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.


West Coast Port Slowdown Impacts Nevada County Businesses

west_coast_port_slowdownBy Don Pelton

When we arranged with the local tree experts and altogether good people at Trees Unlimited to fell about a half dozen large ponderosas on our property and have them trucked to a mill, we scheduled the work to be done on Friday the 13th, disregarding all the silly supersitions about that date.

It turned out to be an unlucky date for us, though.

They had to cancel the job due to a work slowdown at the container ports on the West Coast. The mills can’t ship any more lumber to these ports (for the Chinese market, among others), because of a labor-management dispute between the International Longshoremen’s Association and the ports’ management (the Pacific Maritime Association).

And we can’t have the trees just felled and remain on the ground until the dispute is resolved. That could be weeks, or even months. By that time, the trees would no longer be marketable.

The work slowdown affects many more industries besides our local tree people.

It’d be interesting to know the full impact of the slowdown on Nevada County’s economy. We know that it’s affecting a lot of tree work here in addition to our own.

In the meantime, there’s no doubt that the slowdown is affecting businesses in neighboring California counties:

World Ag Expo impacted by West Coast port slowdown”

On Friday, the California Assembly Republican Caucus issued a press release begging the union and the port management to quickly resolve their dispute, calling attention to the harm already being done to California’s agricultural economy:

“The ongoing West Coast port labor dispute is having a devastating impact on our economy. Farmers and ranchers in particular are having a tough time shipping perishable food to customers worldwide. It is unacceptable that California’s economy is essentially being held hostage to a labor dispute,” said Assembly Republican Leader Kristin Olsen, of Modesto. “I am calling for action from President Obama and the federal government to intervene and secure a resolution so we can get our ports fully operating again.”

“Farmers, small business owners, retailers, truckers, consumers and nearly every Californian are being impacted by this ongoing dispute that has brought our ports to a virtual standstill,” said Assemblyman James Gallagher (R-Nicolaus). “I call upon both sides to come together to resolve this dispute without delay. President Obama and the federal government must also use every power at their discretion to bring the parties together to reach a settlement.”

“As we speak, precious fruits and vegetables are rotting in shipping containers that are bottlenecked at our West Coast ports,” said Assemblyman Devon Mathis (R-Porterville). “Our Central Valley has already been hit hard by the ongoing drought. The agricultural products our communities managed to produce despite the lack of water have been thrown to the wayside due to this disruptive labor dispute. We cannot allow these exports to sit for one day longer.”

The labor dispute at the West Coast ports has waged on for nine months. On Wednesday, it was announced that port operations will be suspended for four days as a result of the current labor dispute. According to one estimate, it could cost the country $2.1 billion per day if the ports shut down entirely for 10 days. Worse, congestion at West Coast ports could cost retailers as much as $7 billion this year alone.

According to the following business report, the President could force a cooling-off period under Taft-Hartley if the slowdown were to become a full-fledged strike or a complete lockout. In the meantime, the daily dollar cost of the slowdown is probably in the billions nationwide.

2/12/15 – Why the West Coast port slowdowns are cracks in the foundation of the U.S. economy

2/10/15 – West coast port dispute slows movement of bales 

2/9/15 – Port of Oakland updates operating status, waterfront labor talk

2/9/15 – West Coast port closure could cost $2.1 billion per day

2/9/15 – ILWU locked out on West Coast for 2 days

2/7/15 – Bitter shipping battle continues at Oakland port

2/6/15 – House Majority Leader Kevin McCarthy wants federal mediation of port dispute

2/6/15 – Port trucking companies take stand against rising fees

2/4/15 – PMA President James C. McKenna issues a statement regarding the state of contract negotiations

2/3/15 – CRRC letter to Governor Brown requesting suspension of regulatory penalties

1/30/15 – Letter from members of Congress to the ILWU and PMA urging resolution

1/30/15 – WCRRC letter to regulatory agencies requesting suspension of penalties

 


Another Economic Crash is Coming

Economist Ross Ashcroft (in this 4-minute video) correctly points out that the most important warning sign of an impending crash is the level of private (household and business) debt as a percentage of GDP. In this view, he is in complete accord with Professor Steve Keen, one of the few economists to correctly predict the last big meltdown.

 

 

 

 

 


Internet’s Impact on Print Media Only Part of the Story

Playwright Alena Smith, describing the faded fortunes of American playwrights, notices that the impact of the Internet extends far beyond the print media:

This is what happens to “old media,” after all — new media rise up and displace them. We are clearly in the midst of such a conflict right now, as the internet has seized control of the global cultural economy, upending established industries and eroding formerly paramount institutions from book publishers to the music industry to print newspapers and magazines to now, finally, even the mighty television networks. Rough times lie ahead for the television industry, and these challenges will inevitably impact its writers.;

Side note: We’ve joined this revolution by dropping our cable service several years ago (saving ourselves over $100/mo). Now we do all of our “television” viewing online, Internet only.

Smith continues:

As internet pioneer turned techo-skeptic Jaron Lanier starkly puts it in his 2010 screed You Are Not a Gadget, “Once file sharing shrinks Hollywood as it is now shrinking the music companies, the option of selling a script for enough money to make a living will be gone.” Lanier’s warning may seem hyperbolic, but unrestricted file sharing is surely what undermined the music industry, and it’s what’s hurting the world of journalism, too. In a sense, the internet caused the unbundling of both the music album and the print newspaper — and in doing so, severely damaged both industries. The trouble comes down to simple economics of supply and demand in the digital age. When infinite copies of a work of art can be made and distributed globally in an instant, supply is limitless, and the value of an individual copy gets pushed down to zero. But of course, the original cost of creating a work of art in the first place, for the creator, does not change a bit. Writers still need to eat, pay rent, and feed their families. They just can’t necessarily rely on profits from their actual work to compensate them for that endeavor. This is how a profession gets demonetized. This is how a job — a living — gets reduced to a hobby.

Notice too Smith’s perspective on net neutrality:

The platform where nearly all of culture now takes place is, in fact, owned and controlled by a handful of incredibly powerful, borderline-monopolistic corporations. And these are the companies, like Amazon, now getting into “the scripted game.” We’ve already seen the types of problems that can arise under this new arrangement — for example, in the recent conflict between Amazon and the publishing company Hachette. In an era where Amazon is responsible for 65 percent of all online book sales, and 41 percent of book sales, period, their thuggish negotiation tactics can be potentially calamitous for a publishing company, and devastating for individual writers. If this is how Amazon treats the writers of books, how well can we expect them, as producers or distributors, to treat the writers of TV shows? Similar questions can be asked about any of the powerful new platform owners — in particular, the telecom companies that actually control the physical cables and routers through which all our media now travels. The fight for net neutrality is the fight to stop the internet from becoming a place where giant telecom companies are able to dictate terms to every creator who wishes to distribute content through their pipes. And screenwriters’ livelihoods depend on it.

Read the full article here: “You Can’t Make a Living: Digital Media, the End of TV’s Golden Age, and the Death Scene of the American Playwright


Eric Holder: The Reason Robert Rubin Isn’t Behind Bars

Reprinted from The Center for Economic and Policy Research under a Creative Commons License

By Dean Baker

The big news item in Washington last week was Attorney General Eric Holder decision to resign. Undoubtedly there are positives to Holder’s tenure as attorney general, but one really big minus is his decision not to prosecute any of the Wall Street crew whose actions helped to prop up the housing bubble. As a result of this failure, the main culprits walked away incredibly wealthy even as most of the country has yet to recover from the damage they caused.

Just to be clear, it is not against the law to be foolish and undoubtedly many of the Wall Streeters were foolish. They likely believed that house prices would just keep rising forever. But the fact that they were foolish doesn’t mean that they didn’t also break the law. It’s likely that most of the Enron felons believed in Enron’s business model. After all, they held millions of dollars of Enron stock. But they still did break the law to make the company appear profitable when it wasn’t.

In the case of the banks, there are specific actions that were committed that violated the law. Mortgage issuers like Countrywide and Ameriquest knowingly issued mortgages based on false information. They then sold these mortgages to investment banks like Citigroup and Goldman Sachs who packaged them into mortgage backed securities. These banks knew that many of the mortgages being put into the pools for these securities did not meet their standards, but passed them along anyhow. And, the bond-rating agencies rated these securities as investment grade, giving many the highest possible ratings, even though they knew their quality did not warrant such ratings.

All three of these actions – knowingly issuing mortgages based on false information, deliberately packaging fraudulent mortgages into mortgage backed securities, and deliberately inflating the ratings for mortgage backed securities – are serious crimes that potentially involve lengthy prison sentences. Holder opted not to pursue criminal cases against the individuals involved.

In the last couple of years Holder did bring civil cases against these banks that led to multibillion settlements. These settlements won big headlines that gave the appearance of being tough on the banks.

If we look at the issue more closely the rationale for these settlements gets pretty shaky. When Bank of America or J.P. Morgan has to pay out several billion dollars in penalties in 2013 or 2014, the people being hit most immediately are current shareholders and to a lesser extent top management. Since stock turns over frequently, the overlap between the group of people who hold these banks’ stock today and the people who benefited from the profits racked up in the bubble years will be limited. This means for the most part the fines are hitting people who did not profit from the wrong doing.

The same story holds for the top executives. Insofar as these are different people from those in charge in the bubble years (this is mostly the case), they can rightly tell their boards that they should not be held responsible for the wrongdoing of their predecessors. As a result, boards are likely to compensate top management if they fail to hit bonus targets due to the fines. This just means more of a hit to current shareholders. So the people who profited from criminal acts get to keep their money, while Holder can boast about nailing people who had nothing to do with the crime.

Had Holder treated this as a normal criminal matter he would have looked to build cases from the bottom up. This means finding specific examples of mortgage agents issuing obviously fraudulent mortgages, cases where these mortgages got bundled into securities at investment banks, and then marked as investment grade by the rating agencies.

The people involved would then be pressed to say whether they are either buffoons or crooks. Most probably would not pass as the former. The next question is why they decided to break the law. When you get people to admit that they were acting on instructions from their bosses, you then ask the bosses whether they want to spend many years in jail or would prefer to explain why they thought it was a good idea to commit fraud. (This is the pattern the Justice Department is pursuing in going after illegal campaign contributions to Washington Mayor Vincent Gray.)

We can never know this pattern of prosecution would have nailed big fish like Goldman’s Lloyd Blankfein or Citigroup’s Robert Rubin. We do know that Holder never even tried. As a result the Wall Streeters who profited most from illegal acts in the bubble years got to keep their haul. This is the message that bankers will take away going forward. This virtually guarantees ongoing corruption in finance.


AUTHOR_Dean_BakerDean Baker is the author of The End of Loser Liberalism: Making Markets Progressive, Taking Economics Seriously, False Profits: Recovering from the Bubble Economy, Plunder and Blunder: The Rise and Fall of the Bubble Economy, The United States Since 1980, The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer, Social Security: The Phony Crisis (with Mark Weisbrot), and The Benefits of Full Employment (with Jared Bernstein). He was the editor of Getting Prices Right: The Debate Over the Consumer Price Index, which was a winner of a Choice Book Award as one of the outstanding academic books of the year. He appears frequently on TV and radio programs, including CNN, CBS News, PBS NewsHour, and National Public Radio. His blog, Beat the Press, features commentary on economic reporting. He received his B.A. from Swarthmore College and his Ph.D. in economics from the University of Michigan.


How the New York Times Enables Economic Illiteracy (Austerity)

Reprinted from the New Economic Perspectives blog at the University of Missouri-Kansas City

Editor’s Note: William K. Black, author of “The Best Way to Rob a Bank is to Own One,” is Associate Professor of Law and Economics at the University of Missouri-Kansas City, where — according to James Galbraith — “the best economics is now being done.”

By William K. Black

In the latest example of the New York Times’ reporters’ inability to read Paul Krugman, we have an article claiming that the “Growing Imbalance Between Germany and France Strains Their Relationship.”  The article begins with Merkel’s major myth accepted as if it were unquestionable reality.

“It was a clear illustration of the dysfunction of the French-German partnership, the axis that for decades kept Europe on a united and dynamic track.

In Berlin this month, Chancellor Angela Merkel, riding high after nine years in power, delivered a strident defense in Parliament of austerity, which she has been pushing on Europe ever since a debt crisis broke out in 2009.”

No, not true on multiple grounds.  First, the so-called “debt crisis” was a symptom rather than a cause.  The reader will note that the year 2008, when the Great Recession became terrifying, has somehow been removed from the narrative because it would expose the misapprehension in Merkel’s myth.  Prior to 2008, only Greece had debt levels given its abandonment of a sovereign currency that posed a material risk.  The EU nations had unusually low budgetary deficits leading into the Great Recession.  Indeed, that along with the extremely low budgetary deficits of the Clinton administration (the budget went into surplus near the end of his term) is likely one of the triggers for the Great Recession.

The Great Recession caused sharp increases in deficits – as we have long known will happen as part of the “automatic stabilizers.”  This is normal and speeds recovery.  The eurozone and the U.S. began to come out of the Great Recession in 2009.  The U.S. recovery accelerated with the addition of stimulus.  In the eurozone, however, the abandonment of sovereign currencies and adoption of the euro exposed the periphery to recurrent attacks by the “bond vigilantes.”  The ECB could have stopped these attacks at any time, but it was very late intervening – largely because of German resistance.  Instead, Merkel used the leverage provided by the bond vigilantes and the refusal of the ECB to act to end their attacks to force increasing austerity upon the eurozone and demands for severe cuts in workers’ wages in the periphery.

Merkel’s actions in forcing austerity and efforts to force sharp drops in workers’ wages in the periphery were not required to stop any “debt crisis.”  The ECB had the ability to end the bond vigilantes’ attacks and reestablish the ability of the periphery to borrow at low cost, as it demonstrated.  Merkel’s austerity demands and demands that (largely) left governments in the periphery slash workers’ wages promptly threw the entire Eurozone back into a second Great Recession – and much of the periphery into a Second Great Depression.  It had the desired purpose of discrediting the governing parties of the left, particularly in Spain, Portugal, and Greece; that gave in to Merkel’s mandates that they adopt masochistic macroeconomic policies.

It is also false that Merkel began demanding that eurozone inflict austerity only in 2009.  Merkel wanted to inflict austerity and her war on the workers and the parties they primarily supported long before 2009.  What changed in 2009 was that the ECB, the Great Recession, and the bond vigilantes gave her the leverage to successfully extort the members of the eurozone who opposed austerity and her war on workers and the parties of the left.

But it is what is left out of the quoted passage above that is most amazing.  The fact that Merkel’s orders that the eurozone leaders bleed their economies through austerity and the war on workers’ wages led to a gratuitous Second Great Recession in the eurozone – and Great Depression levels of unemployment in much of the periphery disappears.  The fact that inflicting austerity and wage cuts in response to a Great Recession is economically illiterate and cruel disappears.  The fact that the overall eurozone – six years after the financial crisis of 2008 and eight years after the financial bubbles popped in 2006 – has stagnated and caused tens of trillions of dollars in lost GDP and well over 10 million lost jobs is treated by the NYT article as if it were unrelated to Merkel’s infliction of austerity.

“But the French economy has grown stagnant, with unemployment stubbornly stuck near 11 percent and an unpopular government pledging to cut tens of billions in taxes on business, which many French fear will unravel their prized welfare state.”

No, the eurozone economy “has grown stagnant” and produced a Second Great Depression in much of the periphery.  If France had a sovereign currency or if the EU were to make the euro and into a true sovereign currency France could simultaneously “cut tens of billions in taxes on business” while preserving the social safety net and speeding the recovery.  The same is true of the rest of the eurozone – including Germany where Merkel’s policies have made the wealthy far wealthier and deepened the economic crisis in other eurozone nations by cutting German worker’s wages.  The NYT article is disingenuous about both aspects of the German economy, noting only that “the German economy has shown signs of slowing down.”  German growth was actually negative in the last quarter and the treatment of its workers weakens the German and overall eurozone recovery.

It continues to be obvious that it is a condition of employment for NYT reporters covering the eurozone’s economic policies that they never read Paul Krugman (or most any other American economist).  Consider this claim in the article:

“[Prime Minister Manuel Valls] and Mr. Hollande have alienated many members of the Socialist Party by taking a more centrist approach to economic policy, stoking suspicions that the government is favoring business at the expense of the welfare state.”

I will take this part very slow.  By my count Krugman has written at least six columns in the NYT explaining that there actually is a powerful consensus among economists.  The “centrist approach” is that austerity in response to a Great Recession is self-destructive.  We have known this for at least 75 years.  Modern Republicans, when they hold the presidency, always respond to a recession with a stimulus package.  Valls and Hollande are moving away from a “centrist approach to economic policy.”  They are doing so despite observing first-hand the self-destructive nature of austerity (and proclaiming that it is self-destructive).  They do so despite the demonstrated success of stimulus in responding to the financial crisis.  They do so despite the fact that the results of the faux left parties adopting these economically illiterate neo-liberal economic policies is the destruction of the parties that betray their principles and the workers.  Valls and Hollande are spectacularly unpopular in France because of these betrayals.  It is clear why Valls and Hollande wish to avoid reading Krugman’s critique of their betrayals, but theNYT reporters have no excuse.

The reporters do not simply ignore the insanity of austerity and the plight of the eurozone’s workers – they assert that it is obvious that Merkel is correct and that the French reluctance to slash workers’ wages is obviously economically illiterate.

“Just over a decade ago, as Ms. Merkel is fond of noting, Germany was Europe’s sick economy. It recovered partly because of changes to labor laws and social welfare. Mr. Hollande now faces a similar task in an era of low or no growth.”

No.  These two sentences propound multiple Merkel myths and assume (1) that France’s (and the rest of the eurozone’s) problems are the same as Germany’s issues “just over a decade ago,” (2) that Germany “recovered” due to slashing workers’ wages and social programs, and (3) that the German “solutions” would work for the eurozone as a whole.

Germany’s “reforms,” which included increasing financial deregulation, have proven disastrous.  German banks finished third in the regulatory “race to the bottom” (“behind” Wall Street and the worst of the worst – the City of London).  The officers that controlled Deutsche Bank and various state-owned German banks were among the leading causes of the financial crisis.  German workers had lost ground even before the financial crisis and have lost even more ground since the crisis began.  Inequality has also become increasingly more extreme in Germany.

The current problem in the eurozone is a critical shortage of demand exacerbated by the insanity of austerity and Merkel’s war on workers’ wages.  The word “demand” and the concept, the centerpiece of the macroeconomics of recession, never appear in the article.  An individual nation in which the wealthy have the political power to lower workers’ wages can increase its exports and employ more of its citizens.  This obviously does not prove that the workers were overpaid.  Merkel and the NYT ignore the “fallacy of composition,” which is particularly embarrassing because they are neo-mercantilists pushing the universal goal of being a net exporter.  As Adam Smith emphasized, we can’t all be net exporters.  A strategy that can work (for the elites) of one nation cannot logically be assumed to work for large numbers of nations.

The last thing a society should want in a recession is rapidly falling wages and prices that can create deflation (another word expunged from the NYT article because it would refute their ode to Merkel, austerity, and her war on the worker).  If France were to slash workers’ wages to try to take exports from Ireland while Ireland slashed workers’ wages to try to take exports from Spain, which did the same to take exports from Italy the result would be deflation, a massive increase in inequality, the political destruction of any (allegedly) progressive political party that joined in the war on the worker, and a “race to Bangladesh” dynamic.

Germany’s “success” in being a very large net exporter makes it far more difficult – not easier – for any other eurozone nation to copy its export strategy successfully.  As a group, the strategy cannot work for the eurozone.  The strategy has, of course, not simply “not succeeded.”  It has failed catastrophically.  Merkel’s eurozone policies have caused trillions of dollars in extra losses in productivity, the gratuitous loss of over 10 million jobs, increased inequality, and the loss through emigration of many of the best educated young citizens of the periphery.

Hollande does not face “a similar task” to Merkel.  He faces different problems and Merkel’s “solutions” are the chief causes of France’s economic stagnation rather than the answers to France’s problems.

I repeat my twin suggestions to the NYT reporters that cover the eurozone’s economy.  The paper’s management should host a seminar in which Krugman educates his colleagues.  Alternatively, come to UMKC and we’ll provide that seminar without charge.  None of us can afford the cost of the reporters’ continuing willful ignorance of economics and their indifference to the victims of austerity and Merkel’s war on workers.

 


“A Great Leader Doesn’t Just Occupy The Middle Ground”

Here are some tough words about the Obama presidency from Cornell West, who argues persuasively that the fetish for the middle ground in politics often makes for poor leadership.

In the interview Thomas Frank asks West, “What on earth ails the man? Why can’t he fight the Republicans? Why does he need to seek a grand bargain?”

West replies:

“I think Obama, his modus operandi going all the way back to when he was head of the [Harvard] Law Review, first editor of the Law Review and didn’t have a piece in the Law Review. He was chosen because he always occupied the middle ground. He doesn’t realize that a great leader, a statesperson, doesn’t just occupy middle ground. They occupy higher ground or the moral ground or even sometimes the holy ground. But the middle ground is not the place to go if you’re going to show courage and vision. And I think that’s his modus operandi. He always moves to the middle ground. It turned out that historically, this was not a moment for a middle-ground politician. We needed a high-ground statesperson and it’s clear now he’s not the one.”

West also says:

“He posed as a progressive and turned out to be counterfeit. We ended up with a Wall Street presidency, a drone presidency, a national security presidency. The torturers go free. The Wall Street executives go free. The war crimes in the Middle East, especially now in Gaza, the war criminals go free. And yet, you know, he acted as if he was both a progressive and as if he was concerned about the issues of serious injustice and inequality and it turned out that he’s just another neoliberal centrist with a smile and with a nice rhetorical flair. And that’s a very sad moment in the history of the nation because we are—we’re an empire in decline. Our culture is in increasing decay. Our school systems are in deep trouble. Our political system is dysfunctional. Our leaders are more and more bought off with legalized bribery and normalized corruption in Congress and too much of our civil life. You would think that we needed somebody—a Lincoln-like figure who could revive some democratic spirit and democratic possibility.”

Read the full interview here:

Cornel West: “He posed as a progressive and turned out to be counterfeit. We ended up with a Wall Street presidency, a drone presidency”


Fringe Climate Skeptics Wield Undue Influence on Rural Public Policy

By Steve Frisch

I have been thinking a lot about our regional climate change skeptics in the Sierra Nevada and their impact on public policy. Occasionally I do my share of getting into debates and doing a little warming myself though I know it simply empowers their position at times.

I do however have a couple of observations about how they make their case and the consequences.

Rarely do they get into the actual scientifically peer reviewed papers and make their case based on the efficacy of the science itself.

The case I hear is that any science wholly or even partially funded by the government or private foundations done by agencies, academic institutions, professional groups, or individual scientists is inherently flawed due to their source of funding. Then I hear that any science using past data funded by any of these groups is inherently flawed due to confirmation bias. Next I hear that the peer review process itself is inherently flawed due to dependence on government funding. Then I hear that when the aggregate data and multiple proof points indicate a significant change occurring we should be giving more weight to the outlier data proving the opposite, as though the very small percentage of those valid peer reviewed reports should be given some weight that contrary data is not due. Finally I hear that if there is some evidence that anthropogenic climate change is occurring the cost of doing something about it is prohibitive.

It is as though climate skeptics do not wish to even understand or acknowledge the peer review process and the critical role it plays in vetting data and its analysis.

I guess this would not be an issue if the consequences of being wrong were not so high.

The impact of a changing climate on California’s water supply alone is measured in the tens of billions of dollars in economic impact annually. Worse, because we live in a state where the vast majority of people do believe climate change is a real threat, and our state has adopted policies to adapt to and mitigate the impacts of climate change through laws like AB 32 and SB 375, the low carbon fuels standard and the renewable portfolio standard, much of our state is rushing ahead with adaptation and mitigation strategies, strategies funded through a combination of our state general fund budget, surcharges on electricity, and revenue derived from the Cap and Trade program. Those revenues are being used to adapt our infrastructure, like water delivery systems, roads, bridges transportation networks, and wastewater treatment. Those revenues can also be directed at solving the seemingly insurmountable problem in the Sierra Nevada of long-term forest management and wildfire management, establishing a link between forests, mountains, watershed management, and water supply that is the number one commodity export of the Sierra Nevada and the source of much of our states wealth.

The problem we face is that distribution of revenue is controlled by a political process; our state budget voted on by legislators annually. In a political process funds don’t get distributed to regions and legislative districts where the elected representatives don’t acknowledge a problem is occurring and actively obstruct solving the problem in other areas of the state. Consequently the Sierra Nevada and its climate related issues do not receive their fair share of state funding which is being paid for by all of the taxpayer of the state, even us rural residents.

The stakes are very high indeed; by 2020 more than $5 billion per year will be distributed to adapt to climate change in California. Where will that money go? Who will benefit from the public works, construction, community improvement and middle class jobs related to implementation?

We are allowing the voice of a small minority of climate skeptics and their ability to influence our local politics by being the ‘loudest voice in the room’ to deny our region the funding we deserve, relegating our local communities and economies to a permanent backwater and underprivileged status.

The Onion may be parodying this phenomenon, but our communities are living it, we are watching as billions of dollars a year are collected from our residents and going to urban districts where the populous is more amenable to climate adaption and mitigation strategies. If I were a rural legislator I might listen to the skeptics, but I would not deny my regions the fruits of their taxes, surcharges and fees.

At some point pragmatism has to take over.

I only wish I knew where that point was so I could push to reach it.


Steve_FrischSteve Frisch is President of the Sierra Business Council and one of its founding members. He is a dedicated project manager with over 20 years experience managing people in a highly competitive environment. Steve manages SBC’s program staff and programmatic development. He also manages sustainable business and building projects to encourage the adoption of socially responsible business and development practices.

Prior to joining the Sierra Business Council, Steve owned and operated a small business in Truckee, California and was president of the Truckee Downtown Merchants Association. Steve has served on the Nevada County Welfare Reform Commission, the Town of Truckee redevelopment agency formation committee and as an advisor to the California Resources Agency’s California Legacy Project.


The Worst of Nevada County in National News, Again

Why is that only the worst of Nevada County — in this case another right-wing gun nut — makes the national news?

Esteemed journalist and historian Rick Perlstein, writing in Salon, found occasion to notice this Nevada County event (while gently chiding the New York Times for failing to cover it):

Here is a truth so fundamental that it should be self-evident: When legitimately constituted state authority stands down in the face of armed threats, the very foundation of the republic is in danger. And yet that is exactly what happened at Cliven Bundy’s Nevada ranch this spring: An alleged criminal defeated the cops, because the forces of lawlessness came at them with guns — then Bureau of Land Management officials further surrendered by removing the government markings from their vehicles to prevent violence against them.

What should be judged a watershed in American history instead became a story about one man’s racist rants. Even as two more Nevada lunatics, inspired by their stint at Cliven Bundy’s ranch, allegedly ambushed and mowed down two police officers and killed a bystander after crying, “This is the start of a revolution.” And now, an antigovernment conspiracy theorist named Douglas Cole recently shot at two police officers in Nevada County, California (though you may not have heard about that, because the New York Times hasn’t found the news yet fit to print).

From “Gun Nuts Are Terrorizing America: The Watershed Moment Everyone Missed

Ah, but here’s some Nevada County news that the New York Times did find “fit to print.” But wait, it’s also bad news!

Nevada County

Nevada County ranks 58th of 58 in diversity in California.

Students, in 2006 15,446
White 13,496 87%
Black 142 1%
Hispanic 1,336 9%
Asian 240 2%
Native American 232 2%

Some might consider Nevada County’s connection to the founding of the Tea Party Patriots good news. But there’s hardly a consensus about that.

I look  forward to the day when we get into the national news for integrating our local economic and environmental interests, for our understanding of the economic importance of restoring local watersheds, for our leadership in bridging the urban/rural divide. and for our creative reconciliation of liberal and conservative values.

The fact that this all sounds very idealistic and touchy-feely is an indication of how far we have to go in making it a reality.

But why else should we be here, if not to work for that?


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