precious but dwindling water — was eligible to file for the deductions, not just in North Texas and New Mexico.

That still doesn’t sound like much of a big deal … why does it matter?

Well, the Ogallala, which spans from central Texas north to Nebraska and South Dakota is the nation’s largest groundwater reserve and is one of the most important, and (famously) threatened water supplies in the country. Its heavy overuse and plummeting water levels rang alarms among policymakers more than half a century ago. So this is no insignificant place to be even indirectly encouraging overuse. Texas’ High Plains are one of the most intensely irrigated and productive farming regions in the country. Hundreds of thousands of acres of cotton and corn, among other staple commodities, are grown there using this Ogallala water.

So, do we know what’s happening to the Ogallala where all this farming is taking place?

We looked at recent water level changes in just one district — the one with thousands of tax credit claims — and found a disturbing trend. Underground water levels in the 16 counties of the High Plains Underground Water Conservation District have dropped nearly 10 feet over the last 10 years. Some parts of Castro County saw water levels drop more than five feet over the course of 2015 alone. The federal government estimates nearly 100 cubic miles of water have been withdrawn from the Ogallala in that part of Texas. That doesn’t automatically mean the tax credits are responsible — water levels are dropping in most places thanks to overuse and it would take a lot more research to link up the cause and effect. But it certainly isn’t a portrait of sustainability.

Aquifers are at risk across Arizona, California and other states as well, right? At least people can’t claim tax breaks there?

Not yet. But that could change, as water supplies worsen and word of the tax break circulates more widely. Almost no one we spoke with had heard of it — not water lawyers in Arizona or groundwater conservation scientists in California. Armed with the knowledge, there’s a pretty good chance farmers and businesses across the West could seek tax relief.

Because there is precedent?

Exactly.

What does the IRS say to that?

They say it’s very unlikely, mostly because they think the conditions in the Ogallala are rare, and that the agency’s policy is to reject water allowance claims anywhere outside of the places covered in the original lawsuit. But if more landowners, in more places, were to file suits challenging the IRS to allow them to deduct for their water, or if they were to petition the IRS directly, the agency says it would undertake a review to consider it on a case by case basis. Landowners would have to present extensive scientific evidence that showed their situation was more or less the same as in North Texas.

Is the IRS equipped to make such judgments?

Fair question. John Leshy, professor emeritus at the University of California Hastings College of the Law, and a former solicitor for the U.S. Department of Interior, isn’t persuaded. “The IRS has really created a can of worms for itself,” he said. “It doesn’t have any hydrological expertise.”

Hmmm. Not ideal. But what’s the bottom line? Are these tax breaks going to make any real difference in how quickly we use up the water supply?

It’s hard to tell, partly because no one appears to have examined that question. We asked the IRS for data on the number of claims and it hasn’t responded. Folks in Texas dismiss the suggestion that the tax benefits are incentivizing water use as ludicrous. Myatt, the accountant, points out that only about one-third of the deducted value translates to cash in hand, and says for many smaller farmers that amounts to just a few hundred dollars. Jason Coleman, manager of the High Plains Underground Water Conservation District, says his members are as concerned about conserving their water for the future as anyone. “Its already a declining resource,” he said. “I just can’t imagine someone saying I’m going to depreciate our resource any more because of a tax claim.”

But the academic consensus is that incentives encourage use, even overuse. And if the effect of depletion allowances on oil production are any guide — Leshy says they have spurred overproduction and led to artificially cheap, subsidized fuel prices — any significant expansion of the groundwater tax credit to other states could have lasting impacts on the way groundwater is used across the country.

So is anyone trying to do anything about this?

Not really, which is why people like Brent Blackwelder, president emeritus of the environmental group Friends of the Earth, which has long been involved in rooting out tax policy disincentives to conservation, are fuming. “It’s a pretty major outrage that we would so stupidly reward the over extraction and non-sustainable use of groundwater,” he told me. Blackwelder helped push to purge the tax code of perverse anti-conservation incentives like this one way back in the Reagan administration, with the 1986 Tax Reform Act. They were largely successful, weeding out several other odd loopholes. But the groundwater depletion allowance persisted. And since then, apparently, it’s been forgotten about by all but the farmers who rely on it.


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Hooked! The Unyielding Grip of Fossil Fuels on Global Life

By Michael Klare

Reprinted with permission from TomDispatch.com

Here’s the good news: wind power, solar power, and other renewable forms of energy are expanding far more quickly than anyone expected, ensuring that these systems will provide an ever-increasing share of our future energy supply.  According to the most recent projections from the Energy Information Administration (EIA) of the U.S. Department of Energy, global consumption of wind, solar, hydropower, and other renewables will double between now and 2040, jumping from 64 to 131 quadrillion British thermal units (BTUs).

And here’s the bad news: the consumption of oil, coal, and natural gas is also growing, making it likely that, whatever the advances of renewable energy, fossil fuels will continue to dominate the global landscape for decades to come, accelerating the pace of global warming and ensuring the intensification of climate-change catastrophes.

The rapid growth of renewable energy has given us much to cheer about.  Not so long ago, energy analysts were reporting that wind and solar systems were too costly to compete with oil, coal, and natural gas in the global marketplace.  Renewables would, it was then assumed, require pricey subsidies that might not always be available.  That was then and this is now.  Today, remarkably enough, wind and solar are already competitive with fossil fuels for many uses and in many markets.

If that wasn’t predicted, however, neither was this: despite such advances, the allure of fossil fuels hasn’t dissipated.  Individuals, governments, whole societies continue to opt for such fuels even when they gain no significant economic advantage from that choice and risk causing severe planetary harm.  Clearly, something irrational is at play.  Think of it as the fossil-fuel equivalent of an addictive inclination writ large.

The contradictory and troubling nature of the energy landscape is on clear display in the 2016 edition of the International Energy Outlook, the annual assessment of global trends released by the EIA this May.  The good news about renewables gets prominent attention in the report, which includes projections of global energy use through 2040.  “Renewables are the world’s fastest-growing energy source over the projection period,” it concludes.  Wind and solar are expected to demonstrate particular vigor in the years to come, their growth outpacing every other form of energy.  But because renewables start from such a small base — representing just 12% of all energy used in 2012 — they will continue to be overshadowed in the decades ahead, explosive growth or not.  In 2040, according to the report’s projections, fossil fuels will still have a grip on a staggering 78% of the world energy market, and — if you don’t mind getting thoroughly depressed — oil, coal, and natural gas will each still command larger shares of the market than all renewables combined.

Keep in mind that total energy consumption is expected to be much greater in 2040 than at present.  At that time, humanity will be using an estimated 815 quadrillion BTUs (compared to approximately 600 quadrillion today).  In other words, though fossil fuels will lose some of their market share to renewables, they will still experience striking growth in absolute terms.  Oil consumption, for example, is expected to increase by 34% from 90 million to 121 million barrels per day by 2040.  Despite all the negative publicity it’s been getting lately, coal, too, should experience substantial growth, rising from 153 to 180 quadrillion BTUs in “delivered energy” over this period.  And natural gas will be the fossil-fuel champ, with global demand for it jumping by 70%.  Put it all together and the consumption of fossil fuels is projected to increase by 177 quadrillion BTUs, or 38%, over the period the report surveys.

Anyone with even the most rudimentary knowledge of climate science has to shudder at such projections.  After all, emissions from the combustion of fossil fuels account for approximately three-quarters of the greenhouse gases humans are putting into the atmosphere.  An increase in their consumption of such magnitude will have a corresponding impact on the greenhouse effect that is accelerating the rise in global temperatures.

At the United Nations Climate Summit in Paris last December, delegates from more than 190 countries adopted a plan aimed at preventing global warming from exceeding 2 degrees Celsius (about 3.6 degrees Fahrenheit) above the pre-industrial level.  This target was chosen because most scientists believe that any warming beyond that will result in catastrophic and irreversible climate effects, including the melting of the Greenland and Antarctic ice caps (and a resulting sea-level rise of 10-20 feet).  Under the Paris Agreement, the participating nations signed onto a plan to take immediate steps to halt the growth of greenhouse gas emissions and then move to actual reductions.  Although the agreement doesn’t specify what measures should be taken to satisfy this requirement — each country is obliged to devise its own “intended nationally determined contributions” to the overall goal — the only practical approach for most countries would be to reduce fossil fuel consumption.

As the 2016 EIA report makes eye-poppingly clear, however, the endorsers of the Paris Agreement aren’t on track to reduce their consumption of oil, coal, and natural gas.  In fact, greenhouse gas emissions are expected to rise by an estimated 34% between 2012 and 2040 (from 32.3 billion to 43.2 billion metric tons).  That net increase of 10.9 billion metric tons is equal to the total carbon emissions of the United States, Canada, and Europe in 2012.  If such projections prove accurate, global temperatures will rise, possibly significantly above that 2 degree mark, with the destructive effects of climate change we are already witnessing today — the fires, heat waves, floods, droughts, storms, and sea level rise — only intensifying.

Exploring the Roots of Addiction

How to explain the world’s tenacious reliance on fossil fuels, despite all that we know about their role in global warming and those lofty promises made in Paris?

To some degree, it is undoubtedly the product of built-in momentum: our existing urban, industrial, and transportation infrastructure was largely constructed around fossil fuel-powered energy systems, and it will take a long time to replace or reconfigure them for a post-carbon future.  Most of our electricity, for example, is provided by coal- and gas-fired power plants that will continue to operate for years to come.  Even with the rapid growth of renewables, coal and natural gas are projected to supply 56% of the fuel for the world’s electrical power generation in 2040 (a drop of only 5% from today).  Likewise, the overwhelming majority of cars and trucks on the road are now fueled by gasoline and diesel.  Even if the number of new ones running on electricity were to spike, it would still be many years before oil-powered vehicles lost their commanding position.  As history tells us, transitions from one form of energy to another take time.

Then there’s the problem — and what a problem it is! — of vested interests.  Energy is the largest and most lucrative business in the world, and the giant fossil fuel companies have long enjoyed a privileged and highly profitable status.  Oil corporations like Chevron and ExxonMobil, along with their state-owned counterparts like Gazprom of Russia and Saudi Aramco, are consistently ranked among the world’s most valuable enterprises.  These companies — and the governments they’re associated with — are not inclined to surrender the massive profits they generate year after year for the future wellbeing of the planet.

As a result, it’s a guarantee that they will employ any means at their disposal (including well-established, well-funded ties to friendly politicians and political parties) to slow the transition to renewables.  In the United States, for example, the politicians of coal-producing states are now at work on plans to block the Obama administration’s “clean power” drive, which might indeed lead to a sharp reduction in coal consumption.  Similarly, Exxon has recruited friendly Republican officials to impede the efforts of some state attorney generals to investigate that company’s past suppression of information on the links between fossil fuel use and climate change.  And that’s just to scratch the surface of corporate efforts to mislead the public that have included the funding of the Heartland Institute and other climate-change-denying think tanks.

Of course, nowhere is the determination to sustain fossil fuels fiercer than in the “petro-states” that rely on their production for government revenues, provide energy subsidies to their citizens, and sometimes sell their products at below-market rates to encourage their use.  According to the International Energy Agency (IEA), in 2014 fossil fuel subsidies of various sorts added up to a staggering $493 billion worldwide — far more than those for the development of renewable forms of energy.  The G-20 group of leading industrial powers agreed in 2009 to phase out such subsidies, but a meeting of G-20 energy ministers in Beijing in June failed to adopt a timeline to complete the phase-out process, suggesting that little progress will be made when the heads of state of those countries meet in Hangzhou, China, this September.

None of this should surprise anyone, given the global economy’s institutionalized dependence on fossil fuels and the amounts of money at stake.  What it doesn’t explain, however, is the projected growth in global fossil fuel consumption.  A gradual decline, accelerating over time, would be consistent with a broad-scale but slow transition from carbon-based fuels to renewables.  That the opposite seems to be happening, that their use is actually expanding in most parts of the world, suggests that another factor is in play: addiction.

We all know that smoking tobacco, snorting cocaine, or consuming too much alcohol is bad for us, but many of us persist in doing so anyway, finding the resulting thrill, the relief, or the dulling of the pain of everyday life simply too great to resist.  In the same way, much of the world now seems to find it easier to fill up the car with the usual tankful of gasoline or flip the switch and receive electricity from coal or natural gas than to begin to shake our addiction to fossil fuels.  As in everyday life, so at a global level, the power of addiction seems regularly to trump the obvious desirability of embarking on another, far healthier path.

On a Fossil Fuel Bridge to Nowhere

Without acknowledging any of this, the 2016 EIA report indicates just how widespread and prevalent our fossil-fuel addiction remains.  In explaining the rising demand for oil, for example, it notes that “in the transportation sector, liquid fuels [predominantly petroleum] continue to provide most of the energy consumed.”  Even though “advances in nonliquids-based [electrical] transportation technologies are anticipated,” they will not prove sufficient “to offset the rising demand for transportation services worldwide,” and so the demand for gasoline and diesel will continue to grow.

Most of the increase in demand for petroleum-based fuels is expected tooccur in the developing world, where hundreds of millions of people are entering the middle class, buying their first gas-powered cars, and about to be hooked on an energy way of life that should be, but isn’t, dying.  Oil use is expected to grow in China by 57% between 2012 and 2040, and at a faster rate (131%!) in India.  Even in the United States, however, a growing preference for sport utility vehicles and pickup trucks continues to mean higher petroleum use.  In 2016, according to Edmunds.com, a car shopping and research site, nearly 75% of the people who traded in a hybrid or electric car to a dealer replaced it with an all-gas car, typically a larger vehicle like an SUV or a pickup.

The rising demand for coal follows a depressingly similar pattern.  Although it remains a major source of the greenhouse gases responsible for climate change, many developing nations, especially in Asia, continue to favor it when adding electricity capacity because of its low cost and familiar technology.  Although the demand for coal in China — long the leading consumer of that fuel — is slowing, that country is still expected to increase its usage by 12% by 2035.  The big story here, however, is India: according to the EIA, its coal consumption will grow by 62% in the years surveyed, eventually making it, not the United States, the world’s second largest consumer.  Most of that extra coal will go for electricity generation, once again to satisfy an “expanding middle class using more electricity-consuming appliances.”

And then there’s the mammoth expected increase in the demand for natural gas.  According to the latest EIA projections, its consumption will rise faster than any fuel except renewables.  Given the small base from which renewables start, however, gas will experience the biggest absolute increase of any fuel, 87 quadrillion BTUs between 2012 and 2040.  (In contrast, renewables are expected to grow by 68 quadrillion and oil by 62 quadrillion BTUs during this period.)

At present, natural gas appears to enjoy an enormous advantage in the global energy marketplace.  “In the power sector, natural gas is an attractive choice for new generating plants given its moderate capital cost and attractive pricing in many regions as well as the relatively high fuel efficiency and moderate capital cost of gas-fired plants,” the EIA notes.  It is also said to benefit from its “clean” reputation (compared to coal) in generating electricity.  “As more governments begin implementing national or regional plans to reduce carbon dioxide emissions, natural gas may displace consumption of the more carbon-intensive coal and liquid fuels.”

Unfortunately, despite that reputation, natural gas remains a carbon-based fossil fuel, and its expanded consumption will result in a significant increase in global greenhouse gas emissions.  In fact, the EIA claims that it will generate a larger increase in such emissions over the next quarter-century than either coal or oil — a disturbing note for those who contend that natural gas provides a “bridge” to a green energy future.

Seeking Treatment

If you were to read through the EIA’s latest report as I did, you, too, might end up depressed by humanity’s addictive need for its daily fossil fuel hit.  While the EIA’s analysts add the usual caveats, including the possibility that a more sweeping than expected follow-up climate agreement or strict enforcement of the one adopted last December could alter their projections, they detect no signs of the beginning of a determined move away from the reliance on fossil fuels.

If, indeed, addiction is a big part of the problem, any strategies undertaken to address climate change must incorporate a treatment component.  Simply saying that global warming is bad for the planet, and that prudence and morality oblige us to prevent the worst climate-related disasters, will no more suffice than would telling addicts that tobacco and hard drugs are bad for them.  Success in any global drive to avert climate catastrophe will involve tackling addictive behavior at its roots and promoting lasting changes in lifestyle.  To do that, it will be necessary to learn from the anti-drug and anti-tobacco communities about best practices, and apply them to fossil fuels.

Consider, for example, the case of anti-smoking efforts.  It was the medical community that first took up the struggle against tobacco and began by banning smoking in hospitals and other medical facilities.  This effort was later extended to public facilities — schools, government buildings, airports, and so on — until vast areas of the public sphere became smoke-free.  Anti-smoking activists also campaigned to have warning labels displayed in tobacco advertising and cigarette packaging.

Such approaches helped reduce tobacco consumption around the world and can be adapted to the anti-carbon struggle.  College campuses and town centers could, for instance, be declared car-free — a strategy already embraced by London’s newly elected mayor, Sadiq Khan.  Express lanes on major streets and highways can be reserved for hybrids, electric cars, and other alternative vehicles.  Gas station pumps and oil advertising can be made to incorporate warning signs saying something like, “Notice: consumption of this product increases your exposure to asthma, heat waves, sea level rise, and other threats to public health.”  Once such an approach began to be seriously considered, there would undoubtedly be a host of other ideas for how to begin to put limits on our fossil fuel addiction.

Such measures would have to be complemented by major moves to combat the excessive influence of the fossil fuel companies and energy states when it comes to setting both local and global policy.  In the U.S., for instance, severely restricting the scope of private donations in campaign financing, as Senator Bernie Sanders advocated in his presidential campaign, would be a way to start down this path.  Another would step up legal efforts to hold giant energy companies like ExxonMobil accountable for malfeasance in suppressing information about the links between fossil fuel combustion and global warming, just as, decades ago, anti-smoking activists tried to expose tobacco company criminality in suppressing information on the links between smoking and cancer.

Without similar efforts of every sort on a global level, one thing seems certain: the future projected by the EIA will indeed come to pass and human suffering of a previously unimaginable sort will be the order of the day.


 

Michael T. Klare, a TomDispatch regular, is a professor of peace and world security studies at Hampshire College and the author, most recently, of  The Race for What’s Left. A documentary movie version of his book Blood and Oil is available from the Media Education Foundation. Follow him on Twitter at @mklare1.

Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Book, Nick Turse’s Next Time They’ll Come to Count the Dead, and Tom Engelhardt’s latest book, Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

Copyright 2016 Michael T. Klare


How to Make a Political Revolution

By David Morris

Reprinted with permission from the Institute for Local Self-Reliance

[Editor’s Comment: Note in the article that follows the discussion of the Bank of North Dakota, which has received particular attention in the last few years because of its beneficial role in helping North Dakota weather the storms of the Great Recession. Note especially in this regard the writings of Ellen Brown, President of the Public Banking Institute, author of  Web of Debt and the The Public Bank Solution. See also her article, “NORTH DAKOTA’S ECONOMIC “MIRACLE”—IT’S NOT OIL.”]

nonpartisan league wagon

Nonpartisan League

On June 14th, North Dakotans voted to overrule their government’s decision to allow corporate ownership of farms. That they had the power to do so was a result of a political revolution that occurred almost exactly a century before, a revolution that may hold lessons for those like Bernie Sanders’ supporters who seek to establish a bottom-up political movement in the face of hostile political parties today.

Here’s the story. In the early 1900s North Dakota was effectively an economic colony of Minneapolis/Saint Paul. A Saint Paul based railroad tycoon controlled its freight prices. Minnesota companies owned many of the grain elevators that sat next to the rail lines and often cheated farmers by giving their wheat a lower grade than deserved. Since the flour mills were in Minneapolis, shipping costs reduced the price wheat farmers received. Minneapolis banks held farmers’ mortgages and their operating loans to farmers carried a higher interest than they charged at home.

Farmers, who represented a majority of the population, tried to free themselves from bondage by making the political system more responsive. In 1913 they gained an important victory when the legislature gave them the right, by petition, to initiate a law or constitutional amendment as well as to overturn a law passed by the legislature.

But this was a limited victory for while the people could enable they could not compel.

In 1914, for example, after a 30-year effort, voters authorized the legislature to build a state-owned grain elevator and mill. But in January 1915 a state legislative committee concluded it “would be a waste of the people’s money as well as a humiliating disappointment to the people of the state.” The legislature refused funding.

A few weeks later, two former candidates on the Socialist Party ticket, Arthur C. Townley and Albert Bowen, launched a new political organization, the Non Partisan League (NPL). The name conveyed their strategy: To rely more on program-based politics than party-based politics. According to the NPL its program intended to end the “utterly unendurable” situation in which “the people of this state have always been dependent on their existence on industries, banks, markets, storage and transportation facilities either existing altogether outside of the state or controlled by great private interests outside the state.”

The NPL’s platform contained concrete and specific measures: state ownership of elevators, flour mills, packing houses and cold storage plants; state inspection of grain grading and dockage; state hail insurance; rural credit banks operating at cost; exemption of farm improvements from taxation.

In his recent book, Insurgent Democracy Michael Lansing explains, “Small-property holders anxious to use government to create a more equitable form of capitalism cannot be easily categorized in contemporary political term.” The NPL “reminded Americans that corporate capitalism was not the only way forward.” Supporters of the NPL wanted state sponsored market fairness but not state control. They wanted public options, not public monopolies.

In the language of our 2016 political campaigns, it would not be much of a stretch to characterize the NPL as a movement for an American-style decentralized, anti-corporate, democratic socialism.

The NPL was as one contemporary observer, Thorstein Veblen described it, “large, loose, animated and untidy, but sure of itself in its settled disallowance of the Vested Interests… “

The movement was membership-based. Members were kept informed through a regular newsletter. This was part of a massive popular education effort. Membership fees allowed the NPL to hire organizers and lecturers who traveled throughout the state. Townley, the founder and leader of the NPL, proved an entertaining and charismatic speaker. Sometimes thousands would gather to hear him speak. Speeches themselves were community affairs.

The goal was to convince farmers that collectively they could significantly influence the decisions that would affect their personal and business lives.

To gain power the NPL relied on a political tool born of the Progressive movement: the political primary. To make government more responsive and transparent, Progressives urged states to bypass political conventions, political bosses and backroom deals and adopt direct primaries. By 1916, 25 of the then 48 U.S. states had adopted the primary as the vehicle for nominating political candidates.

The primary system gave people the power to elect candidates of their political party, but the key to the remarkable political revolution that swept through North Dakota was its adoption, in 1908, of an “open primary” law that allowed anyone to vote in a party’s primary even if unaffiliated with that party.

On March 29, 1916 the NPL took advantage of that law by convening its first convention. Attendees endorsed candidates who swore allegiance to its platform. These candidates ran in the June Republican primary, a primary targeted by the NPL because then (as now) the Republican Party dominated North Dakota.

In June 1916 the NPL effectively took over the Republican Party. In November 1916 NPL –endorsed candidates won every statewide office except one and gained a majority in the state Assembly, although not in the Senate. By that time the NPL boasted 40,000 members, an astonishing number given the state population of only 620,000.

In the succeeding legislative session the NPL was able to implement parts of its platform: a grain grading system, a 9-hour workday for women, regulation of railroad shipping rates and increased state aid to rural schools. But the Senate narrowly defeated the key to implementing NPL’s broad vision: a constitutional amendment to allow for state-owned businesses.

In 1918, the NPL gained a majority in the state Senate. That year North Dakotans voted on 10 constitutional amendments. They approved every one. One, endorsed by a resounding margin of 59-41 gave state, county and local governments permission “to engage in industry, enterprises or businesses.” Another allowed the state to guarantee $2 million in bonds and established voting requirements for future bonding. Another created state hail insurance.

Other amendments expanded the possibility of direct democracy by reducing the number of signatures required to put an initiative on the ballot, and by allowing constitutional amendments to be passed by a simple majority of the voters.

In June 1919, voters approved 6 of 7 legislatively referred statutes, including the establishment of a state bank, that latter by a vote of 56-44. The one ballot initiative North Dakotans rejected—giving the Governor the authority to appoint every county school superintendent—was itself revealing. North Dakotans wanted a state that could stand up to big out-of-state corporations but they preferred local control to state control.

The Bank of North Dakota (BND) was the centerpiece of the NPL’s effort to take back control of their economy. It was intended to strengthen, not undercut local banks. It established no branches, nor did it accept independent deposits or accounts. The Bank “strongly recommended” that borrowers seek mortgages by working through local institutions. Banks across the state used the BND as a clearinghouse for various financial transactions.

Farmers immediately benefited as their interest rates on loans dropped to about 6 percent from the prevailing 8.7 percent.

In November 1920 voters strengthened the BND by narrowly approving an initiative requiring all state, county, township, municipal and school district funds be deposited there.

In March 1920 the NPL legislature referred to the people a constitutional amendment allowing them to petition for the recall of any elected officials. That unprecedented extension of direct democracy proved its undoing, for in late 1918, at the peak of the NPL’s power, political opposition had coalesced into a new organization, the Independent Voters Association (IVA). As the NPL battled internal divisions and a growing unease that it had begun to pursue measures beyond its mandate, the IVA gained support.

The IVA used the political tools the NPL had created. In 1921 its members successfully petitioned for recall elections for the three state officers who constituted the membership of the Industrial Commission that oversaw state enterprises: the governor, attorney general and commissioner of agriculture. The IVA slate won by a whisker. It was the first and last time a U.S. Governor has been successfully recalled.

The IVA immediately set about to undo the NPL program by putting nine provisions on the ballot, including one to abolish the state Bank. Another intended to shrink the capacity of state government by reducing the amount of state bonded debt. Another would have undermined the open primary by requiring separate party ballots for primaries.

Every ballot measure lost, albeit by very narrow margins.

In November 1922 the IVA achieved what the NPL had four years before: Control of all three branches of state government. The NPL’s abrupt disintegration resulted from a number of factors. In 1921 the price of wheat dropped about 60 percent. The resulting economic pain would have reduced the support for any sitting government. The Russian Revolution ushered in a nationwide “Red Scare.” The opposition labeled the NPL’s leaders Communists and Bolsheviks and launched a new magazine called Red Flame. Townley himself was jailed under a Minnesota sedition law for opposing the U.S. involvement in WWI. Meanwhile, internal divisions continued to beset the NPL.

The Legacy of the NPL

As the Nation magazine observed in 1923, “…although the visible machinery largely melted away, a sentiment and a point of view had been established in the minds of hundreds of thousands of farmers and ranchers.” Looking back in 1955, Robert L. Morian, author of the classic Political Prairie Fire, comment that the NPL helped to develop “some of the most independently minded electorates in the country.”

Those independently minded electorates and their anti-corporate, pro-cooperative and independent business sentiment continued to inform and often guide policymakers in the decades to come.

The North Dakota Mill and Elevator Association began operation in a modern facility in 1922. Today it consists of 7 milling units, an elevator and flour mill and a packing warehouse to prepare bagged products for shipment. It is the largest flour mill in the U.S. and the only state-owned milling facility.

In 1932, North Dakotans voted 57 to 43 to ban corporations from owning or leasing farmland.

In 1963 the legislature enacted a law that required pharmacies be owned by a state-registered pharmacist. The effect was to ban chains, except those operating at the time the law was passed.

In 1980 North Dakotans voted to establish a State Housing Finance Agency to provide mortgages to low income households.

In recent years several of these laws protecting independent farmers and businesses have come under attack by big corporations. After several attempts by Big Pharmacy failed to convince the legislature to repeal the Pharmacy Ownership Law, Wal Mart spent $9.3 million to finance a ballot initiative. In November 2014, by a vote of 59-41 the initiative lost.

In 2015 big corporations did convince the legislature to overturn the 1932 anti-corporate farming law. This June, as noted at the beginning of this article, by a resounding margin of 76-24 North Dakotans voted to reinstate the old law.

Today the economic structure of North Dakota reflects its focus on independent and cooperative businesses.

The Pharmacy Ownership law, for example, has markedly benefited North Dakota. A report by the Institute for Local Self-Reliance (ILSR) found that on every key measure of pharmacy care, including quality and the price of drugs, North Dakota’s independent pharmacies outperform those of neighboring states and the U.S. as a whole. Unsurprisingly North Dakota also has more pharmacies per capita than other states. Its rural residents are more likely to have a nearby pharmacist.

North Dakota’s banking system reflects a similar community-based structure. An analysis by ILSR found that, on a per capita basis, the state boasts almost six times as many locally owned financial institutions as the rest of the nation. (89 small and mid sized community banks and 38 credit unions). These control 83 percent of the deposits of the state. North Dakota’s community banks have given 400 percent more small business loans than the national average. Student loan rates are among the lowest in the country.

As Stacy Mitchell, Director of ILSR’s Community-Scaled Economy Initiative observes, “While the publicly owned BND might well be characterized as a socialist institution, it has had the effect of enabling North Dakota’s local banks to be very successful capitalists.” In recent years local banks in North Dakota have earned a return on capital nearly twice that of the nation’s largest 20 banks.

In the last two decades years the BND has generated almost $1 billion in “profit” and returned almost half of that to the state’s general fund.

Recall that in 1919, voters had approved the Bank of North Dakota, by the very slim margin of 51-49. A switch of 2,000 votes would have killed the Bank in its infancy. Today no party would dare propose its destruction.

North Dakota’s impressive 21st century telecommunications infrastructure is also a testament to its historic focus on local and independent ownership. The state ranks 47th in population density. That means it has one of the highest costs per household for installing state-of-the-art high-speed fiber networks. Nevertheless it boasts the highest percentage of people with access to such networks in the country. Why? One reason is its abundance of rural cooperatives and small telecom companies, 41 providers in all, including 17 cooperatives.

North Dakota is also home to the Dakota Carrier Network. Owned by 15 independent rural telecommunications companies, the DCN crisscrosses the state with more 1,400 miles of fiber backbone. In the last five years independently owned companies have invested more than $100 million per year to bring fiber to the home. They now serve more than 164,000 customers in 250 communities.

What Should Bernie’s Brethren Do?

Certainly the road to political power faces many more obstacles now than the NPL faced a century ago. North Dakota was a largely agricultural state. The key to NPL’s organizing effort was access to a car and gas money, not an easy get in those days, but much easier than the amount of money now needed to mount a political campaign.

Most new movements will be unable to take advantage of the open primary. After the NPL gained power in more than half a dozen states, the existing parties fought back. Nevertheless, 11 states still have pure open primaries; about a dozen more have hybrid systems.

Recently the courts have not been sympathetic to the open primary. Not long ago the Supreme Court invented a new “right of association” and bestowed that right on political parties. In 2000, for example, by a 7-2 vote, the Court overturned a California form of open primary approved by the voters by a 60-40 vote. Writing for the Majority, Justice Antonin Scalia objected that the California law “forces political parties to associate with—to have their nominees, and hence their positions, determined by—those who, at best, have refused to affiliate with the party, and, at worst, have expressly affiliated with a rival.”

After the California decision the voters of Washington, by a similar 60-40 vote, adopted an open primary system similar to California’s but with a key difference: The candidate would have to declare a “party preference” that would appear next to his or her name on the ballot. In 2008, the Supreme Court, again by a 7-2 vote, this time upheld that law, a ruling that might allow for a variant of the NPL strategy.

Before we develop a strategy for winning office we need to take a page from the NPL playbook and develop a platform, one consisting of specific, concrete, policies, not a laundry list of all desirable policies.

Bernie Sanders and his followers currently are working to write a platform for the Democratic Party convention. That is important and useful, but that platform by its nature will have a national focus and speak to the exercise of power by the federal government. We also need platforms that focus on states and cities and counties and school districts and offer concrete measures they have the authority to enact.

Those platforms will provide the basis for endorsing candidates, regardless of their political affiliation or whether they run in a closed or open primary state. In those states that permit, we may be able to enact various planks of the platform through initiative and referendum. At this point 27 states have initiative and 24 have referendum. Nineteen allow constitutional amendments by initiative.

The Nonpartisan League’s tenure in power was brief, but its policies, the public institutions it built and perhaps most important, the public sentiment it nurtured and brought to maturity, endure to this day: A true example of a political revolution from the bottom up.


About David Morris

David Morris is co-founder of the Institute for Local Self-Reliance and directs its initiative on The Public Good. He is the author of the New City States, Seeing the Light, and three other non-fiction books. His essays on public policy are regularly published by On the Commons, Alternet, Common Dreams and the Huffington Post.

Connect David on twitter or email dmorris@ilsr.org

 


What’s a Carbon Farmer? How California Ranchers Use Dirt to Tackle Climate Change

Scientists believe that simple land management techniques can increase the rate at which carbon is absorbed from the atmosphere and stored in soils.

By 


Stewardship Carbon Project - M Woolsey_650.jpg

For many climate change activists, the latest rallying cry has been, “Keep it in the ground,” a call to slow and stop drilling for fossil fuels. But for a new generation of land stewards, the cry is becoming, “Put it back in the ground!”

As an avid gardener and former organic farmer, I know the promise that soil holds: Every ounce supports a plethora of life. Now, evidence suggests that soil may also be a key to slowing and reversing climate change.

Evidence suggests that soil may also be a key to slowing and reversing climate change.

“I think the future is really bright,” said Loren Poncia, an energetic Northern Californian cattle rancher. Poncia’s optimism stems from the hope he sees in carbon farming, which he has implemented on his ranch. Carbon farming uses land management techniques that increase the rate at which carbon is absorbed from the atmosphere and stored in soils. Scientists, policy makers, and land stewards alike are hopeful about its potential to mitigate climate change.

Carbon is the key ingredient to all life. It is absorbed by plants from the atmosphere as carbon dioxide and, with the energy of sunlight, converted into simple sugars that build more plant matter. Some of this carbon is consumed by animals and cycled through the food chain, but much of it is held in soil as roots or decaying plant matter. Historically, soil has been a carbon sink, a place of long-term carbon storage.

But many modern land management techniques, including deforestation and frequent tilling, expose soil-bound carbon to oxygen, limiting the soil’s absorption and storage potential. In fact, carbon released from soil is estimated to contribute one-third of global greenhouse gas emissions, according to the Food and Agriculture Organization of the United Nations.

Ranchers and farmers have the power to address that issue. Pastures make up 3.3 billion hectares, or 67 percent, of the world’s farmland. Carbon farming techniques can sequester up to 50 tons of carbon per hectare over a pasture’s lifetime. This motivates some ranchers and farmers to do things a little differently.

“It’s what we think about all day, every day,” said Sallie Calhoun of Paicines Ranch on California’s central coast. “Sequestering soil carbon is essentially creating more life in the soil, since it’s all fed by photosynthesis. It essentially means more plants into every inch of soil.”

Carbon released from soil is estimated to make up to one-third of global greenhouse gas emissions.

Calhoun’s ranch sits in fertile, rolling California pastureland about an hour’s drive east of Monterey Bay. She intensively manages her cattle’s grazing, moving them every few days across 7,000 acres. This avoids compaction, which decreases soil productivity, and also allows perennial grasses to grow back between grazing. Perennial grasses, like sorghum and bluestems, have long root systems that sequester far more carbon than their annual cousins.

By starting with a layer of compost, Calhoun has also turned her new vineyard into an effective carbon sink. Compost is potent for carbon sequestration because of how it enhances otherwise unhealthy soil, enriching it with nutrients and microbes that increase its capacity to harbor plant growth. Compost also increases water-holding capacity, which helps plants thrive even in times of drought. She plans to till the land only once, when she plants the grapes, to avoid releasing stored carbon back into the atmosphere.

Managed grazing and compost application are just a few common practices of the 35 that the Natural Resources Conservation Service recommends for carbon sequestration. All 35 methods have been proven to sequester carbon, though some are better documented than others.

Paicines Ranch_650.jpg
 Photo courtesy of Paicines Ranch.

David Lewis, director of the University of California Cooperative Extension, says the techniques Calhoun uses, as well as stream restoration, are some of the most common. Lewis has worked with theMarin Carbon Project, a collaboration of researchers, ranchers, and policy makers, to study and implement carbon farming in Marin County, California. The research has been promising: They found that one application of compost doubled the production of grass and increased carbon sequestration by up to 70 percent. Similarly, stream and river ecosystems, which harbor lots of dense, woody vegetation, can sequester up to one ton of carbon, or as much as a car emits in a year, in just a few feet along their beds.

One application of compost doubled the production of grass and increased carbon sequestration by up to 70 percent.

On his ranch, Poncia has replanted five miles of streams with native shrubs and trees, and has applied compost to all of his 800 acres of pasture. The compost-fortified grasses are more productive and have allowed him to double the number of cattle his land supports. This has had financial benefits. Ten years ago, Poncia was selling veterinary pharmaceuticals to subsidize his ranch. But, with the increase in cattle, he has been able to take up ranching full time. Plus, his ranch sequesters the same amount of carbon each year as is emitted by 81 cars.

Much of the research on carbon farming focuses on rangelands, which are open grasslands, because they make up such a large portion of ecosystems across the planet. They are also, after all, where we grow a vast majority of our food.

“Many of the skeptics of carbon farming think we should be planting forests instead,” Poncia said. “I think forests are a no-brainer, but there are millions of acres of rangelands across the globe and they are not sequestering as much carbon as they could be.”

The potential of carbon farming lies in wide-scale implementation. The Carbon Cycle Institute, which grew out of the Marin Carbon Project with the ambition of applying the research and lessons to other communities in California and nationally, is taking up that task.

“It really all comes back to this,” said Torri Estrada, pointing to a messy white board with the words SOIL CARBON scrawled in big letters. Estrada is managing director of the Carbon Cycle Institute, where he is working to attract more ranchers and farmers to carbon farming. The white board maps the intricate web of organizations and strategies the institute works with. They provide technical assistance and resources to support land stewards in making the transition.

“If the U.S. government would buy carbon credits from farmers, we would produce them.”

For interested stewards, implementation, and the costs associated with it, are different. It could be as simple as a one-time compost application or as intensive as a lifetime of managing different techniques. But for all, the process starts by first assessing a land’s sequestration potential and deciding which techniques fit a steward’s budget and goals. COMET-Farm, an online tool produced by the U.S. Department of Agriculture, can help estimate a ranch’s carbon input and output.

The institute also works with state and national policy makers to provide economic incentives for these practices. “If the U.S. government would buy carbon credits from farmers, we would produce them,” Poncia said. These credits are one way the government could pay farmers to mitigate climate change. “Farmers overproduce everything. So, if they can fund that, we will produce them,” he said. While he is already sequestering carbon, Poncia says that he could do more, given the funding.

Estrada sees the bigger potential of carbon farming to help spur a more fundamental conversation about how we relate to the land. “We’re sitting down with ranchers and having a conversation, and carbon is just the medium for that,” he said. Through this work, Estrada has watched ranchers take a more holistic approach to their management.

On his ranch, Poncia has shifted from thinking about himself as a grass farmer growing feed for his cattle to a soil farmer with the goal of increasing the amount of life in every inch of soil.


 

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Sally Neas wrote this article for YES! Magazine. Sally is a freelance writer and community educator based in Santa Cruz, California. She has a background in permaculture, sustainable agriculture, and community development, and she covers social and environmental issues. She blogs at www.voicesfromthegreatturning.com.

Debacle at Doha: The Collapse of the Old Oil Order

By Michael T. Klare
Reprinted with permission from Tomdispatch.com

Sunday, April 17th was the designated moment.  The world’s leading oil producers were expected to bring fresh discipline to the chaotic petroleum market and spark a return to high prices. Meeting in Doha, the glittering capital of petroleum-rich Qatar, the oil ministers of the Organization of the Petroleum Exporting Countries (OPEC), along with such key non-OPEC producers as Russia and Mexico, were scheduled to ratify a draft agreement obliging them to freeze their oil output at current levels. In anticipation of such a deal, oil prices had begun to creep inexorably upward, from $30 per barrel in mid-January to $43 on the eve of the gathering. But far from restoring the old oil order, the meeting ended in discord, driving prices down again and revealing deep cracks in the ranks of global energy producers.

It is hard to overstate the significance of the Doha debacle. At the very least, it will perpetuate the low oil prices that have plagued the industry for the past two years, forcing smaller firms into bankruptcy and erasing hundreds of billions of dollars of investments in new production capacity. It may also have obliterated any future prospects for cooperation between OPEC and non-OPEC producers in regulating the market. Most of all, however, it demonstrated that the petroleum-fueled world we’ve known these last decades — with oil demand always thrusting ahead of supply, ensuring steady profits for all major producers — is no more.  Replacing it is an anemic, possibly even declining, demand for oil that is likely to force suppliers to fight one another for ever-diminishing market shares.

The Road to Doha

Before the Doha gathering, the leaders of the major producing countries expressed confidence that a production freeze would finally halt the devastating slump in oil prices that began in mid-2014. Most of them are heavily dependent on petroleum exports to finance their governments and keep restiveness among their populaces at bay.  Both Russia and Venezuela, for instance, rely on energy exports for approximately 50% of government income, while for Nigeria it’s more like 75%.  So the plunge in prices had already cut deep into government spending around the world, causing civil unrest and even in some cases political turmoil.

No one expected the April 17th meeting to result in an immediate, dramatic price upturn, but everyone hoped that it would lay the foundation for a steady rise in the coming months. The leaders of these countries were well aware of one thing: to achieve such progress, unity was crucial. Otherwise they were not likely to overcome the various factors that had caused the price collapsein the first place.  Some of these were structural and embedded deep in the way the industry had been organized; some were the product of their own feckless responses to the crisis.

On the structural side, global demand for energy had, in recent years, ceased to rise quickly enough to soak up all the crude oil pouring onto the market, thanks in part to new supplies from Iraq and especially from the expanding shale fields of the United States. This oversupply triggered the initial 2014 price drop when Brent crude — the international benchmark blend — went from a high of $115 on June 19th to $77 on November 26th, the day before a fateful OPEC meeting in Vienna. The next day, OPEC members, led by Saudi Arabia, failed to agree on either production cuts or a freeze, and the price of oil went into freefall.

The failure of that November meeting has been widely attributed to the Saudis’ desire to kill off new output elsewhere — especially shale production in the United States — and to restore their historic dominance of the global oil market. Many analysts were also convinced that Riyadh was seeking to punish regional rivals Iran and Russia for their support of the Assad regime in Syria (which the Saudis seek to topple).

The rejection, in other words, was meant to fulfill two tasks at the same time: blunt or wipe out the challenge posed by North American shale producers and undermine two economically shaky energy powers that opposed Saudi goals in the Middle East by depriving them of much needed oil revenues. Because Saudi Arabia could produce oil so much more cheaply than other countries — for as little as $3 per barrel — and because it could draw upon hundreds of billions of dollars in sovereign wealth funds to meet any budget shortfalls of its own, its leaders believed it more capable of weathering any price downturn than its rivals. Today, however, that rosy prediction is looking grimmer as the Saudi royals begin to feel the pinch of low oil prices, and find themselves cutting back on the benefits they had been passing on to an ever-growing, potentially restive population while still financing a costly, inconclusive, and increasingly disastrous war in Yemen.

Many energy analysts became convinced that Doha would prove the decisive moment when Riyadh would finally be amenable to a production freeze.  Just days before the conference, participants expressed growing confidence that such a plan would indeed be adopted. After all, preliminary negotiations between Russia, Venezuela, Qatar, and Saudi Arabia had produced a draft document that most participants assumed was essentially ready for signature. The only sticking point: the nature of Iran’s participation.

The Iranians were, in fact, agreeable to such a freeze, but only after they were allowed to raise their relatively modest daily output to levels achieved in 2012 before the West imposed sanctions in an effort to force Tehran to agree to dismantle its nuclear enrichment program.  Now that those sanctions were, in fact, being lifted as a result of the recently concluded nuclear deal, Tehran was determined to restore the status quo ante. On this, the Saudis balked, having no wish to see their arch-rival obtain added oil revenues.  Still, most observers assumed that, in the end, Riyadh would agree to a formula allowing Iran some increase before a freeze. “There are positive indications an agreement will be reached during this meeting… an initial agreement on freezing production,” said Nawal Al-Fuzaia, Kuwait’s OPEC representative, echoing the views of other Doha participants.

But then something happened. According to people familiar with the sequence of events, Saudi Arabia’s Deputy Crown Prince and key oil strategist, Mohammed bin Salman, called the Saudi delegation in Doha at 3:00 a.m. on April 17th and instructed them to spurn a deal that provided leeway of any sort for Iran. When the Iranians — who chose not to attend the meeting — signaled that they had no intention of freezing their output to satisfy their rivals, the Saudis rejected the draft agreement it had helped negotiate and the assembly ended in disarray.

Geopolitics to the Fore

Most analysts have since suggested that the Saudi royals simply considered punishing Iran more important than raising oil prices.  No matter the cost to them, in other words, they could not bring themselves to help Iran pursue its geopolitical objectives, including giving yet more support to Shiite forces in Iraq, Syria, Yemen, and Lebanon.  Already feeling pressured by Tehran and ever less confident of Washington’s support, they were ready to use any means available to weaken the Iranians, whatever the danger to themselves.

“The failure to reach an agreement in Doha is a reminder that Saudi Arabia is in no mood to do Iran any favors right now and that their ongoing geopolitical conflict cannot be discounted as an element of the current Saudi oil policy,” said Jason Bordoff of the Center on Global Energy Policy at Columbia University.

Many analysts also pointed to the rising influence of Deputy Crown Prince Mohammed bin Salman, entrusted with near-total control of the economy and the military by his aging father, King Salman. As Minister of Defense, the prince has spearheaded the Saudi drive to counter the Iranians in a regional struggle for dominance. Most significantly, he is the main force behind Saudi Arabia’s ongoing intervention in Yemen, aimed at defeating the Houthi rebels, a largely Shia group with loose ties to Iran, and restoring deposed former president Abd Rabbuh Mansur Hadi. After a year of relentless U.S.-backed airstrikes (including the use of cluster bombs), the Saudi intervention has, in fact, failed to achieve its intended objectives, though it has produced thousands of civilian casualties, provoking fierce condemnation from U.N. officials, and created space for the rise of al-Qaeda in the Arabian Peninsula. Nevertheless, the prince seems determined to keep the conflict going and to counter Iranian influence across the region.

For Prince Mohammed, the oil market has evidently become just another arena for this ongoing struggle. “Under his guidance,” the Financial Timesnoted in April, “Saudi Arabia’s oil policy appears to be less driven by the price of crude than global politics, particularly Riyadh’s bitter rivalry with post-sanctions Tehran.” This seems to have been the backstory for Riyadh’s last-minute decision to scuttle the talks in Doha. On April 16th, for instance, Prince Mohammed couldn’t have been blunter to Bloomberg, even if he didn’t mention the Iranians by name: “If all major producers don’t freeze production, we will not freeze production.”

With the proposed agreement in tatters, Saudi Arabia is now expected to boost its own output, ensuring that prices will remain bargain-basement low and so deprive Iran of any windfall from its expected increase in exports. The kingdom, Prince Mohammed told Bloomberg, was prepared to immediately raise production from its current 10.2 million barrels per day to 11.5 million barrels and could add another million barrels “if we wanted to” in the next six to nine months. With Iranian and Iraqi oil heading for market in larger quantities, that’s the definition of oversupply.  It would certainly ensure Saudi Arabia’s continued dominance of the market, but it might also wound the kingdom in a major way, if not fatally.

A New Global Reality

No doubt geopolitics played a significant role in the Saudi decision, but that’s hardly the whole story. Overshadowing discussions about a possible production freeze was a new fact of life for the oil industry: the past would be no predictor of the future when it came to global oil demand.  Whatever the Saudis think of the Iranians or vice versa, their industry is being fundamentally transformed, altering relationships among the major producers and eroding their inclination to cooperate.

Until very recently, it was assumed that the demand for oil would continue to expand indefinitely, creating space for multiple producers to enter the market, and for ones already in it to increase their output. Even when supply outran demand and drove prices down, as has periodically occurred, producers could always take solace in the knowledge that, as in the past, demand would eventually rebound, jacking prices up again. Under such circumstances and at such a moment, it was just good sense for individual producers to cooperate in lowering output, knowing that everyone would benefit sooner or later from the inevitable price increase.

But what happens if confidence in the eventual resurgence of demand begins to wither? Then the incentives to cooperate begin to evaporate, too, and it’s every producer for itself in a mad scramble to protect market share. This new reality — a world in which “peak oil demand,” rather than “peak oil,” will shape the consciousness of major players — is what the Doha catastrophe foreshadowed.

At the beginning of this century, many energy analysts were convinced that we were at the edge of the arrival of “peak oil”; a peak, that is, in the output of petroleum in which planetary reserves would be exhausted long before the demand for oil disappeared, triggering a global economic crisis. As a result of advances in drilling technology, however, the supply of oil has continued to grow, while demand has unexpectedly begun to stall.  This can be traced both to slowing economic growth globally and to an accelerating “green revolution” in which the planet will be transitioning to non-carbon fuel sources. With most nations now committed to measures aimed at reducing emissions of greenhouse gases under the just-signed Paris climate accord, the demand for oil is likely to experience significant declines in the years ahead. In other words, global oil demand will peak long before supplies begin to run low, creating a monumental challenge for the oil-producing countries.

This is no theoretical construct.  It’s reality itself.  Net consumption of oil in the advanced industrialized nations has already dropped from 50 million barrels per day in 2005 to 45 million barrels in 2014. Further declines are in store as strict fuel efficiency standards for the production of new vehicles and other climate-related measures take effect, the price of solar and wind power continues to fall, and other alternative energy sources come on line. While the demand for oil does continue to rise in the developing world, even there it’s not climbing at rates previously taken for granted. With such countries also beginning to impose tougher constraints on carbon emissions, global consumption is expected to reach a peak and begin an inexorable decline.According to experts Thijs Van de Graaf and Aviel Verbruggen, overall world peak demand could be reached as early as 2020.

In such a world, high-cost oil producers will be driven out of the market and the advantage — such as it is — will lie with the lowest-cost ones. Countries that depend on petroleum exports for a large share of their revenues will come under increasing pressure to move away from excessive reliance on oil. This may have been another consideration in the Saudi decision at Doha. In the months leading up to the April meeting, senior Saudi officials dropped hints that they were beginning to plan for a post-petroleum era and that Deputy Crown Prince bin Salman would play a key role in overseeing the transition.

On April 1st, the prince himself indicated that steps were underway to begin this process. As part of the effort, he announced, he was planning an initial public offering of shares in state-owned Saudi Aramco, the world’s number one oil producer, and would transfer the proceeds, an estimated $2 trillion, to its Public Investment Fund (PIF). “IPOing Aramco and transferring its shares to PIF will technically make investments the source of Saudi government revenue, not oil,” the prince pointed out. “What is left now is to diversify investments. So within 20 years, we will be an economy or state that doesn’t depend mainly on oil.”

For a country that more than any other has rested its claim to wealth and power on the production and sale of petroleum, this is a revolutionary statement. If Saudi Arabia says it is ready to begin a move away from reliance on petroleum, we are indeed entering a new world in which, among other things, the titans of oil production will no longer hold sway over our lives as they have in the past.

This, in fact, appears to be the outlook adopted by Prince Mohammed in the wake of the Doha debacle.  In announcing the kingdom’s new economic blueprint on April 25th, he vowed to liberate the country from its “addiction” to oil.”  This will not, of course, be easy to achieve, given the kingdom’s heavy reliance on oil revenues and lack of plausible alternatives.  The 30-year-old prince could also face opposition from within the royal family to his audacious moves (as well as his blundering ones in Yemen and possibly elsewhere).  Whatever the fate of the Saudi royals, however, if predictions of a future peak in world oil demand prove accurate, the debacle in Doha will be seen as marking the beginning of the end of the old oil order.


Michael T. Klare, a TomDispatch regular, is a professor of peace and world security studies at Hampshire College and the author, most recently, of The Race for What’s Left. A documentary movie version of his book Blood and Oil is available from the Media Education Foundation. Follow him on Twitter at @mklare1.

Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Book, Nick Turse’s Tomorrow’s Battlefield: U.S. Proxy Wars and Secret Ops in Africa, and Tom Engelhardt’s latest book, Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

Copyright 2016 Michael T. Klare


What We Know About The Progressive Future, Part I: Here Come The Millennials

By Sara Robinson
    
Originally published in Sara Robinson’s blog, February 2, 2016. Reprinted with the permission of the author.

In January 2011, I presented a futures research project to the Progressive Caucus in Congress, then the largest of all the caucuses in that body. The report, Progressives 2040 — which was sponsored by ProgressiveCongress.org and published by Demos — analyzed a large set of major trends that would shape the future of the progressive movement for the next three decades, and offered a set of scenarios that illustrated how these trends might work together to create a range of possible futures that the movement will need to be prepared for.

This is the first post in “What We Know About The Progressive Future” — a series that I imagine will be a long (probably 10-12 post) look at that research five years on, updating my conclusions and taking a fresh look at the big drivers and high leverage points that will determine the future of our movement. 

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For most pundits, the most striking thing about the Iowa Caucus was the virtual tie between the two Democratic candidates (which portends a longer and perhaps more exciting election season and higher ratings for those in the media to look forward to), and the surprising 1-2-and-3 order of Cruz, Trump, and Rubio. I’m writing this less than 24 hours after the caucuses ended, and more than enough on both these topics has already been written by others (for God’s sake, people, it’s just Iowa), so I’m going to spare you another analysis ex cathedra from my belly button as to What It All Means For November.

I’m far more interested in another trend that emerged last night — a small detail that will almost certainly have a much longer historical tail than anything else that might happen between now and Election Day. This trend was crystallized by the stunning fact that Bernie Sanders got 85% of the votes of caucus-goers under 30.

That’s not a typo. Eighty-five percent.

That’s a number that strategists from every end of the political spectrum need to be paying attention to, because it is heralding the arrival of the Millennial Generation as a political force to be reckoned with.

My report saw this coming. Back in January 2011, I wrote this about them:

The Millennial generation (born 1980-2000) is the largest and most ethnically diverse generation in American history, with 44% identifying as members of a racial minority. They are the most globally connected generation to date: they travel more, speak more languages, and have friends all over the world. They are more progressive in their core values and attitudes that any cohort we’ve seen in at least a century. And they are rising fast: by 2020, they will be outvoting their elders, dominating elections and bringing their own priorities to the table. We can expect the Millennials to launch their first serious presidential candidate in 2020, and elect their first president probably no later than 2024.

Perhaps the most important fact about the Millennials is the sheer size of this generation. They’re the first cohort we’ve seen in the past 40 years that’s actually big enough to swamp their Boomer parents, whose interests and worldviews have dominated American politics ever since the youngest of them hit voting age in the late 1970s.  The Boom was the biggest generation in American history, to the point where their sheer size itself was transformative (as they say: quantity has a quality all its own). But the Millennials are even bigger. And between now and 2020, the youngest edge of this generation will finally turn 18 and register to vote. The results stand to be at least as transformative for us as a nation as the moment when the Boomers themselves arrived.

Conservative Millennials? Don’t hold your breath
Any number of GOP pundits have written thumb-sucking articles explaining how this cohort is going to become more conservative as it ages (because every generation does, right?) Feel free to rip those up: it’s not likely to happen, for several reasons — starting with the fact that no, not every generation does. The Boomers did, because from left to right and youth through their approaching old age, they’ve shared a belief in radical individualism — the primacy of the individual over any claims made by society — that fed everything from Evangelicalism and free market fundamentalism on the right to New Age religions and social experimentation on the left.  That individualism is the one shining through-line that defines everything that generation has ever embraced. It made them hippies. And it also made them vote for Reagan.

The Millennials are their historical opposite number — a generation raised  from babyhood to cooperate, share, include, network, and self-organize. They value conformity (Boomers and Xers are horrified by the “calling out” ritual that Millennials run on each other constantly as they vigilantly police each other’s behavior. We’d have choked on our own spit before telling each other what to say, think or do; and would  have rightly expected to be told to fuck off if we tried it),  and as this pervades their politics in the coming decades, it’s going to involve a lot of telling other people how they should live. That’s how their GI grandparents created and enforced the great American Consensus of the ’40s, ’50s, and ’60s, and it’s how they’re going to re-create a new consensus about the Next America they’re going to build.

That bred-in-the-bone collectivism is likely to be as durable a lifelong feature as Boomer individualism has been; but it stands in stark opposition to conservatism as it’s currently constituted. It’s possible to imagine another, distinctively Millennial form of conservatism emerging in time — but it would have to be rooted in the idea of a strong social contract, one that obligates individuals to cede some of their desires to the greater good, represented by trusted authorities — and is willing to use social shame as an enforcement mechanism. The GOP is a long way from offering any narratives along these lines now. If they do emerge, it could take another 20 years or more, becoming something today’s Millennials embrace as they age on through their 40s, 50s and 60s.

Other conservatives hold out hope that that all-time-high number of Millennials from immigrant families will benefit them in time, since the usual pattern has been for second-generation immigrants (the first generation born here) to do very well educationally and economically, and to vote more conservatively than either their parents or their third-gen kids. That might be a very plausible scenario — except for the nasty fact that Millennials have already grown up scarred and terrorized by a GOP that has never been able to lay off immigrant-bashing. Again, it’s going to take a radical change within that party — plus another 15 years of over-the-top effort — to win even the grudging trust of a generation that’s already marinated in decades of conservative anti-immigrant hysteria before that’s even remotely likely.

In any event: anybody waiting for the Great Millennial Conservative Revival probably shouldn’t hold their breath. If it comes at all, it’s going to be a very long while indeed. In the meantime, these young adults have a revolution to pull off.  And that moment is coming — much sooner than anybody seems ready to think.

Millennials and Elections
Obama, to his credit, was the first candidate to recognize the raw political power and profound unrest of this rising cohort in 2008. Even though fully half of the Millennial generation was still too young to vote, his overt efforts to capture the energy and attention of the half that could was a conscious strategy. The Millennials ended up supplying him with the margin that put him over the top in the election — support he later rewarded by bringing home the troops (most of whom were Millennials) and restructuring the federal student loan program to make over $30 billion more in Pell Grants available and reduce the loan burden on new graduates (both of which were policies I pointed to in my original 2011 report).

But the Millennials want more. They’re looking into a future that most of them understand is a fatal dead end without a radical, rip-up-the-floorboards restructuring of how the entire planet works — how we do everything from energy and money to community and education to transportation and agriculture. This yearning for a different kind of world even has the potential to upend our current understandings of “right” and “left,” as I wrote in my report:

Some research suggests that this generation’s politics lean toward the “independent” and the “centrist.” However, those words don’t mean the same thing to under-30 Americans that they do to older ones. The self-described “independents” also express core values that are deeply collectivist and inclusive, which gives them a strong affinity for progressive ideas and solutions. (Studies by Pew and Barna have even found these same affinities among self-identified conservatives in this cohort.) Likewise, these “centrists” see their generation’s communal focus on a shared future and shared prosperity as a matter of plain common sense. To them, “we’re in this together” is not a radical idea; indeed, it stands at the center of their politics.

The Millennials spurned Hillary in 2008 because they were craving a true change candidate — and Obama promised to be that. But in the end, the change he could deliver wasn’t enough. And that’s why this generation is going, overwhelmingly, for Bernie Sanders, whom they see as sitting entirely outside the corrupt party system that made it impossible for Obama to give them the goods, unbeholden to Wall Street, uncontaminated by party cronyism, unfiltered in the media — someone who seems to be entirely their own.  This is what their candidates look like — and are going to continue to look like for the next several election cycles.

Given that the youngest 15% or so of the Millennial cohort is still too young to vote, it’s not clear that the Millennials will get their revolution this year. My prediction above that they’d dominate our elections by 2020 was based on the fact that that’s when the very tail end of the cohort — the ones born in 2000 — will all have reached adulthood, putting them finally at their full political strength. Whether or not they show up for 2016 is also complicated by a few other factors, including:

  • How disillusioned the older ones are following their experience with Obama, whom many of them feel very disappointed by — a real problem that surfaced in 2012, when many of them didn’t return to the polls.
  • The general tendency of young adults in their 20s to not vote. Voting is a behavior that becomes more reliable with age. By 2020, the oldest Millennials will be 40, and half will be over 30 — which means they should start showing up far more regularly.
  • Persistent efforts on the part of the GOP to disenfranchise students, which have large effects in some parts of the country.
  • How well Sanders survives the onslaught of conservative attacks that we all know are coming.

 

It’s safe to say that the Millennials will be a vastly bigger factor in 2016 than they were in either 2008 or 2012 — and that Sanders’ success to date can and should be interpreted as this generation’s announcement of its growing political presence with far louder and more insistent authority than we’ve ever heard from them before.

However, in this election cycle, it’s not at all clear that it will be enough to get them what they want. We are tantalizingly close to a generational tipping point, but have not completely arrived at it just quite yet. But by the next cycle, that point will almost certainly be well behind us — and from then on, for the next 40 years, our politics will be pretty much entirely dominated, owned, and determined by the Millennials’ collectivist worldviews, interests, desires, and priorities. They will, this time or next, succeed in voting themselves the transformation they seek. It’s not a question of if, but when.

What we’re seeing when we look at the Bernie Sanders phenomenon is a direct window into our own political future. When will it emerge? Maybe not today, and maybe not this November — but it’s coming soon, and it or something like it will be the dominant political reality for the rest of our lives.

Photo: Ian Buck via Flickr


Sara_Robonson_thumbSara Robinson is a Seattle-based futurist and veteran blogger on culture, politics, and religion. Since 2006, her work (gathered in the Archive section of her blog) regularly appeared at Orcinus, Our Future, Group News Blog, and Alternet. She’s also written for Salon, Huffington Post, Grist, the New Republic, New York Magazine, Firedoglake, and many other sites.

Robinson holds an MS in Futures Studies from the University of Houston, and a BA in Journalism from the USC Annenberg School of Communication. She was a Schumann Fellow, and also held senior fellowships at the Campaign for America’s Future and the Commonweal Foundation. She currently serves on the national board of NARAL Pro-Choice America.


A Fukushima on the Hudson? The Growing Dangers of Indian Point

By Ellen Cantarow and Alison Rose Levy
Reprinted with permission from Tomdispatch.com

It was a beautiful spring day and, in the control room of the nuclear reactor, the workers decided to deactivate the security system for a systems test. As they started to do so, however, the floor of the reactor began to tremble. Suddenly, its 1,200-ton cover blasted flames into the air. Tons of radioactive radium and graphite shot 1,000 meters into the sky and began drifting to the ground for miles around the nuclear plant. The first firemen to the rescue brought tons of water that would prove useless when it came to dousing the fires. The workers wore no protective clothing and eight of them would die that night — dozens more in the months to follow.It was April 26, 1986, and this was just the start of the meltdown at the Chernobyl nuclear power plant in Ukraine, the worst nuclear accident of its kind in history. Chernobyl is ranked as a “level 7 event,” the maximum danger classification on the International Nuclear and Radiological Event Scale.  It would spew out more radioactivity than 100 Hiroshima bombs. Of the 350,000 workers involved in cleanup operations, according to the World Health Organization, 240,000 would be exposed to the highest levels of radiation in a 30-mile zone around the plant. It is uncertain exactly how many cancer deaths have resulted since. The International Atomic Energy Agency’s estimate of the expected death toll from Chernobyl was 4,000. A 2006 Greenpeace report challenged that figure, suggesting that 16,000 people had already died due to the accident and predicting another 140,000 deaths in Ukraine and Belarus still to come. A significant increase in thyroid cancers in children, a very rare disease for them, has been charted in the region — nearly 7,000 cases by 2005 in Belarus, Russia, and Ukraine.In March 2011, 25 years after the Chernobyl catastrophe, damage caused by a tsunami triggered by a massive 9.0 magnitude earthquake led to the meltdown of three reactors at a nuclear plant in Fukushima, Japan. Radioactive rain from the Fukushima accident fell as far away as Ireland.In 2008, the International Atomic Energy Agency had, in fact, warned the Japanese government that none of the country’s nuclear power plants could withstand powerful earthquakes. That included the Fukushima plant, which had been built to take only a 7.0 magnitude event. No attention was paid at the time. After the disaster, the plant’s owner, Tokyo Electric Power, rehired Shaw Construction, which had designed and built the plant in the first place, to rebuild it.

Near Misses, Radioactive Leaks, and Flooding

In both Chernobyl and Fukushima, areas around the devastated plants were made uninhabitable for the foreseeable future.  In neither place, before disaster began to unfold, was anyone expecting it and few imagined that such a catastrophe was possible.  In the United States, too, despite the knowledge since 1945 that nuclear power, at war or in peacetime, holds dangers of a stunning sort, the general attitude remains: it can’t happen here — nowhere more dangerously in recent years than on the banks of New York’s Hudson River, an area that could face a nuclear peril endangering a population ofnearly 20 million.

As the Fukushima tragedy struck, President Obama assured Americans that U.S. nuclear plants were closely monitored and built to withstand earthquakes. That statement covered one of the oldest plants in the country, the Indian Point Energy Center (IPEC) in Westchester, New York, first opened in 1962. One of 61 commercial nuclear plants in the country, it has two reactors that generate electricity for homes across New York City and Westchester County. It is located in the sixth most densely populated urban area in the world, the New York metropolitan region, just 30 miles north of Manhattan Island and the planet’s most economically powerful city.

The plant sits astride two seismic faults, which has prompted those opposing its continued operation to call for a detailed analysis of its capacity to resist an earthquake. In addition, a long series of accidents and ongoing hazards has only increased the potential for catastrophe. According to a report by the National Resources Defense Council (NDRC), if a nuclear disaster of a Fukushima magnitude were to strike Indian Point, it would necessitate the evacuation of at least 5.6 million people. In 2003, the existing evacuation plan for the area was deemed inadequate in a report by James Lee Witt, former head of the Federal Emergency Management Agency.

American officials have urged U.S. citizens to stay 50 miles away from the Fukushima plant. Such a 50-mile circle around IPEC would stretch past Kingston in Ulster County to the north, past Bayonne and Jersey City to the south, almost to New Haven, Connecticut, to the east, and into Pennsylvania to the west. It would include all of New York City except for Staten Island and all of Fairfield, Connecticut. “Many scholars have already argued that any evacuation plans shouldn’t be called plans, but rather ‘fantasy documents,’” Daniel Aldrich, a professor of political science at Purdue University, told the New York Times. 

Paul Blanch, a nuclear engineer who worked in the industry for 40 years as well as with the Nuclear Regulatory Commission (NRC), thinks a worst-case accident at Indian Point could make the region, including parts of Connecticut, uninhabitable for generations.

According to a report from the Indian Point Safe Energy Coalition, there were 23 reported problems at the plant from its inception to 2005, including steam generator tube ruptures, reactor containment flooding, transformer fires, the failure of backup power for emergency sirens, and leaks of radioactive water laced with tritium. In the latest tritium leak, reported only last month, an outflow of the radioactive isotope from the plant has infused both local groundwater and the Hudson River. (Other U.S. nuclear plants have had their share of tritium leaks as well, including Turkey Point nuclear plant in Florida where such a leak is at the moment threatening drinking water wells.)

Experts agree that although present levels of tritium in groundwater near the plant are “alarming,” the tritium in the river will not be considered harmful until it reaches a far greater concentration of 120,000 picocuries per liter of water. (A picocurie is a standard unit of measurement for radioactivity.) Tritium is the lightest radioactive substance to leak from Indian Point, but according to an assessment by the New York Department of State, other potentially more dangerous radioactive elements like strontium-90, cesium-137, cobalt-60, and nickel-63 are also escaping the plant and entering both the groundwater and the river.

Representatives of Entergy Corporation, which owns the Indian Point plant, report that they don’t know when the present leak began or what its source might be. “No one has made a statement as to when the leak started,” wrote Paul Blanch in an email to us. “It could have started two years ago.” Nor does anyone seem to know where the leak is, how much radioactive matter is leaking, or how it can be stopped. The longer the leak persists, the greater the likelihood of isotopes more potent than tritium contaminating local drinking water.

According to David Lochbaum, director of the Nuclear Safety Project for the Union of Concerned Scientists (UCS) and once a trainer for NRC inspectors, the danger of flooding at the reactor should be an even greater focus of concern than radioactive substance outflows, since it could result in a reactor core meltdown. Yet despite repeated calls for Indian Point’s shutdown from the early 1970s on, it keeps operating.

On April 2, 2000, the NRC rated one of Indian Point’s two reactors the most troubled in the country, and it has been closed for lengthy periods because of system failures of various sorts. This, it turns out, is typical of Entergy-owned reactors. There were 10 “near-miss” incidents at U.S. nuclear reactors last year, a majority of them at three Entergy plants, according to a UCS report on nuclear plant safety. A near-miss incident is an event or condition that could increase the chance of reactor core damage by a factor of 10 or more.  In response, the Nuclear Regulatory Commission must send an inspection team to investigate.

The number of such incidents has declined since UCS initiated its annual review in 2010, “overall, a positive trend,” according to report author Lochbaum. “Five years ago, there were nearly twice as many near misses. That said, the nuclear industry is only as good as its worst plant owner. The NRC needs to find out why Entergy plants are experiencing so many potentially serious problems.” Upstate New York’s Ginna plant, he adds, has been operating as long as Indian Point, but with only two “events” in its history. At Indian Point “there’s a major event every two to three years.”

What troubles Lochbaum more than anything else is Indian Point’s vulnerability to flooding. “There was a problem in May 2015 where a transformer exploded,” he told us. “There was an automatic fire sprinkler system installed to put this out. But it ended up flooding the building adjacent to where the explosion had taken place. Fortunately a worker noticed that an inch or two of water had accumulated. If the room had flooded up to five inches, all the power in the plant would have been lost. It would have plunged unit 3 into a ‘station blackout.’”

This might indeed have led to some kind of Fukushima-on-the-Hudson situation.  In Fukushima, after the earthquake wiped out the normal power supply and tsunami floodwaters took away the backup supply, workers were unable to get cooling water into the reactor cores and three of the plant’s six reactors melted down.

In 2007, when Indian Point’s plant owner applied to the NRC for a 20-year extension of the plant’s operating license, it was found that a flood alarm could be installed in the room in question for about $200,000. As Lochbaum explains, “The owner determined it was cost-beneficial, that if they installed this flood alarm… it [would reduce] the risk of core meltdown by 20%, and [reduce] the amount of radiation that people on the plant could be exposed to by about 40%, at a cost of about two cents per person for the 20 million people living within 50 miles of the plant.” But nine years later, he told us, that flood alarm has still not been installed.

Potential Pipeline Explosions

As if none of this were enough, a new set of dangers to Indian Point have arisen in recent years due to a high-pressure natural gas pipeline currently being built by Spectra Energy. Dubbed the Algonquin Incremental Market (AIM) pipeline, it is to carry fracked natural gas from the Marcellus Shale formation underlying New York and adjacent states to the Canadian border.  At 42 inches in diameter, this pipeline is the biggest that can at present be built — and here’s the catch: AIM is slated to pass within 150 feet of the plant’s reactors.

A former Spectra worker hired to help oversee safety during the pipeline’s construction told a reporter that the company had taken dangerous shortcuts in its rush to begin the project. He had witnessed, he said, “at least two dozen” serious safety violations and transgressions.

Taking shortcuts in pipeline construction could, in the end, prove a risky business. Pipeline ruptures are the commonest cause of gas explosions like the one that, in March 2014 in Manhattan’s East Harlem, killed eight, injured 70, and leveled two apartment buildings. Robert Miller, chairman of the National Association of Pipeline Safety Representatives, attributed the rising rates of such incidents in newly constructed pipelines to “poor construction practices or maybe not enough quality control, quality assurance programs out there to catch these problems before those pipelines go into service.”

In January 2015, the National Transportation Safety Board published a study documenting that gas accidents in “high-consequence” areas (where there are a lot of people and buildings) have been on the rise. With the New York metropolitan area so close to Indian Point, it seems odd indeed to independent experts that the nuclear plant with the sorriest safety history in the country has been judged safe enough for a high-pressure gas pipeline to be run right by it.

A hazards assessment replete with errors was the basis for the go-ahead. Richard B. Kuprewicz, a pipeline infrastructure expert and incident investigator with more than 40 years of energy industry experience, has called that risk assessment “seriously deficient and inadequate.”

At another nuclear plant subsequently shut down, as David Lochbaum points out, a rigorous risk analysis was conducted for possible explosions based on a worst-case scenario. (“I couldn’t think of any scenario that would be worse than what they presumed.”) At Indian Point, the risk analysis was, however, done on a best-case basis. Among other things, it assumed that any pipeline leak around the plant could be stopped in less than three minutes — an unlikelihood at best. “It’s night and day. They did a very conservative analysis for [the other plant] and a very cavalier best-case scenario for Indian Point… I don’t know why they opted for [this] drive-by analysis.”

Tombstone Regulation

Of all the contaminants released in this industrial world, radioactivity may, in a sense, be the least visible and least imaginable, even if the most potentially devastating, were something to go wrong. As a result, the dangers of the “peaceful” atom have often proved hard to absorb before disaster strikes — as at the Three Mile Island reactor near Middletown, Pennsylvania, on March 28, 1979. Even when such a power plant sits near a highway or a community, it’s usually a reality to which people pay scant attention, in part because nuclear science is alien territory. This is why safety at nuclear power plants has been something citizens have relied on the government for.

The history of Indian Point, however, offers a grim reminder that the government agencies expected to protect citizens from disaster aren’t doing a particularly good job of it. Over the past several years, for instance, residents in the path of the AIM pipeline project have begun accusing the Federal Energy Regulatory Commission (FERC) of overwhelming bias in the industry’s favor. As FERC has a corner on oversight and approval of all pipeline construction, this is alarming. Its stamp of approval on a pipeline can only be contested via appeals that lead directly back to FERC itself, as the Natural Gas Act of 1938 gave the agency sole discretion over pipeline construction in the U.S.  Ever since then, its officials have approved pipelines of every sort almost without exception. Worse yet, at Indian Point, the Nuclear Regulatory Commission joined FERC in green-lighting AIM.

During the two-and-a-half-year period in which the pipeline was approved and construction began, the mainstream media virtually ignored the project and its potential dangers. Only this February, when New York Governor Andrew Cuomo, who has been opposed to the relicensing of Indian Point, first raised concerns about the dangers of the pipeline, did the New York Times, the paper of record for the New York metropolitan area, finally publish a piece on AIM.  So it fell to a grassroots movement of local activists to bring AIM’s dangers to public attention. Its growing resistance to a pipeline that could precipitate just about anything up to a Fukushima-on-the-Hudson-style event evidently led Governor Cuomo to urge FERC to postpone construction until a safety review could be completed, a request that the agency rejected. In February, alarmed by reports of tritium leaking from the plant, the governor also directed the state’s departments of environmental conservation and health to investigate the likely duration and consequences of such a leak and its potential impacts on public health.

According to Paul Blanch, the risk of a pipeline explosion in proximity to Indian Point is one in 1,000, odds he believes are too high given what’s potentially at stake. (He considers a one-in-a-million chance acceptable.) “I’ve had over 45 years of nuclear experience and [experience in] safety issues. I have never seen [a situation] that essentially puts 20 million residents at risk, plus the entire economics of the United States by making a large area surrounding Indian Point uninhabitable for generations. I’m not an alarmist and haven’t been known as an alarmist, but the possibility of a gas line interacting with a plant could easily cause a Fukushima type of release.”

According to Blanch, attempts to regulate nuclear plants after a Fukushima- or Chernobyl-type catastrophe are known in the trade as “tombstone regulation.” Nobody, of course, should ever want to experience such a situation on the Hudson, or have America’s own mini-Hiroshima seven decades late, or find literal tombstones cropping up in the New York metropolitan area due to a nuclear disaster. One hope for preventing all of this and ensuring protection for New York’s citizenry: the continuing growth of impressive citizen pressure and increasing public alarm around both the pipeline and Indian Point. It gives new meaning to the phrase “power to the people.”


 

TomDispatch regular Ellen Cantarow reported on Israel and the West Bank from 1979 to 2009 for the Village Voice, Mother Jones, Inquiry, and Grand Street, among other publications. For the past five years she has been writing about the environmental ravages of the oil and gas industries.

Alison Rose Levy is a New York-based journalist who covers the nexus of health, science, the environment, and public policy. She has reported on fracking, pipelines, the Trans-Pacific Partnership, chemical pollution, and the health impacts of industrial activity for the Huffington Post, Alternet,Truthdig, and EcoWatch.  

Copyright 2016 Ellen Cantarow and Alison Rose Levy


Thomas Frank: How the Democrats Created a “Liberalism of the Rich”

By Thomas Frank, author of the just-published Listen, Liberal, or What Ever Happened to the Party of the People? (Metropolitan Books) from which this essay is adapted. He has also written Pity the Billionaire, The Wrecking Crew, and What’s the Matter With Kansas? among other works. He is the founding editor of The Baffler. Reprinted with permission from Tomdispatch.com

When you press Democrats on their uninspiring deeds — their lousy free trade deals, for example, or their flaccid response to Wall Street misbehavior — when you press them on any of these things, they automatically reply that this is the best anyone could have done. After all, they had to deal with those awful Republicans, and those awful Republicans wouldn’t let the really good stuff get through. They filibustered in the Senate. They gerrymandered the congressional districts. And besides, change takes a long time. Surely you don’t think the tepid-to-lukewarm things Bill Clinton and Barack Obama have done in Washington really represent the fiery Democratic soul.

So let’s go to a place that does. Let’s choose a locale where Democratic rule is virtually unopposed, a place where Republican obstruction and sabotage can’t taint the experiment.

Let’s go to Boston, Massachusetts, the spiritual homeland of the professional class and a place where the ideology of modern liberalism has been permitted to grow and flourish without challenge or restraint. As the seat of American higher learning, it seems unsurprising that Boston should anchor one of the most Democratic of states, a place where elected Republicans (like the new governor) are highly unusual. This is the city that virtually invented the blue-state economic model, in which prosperity arises from higher education and the knowledge-based industries that surround it.

The coming of post-industrial society has treated this most ancient of American cities extremely well. Massachusetts routinely occupies the number one spot on the State New Economy Index, a measure of how “knowledge-based, globalized, entrepreneurial, IT-driven, and innovation-based” a place happens to be. Boston ranks high on many of Richard Florida’s statistical indices of approbation — in 2003, it was number one on the “creative class index,” number three in innovation and in high tech — and his many books marvel at the city’s concentration of venture capital, its allure to young people, or the time it enticed some firm away from some unenlightened locale in the hinterlands.

Boston’s knowledge economy is the best, and it is the oldest. Boston’s metro area encompasses some 85 private colleges and universities, the greatest concentration of higher-ed institutions in the country — probably in the world. The region has all the ancillary advantages to show for this: a highly educated population, an unusually large number of patents, and more Nobel laureates than any other city in the country.

The city’s Route 128 corridor was the original model for a suburban tech district, lined ever since it was built with defense contractors and computer manufacturers. The suburbs situated along this golden thoroughfare are among the wealthiest municipalities in the nation, populated by engineers, lawyers, and aerospace workers. Their public schools are excellent, their downtowns are cute, and back in the seventies their socially enlightened residents were the prototype for the figure of the “suburban liberal.”

Another prototype: the Massachusetts Institute of Technology, situated in Cambridge, is where our modern conception of the university as an incubator for business enterprises began. According to a report on MIT’s achievements in this category, the school’s alumni have started nearly 26,000 companies over the years, including Intel, Hewlett Packard, and Qualcomm. If you were to take those 26,000 companies as a separate nation, the report tells us, its economy would be one of the most productive in the world.

Then there are Boston’s many biotech and pharmaceutical concerns, grouped together in what is known as the “life sciences super cluster,” which, properly understood, is part of an “ecosystem” in which PhDs can “partner” with venture capitalists and in which big pharmaceutical firms can acquire small ones. While other industries shrivel, the Boston super cluster grows, with the life-sciences professionals of the world lighting out for the Athens of America and the massive new “innovation centers” shoehorning themselves one after the other into the crowded academic suburb of Cambridge.

To think about it slightly more critically, Boston is the headquarters for two industries that are steadily bankrupting middle America: big learning and big medicine, both of them imposing costs that everyone else is basically required to pay and which increase at a far more rapid pace than wages or inflation. A thousand dollars a pill, 30 grand a semester: the debts that are gradually choking the life out of people where you live are what has madethis city so very rich.

Perhaps it makes sense, then, that another category in which Massachusetts ranks highly is inequality. Once the visitor leaves the brainy bustle of Boston, he discovers that this state is filled with wreckage — with former manufacturing towns in which workers watch their way of life draining away, and with cities that are little more than warehouses for people on Medicare. According to one survey, Massachusetts has the eighth-worst rate of income inequality among the states; by another metric it ranks fourth. However you choose to measure the diverging fortunes of the country’s top 10% and the rest, Massachusetts always seems to finish among the nation’s most unequal places.

Seething City on a Cliff

You can see what I mean when you visit Fall River, an old mill town 50 miles south of Boston. Median household income in that city is $33,000, among the lowest in the state; unemployment is among the highest, 15% in March 2014, nearly five years after the recession ended. Twenty-three percent of Fall River’s inhabitants live in poverty. The city lost its many fabric-making concerns decades ago and with them it lost its reason for being. People have been deserting the place for decades.

Many of the empty factories in which their ancestors worked are still standing, however. Solid nineteenth-century structures of granite or brick, these huge boxes dominate the city visually — there always seems to be one or two of them in the vista, contrasting painfully with whatever colorful plastic fast-food joint has been slapped up next door.

Most of the old factories are boarded up, unmistakable emblems of hopelessness right up to the roof. But the ones that have been successfully repurposed are in some ways even worse, filled as they often are with enterprises offering cheap suits or help with drug addiction. A clinic in the hulk of one abandoned mill has a sign on the window reading simply “Cancer & Blood.”

The effect of all this is to remind you with every prospect that this is a place and a way of life from which the politicians have withdrawn their blessing. Like so many other American scenes, this one is the product of decades of deindustrialization, engineered by Republicans and rationalized by Democrats. This is a place where affluence never returns — not because affluence for Fall River is impossible or unimaginable, but because our country’s leaders have blandly accepted a social order that constantly bids down the wages of people like these while bidding up the rewards for innovators, creatives, and professionals.

Even the city’s one real hope for new employment opportunities — an Amazon warehouse that is now in the planning stages — will serve to lock in this relationship. If all goes according to plan, and if Amazon sticks to the practices it has pioneered elsewhere, people from Fall River will one day get to do exhausting work with few benefits while being electronically monitored for efficiency, in order to save the affluent customers of nearby Boston a few pennies when they buy books or electronics.

But that is all in the future. These days, the local newspaper publishes an endless stream of stories about drug arrests, shootings, drunk-driving crashes, the stupidity of local politicians, and the lamentable surplus of “affordable housing.” The town is up to its eyeballs in wrathful bitterness against public workers. As in: Why do they deserve a decent life when the rest of us have no chance at all? It’s every man for himself here in a “competition for crumbs,” as a Fall River friend puts it.

The Great Entrepreneurial Awakening

If Fall River is pocked with empty mills, the streets of Boston are dotted with facilities intended to make innovation and entrepreneurship easy and convenient. I was surprised to discover, during the time I spent exploring the city’s political landscape, that Boston boasts a full-blown Innovation District, a disused industrial neighborhood that has actually been zoned creative — a projection of the post-industrial blue-state ideal onto the urban grid itself. The heart of the neighborhood is a building called “District Hall” — “Boston’s New Home for Innovation” — which appeared to me to be a glorified multipurpose room, enclosed in a sharply angular façade, and sharing a roof with a restaurant that offers “inventive cuisine for innovative people.” The Wi-Fi was free, the screens on the walls displayed famous quotations about creativity, and the walls themselves were covered with a high-gloss finish meant to be written on with dry-erase markers; but otherwise it was not much different from an ordinary public library. Aside from not having anything to read, that is.

This was my introduction to the innovation infrastructure of the city, much of it built up by entrepreneurs shrewdly angling to grab a piece of the entrepreneur craze. There are “co-working” spaces, shared offices for startups that can’t afford the real thing. There are startup “incubators” and startup “accelerators,” which aim to ease the innovator’s eternal struggle with an uncaring public: the Startup Institute, for example, and the famous MassChallenge, the “World’s Largest Startup Accelerator,” which runs an annual competition for new companies and hands out prizes at the end.

And then there are the innovation Democrats, led by former Governor Deval Patrick, who presided over the Massachusetts government from 2007 to 2015. He is typical of liberal-class leaders; you might even say he is their most successful exemplar. Everyone seems to like him, even his opponents. He is a witty and affable public speaker as well as a man of competence, a highly educated technocrat who is comfortable in corporate surroundings. Thanks to his upbringing in a Chicago housing project, he also understands the plight of the poor, and (perhaps best of all) he is an honest politician in a state accustomed to wide-open corruption. Patrick was also the first black governor of Massachusetts and, in some ways, an ideal Democrat for the era of Barack Obama — who, as it happens, is one of his closest political allies.

As governor, Patrick became a kind of missionary for the innovation cult. “The Massachusetts economy is an innovation economy,” he liked to declare, and he made similar comments countless times, slightly varying the order of the optimistic keywords: “Innovation is a centerpiece of the Massachusetts economy,” et cetera. The governor opened “innovation schools,” a species of ramped-up charter school. He signed the “Social Innovation Compact,” which had something to do with meeting “the private sector’s need for skilled entry-level professional talent.” In a 2009 speech called “The Innovation Economy,” Patrick elaborated the political theory of innovation in greater detail, telling an audience of corporate types in Silicon Valley about Massachusetts’s “high concentration of brainpower” and “world-class” universities, and how “we in government are actively partnering with the private sector and the universities, to strengthen our innovation industries.”

What did all of this inno-talk mean? Much of the time, it was pure applesauce — standard-issue platitudes to be rolled out every time some pharmaceutical company opened an office building somewhere in the state.

On some occasions, Patrick’s favorite buzzword came with a gigantic price tag, like the billion dollars in subsidies and tax breaks that the governor authorized in 2008 to encourage pharmaceutical and biotech companies to do business in Massachusetts. On still other occasions, favoring inno has meant bulldozing the people in its path — for instance, the taxi drivers whose livelihoods are being usurped by ridesharing apps like Uber. When these workers staged a variety of protests in the Boston area, Patrick intervened decisively on the side of the distant software company. Apparently convenience for the people who ride in taxis was more important than good pay for people who drive those taxis. It probably didn’t hurt that Uber had hired a former Patrick aide as a lobbyist, but the real point was, of course, innovation: Uber was the future, the taxi drivers were the past, and the path for Massachusetts was obvious.

A short while later, Patrick became something of an innovator himself. After his time as governor came to an end last year, he won a job as a managing director of Bain Capital, the private equity firm that was founded by his predecessor Mitt Romney — and that had been so powerfully denounced by Democrats during the 2012 election. Patrick spoke about the job like it was just another startup: “It was a happy and timely coincidence I was interested in building a business that Bain was also interested in building,” he told theWall Street Journal. Romney reportedly phoned him with congratulations.

Entrepreneurs First

At a 2014 celebration of Governor Patrick’s innovation leadership, Google’s Eric Schmidt announced that “if you want to solve the economic problems of the U.S., create more entrepreneurs.” That sort of sums up the ideology in this corporate commonwealth: Entrepreneurs first. But how has such a doctrine become holy writ in a party dedicated to the welfare of the common man? And how has all this come to pass in the liberal state of Massachusetts?

The answer is that I’ve got the wrong liberalism. The kind of liberalism that has dominated Massachusetts for the last few decades isn’t the stuff of Franklin Roosevelt or the United Auto Workers; it’s the Route 128/suburban-professionals variety. (Senator Elizabeth Warren is the great exception to this rule.) Professional-class liberals aren’t really alarmed by oversized rewards for society’s winners. On the contrary, this seems natural to them — because they are society’s winners. The liberalism of professionals just does not extend to matters of inequality; this is the area where soft hearts abruptly turn hard.

Innovation liberalism is “a liberalism of the rich,” to use the straightforward phrase of local labor leader Harris Gruman. This doctrine has no patience with the idea that everyone should share in society’s wealth. What Massachusetts liberals pine for, by and large, is a more perfect meritocracy — a system where the essential thing is to ensure that the truly talented get into the right schools and then get to rise through the ranks of society. Unfortunately, however, as the blue-state model makes painfully clear, there is no solidarity in a meritocracy. The ideology of educational achievement conveniently negates any esteem we might feel for the poorly graduated.

This is a curious phenomenon, is it not? A blue state where the Democrats maintain transparent connections to high finance and big pharma; where they have deliberately chosen distant software barons over working-class members of their own society; and where their chief economic proposals have to do with promoting “innovation,” a grand and promising idea that remains suspiciously vague. Nor can these innovation Democrats claim that their hands were forced by Republicans. They came up with this program all on their own.

Thomas Frank is the author of the just-published Listen, Liberal, or What Ever Happened to the Party of the People? (Metropolitan Books) from which this essay is adapted. He has also written Pity the Billionaire, The Wrecking Crew, and What’s the Matter With Kansas? among other works. He is the founding editor of The Baffler.

Copyright 2016 Thomas Frank


 

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Tomgram: Gottesdiener and Garcia, How to Dismantle This Country

Introductory Comments by Tom Engelhardt (Reprinted from Tomdispatch.com)

They say that imperial wars come home in all sorts of ways. Think of the Michigan that TomDispatch regular Laura Gottesdiener describes today as one curious example of that dictum. If you remember, in the spring of 2003, George W. Bush ordered the invasion of Iraq and the overthrow of that country’s autocratic ruler, Saddam Hussein. The invasion was launched with a “shock-and-awe” air show that was meant to both literally and figuratively “decapitate” the country’s leadership, from Saddam on down. At that time, there was another more anodyne term for the process that was also much in use, even if it has now faded from our vocabularies: “regime change.” And you remember how that all worked out, don’t you? A lot of Iraqi civilians — but no Iraqi leaders — were killed in shock-and-awe fashion that first night of the invasion and, as most Americans recall now that we’re in Iraq War 3.0, it didn’t get much better when the Bush administration’s proconsul in Baghdad, L. Paul Bremer III, disbanded the Iraqi military and Saddam’s Baathist Party (a brilliant formula for launching an instant insurgency), appointed his own chosen rulers in Baghdad, and gave the Americans every sort of special privilege imaginable by curiously autocratic decree in the name of spreading democracy in the Middle East.

It now seems that a version of regime change, Iraqi-style, has come home to roost in parts of Michigan — but with a curious twist. Think of Michigan’s governor, Rick Snyder, as the L. Paul Bremer of that state. He’s essentially given himself regime-change-style powers, impermeable to a statewide recall vote, and begun dismissing — or, if you will, decapitating — the local governments of cities and school districts, appointing managers in their place. In other words, his homegrown version of regime change involves getting rid of local democracy and putting individual autocrats in power instead. What, you might ask yourself, could possibly go wrong, especially since the governor himself is going national to limn the glories of his version of austerity and autocratic politics?

As it happens, TomDispatch dispatched our ace reporter, Laura Gottesdiener, who has been traveling the underside of American life for this site, to check out what regime change in Michigan really looks like. As with all her reports, this time with photographer Eduardo García, she offers a grim but startling vision of where this country may be headed. Tom

A Magical Mystery Tour of American Austerity Politics 
One State’s Attempt to Destroy Democracy and the Environment 
By Laura Gottesdiener, with photos and reporting by Eduardo García

Something is rotten in the state of Michigan.

One city neglected to inform its residents that its water supply was laced with cancerous chemicals. Another dissolved its public school district and replaced it with a charter school system, only to witness the for-profit management company it hired flee the scene after determining it couldn’t turn a profit. Numerous cities and school districts in the state are now run by single, state-appointed technocrats, as permitted under an emergency financial manager law pushed through by Rick Snyder, Michigan’s austerity-promoting governor. This legislation not only strips residents of their local voting rights, but gives Snyder’s appointee the power to do just about anything, including dissolving the city itself — all (no matter how disastrous) in the name of “fiscal responsibility.”

If you’re thinking, “Who cares?” since what happens in Michigan stays in Michigan, think again. The state’s aggressive balance-the-books style of governance has already spread beyond its borders. In January, New Jersey Governor Chris Christie appointed bankruptcy lawyer and former Detroit emergency manager Kevyn Orr to be a “legal adviser” to Atlantic City. The Detroit Free Press described the move as “a state takeover similar to Gov. Rick Snyder’s state intervention in the Motor City.”

And this spring, amid the hullabaloo of Republicans entering the 2016 presidential race, Governor Snyder launched his own national tour to sell “the Michigan story to the rest of the country.” His trip was funded by a nonprofit (fed, naturally, by undisclosed donations) named “Making Government Accountable: The Michigan Story.”

To many Michiganders, this sounded as ridiculous as Jeb Bush launching a super PAC dubbed “Making Iraq Free: The Bush Family Story.”  Except Snyder wasn’t planning to enter the presidential rat race. Instead, he was attempting to mainstream Michigan’s form of austerity politics and its signature emergency management legislation, which stripped more than halfof the state’s African American residents of their local voting rights in 2013 and 2014.

As the governor jaunted around the country, Ann Arbor-based photographer Eduardo García and I decided to set out on what we thought of as our own two-week Magical Michigan Tour. And while we weren’t driving a specially outfitted psychedelic tour bus — we spent most of the trip in my grandmother’s 2005 Prius — our journey was nevertheless remarkably surreal. From the southwest banks of Lake Michigan to the eastern tips of the peninsula, we crisscrossed the state visiting more than half a dozen cities to see if there was another side to the governor’s story and whether Michigan really was, as one Detroit resident put it, “a massive experiment in unraveling U.S. democracy.”

Stop One: Water Wars in Flint

Just as we arrive, the march spills off the sidewalk in front of the city council building.

“Stop poisoning our children!” chants a little girl as the crowd tumbles down South Saginaw Street, the city’s main drag.  We’re in Flint, Michigan, a place that hit the headlines last year for its brown, chemical-laced, possibly toxic water.  A wispy white-haired woman waves a gallon jug filled with pee-colored liquid from her home tap. “They don’t care that they’re killing us!” she cries.

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A Flint resident at the march demanding clean water. Photo credit: Eduardo García

We catch up with Claire McClinton, the formidable if grandmotherly organizer of the Flint Democracy Defense League, as we approach the roiling Flint River.  It’s been a longtime dumping ground for the riverfront factories of General Motors and, as of one year ago today, the only source of the city’s drinking water.  On April 25, 2014, on the instruction of the city’s emergency manager, Flint stopped buying its supplies from the Detroit Water and Sewerage Department and started drawing water directly from the river, which meant a budgetary savings of $12 million a year. The downside: people started getting sick.

Since then, tests have detected E. coli and fecal bacteria in the water, as well as high levels of trihalomethanes, a carcinogenic chemical cocktail known as THMs. For months, the city concealed the presence of THMs, which over years can lead to increased rates of cancer, kidney failure, and birth defects. Still, it was obvious to local residents that something was up. Some of them were breaking out in mysterious rashes or experiencing bouts of severe diarrhea, while others watched as their eyelashes and hair began to fall out.

As we cross a small footbridge, McClinton recounts how the city council recently voted to “do all things necessary” to get Detroit’s water back.  The emergency manager, however, immediately overrode their decision, terming it “incomprehensible.”

“This is a whole different model of control,” she comments drily and explains that she’s now working with other residents to file an injunction compelling the city to return to the use of Detroit’s water. One problem, though: it has to be filed in Ingham County, home to Lansing, the state capital, rather than in Flint’s Genesee County, because the decision of a state-appointed emergency manager is being challenged. “Under state rule, that’s where you go to redress grievances,” she says. “Just another undermining of our local authority.”

In the meantime, many city residents remain frustrated and confused. A few weeks before the march, the city sent out two notices on the same day, packaged in the same envelope. One, printed in black-and-white, stated bluntly: “Our water system recently violated a drinking water standard.” The second, in flashy color, had this cheery message: “We are pleased to report that City of Flint water is safe and meets U.S. Environmental Protection Agency guidelines… You can be confident that the water provided to you today meets all safety standards.” As one recipient of the notices commented, “I can only surmise that the point was to confuse us all.”

McClinton marches in silence for a few minutes as the crowd doubles back across the bridge and begins the ascent up Saginaw Street. Suddenly, a man jumps onto a life-size statue of a runner at the Riverfront Plaza and begins to cloak him in one of the group’s T-shirts.

“Honey, I don’t want you getting in any trouble!” his wife calls out to him.

He’s struggling to pull a sleeve over one of the cast-iron arms when the droning weeoo-weeooo-weeoo of a police siren blares, causing a brief frenzy until the man’s son realizes he’s mistakenly hit the siren feature on the megaphone he’s carrying.

After a few more tense moments, the crowd surges forward, leaving behind the statue, legs stretched in mid-stride, arms raised triumphantly, and on his chest a new cotton T-shirt with the slogan: “Water You Fighting For?”

Stop Two: The Tri-Cities of Cancer 

The next afternoon, we barrel down Interstate 75 into an industrial hellscape of smoke stacks, flare offs, and 18-wheelers, en route to another toxicity and accountability crisis. This one was caused by a massive tar sands refinery and dozens of other industrial polluters in southwest Detroit and neighboring River Rouge and Ecorse, cities which lie along the banks of the Detroit River.

Already with a slight headache from a haze of emissions, we meet photographer and community leader Emma Lockridge and her neighbor Anthony Parker in front of their homes, which sit right in the backyard of that tar sands refinery.

In 2006, the toxicity levels in their neighborhood, known simply by its zip code as “48217,” were 45 times higher than the state average. And that was before Detroit gave $175 million in tax breaks to the billion-dollar Marathon Petroleum Corporation to help it expand its refinery complex to process a surge of high-sulfur tar sands from Alberta, Canada.

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The Marathon tar sands refinery in southwest Detroit. Photo credit: Eduardo García

“We’re a donor zip,” explains Lockridge as she settles into the driver’s seat of our car. “We have all the industry and a tax base, but we get nothing back.”

We set off on a whirlwind tour of their neighborhood, where schools have been torn down and parks closed due to the toxicity of the soil, while so many residents have died of cancer that it’s hard for their neighbors to keep track. “We used to play on the swings here,” says Lockridge, pointing to a rusted yellow swing set in a fenced-off lot where the soil has tested for high levels of lead, arsenic, and other poisonous chemicals. “Jumping right into the lead.”

As in other regions of Michigan, people have been fleeing 48217 in droves. Here, however, the depopulation results not from deindustrialization, but from toxicity, thanks to an ever-expanding set of factories.  These include a wastewater treatment complex, salt mines, asphalt factories, cement plants, a lime and stone foundry, and a handful of steel mills all clustered in the tri-cities region.

As Lockridge and Parker explain, they have demanded that Marathon buy their homes. They have also implored the state to cap emission levels and have filed lawsuits against particularly toxic factories. In response, all they’ve seen are more factories given more breaks, while the residents of 48217 get none. Last spring, for example, the Michigan Department of Environmental Quality permitted the AK Steel plant, located close to the neighborhood, toincrease its toxic emissions as much as 725 times. The approval, according to the Detroit Free Press, came after “Gov. Rick Snyder’s business-promoting agency worked for months behind the scenes” lobbying the Department of Environmental Quality.

“Look at this cute little tree out of nowhere over here!” Lockridge exclaims, slowing the car in front of a scrawny plant whose branches, in the midst of this industrial wasteland, bend under the weight of white blossoms.

“That tree ain’t gonna grow up,” Parker responds. “It’s dead already.”

“It’s trying,” Lockridge insists. “Aww, it’s kind of sad. It’s a Charlie Brown tree.”

The absurdity of life in such an environment is highlighted when we reach a half-mile stretch of sidewalk sandwiched between a massive steel mill and a coal-fired power plant that has been designated a “Wellness Walk.”

“Energize your Life!” implores the sign affixed to a chain-link fence surrounding the power plant. It’s an unlikely site for an exercise walk, given that the state’s health officials considerthis strip and the nearby park “the epicenter of the state’s asthma burden.”

After a sad laugh, we head for Zug Island, a Homeland Security-patrolled area populated by what look to be giant black vacuum cleaners but are actually blast furnaces. The island was named for millionaire Samuel Zug, who built a lavish mansion there only to discover that it was sinking into swampland. It is now home to U.S. Steel, the largest steel manufacturer in the nation.

On our way back, we make a final stop at Oakwood Heights, an almost entirely vacant and partially razed subdivision located on the other side of the Marathon plant. “This is the white area that was bought out,” says Lockridge. The scene is eerie: small residential streets lined by grassy fields and the occasional empty house. That Marathon paid residents to evacuate their homes in this predominantly white section of town, while refusing to do the same in the predominantly African American 48217, which sits closer to the refinery, strikes neither Lockridge and Parker nor their neighbors as a coincidence.

We survey the remnants of the former neighborhood: bundles of ragged newspapers someone was once supposed to deliver, a stuffed teddy bear abandoned on a wooden porch, and a childless triangle-shaped playground whose construction, a sign reads, was “made possible by generous donations from Marathon.”

As this particularly unmagical stop on our Michigan tour comes to an end, Parker says quietly, “I’ve got to get my family out of here.”

Lockridge agrees. “I just wish we had a refuge place we could go to while we’re fighting,” she says. “You see we’re surrounded.”

Stop Three: The Great White North

Not all of Michigan’s problems are caused by emergency management, but this sweeping new power does lie at the heart of many local controversies. Later that night we meet with retired Detroit city worker, journalist, and organizer Russ Bellant who has made himself something of an expert on the subject.

In 2011, he explains, Governor Snyder signed an emergency manager law known as Public Act 4. The impact of this law and its predecessor, Public Act 72, was dramatic. In the city of Pontiac, for instance, the number of public employees plummeted from 600 to 50. In Detroit, the emergency manager of the school district waged a six-year slash-and-burn campaign that, in the end, shuttered 95 schools. In Benton Harbor, the manager effectively dissolved the city government, declaring: “The fact of the matter is, the city manager is now gone. I am the city manager. I replace the financial director, so I’m the financial director and the city manager. I am the mayor and the commission. And I don’t need them.”

So in 2012, Bellant cancelled all his commitments in Detroit, packed his car full of chocolate pudding snacks, canned juices, and fliers and headed north to support a statewide campaign to repeal the law through a ballot referendum in that fall’s general election. For two months, he crisscrossed the upper reaches of Michigan’s Lower Peninsula, the part of the state that people say looks like a hand, as well as the remote Upper Peninsula that borders Wisconsin and Canada.

“Seven or eight hours a day, I would just knock on doors,” he says.

In November, the efforts paid off and voters repealed the act, but the celebration was short-lived. Less than two months later, during a lame-duck session of the state legislature, Governor Snyder pushed through and signed Public Act 436, a broader version of the legislation that was referendum-proof. Since then, financial managers have continued to shut down fire departments, outsource police departments, sell off parking meters and public parks. In Flint, the manager even auctioned off the plastic Santa Claus that once adorned city hall, setting the initial bidding price at $5.

And here’s one fact of life in Michigan: emergency management is normally only imposed on majority-black cities. From 2013 to 2014, 52% of the African American residents in the state lived under emergency management, compared to only 2% of white residents. And yet the repeal vote against the previous version of the act was a demographic landslide: 75 out of 83 counties voted to nix the legislation, including all of Michigan’s northern, overwhelmingly white, rural counties. “I think people just internalized that P.A. 4 was undemocratic,” Bellant says.

That next morning, we travel north to the city of Alpena, a 97% whitelakeside town where Bellant knocked on doors and the recall was triumphant. The farther north we head, the more the landscape changes. We pass signs imploring residents to “Take Back America: Liberty Yes, Tyranny No.” Gas stations feature clay figurines of hillbillies drinking moonshine in bathtubs.

It’s almost evening when we arrive. We spend part of our visit at the Dry Dock, a dive bar overseen by a raspy-voiced bartender where all the political and demographic divides of the state — and, in many ways, the country — are on full display. Two masons are arguing about their union; the younger one likes the protections it provides, while his colleague ditched the local because he didn’t want to pay the dues. That move became possible only after Snyder signed controversial “right-to-work” legislation in 2012, allowing workers to opt-out of union dues and causing a sharp decline in union membership ever since.

Above their heads, the television screen projects intentionally terrifying images of the uprising in Baltimore in response to the police murder of Freddie Gray, an unarmed African American man. “The Bloods, the Crips, and the Guerrillas are out for the National Guard,” comments a carpenter about the unarmed protesters, a sneer of distain in his voice. “Not that I like the fucking cops, either,” he adds.

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The bartender of the Dry Dock plays pool with other regulars. Photo credit: Eduardo García

Throughout our visit, people repeatedly told us that Alpena “isn’t Detroit or Flint” and that they have absolutely no fear of the state seizing control of their sleepy, white, touristy city. When we press the question with the owner of a bicycle shop, the hostility rises in his voice as he explains: “Things just run the way they should here” — by which he means, of course, that down in Detroit and Flint, residents don’t run things the way they should.

Yet, misconceptions notwithstanding, the county voted to repeal Public Act 4 with a staggering 63% of those who turned out opting to strike down the law.

Reflecting Bellant’s feeling that locals grasped the law’s undemocratic nature in some basic way, even if it would never affect them personally, one resident offered this explanation: “When you think about living in a democracy, then this is like financial martial law… I know they say these cities need help, but it didn’t feel like something that would help.”

Stop Four: The Fugitive Task Force

The next day, as 2,000 soldiers from the 175th Infantry Regiment of the National Guard fanned out across Baltimore, we head for Detroit’s west side where, only 24 hours earlier, a law enforcement officer shot and killed a 20-year-old man in his living room.

A crowd has already gathered near his house in the early summer heat, exchanging condolences, waving signs, and jostling for position as news crews set up cameras and microphones for a press conference to come. Versions of what happened quickly spread: Terrance Kellom was fatally shot when officers swarmed his house to deliver an arrest warrant. The authorities claim that he grabbed a hammer, prompting the shooting; his father, Kevin,contends Terrance was unarmed and kneeling in front of him when he was shot several times, including once in the back.

Kellom is just one of the 489 people killed in 2015 in the United States by law enforcement officers. There is, however, a disturbing twist to Kellom’s case. He was not, in fact, killed by the police but by a federal agent working with a little known multi-jurisdictional interagency task force coordinated by the U.S. Marshals.

Similar task forces are deployed across the country and they all share the same sordid history: the Marshals have been hunting people ever since the 1850 Fugitive Slave Act compelled the agency to capture slaves fleeing north for freedom. One nineteenth-century newspaper account, celebrating the use of bloodhounds in such hunts, wrote: “The Cuban dog would frequently pull down his game and tear the runaway to pieces before the officers could come up.”

These days, Detroit’s task force has grown particularly active as budget cuts have decimated the local police department. Made up of federal Immigration and Customs officers, police from half a dozen local departments, and even employees of the Social Security Administration office, the Detroit Fugitive Apprehension Team has nabbed more than 15,000 people. Arrest rates have soared since 2012, the same year the local police budget was chopped by 20%. Even beyond the task force, the number of federal agents patrolling the city has risen as well. The Border Patrol, for example, has increased its presence in the region by tenfold over the last decade and just two weeks ago announced the launch of a new $14 million Detroit station.

Kevin Kellom approaches the barricade of microphones and begins speaking so quietly that the gathered newscasters crush into each other in an effort to catch what’s he’s saying. “They assassinated my son,” he whispers. “I want justice and I’m going to get justice.”

Yet today, six weeks after Terrance’s death, no charges have been brought against the Immigration and Customs Enforcement agent who fired the fatal shot. Other law enforcement officers who have killed Michigan residents in recent years have similarly escaped punishment. Detroit police officer Joseph Weekley was videotaped killing seven-year-old Aiyana Jones with a submachine gun during a SWAT team raid on her home in 2010. He remains a member of the department. Ann Arbor police officer David Reid is alsoback on duty after fatally shooting 40-year-old artist and mother Aura Rosser in November 2014. The Ann Arbor police department ruled that a “justifiable homicide” because Rosser was holding a small kitchen knife during the encounter — a ruling that Rosser’s family members and city residents are contesting with an ongoing campaign calling for an independent investigation into her death.

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Residents march during a #BlackLivesMatter protest on May 1, 2015, in Ann Arbor to call for an independent investigation into Aura Rosser’s death. Photo credit: Eduardo García

And such deadly incidents continue. Since Kellom’s death, law enforcement officers have fatally shot at least three more Michigan residents — one outside the city of Kalamazoo, another near Lansing, and a third in Battle Creek.

Stop Five: The Unprofitable All-Charter School District

Our final stop is Muskegon Heights, a small city on the banks of Lake Michigan, home to perhaps the most spectacular educational debacle in recent history. Here’s the SparkNotes version. In 2012, members of the Muskegon Heights public school board were given two options: dissolve the district entirely or succumb to an emergency manager’s rule. On arrival, the manager announced that he was dissolving the public school district and forming a new system to be run by the New York-based for-profit charter school management company Mosaica Education. Two years later, that company broke its five-year contract and fled because, according to the emergency manager, “the profit just simply wasn’t there.”

And here’s a grim footnote to this saga: in 2012, in preparation for the new charter school district, cryptically named the Muskegon Heights Public School Academy System, the emergency manager laid off every single school employee.

“We knew it was coming,” explained one of the city’s longtime elementary school teachers. She asked not to be identified, so I’ll call her Susan. “We received letters in the mail.”

Then, around one a.m. the night before the new charter school district was slated to open, she received a voicemail asking if she could teach the following morning. She agreed, arriving at Martin Luther King Elementary School for what would be the worst year in her more than two-decade career.

When we visit that school, a single-story brick building on the east side of town, the glass of the front door had been smashed and the halls were empty, save for two people removing air conditioning units. But in the fall of 2012, when Susan was summoned, Martin Luther King was still filled with students — and chaos. Schedules were in disarray. Student computers were broken. There were supply shortages of just about everything, even rolls of toilet paper. The district’s already barebones special education program had beenfurther gutted. The “new,” non-unionized teaching staff — about 10% of whom initially did not have valid teaching certificates — were overwhelmingly young, inexperienced, and white. (Approximately 75% of the town’s residents are African American.)

“Everything was about money, I felt, and everyone else felt it, too,” Susan says.

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The smashed glass of the front entrance of Martin Luther King Jr. Elementary School, which closed after students fled the charter school district. Photo credit: Eduardo García 

With her salary slashed to less than $30,000, she picked up a second job at a nearby after-school program. Her health faltered. Instructed by the new administration never to sit down during class, a back condition worsened until surgery was required. The stress began to affect her short-term memory. Finally, in the spring, Susan sought medical leave and never came back.

She was part of a mass exodus. Advocates say that more than half the teachers were either fired, quit, or took medical leave before the 2012-2013 school year ended. Mosaica itself wasn’t far behind, breaking its contract at the end of the 2014 school year. The emergency manager said he understood the company’s financial assessment, comparing the school system to “abroke-down car.” That spring, Governor Snyder visited and called the district“a work in progress.”

Across the state, the education trend has been toward privatization andincreased control over local districts by the governor’s office, with results that are, to say the least, underwhelming. This spring, a report from The Education Trust, an independent national education nonprofit, warned that the state’s system had gone “from bad to worse.”

“We’re now on track to perform lower than the nation’s lowest-performing states,” the report’s author, Amber Arellano, told the local news.

Later that afternoon, we visited the city’s James Jackson Museum of African American History, where we sat with Dr. James Jackson, a family physician and longtime advocate of community-controlled public education in the city.

He explains that the city’s now-failing struggle for local control and quality education is part of a significantly longer history. Most of the town’s families originally arrived here in the first half of the twentieth century from the Jim Crow South, where public schools for Black students were not only abysmally underfunded, but also thwarted by censorship and outside governance, as historian Carter Goodwin Woodson explained in his groundbreaking 1933 study, The Mis-Education of the Negro. Well into the twentieth century, for example, the Declaration of Independence and the U.S. Constitution were barred from grade-school textbooks for being too aspirational. “When you control a man’s thinking you do not have to worry about his actions,” Woodson wrote back then.

More than eight decades later, Dr. Jackson offered similar thoughts about the Muskegon Heights takeover as he led us through the museum, his bright yellow T-shirt reminding us to “Honor Black History Every Day 24/7 — 365.”

“We have to control our own education,” Jackson said, as we passed sepia newspaper clippings of civil rights marches and an 1825 bill of sale for Peggy and her son Jonathan, purchased for $371 by James Aiken of Warren County, Georgia. “Until we control our own school system, we can’t be properly educated.”

As we leave, we stop a moment to take in an electronic sign hanging in the museum’s window that, between announcements about upcoming book club meetings and the establishment’s hours, flashed this refrain in red letters:

The education of
Muskegon Heights
Belongs to the People
Not the governor

The following day, we finally arrived back in Detroit, our notebooks and iPhone audio records and camera memory cards filled to the brim, heads spinning from everything we had seen, our aging Prius-turned-tour-bus in serious need of an oil change.

While we had been bumping along on our Magical Michigan Tour, the national landscape had, in some ways, grown even more surreal. Bernie Sanders, the independent socialist senator from Vermont, announced that he was challenging Hillary Clinton for the Democratic ticket. Detroit neuroscientist Dr. Ben Carson — famous for declaring that Obamacare was “the worst thing that has happened in this nation since slavery” — entered the Republican circus. And amid the turmoil, Governor Snyder’s style continued to attract attention, including from the editors of Bloomberg View, who toutedhis experience with “urban revitalization,” concluding: “His brand of politics deserves a wider audience.”

So buckle your seat belts and watch out. In some “revitalized” Bloombergian future, you, too, could flee your school district like the students and teachers of Muskegon Heights, or drink contaminated water under the mandate of a state-appointed manager like the residents of Flint, or be guaranteed toxic fumes to breathe like the neighbors of 48217, or get shot like Terrance Kellom by federal agents in your own living room. All you have to do is let Rick Snyder’s yellow submarine cruise into your neighborhood.


Laura Gottesdiener is a freelance journalist and the author of A Dream Foreclosed: Black America and the Fight for a Place to Call Home. Her writing has appeared in Mother Jones, Al Jazeera, Guernica, Playboy,Rolling Stone, and frequently at TomDispatch.

Eduardo García is an Ann Arbor-based photographer and researcher focused on indigenous peoples in México, Mexican and Central American migration, disappearances, and social movements in Latin America.

Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Book, Nick Turse’s Tomorrow’s Battlefield: U.S. Proxy Wars and Secret Ops in Africa, and Tom Engelhardt’s latest book, Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

Copyright 2015 Laura Gottesdiener


This Billionaire Governor Taxed the Rich and Raised the Minimum Wage. Now, His State’s Economy Is One of the Best in the Country

By Carl Gibson, Reader Supported News

Mark_Dayton_MinnesotaThe next time your right-wing family member or former high school classmate posts a status update or tweet about how taxing the rich or increasing workers’ wages kills jobs and makes businesses leave the state, I want you to send them this article.

When he took office in January of 2011, Minnesota governor Mark Dayton inherited a $6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota’s first true fiscally-conservative governor in modern history. Pawlenty prided himself on never raising state taxes – the most he ever did to generate new revenue was increase the tax on cigarettes by 75 cents a pack. Between 2003 and late 2010, when Pawlenty was at the head of Minnesota’s state government, he managed to add only 6,200 more jobs.

During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly – a tax increase of $2.1 billion. He’s also agreed to raise Minnesota’s minimum wage to $9.50 an hour by 2018, and passed a state law guaranteeing equal pay for women. Republicans like state representative Mark Uglem warned against Gov. Dayton’s tax increases, saying, “The job creators, the big corporations, the small corporations, they will leave. It’s all dollars and sense to them.” The conservative friend or family member you shared this article with would probably say the same if their governor tried something like this. But like Uglem, they would be proven wrong.

Between 2011 and 2015, Gov. Dayton added 172,000 new jobs to Minnesota’s economy – that’s 165,800 more jobs in Dayton’s first term than Pawlenty added in both of his terms combined. Even though Minnesota’s top income tax rate is the 4th-highest in the country, it has the 5th-lowest unemployment rate in the country at 3.6 percent. According to 2012-2013 U.S. census figures, Minnesotans had a median income that was $10,000 larger than the U.S. average, and their median income is still $8,000 more than the U.S. average today.

By late 2013, Minnesota’s private sector job growth exceeded pre-recession levels, and the state’s economy was the 5th fastest-growing in the United States. Forbes even ranked Minnesota the9th-best state for business (Scott Walker’s “Open For Business” Wisconsin came in at a distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton’s tax cuts, 6,230 more Minnesotans filed in the top income tax bracket in 2013, just one year after Dayton’s tax increases went through. As of January 2015, Minnesota has a $1 billion budget surplus, and Gov. Dayton has pledged to reinvest more than one third of that money into public schools. And according to Gallup, Minnesota’s economic confidence is higher than any other state

Gov. Dayton didn’t accomplish all of these reforms by shrewdly manipulating people – this article describes Dayton’s astonishing lack of charisma and articulateness. He isn’t a class warrior driven by a desire to get back at the 1 percent – Dayton is a billionaire heir to the Target fortune. It wasn’t just a majority in the legislature that forced him to do it – Dayton had to work with a Republican-controlled legislature for his first two years in office. And unlike his Republican neighbor to the east, Gov. Dayton didn’t assert his will over an unwilling populace by creating obstacles between the people and the vote – Dayton actually created an online voter registration system, making it easier than ever for people to register to vote.

The reason Gov. Dayton was able to radically transform Minnesota’s economy into one of the best in the nation is simple arithmetic. Raising taxes on those who can afford to pay more will turn a deficit into a surplus. Raising the minimum wage will increase the median income. And in a state where education is a budget priority and economic growth is one of the highest in the nation, it only makes sense that more businesses would stay.

It’s official – trickle-down economics is bullshit. Minnesota has proven it once and for all. If you believe otherwise, you are wrong.


Carl Gibson, 27, is co-founder of US Uncut, a nonviolent grassroots movement that mobilized thousands to protest corporate tax dodging and budget cuts in the months leading up to Occupy Wall Street. Carl and other US Uncut activists are featured in the documentary We’re Not Broke, which premiered at the 2012 Sundance Film Festival. Carl is also the author of How to Oust a Congressman, an instructional manual on getting rid of corrupt members of Congress and state legislatures based on his experience in the 2012 elections in New Hampshire. He lives in Sacramento, California.


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