Food for Thought

Yesterday, I shared the story of a woman who cleans houses for a living, a hardworking woman whose financial situation is so precarious (and options so limited) that she felt she had no choice but to return to work just days after she’d had a heart attack.

Today, I want to share some data from an article from In These Times by Michael Winship. The contrast is quite illuminating:

Open the Books, a new nonprofit working for greater transparency in government spending, reports that between 2000 and 2012, Fortune magazine’s top 100 companies received $1.2 trillion from the feds. And, Aaron Cantú writes at AlterNet, “That doesn’t include all the billions of dollars doled out to housing, auto and banking enterprises in 2008-2009, nor does it include ethanol subsidies to agribusiness or tax breaks for wind turbine makers.”

Richard Rubin at Bloomberg News recently found that, “The largest US-based companies added $206 billion to their stockpiles of offshore profits last year, parking earnings in low-tax countries until Congress gives them a reason not to. The multinational companies have accumulated $1.95 trillion outside the US, up 11.8 percent from a year earlier.”

Alan Pyke at the website ThinkProgress adds:

While precise estimates of lost revenue are difficult to make, previous inquiries into profit offshoring found that it cost the US between $30 billion and $90 billion each year during the early and middle 2000s, when the pile of untaxed corporate profits was much smaller.

States and localities also lose out on tens of billions of dollars in tax revenue each year to similar offshoring strategies. A recent study found that by closing just one small loophole in state business tax laws, states could bring in a billion dollars in new revenue almost overnight.

Think of the highways, bridges and housing that money could build or repair, and the jobs that could be created, the teachers and tuitions it could provide, the mouths it could feed. Then throw in corporate malfeasance without punishment, gross mismanagement and exorbitant executive salaries—for example, Henrique de Castro, the failed #2 at Yahoo, who’s getting $109 million for his 15 disastrous months there, or about $244,000 per day (h/t to R.J. Eskow).

So let me see if I understand this. A social safety net that would allow my housekeeper a couple of weeks to recuperate from her heart attack is “charity” that would promote “an unhealthy dependency.” But the transfer of trillions of taxpayer dollars to businesses that hoard their profits, don’t hire new workers, and use every trick in the book to evade paying their fair share of taxes is common-sense encouragement of entrepreneurship.

Excuse me while I throw up.

 

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About Those “Takers”

For the past three years or so, I’ve had my house cleaned once a month–an indulgence I justify to myself on the grounds that it frees up time I can use to write and teach. The woman who does the cleaning lives on a farm in Johnson County; most months, she brings her two teenagers with her. She has been utterly dependable, and has a key to the house; on “cleaning days,” I generally leave her money on the dining room table and go about my business.

Last Friday, I came home while the “crew” was still here. The teens were working, but their mom was sitting in her car in front of the house. The boy explained that his mother had had a heart attack that Monday.

I was appalled. Why on earth didn’t she postpone? Why was she driving? The son agreed. Looking concerned, he explained that she was worried about losing me (and others) as a client if she wasn’t dependable–and that he and his sister can’t drive.  I went to talk to her–to reassure her that I would have been fine with a postponement, that her health should come first–and I asked her about health insurance. She had Medicaid, she said, but “that doesn’t pay the light bill or put food on the table.” She assured me that she’d “be fine.”

Tell me again about Paul Ryan’s description of the “lazy” poor, and the “substandard” work ethic nurtured by their “culture.” Tell me again about Mitt Romney’s disdain for the 47% of Americans who just want to live off the “makers.” Tell me again about those constant Fox News’ stories about people who “rip off” taxpayers and live high on that generous social safety net we provide.

How many of the self-satisfied assholes who look down their noses at the growing numbers of struggling Americans would get out of their beds three days after a heart attack and go to work?

And how can the richest country in the world justify a system in which that’s necessary?

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File Under “Be Careful What You Wish For”

All eyes are on the lawsuit Hobby Lobby has pending in the U.S. Supreme Court, and most of the commentary revolves around the question of a corporation’s right to disregard a law of general application if that law offends its “sincerely held” religious sensibilities.

The threshold issue is whether a corporation can have religious sensibilities, sincere or otherwise. And hidden in plain sight in that question is an enormous threat to American business. In short, if Hobby Lobby prevails, it is likely to be at the expense of limited liability–which is the whole purpose of incorporation.

As one amicus brief noted,

The essence of a corporation is its “separateness” from its shareholders. It is a distinct legal entity, with its own rights and obligations, different from the rights and obligations of its shareholders. This Court has repeatedly recognized this separateness.

Shareholders rely on the corporation’s separate existence to shield them from personal liability. When they voluntarily choose to incorporate a business, shareholders cannot then decide to ignore, either directly or indirectly, the distinct legal existence of the corporation when it serves their personal interests.

The brief goes on to point out that it is this very “separateness” between shareholders and the corporation that they own that promotes investment, innovation, job generation, and the orderly conduct of business.

Think about it. How likely would you be to buy stock in a company if you thereby ran the risk of being found personally liable for improper or negligent corporate behavior?

Several commentators have noted that Hobby Lobby is effectively asking for the best of both worlds.  Its owners want to benefit from the protection against personal liability, but they don’t want to recognize that the corporation is an artificial entity not entitled to personal individual rights.

Hobby Lobby and Conestoga argue that they should be exempt from federal law because of the religious values of their controlling shareholders, while seeking to maintain the benefits of corporate separateness for all other purposes. These corporations have benefited from their separateness in countless ways and their shareholders have been insulated from actual and potential corporate liabilities since inception. Yet now they ask this Court to disregard that separateness in connection with a government regulation applicable solely to the corporate entity.

If the Court rules in favor of Hobby Lobby–if it finds that a corporation can assert a religious right to discriminate–it will be the beginning of the end of limited liability and corporate immunity for shareholders.

It’s tempting to say “it would serve them right,” but the truth is, such a result would be a body blow to business and the American economy.

There’s a reason the business community has stayed out of this litigation.

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The Power of Propaganda

A former student recently sent me a fascinating article from the LA Times. Titled “The Cultural Production of Ignorance,” it centered on the work of Robert Proctor, a Stanford Professor who teaches the history of science. Proctor studies intentional efforts to sow disinformation, especially about science.

The tobacco industry pioneered this sort of propaganda; when science demonstrated the link between smoking and various diseases, Big Tobacco’s tactic (outlined in a Brown and Williamson memo) was not to attack the evidence outright. Instead, they chose to “sow doubt and establish a controversy.”

Sound familiar? It should; the same approach is used by vaccine opponents, climate change deniers and those who reject evolution, among others. The tactic is a staple of Fox News (Proctor says that he “watches Fox News all the time.”)

Ironically, in the “information society” we inhabit, it has become easier to propagate ignorance. As issues become more complicated, they also become easier to confuse. And in the place of accuracy–what used to be called “the journalism of verification”–today’s media has substituted “balance.” Rather than objectivity, we get “both” sides of issues that may actually have six “sides” or only one. In place of real reporting, we get stenography–“he said, she said.”

This is an ideal environment for liars and propagandists.

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It Isn’t Only Science That’s Getting Distorted

The other day, I shared a study that found over 300 publicly-funded religious schools teaching creationism while denigrating and misrepresenting science.

Today, let me share what Salon reporter–and former history teacher– Katie Halper found when she looked to see what those same schools were teaching as history. (These “lessons” are from A Beka Book, used in an estimated 9,000 religious schools, but other materials widely-used by religious schools are consistent.)

  • The Great Depression was “an imaginary crisis” invented to “move the country toward socialism.” The Grapes of Wrath was propaganda.
  • Hitler was a socialist who combined Marxist thought with Darwin’s Theory of Evolution.
  • When the death penalty was suspended in 1972, crime began to increase; when the Court handed down Roe v. Wade the following year, it led to “an increase in white-collar crime [and] the legalization of gambling.” Worse still, in the wake of that decision, “many psychologists began advocating the teachings of Sigmund Freud.”
  • Free speech is dangerous and encourages ungodly behaviors. “Pornographic films and books have been legalized under the guise of ‘freedom of speech.'”

There’s much, much more, but you get the drift.

Not long ago, federal courts struck down the voucher program in Bobby Jindal’s Louisiana, after schools participating in that program were found to be teaching similar materials. As I wrote at that time,

A report from Louisiana Progress, a good-government business group, is instructive. The group petitioned the Board of Education to set at least minimal standards for schools receiving vouchers–evidence that the schools have adequate physical facilities, that they not dramatically increase either tuition or enrollment in order to benefit financially from the program, etc. Calling the program “poorly thought out and poorly implemented,” the report noted that schools selected to participate were not chosen on the basis of educational quality. Most were religious, and many of those quite fundamentalist: the New Living Word School had been approved to increase its enrollment from 122 to 315 students, despite lacking physical facilities for that number; increased its tuition from 200/month to 8500/year, and has a basketball team but no library. Students “spend most of the day watching TV. ..Each lesson consists of an instructional DVD that intersperses bible verses with subjects like chemistry or composition.”

Another voucher school, the Upperroom Bible Church Academy, operates in “a bunker-like building with no windows or playground.”

There are 120 private schools authorized to receive vouchers in Louisiana. A significant percentage are “Bible-based” institutions with what have been characterized as “extreme anti-science and anti-history curriculums” that champion creationism. (One is run by a former state legislator who refers to himself as a “prophet or apostle.” Wouldn’t that encourage you to enroll your child??) A number use textbooks produced by Bob Jones University.

Mother Jones has a list of 14 favorite lessons being taught by Louisiana’s voucher schools. Among them: dinosaurs and people hung out together; gays have no more claims to ‘special rights’ than child molesters and rapists.

Whatever the theory behind vouchers, the reality is that all too often they are diverting money from substandard public schools (making it much more difficult for those schools to improve), and redirecting that money to fundamentalist religious schools that make a mockery of the term “education.”

And this makes sense how? And to whom?

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