Lobbyists, Guns and Money by Paul Krugman Mar. 25, 2012, NY Times

Florida’s now-infamous Stand Your Ground law, which lets you shoot someone you consider threatening without facing arrest, let alone prosecution, sounds crazy — and it is. And it’s tempting to dismiss this law as the work of ignorant yahoos. But similar laws have been pushed across the nation, not by ignorant yahoos but by big corporations.

Specifically, language virtually identical to Florida’s law is featured in a template supplied to legislators in other states by the American Legislative Exchange Council, a corporate-backed organization that has managed to keep a low profile even as it exerts vast influence (only recently, thanks to yeoman work by the Center for Media and Democracy, has a clear picture of ALEC’s activities emerged). And if there is any silver lining to Trayvon Martin’s killing, it is that it might finally place a spotlight on what ALEC is doing to our society — and our democracy.

What is ALEC? Despite claims that it’s nonpartisan, it’s very much a movement-conservative organization, funded by the usual suspects: the Kochs, Exxon Mobil, and so on. Unlike other such groups, however, it doesn’t just influence laws, it literally writes them, supplying fully drafted bills to state legislators. In Virginia, for example, more than 50 ALEC-written bills have been introduced, many almost word for word. And these bills often become law.

Many ALEC-drafted bills pursue standard conservative goals: union-busting, undermining environmental protection, tax breaks for corporations and the wealthy. ALEC seems, however, to have a special interest in privatization — that is, on turning the provision of public services, from schools to prisons, over to for-profit corporations. And some of the most prominent beneficiaries of privatization, such as the online education company K12 Inc. and the prison operator Corrections Corporation of America, are, not surprisingly, very much involved with the organization.

What this tells us, in turn, is that ALEC’s claim to stand for limited government and free markets is deeply misleading. To a large extent the organization seeks not limited government but privatized government, in which corporations get their profits from taxpayer dollars, dollars steered their way by friendly politicians. In short, ALEC isn’t so much about promoting free markets as it is about expanding crony capitalism.
And in case you were wondering, no, the kind of privatization ALEC promotes isn’t in the public interest; instead of success stories, what we’re getting is a series of scandals. Private charter schools, for example, appear to deliver a lot of profits but little in the way of educational achievement.

But where does the encouragement of vigilante (in)justice fit into this picture? In part it’s the same old story — the long-standing exploitation of public fears, especially those associated with racial tension, to promote a pro-corporate, pro-wealthy agenda. It’s neither an accident nor a surprise that the National Rifle Association and ALEC have been close allies all along.

And ALEC, even more than other movement-conservative organizations, is clearly playing a long game. Its legislative templates aren’t just about generating immediate benefits to the organization’s corporate sponsors; they’re about creating a political climate that will favor even more corporation-friendly legislation in the future.

Did I mention that ALEC has played a key role in promoting bills that make it hard for the poor and ethnic minorities to vote?

Yet that’s not all; you have to think about the interests of the penal-industrial complex — prison operators, bail-bond companies and more. (The American Bail Coalition has publicly described ALEC as its “life preserver.”) This complex has a financial stake in anything that sends more people into the courts and the prisons, whether it’s exaggerated fear of racial minorities or Arizona’s draconian immigration law, a law that followed an ALEC template almost verbatim.

Think about that: we seem to be turning into a country where crony capitalism doesn’t just waste taxpayer money but warps criminal justice, in which growing incarceration reflects not the need to protect law-abiding citizens but the profits corporations can reap from a larger prison population.

Now, ALEC isn’t single-handedly responsible for the corporatization of our political life; its influence is as much a symptom as a cause. But shining a light on ALEC and its supporters — a roster that includes many companies, from AT&T and Coca-Cola to UPS, that have so far managed to avoid being publicly associated with the hard-right agenda — is one good way to highlight what’s going on. And that kind of knowledge is what we need to start taking our country back.

Quantitative Easing, or, The Rich Get Richer

Here’s my favorite take on the elections.
The Federal Reserve and its head, Ben Bernanke, have recently announced their latest initiative, called “quantitative easing.” Aside from the fact that this sounds somewhat pornographic, it apparently means that a central bank creates money ex nihilo, i.e. out of nothing (sometimes called printing money, though these days it’s not so crude; the Fed just magically adds billions to its account), and then uses the funds to purchase financial assets (including government bonds, mortgage-backed securities, and corporate bonds) from regular banks and financial institutions. The Fed, this time, is apparently going to create some $600,000,000,000 (that’s billions), a sum, according to Chrystia Freeland of Reuters, “nearly as big as the TARP. It’s nearly as big as the first stimulus was.”

Now why, you might ask, would the Fed be doing this now. Well apparently, the Fed and most economists really think it’s imperative that the economy get another boost to prevent it from going into a second tailspin. And since the Fed is pretty sure, especially now that the “people” have spoken and swept out Democrats and swept in Republicans (giving the latter control of the House) that there is going to be even worse gridlock in Congress and the White House than before, they have to act. In short, there’s not a snowball’s chance in hell that this Congress will pass another stimulus, so the unelected Fed has to do it.

Here’s where it gets interesting. The “people,” according to pundits and pollsters, have decided that Obama and the Democrats have spent too much money keeping the country out of depression; the stimulus, in particular, has been rejected as the product of “big spending Democrats.” It’s time to cut back on spending, is the alleged popular message, to get money back to the people. And how to do that: why by putting back into power the Republicans—the very party that crashed the economy in the first place. NO MORE STIMULUS, is the message. And yet, economists agree a stimulus is needed, and so the Fed rides to the rescue. The irony of all this? Listen to Chrystia Freeland:

I think the problem is, when the Fed acts as it does, printing more money, it’s a rich-get-richer phenomenon. This is going to be great for the banks. It’s going to be great for people whose personal finances are strong enough that they can re-mortgage—refinance their mortgages. But it’s not so great for the people who are in trouble. And that’s one reason why it might not have as powerful an impact as the Fed would like.
Now isn’t that sweet? The poor working-class slobs in the Midwest and South (the Tea Partiers) who voted the Republicans into office presumably believed they were voting to help themselves. But by voting for gridlock, they are doing exactly the opposite! They are forcing the Fed to push a stimulus through the back door. And that stimulus, quantitative easing, is going to help the very people—the bankers and financial pirates—voters are supposedly pissed off at. Banks will be infused with tons of money, presumably to induce them to lend to small businesses and households to increase buying. But the banks don’t really have to do that (and all indications are that they don’t want to). Rather, they’ll invest in foreign assets where they can make more profit (have people still not caught on that financial institutions and corporations couldn’t give less of a damn about the USA?). And because there’s a whole lot more money in circulation, it’s going to increase inflation. All of which will help make people like us even poorer. We’ll be poorer, too, because the Fed’s stimulus doesn’t create jobs directly, as another stimulus from Congress presumably would.

Is our democracy not a wondrous thing? It allows damned fools, like the ones who enjoyed victory on Tuesday, the freedom to vote against themselves! While the financiers laugh all the way the bank.

There are other, perhaps more serious global downsides to this latest move of the Fed. But frankly I’m not sure I understand how it all works well enough to explain it. To get some ideas, check out Professor Michael Hudson, “U.S. Quantitative Easing is Fracturing the Global Economy,” at http://globalresearch.ca/index.php?context=va&aid=21716 ). Meantime, and remembering that “quantitative easing” didn’t work for Japan in the 1990s, enjoy the irony. It may provide the only laughs we get for a while.


Lawrence DiStasi