When the corporations run the world


Warning: Strong language, not suitable for work.

I’m not going to use this as an example of Obama’s flaws as a president, because it’s not even the point. Our system is so badly skewered in favor of multinational corporations and their financial and legal interests that Obama is almost irrelevant. Any politician who tried to stand up to the kind of people who want these treaties would most likely find him- or herself at the receiving end of a carefully arranged “accident” — or an assassin’s bullet.

The real question, then, is, what, if anything, are we willing to do about it? Because we’re seeing the tacit agreement by our politicians that Americans (real working Americans, not politicians!) simply have to get used to a Third-World standard of living, and their job is to herd us all into the Foxcomm-style pens so their patrons will get even fatter and richer:

President Obama campaigned in 2008 as a strong pro-labor candidate, and this year he will again. But for union activists who’ll be working hard for his re-election, a newly leaked document represents yet another bitter disappointment.

The document contains draft text of a chapter of the Trans-Pacific Partnership trade agreement currently being negotiated between the U.S. and eight Pacific countries. The Obama administration has shrouded the negotiation in secrecy, but the document,published by the consumer group Public Citizen, sheds a light on the process — and the view isn’t pretty.

“The leaked document,” says Todd Tucker, the research director of Public Citizen’s Global Trade Watch division, “shows that in all of the major respects, this is exactly the same template that was used in NAFTA and other agreements that President Obama campaigned against.” Public Citizen warns the provisions of the agreement would allow other countries to join in the future, giving it the potential to become a new global trade agreement, larger than NAFTA.

Well, we already knew that Obama’s anti-NAFTA campaign speeches were pretty much for show, but this is rather staggering.

Consumer groups and unions are particularly outraged over the Obama administration’s plan that would allow corporations from TPP countries to bring suit before a multinational tribunal when laws or regulations in another member country harm their profits.Tucker warns that such language means that an individual company “that’s not necessarily pursuing the national interest as a whole can attack environmental regulations without first having to go through any kind of diplomatic process.” He notes that “We’ve seen over $300 million paid out to investors as a result of NAFTA cases” challenging environmental and financial regulation. Tucker gave the example of a Mexican municipality forced to pay $15 million to a U.S. investor who had bought a landfill which was being subjected to regulation. Tucker said companies are also “using it preemptively to cast a chill on regulation that might be coming down the pike.”

While he isn’t aware of a NAFTA case specifically targeting labor regulations, Tucker said that the “pretty broad” language of the draft TPP proposal could be used, for example, to attack an increase in labor inspections, as well. Tucker added that the current TPP proposal confers no equivalent power for labor unions to challenge anti-union or anti-worker policies in other countries.

Celeste Drake, a Trade Policy Specialist for the AFL-CIO, said the federation has voiced concerns with U.S. officials that the language could be used to attack labor regulations like mandatory overtime or maternity leave. She says “they have not shared our concerns, but have also not presented a compelling argument regarding why such challenges could not happen under our existing investment language.”
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Why economic recovery isn’t happening

Good old Robert Reich apparently still thinks Americans are able and willing to learn the lessons of history:

The major reason this recovery has been so anemic is not Europe’s debt crisis. It’s not Japan’s tsumami. It’s not Wall Street’s continuing excesses. It’s not, as right-wing economists tell us, because taxes are too high on corporations and the rich, and safety nets are too generous to the needy. It’s not even, as some liberals contend, because the Obama administration hasn’t spent enough on a temporary Keynesian stimulus.

The answer is in front of our faces. It’s because American consumers, whose spending is 70 percent of economic activity, don’t have the dough to buy enough to boost the economy – and they can no longer borrow like they could before the crash of 2008…

…What to do? There’s no simple answer in the short term except to hope we stay in first gear and don’t slide backwards. Rarely in history has the cause of a major economic problem been so clear yet have so few been willing to see it.

Over the longer term the answer is to make sure the middle class gets far more of the gains from economic growth.

How? We might learn something from history. During the 1920s, income concentrated at the top. By 1928, the top 1 percent was raking in an astounding 23.94 percent of the total (close to the 23.5 percent the top 1 percent got in 2007) according to analyses of tax records by my colleague Emmanuel Saez and Thomas Piketty. At that point the bubble popped and we fell into the Great Depression.

But then came the Wagner Act, requiring employers to bargain in good faith with organized labor. Social Security and unemployment insurance. The Works Projects Administration and Civilian Conservation Corps. A national minimum wage. And to contain Wall Street: The Securities Act and Glass-Steagall Act…

A nation of losers

Charles Pierce is on to something regarding the casino mentality that has slowly poisoned this country over the years since the first non-Nevada casinos in America opened:

…Consider: Most every state in the Union, including the Commonwealth (God save it!) here, would rather build 20 casinos than risk raising taxes a dime, as though gambling itself were not a brutal tax. (How do I know this? Because once, long ago, on the night Mark McGwire and his pharmacist went past Roger Maris and his bartender for the single-season home run record, I sat in a casino in Tunica, Mississippi, and watched a 300-pound woman with oxygen tubes up her nose feed quarters into a slot machine while wearing a T-shirt that said, “Jesus Is The Answer.” This was the same trip on which I saw a billboard outside Vicksburg that suggested, “Sell Your Car For Cash.”) The entire Republican economic plan is one long gamble on a bunch of economic theories that already have failed twice in my lifetime. Ask even earnest young liberals how you manage to get a middle class without a manufacturing base, an active government, and strong unions, and you get the same kind of shrug you get along the rail when you ask someone why they bet the 5-horse when the creature plainly has hooves the size of a country ham. Ask Willard Romney the same thing, and he makes even less sense…

What trade-agreement pledge?

The big trade deals during the Clinton and Bush administrations — NAFTA is Exhibit A — came with false promises and outright lies concerning how they would affect American workers. But the hope-and-change Obama administration would do business in a more honest, open and worker-friendly fashion than those other administrations, right?

If you believed that, you probably also believed Barack Obama was more concerned about putting “folks” back to work than bailing out his bankster friends. From The Raw Story:

The Trans-Pacific Partnership (TPP), a forthcoming U.S. trade agreement that looks to solidify a seamless regional economy in the Pacific-rim, would give multinational corporations the power to challenge and even avoid compliance with laws in member countries — including the U.S. — provided a super-national corporate tribunal agrees with their claim.

That’s according to documents leaked this week by the Citizens Trade Campaign, an activist group responsible for leaking TPP proposals on intellectual property last year. The latest leak details a TPP draft chapter on “investments,” which proposes an independent dispute arbitration process that would be empowered to supersede domestic laws or regulatory actions in member states if they are seen as conflicting with the TPP’s framework…

In the event of a dispute between two entities incorporated in two different countries that are both members of one of these treaties, a trade tribunal serves essentially as a parallel legal system that exists outside of national laws and wields the power to knock down those laws or free multinational corporations from their obligation to comply with them. Considerations pertaining to labor rights or environmental protections are often not factored in to these decisions.

Although President Barack Obama had pledged during the 2008 presidential campaign to “not support NAFTA style trade agreements in the future,” he appears to have embraced them instead…

Horror story

Jonathan Turley with another heartbreaking Taser tale, this time in Baltimore. I keep saying this: Police departments will stop the indiscriminate use of tasers when citizens insist on it. Speak up in your town!

A disturbing lawsuit has been filed against the Baltimore County Police Department by Linda Johnson over the death of her husband, Architect Carl D. Johnson on May 27, 2010. Johnson was pepper sprayed, tasered, and beaten before his death on the way home from Bible study class.


Linda Johnson is suing the Maryland State Police, Baltimore County Police, individual commanders and six officers. Her lawsuit claims that her husband suffered a diabetic attack after calling a friend and crashing on I-795. First to the scene was State Trooper Davon Parker who pepper sprayed Johnson after he lowered his window of his car, which had crashed into the median. When Johnson got out of the car, Parker clubbed him on the knee and then allegedly another officer (Loss) clubbed him. When Baltimore County Police Officer Nicholas Wolferman arrived, he also allegedly beat Johnson. Three more officers arrived and one, Baltimore County Officer Andrew O’Neill tasered Johnson twice. Officer Loss then allegedly punched him in the face. Eight more officers then arrived — leaving one wondering if there were any officers left at headquarters. The complaint states that “there were approximately 52 individuals that responded to the scene.”


We have been following cases involving the use of tasers and excessive force by police. However, Baltimore has been cited as a standout jurisdiction in the use of tasers — leading to calls for investigation.

Johnson was only 48 and lives behind his wife of 27 years. Their son, Darren Johnson, predeceased his parents and Linda has now lost her husband.

The hands that feed us

It’s not just waitstaff – chefs (unless you own the restaurant) are getting paid peanuts, too:

Many people in the nascent food movement and in the broader “foodie” set know our farmers’ (and their kids’) names and what their animals eat. We practically worship chefs, and the damage done to land, air and water by high-tech ag is — correctly — a constant concern.


Yet though you can’t be a card-carrying foodie if you don’t know the provenance of your heirloom tomato, you apparently can be one if you don’t know how the members of your wait staff are treated. We don’t seem to mind or even notice that our servers might be making $2.13 an hour. That tip you debate increasing to 20 percent might be the difference in making the rent.


It’s true that a bit of attention has been paid to farmworkers — with some good results — and occasionally you read about the horrors of life in a slaughterhouse. But despite our obsession with food, the worker is an afterthought.


The Hands That Feed Us, and the work being done on the ground by groups like ROC-U — which contributed to the report and helped create the Food Chain Workers Alliance in 2008 — may signal the beginning of a change.


Take that $2.13 figure, the federal minimum wage for tipped workers. Legally, tips should cover the difference between that and the federal minimum wage, now a whopping $7.25. If they don’t, employers are obligated to make up the difference. But that doesn’t always happen, leaving millions of servers — 70 percent of whom are women — taking home far less than the minimum wage.


Which brings us to the happily almost-forgotten Herman Cain. What’s called the “tipped minimum wage” — that $2.13 — once increased in proportion to the regular minimum wage. But in 1996, the year Cain took over as head of the National Restaurant Association (NRA), he struck a deal with President Bill Clinton and his fellow Democrats. In exchange for an increase in the regular minimum wage, the tipped minimum wage was de-coupled. The result: despite regular increases in the regular minimum wage, the tipped minimum wage hasn’t changed since 1991.


Other disheartening facts: Around one in eight jobs in the food industry provides a wage greater than 150 percent of the regional poverty level. More than three-quarters of the workers surveyed don’t receive health insurance from their employers. (Fifty-eight percent don’t have it at all; national health care, anyone?) More than half have worked while sick or suffered injuries or health problems on the job, and more than a third reported some form of wage theft in the previous week. Not year: week.