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A republic a form of government in which the people, or some significant portion of them, could  have supreme control over the government and where offices of state are elected or chosen by elected people[2] In modern times, a common simplified definition of a republic is a government where the head of state is not a monarch.[3][4] The word republic is derived from the Latin phrase res publica, which can be translated as "a public affair", and often used to describe a state using this form of government." a "Democratic Republic"

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Why Now? What's Next? Naomi Klein and Yotam Marom in Conversation About Occupy Wall Street

by: Naomi Klein and Yotam Marom, The Nation | Op-Ed

Naomi Klein is a journalist, activist and author of The Shock Doctrine: The Rise of Disaster Capitalism and No Logo. She writes a syndicated column for The Nation and The Guardian. Yotam Marom is a political organizer, educator, and writer based in New York. He has been active in the Occupy Wall Street Movement, and is a member of the Organization for a Free Society. This conversation was recorded in New York City.

Naomi Klein: One of the things that’s most mysterious about this moment is “Why now?” People have been fighting austerity measures and calling out abuses by the banks for a couple of years, with basically the same analysis: “We won’t pay for your crisis.” But it just didn’t seem to take off, at least in the US. There were marches and there were political projects and there were protests like Bloombergville, but they were largely ignored. There really was not anything on a mass scale, nothing that really struck a nerve. And now suddenly, this group of people in a park set off something extraordinary. So how do you account for that, having been involved in Occupy Wall Street since the beginning, but also in earlier anti-austerity actions?

Yotam Marom: Okay, so the first answer is, I have no idea, no one does. But I can offer some guesses. I think there are a few things you have to pay attention to when you see moments like these. One is conditions—unemployment, debt, foreclosure, the many other issues people are facing. Conditions are real, they’re bad, and you can’t fake them. Another sort of base for this kind of thing is the organizing people do to prepare for moments like these. We like to fantasize about these uprisings and big political moments—and we like to imagine that they erupt out of nowhere and that that’s all it takes—but those things come on the back of an enormous amount of organizing that happens every day, all over the world, in communities that are really marginalized and facing the worst attacks.

So those are the two kind of prerequisites for a moment like this to take place. And then you have to ask, What’s the third element that makes it all come together, what’s the trigger, the magic dust? Well, I’m not sure what the answer is, but I know what it feels like. It feels like something has been opened up, a kind of space nobody knew existed, and so all sorts of things that were impossible before are possible now. Something just got kind of unclogged. All sorts of people just started to see their struggles in this, started being able to identify with it, started feeling like winning is possible, there is an alternative, it doesn’t have to be this way. I think that’s the special thing here.

NK: Do you feel that there is an organic discussion happening about fundamentally changing the economic system? I mean we know that there is a strong, radical, angry critique of corruption, and of the corporate takeover of the political process. There’s a really powerful calling out happening. What’s less clear is the extent to which people are getting ready to actually build something else.

YM: Yeah, I definitely think we’re in a unique moment in the development of a movement that’s not only a protest movement against something but also an attempt to build something in its place. It is potentially a very early version of what I would call a dual-power movement, which is a movement that’s—on the one hand—trying to form the values and institutions that we want to see in a free society, while at the same time creating the space for that world by resisting and dismantling the institutions that keep us from having it. Occupation in general, as a tactic, is a really brilliant form of a dual-power struggle because the occupation is both a home where we get to practice the alternative—by practicing a participatory democracy, by having our radical libraries, by having a medical tent where anybody can get treatment, that kind of thing on a small level—and it’s also a staging ground for struggle outwards. It’s where we generate our fight against the institutions that keep us from the things that we need, against the banks as a representative of finance capitalism, against the state that protects and propels those interests.

It’s surprising and it’s really encouraging because that’s something that has been missing in a lot of struggles in the past. You usually have one or the other. You have alternative institutions, like eco-villages and food coops and so on—and then you have protest movements and other counter-institutions, like anti-war groups or labor unions. But they very rarely merge or see their struggle as shared. And we very rarely have movements that want to do both of those things, that see them as inseparable—that understand that the alternatives have to be fighting, and that fighting has to be done in a way that represents the values of the world we want to create. So I do think there’s something really radical and fundamental in that, and an enormous amount of potential.

NK: I absolutely agree that the key is in the combination of resistance and alternatives. A friend, the British eco-and arts activist John Jordan, talks about utopias and resistance being the double helix of activist DNA, and that when people drop out and just try to build their utopia and don’t engage with the systems of power, that’s when they become irrelevant and also when they are extremely vulnerable to state power and will often get smashed. And at the same time if you’re just protesting, just resisting and you don’t have those alternatives, I think that that becomes poisonous for movements.

But I’m still wondering about the question of policy—of making the leap from small-scale alternatives to the big policy changes that allow them to change the culture. A lot of people have come to the realization that the system is so busted that it really isn’t about who you get into office. But one of the ways of responding to that is to say, “Okay, we’re not going to form a political party and try to take power, but we are going to look at this system and try to identify the structural barriers to real change, and advocate for political goals that might begin to mend those structural flaws.” So that means things like the way corporations are able to fund elections and the role of corporate media and the whole issue of corporate personhood in this country. It is possible to find a few key policy fights that could conceivably create a situation where, ten years down the road, people might not feel so completely cynical about the idea of change within the political system. What do you think about that?

YM: Well, I think you’re right that we have to find ways to do that, but ways that don’t compromise what’s been so successful about this movement and this moment so far, which is that it’s so broad that so many different people can find themselves in it.

I think that within the broader movement, we do have different roles, and there is a particular role for Occupy Wall Street. I personally don’t want to have anything to do with people lobbying or running for office right now, nor do I want to focus all of my time winning small policy changes, and I don’t think that’s the role of Occupy Wall Street. But I sure as hell hope the people whose terrain that is do go and do it. I hope that they can recognize that what’s happening now is the creation of a climate where it’s possible for them to push left and win more. I’m not going to be happy with all the compromises those people have to make, and I don’t think we’re going to survive on reforms alone, but we need that too. If we want a real, meaningful social transformation, we need to win things along the way, because that’s how we provides people the foundations on top of which they can continue to struggle for the long haul, and it’s how we grow to become a critical mass that can ultimately make a fundamental break with this system.

And in the meantime, our role as Occupy Wall Street should be to dream bigger than that. I think it’s our job to look far ahead, to assert vision, to create alternatives and to intervene in the political and economic processes that govern people’s lives. We need to recognize that the institutions that govern our lives really do have power, but we don’t necessarily need to participate in them according to their rules. I think Occupy Wall Street’s role is to step in the way of those processes to prevent them from using that power, and to create openings for the alternatives we are trying to build. And then if politicians or others who consider themselves in solidarity with this movement want to go get on that, then they should use this moment to win the things that will help make us stronger in the long run, and they have a chance now to do that.

NK: You know, I’m torn about this. On one hand, OWS is so broad that a huge range of people has found a place in the tent. And there is certainly value in just having a very broad movement that is able to intervene in the political narrative at key junctures. Particularly because, looking at what is happening in Europe at the moment, I think we have to brace for the next economic shock. It’s a very big deal that when the next round of austerity measures comes down in the US, there will be a mass movement ready to say: “No way. We won’t pay—if you need money, tax the 1 percent and cut military spending, don’t cut education and food stamps.”

But we should be clear: that’s not making things better, it’s just trying to keep things from getting a whole lot worse. To make things better, there has to be a positive demand.

Look at the Chilean student protests, for instance. That’s a remarkable movement, and it’s historically hugely significant, because this is really the end of the Chilean dictatorship more than twenty years after it actually ended. Pinochet was in power for so long, and so many of his policies were locked in during the negotiated transition, that the left in Chile really did not recover until this generation of young people took to the streets. And they took to the streets sparked by austerity measures that were hitting education hard. But rather than just say, “Okay, we’re against these latest austerity cuts,” they said, “We are for free public education and we want to reverse the entire privatization agenda.” And that may seem like a narrow demand, but they were able to make it about inequality much more broadly. They did it by showing how the privatization of education in Chile, and the creation of a brutal two-tiered education system, deepened and locked in inequality, giving poor students no way out of poverty. The protests lit the country up, and now it’s not just a student movement. So that’s a completely different circumstance from OWS because it started with a demand. But it shows how, if the demand is radical enough, it can open up a much broader debate about what kind of society we want.

I think it’s more about vision than it is about demands. My worry is that there are so many groups trying to co-opt this movement, and trying to raise money off of its efforts, that the movement risks defining itself by what is not, rather by what it is or, more importantly, might become. If the movement is constantly put in a position of saying, “No, we’re not your pawn. We’re not this. We’re not that,” the danger is getting boxed into a defensive identity that was really imposed from the outside. I think some of that happened to the movement opposing corporate globalization post-Seattle, and I’d hate to see those mistakes repeated.

YM: I think you’re right about that. And you’re right about the question of demands versus vision. We don’t have demands in the way that other people want to hear them. But of course we have demands, of course we want things. When we reclaim a foreclosed home for a foreclosed-on family, or organize students to do flash mobs at the banks keeping them in debt, or environmental activists to do die-ins at banks that invest in coal, these are ways of speaking our demands in a new language of resistance. Occupy Wall Street is a really big tent that doesn’t have one voice, but that doesn’t mean all of our other groupings disappear when we enter it. There are still housing rights groups demanding an end to foreclosure, or labor unions demanding good jobs, and so on. We are trying to build a movement where individuals and groups have the autonomy to do what they need to do and pick the battles they need to pick, while being in solidarity with something much broader and far-reaching, something radical and visionary. And that’s part of the reason vision is so important, since it connects all those struggles.

But I do think we have to win things, you’re absolutely right about that. I guess the way I look at it is that we’re now about to make a transition, hopefully, from the symbolic to the real, both in the realms of creating the alternatives and fighting back. We need to reclaim homes, not just as symbols, but for people to live in them. Open the shut-down hospitals and put doctors in them. And same with the fighting: to actually disrupt business as usual, to move from protest to resistance. We’ll have an actual impact when Congress cannot pass those bills because there’s too much resistance, because there are people in the streets. We’ll have a real impact when it’s not only bank branch lobbies that we’re dancing around in but when we’ve blockaded the doors of the headquarters where they make their policies. We need to force policy-makers to re-evaluate their decisions, and we need to build power to eventually replace them altogether, not only in content but in form. If this is just about changing the narrative and it stops there, then we’re going to end up having missed an incredible opportunity to really affect people’s lives in a meaningful ways. This is not a game. A society where there are empty homes but people who don’t have homes is a fundamentally revolting thing and it’s unacceptable, can’t be allowed. You can say that for all the other things: for war, or for patriarchy, racism. We have an incredible responsibility.

NK: And nobody knows how to do what we’re trying to do. You can point to Iceland or something that happened in Argentina. But these are national struggles, somewhat on the economic periphery. No movement has ever successfully challenged hyper-mobile global capital at its source. So what we’re talking about is so new that it’s terrifying. I think people should admit that they’re terrified and that they don’t know how to do what they dream of doing, because if they don’t, then their fear—or rather our fear—will subconsciously shape our politics and you can end up in a situation where you’re saying, “No, I don’t want any structure,” or, “No, I don’t want to be making any kind of policy demands or have anything to do with politics,” when really it’s that you’re just completely scared shitless of the fact that you have no idea how to do this. So maybe if we all admit we are on unmapped territory, that fear loses some of its power.

YM: Yeah, that’s really important. We’re all just making it up. What you just said kind of reminded me of this moment that we had that was really a turning point for me. About three weeks in, sitting and talking with a bunch of people I had only just met, we were thinking about the movement and where it might be headed, and I remember this crazy moment when it hit me: “Oh, we’re winning.” It was surreal. And then that thought was immediately followed by the question: “So what do we want?” You know, we hadn’t won much, and we still haven’t, and we’re nowhere near the society we want to live in, but it was still that feeling—that the narrative was shifting, that the whole world was watching, that there was a lot of possibility before us. It was the first time that I’ve ever experienced that and I think probably the first time that a lot of people who are alive today have. And that was an incredibly empowering moment, really changed my life, but it was also an unbelievably terrifying moment, because, holy shit, that means it’s real, this is high stakes, this is no joke.

So, then, following that thread of what’s possible: all of this was impossible a few months ago. All of this was inconceivable. And I felt that very personally and I was cynical and I learned a lot from that. Turns out we know very little about what is possible. And that’s really humbling and important and it opens a lot of doors. What do you think is possible?

NK: First of all, it’s a moment of possibility like I’ve never seen because we never had as many people on our side as this moment does. I mean in the Seattle moment, we didn’t. We were marginal. We always were because we were in an economic boom. Now, the system has been breaking its own rules so defiantly that its credibility is shot. And there’s a vacuum. There’s a vacuum for other credible voices to fill that, and it’s very exciting.

Personally, I think the greatest possibility lies in bringing together the ecological crisis and the economic crisis. I see climate change as the ultimate expression of the violence of capitalism: this economic model that fetishizes greed above all else is not just making lives miserable in the short term, it is on the road to making the planet uninhabitable in the medium term. And we know, scientifically, that if we continue with business as usual, that is the future we are heading towards. I think climate change is the strongest argument we’ve ever had against corporate capitalism, as well as the strongest argument we’ve ever had for the need for alternatives to it. And the science puts us on a deadline: we need to have begun to radically reduce our emissions by the end of the decade, and that means starting now. I think that this science-based deadline has to be part of every discussion about what we’re going to do next, because we actually don’t have all the time in the world.

We should also be aware that this kind of existential urgency could be a very regressive force if the wrong people harness it. It’s easy to imagine autocrats using the climate emergency to sa, “We don’t have time for democracy or participation, we need to impose it all from the top.” Right now, the way the urgency is used within the mainstream environmental movement is to say, “This problem is so urgent that we can only ask for these compromised cap-and-trade deals, since that’s all we can hope to achieve politically.” Talking about the links between economic growth and climate change is pretty much off the table because, supposedly, we don’t have time to make those kinds of deep changes.

But that was a pre-OWS political calculation. And as you pointed out, OWS is in the business of changing what is possible. So what I’ve been saying when I speak to environmental groups is: start to imagine what would be possible if the climate movement were not out there on its own but part of a much broader political uprising fighting a greed-based economic model. Because in that context, it is practical to talk about changing this system. It’s much more practical, in fact, than pushing corrupt plans like cap-and-trade, which we know don’t stand a chance of getting us where science tells us we need to go.

I’m also excited about the fact that, over the past ten years since the peak of the so-called anti-globalization movement, a lot of work has been done that proves that economic re-localization and economic democracy are both feasible and desirable. Look at the explosion of the local food movement, of community-supported agriculture and farmers markets. Or the green co-op movement. Or community-based wind and solar energy projects. And then you have cities like Detroit, Portland or Bellingham, which are working on multiple fronts to re-localize their economies. The point is that there are living examples that we can point to now of communities that have weathered the economic crisis better than those places that are still dependent on a few large multinational corporations, and could just be leveled overnight when those corporations shut their doors. Most importantly: many of these models address both the economic and ecological crises simultaneously, creating work, rebuilding community, while lowering emissions and reducing dependence on fossil fuels.

Coming back to the idea of resistance and alternatives being the twin strands of DNA, I see a possible future where the resistance side of OWS could start to support the policies these economic alternatives need to get to the next level.

So, yeah, that’s where I see a lot of potential—both potential strength and also potential loss, lost opportunities. You?

YM: I think there is more possibility right now than I could have ever imagined. I think in the not-so-distant future, we can win a lot of things that actually improve people’s lives, we can continue to change the political landscape, and we can grow into a mass movement with the strength to propose another kind of world and also fight for it. I think we’re only in the beginning of that, and I think there is a ton of potential. And I also see that kind of possibility in the long term. I think we can win a truly free society. I think it’s totally possible to have a political and economic system that we have a genuine say in, that we democratically control, that we participate in, that is equitable and liberating, where we have autonomy for ourselves and our communities and our families, but are also in solidarity with one another. I think it’s possible, and necessary. That’s kind of the amazing thing about this moment and this movement, I guess. Right now, sitting here, I can’t even imagine the limits of possibility.

This story originally appeared in The Nation.
Copyright © 2011 The Nation – distributed by Agence Global.

 

Berkley Occupy Wall Street
Oberman rips Bloomberg a new "A" hole

 

First they ignore you, then they laugh at you, then they fight you, then you win.
Mohandas Gandhi
I've wondered is it Class or Ethics? -Ed...

At first it seemed like just a bunch of hippies, now with union support in the U.S. it's going to be an interesting, demonstration of Democracy realtime
Buckel your seat belts (ed...)


The Class War Has Begun

WikiLeaks: Unlawful financial blockade by Credit Cards temporarily brings end to leak of secrets


Cities
10/19/11 Poll: NYers Support Occupy Wall Street, Taxes On Rich
10/18/11 The Message and Strategy That Is Needed by Occupy Wall Street-Rabbi Michael Lerner
Chris Hedges: "This one could take them all down."

10/17/11 NYC Cops Continue Volence
10/16/11 Global 99 Percent Rally Worldwide in Solidarity With Occupy Wall Street

Demonstrators rampage through Rome, clash with police
Occupy Wall Street Has Already Won, Spitzer

Senator Bernie Sanders: Six Proposals for Helping the 99%

Separating Facts from Media on Occupy Wall Street
10/16/11UPDATE 1-About 175 arrested overnight in Chicago protest

10/16/11 NYT Not a mention of arrests or protest on front page. Are they asleep at the switch?
10/12/11 Bloomberg Announces Zuccotti Park Cleanup While Meeting Protestors

This is a Worldwide Movement
This Rally
09/05/11
What do they want? "Unfuck the world!"

Van Jones on America's Uprising: It's Going Be an Epic Battle
10/02/11
Is JP Morgan Getting a Good Return on $4.6 Million “Gift” to NYC Police?
Anonymous Launches Investigative Research Branch
Boston Bank of America Sit-In Draws Thousands of Foreclosure Victims, Supporters

700 arrested NYC 10/1/11

09/29/11
The Largest Online News Show in the World
‘Occupy Wall Street’ protest slowly spreads across the United States

More Than 80 Arrested At Occupy Wall Street Protest Saturday
09/20/11


What's the big deal ?
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Weiser.com has been in operation since 1989,as a BBS then a website and gateway to alternative news sites, lately focusing on the Labor Movement suppression and arrests of demonstrators. (Non Violent) We have decided to expand our focus. Due to the massive information discloses made by WikiLeaks and the non-violent nature of associated organizations we will focus on both along with whatever...

Mr. Bush is gone now, but that algorithm remains ruthlessly in place.


08/19/11 Verizon Cuts Off Strikers' Health Care, as Service Outages Rise
08/18/11 Police Scramble to Fight "Flash-Mob" Mayhem, Maryland, Economic?
08/18/11 Thousands Camp Out for Job Fair as Jobless Rate Rises
Unemployed Occupy Paul Ryan's Office, Demanding Meeting; Police on the Scene August 16, 2012 Wisconsin Democrats Re-elected
Anonymous BART Protest Shuts Down Several Underground Stations
FCC to Investigate BART Cell Service Shutdown
Aug 16 2011 Naomi Klein on Riots and Resistance

Bellwether Wisconsin
Aug 16, 2011 Why Reagan Raised Taxes and We Should, Too:
August 15, 2011 Verizon Strike: Join The Workers On The Picket Line
Civil resistance?
Why Strike?
What the hell is a labor Union?
Verizon Strike Turns Away Customers and Confronts Injunctions
08/14/11 Verizon Gets Court Injunction To Keep Striking Workers At Bay
08/13/11 SF cell shutdown: Safety issue, or hint of Orwell?
08/08/11 Verizon Workers Picket In Pittsburgh, Across Eastern U.S.

Sen. Bernie Sanders

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Anonymous Was Targeting Oil Sands Companies

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The Truth About the Economy -Robert Reich 2011

5 Outrageous Government Crackdowns on Peaceful Activists


Pre-election 2008 election progressive links portal

  NEWS & POLITICS  

Our Government Is Corrupt Through and Through -- Where's the Outrage?

When politicians get caught taking bribes, it's big news, but most people take the usual legal corruption for granted.

 

Last week, jurors in a federal bribery case got a taste of good, old-fashioned corruption as New Orleans' former chief technology officer, Greg Mefford, offered the prurient details of how one vendor, Mark St. Pierre, plied city officials with almost $900,000 in bribes and kickbacks that included luxurious travel, the use of a yacht and boozy, good-old-boy poker parties complete with the requisite hookers.

The story represents the kind of corruption that makes splashy headlines, and of course, rightly outrages people. But the impact of this kind of criminality on our governance pales beside that of the everyday, entirely legal kind of corruption most people seem to take more or less for granted.

Consider just a few items "ripped from the headlines" during the past few weeks.

  • On Monday, Politico reported that almost a third of the “blue dog” Democrats who left office or were defeated in last year's midterms are now working as corporate lobbyists. “The conservative Blue Dogs formed a key voting bloc for much of the last congressional session,” reporter Aaren Mehta noted, “drawing impressive fundraising from the energy, financial services and health care industries.” The blue dogs were instrumental in watering down or blocking key Democratic legislation in both the House and the Senate. With their mission accomplished on everything from health-care reform to financial regulation, Politico notes that “industry groups [then] abandoned the pro-business coalition in favor of its GOP opponents.”

  • An analysis by the Center for Responsive Politics found that “House members who defeated a measure to...end certain subsidies for oil companies received five times more in campaign contributions, on average, from the oil and gas industry in the 2010 election cycle than those who voted to proceed with the motion.”

  • House members who voted to continue the subsidies received, on average, five times more money in 2010 from oil and gas interests. Those voting to block debate received $36,066, on average, in campaign contributions from oil and gas interests. Those who voted to begin debate received, on average, $7,192 in campaign contributions from the industry.

  • Overall, members who voted to continue the subsidies received more than $8.7 million in campaign contributions from oil and gas interests in 2010 while those opposed raised just $1.2 million.

  • 16 of the 18 U.S. House members who received over $100,000 in campaign contributions from the industry in 2010 voted to block debate. One voted to proceed and a second did not vote.

  • Last week, in a move that would prove eye-opening for even the most cynical good-government types, FCC Commissioner Meredith Atwell Baker announced that she would be leaving her position early to take a cushy lobbying job for Comcast just months after approving its controversial merger with NBC. As Free Press director Timothy Karr noted, she wasn't the first: “Many have found the FCC to be a particularly lucrative launching pad,” he wrote. “Former FCC Chairman Michael Powell now earns millions as the top lobbyist for the National Cable and Telecommunications Association, a trade group that lobbies for the industry he was tasked to regulate.”

  • Even those supposedly neutral arbiters in the courts aren't standing above the political fray when big money is concerned. American University legal scholar Herman Schwartz noted last week that Justice Sam Alito attended a series of pricey fundraisers held by the right-wing American Spectator, and Clarence Thomas and Antonin Scalia have both “allowed their names and office to be used for fundraising and other partisan activities.”
 

Each has attended big strategy and fundraising meetings held semiannually by brothers Charles and David Koch, among the wealthiest and most active of all Tea Party and right-wing financiers....

What seems beyond dispute is that all three justices engaged in conduct inconsistent with the Code of Conduct for United States judges, which requires that a judge “not personally participate in fundraising activities; or use or permit the use of the prestige of judicial office for that purpose … make speeches for a political organization or attend or purchase a ticket for a dinner or other event sponsored by … an entity whose principal purpose is to advocate for or against political candidates.”

This kind of ubiquitous, legal corruption raises occasional eyebrows, but it doesn't result in the kind of outrage it deserves. Most people simply take it for granted that moneyed interests get their way in a democracy, and indeed, a series of studies have found that politicians are far more sensitive to the interests of wealthy constituents than those of the poor, at both the federal and state levels.

But it's important to recognize that this kind of moneyed influence is not evident in all wealthy democracies, or at least not to the same degree it is in the U.S., with its world-leading level of economic inequality. Political scientists call it “state capture” -- private interests effectively gaining control of one or more organs of state and using the power vested in those institutions—publicly financed and ostensibly serving the greater good—to feather their own nests. Usually, the term is applied to banana republics, and the means of capture are nefarious: corruption, threats and even violence.

We do it differently. We have a private campaign finance system that requires members of Congress to start raising hundreds of thousands of dollars to get reelected the moment they take office; a government overrun with well-heeled lobbyists, many of whom are ex-staffers visiting offices in which they once worked to call on former bosses; and a well-oiled revolving door between regulatory agencies and the industries they’re supposed to be watching.

The result is that Corporate America does more than merely fend for itself on Capitol Hill. Its efforts amount to state capture, even if subtle in form, and that has a measurable impact.

In my book, I discuss what forensic economists—the CSIs of the dismal science, people who follow economic clues to unearth crimes—have to tell us about the relationship between corporate profits and the political fortunes of the politicians close to those companies.

In their book Corruption, Violence, and the Poverty of Nations, scholars Raymond Fishman and Edward Miguel noted that forensic economists look carefully at how ups and downs in the careers of government officials impact the stock prices of firms to which they’re connected. They consider it to be among the more methodologically sound ways of rooting out government corruption.

In an article for Foreign Policy magazine, Fishman and Miguel laid out the rationale behind the approach:

 

Whether through hefty campaign contributions or cushy jobs for former politicians, corporations are constantly accused of trying to profit through political ties. (Just think Halliburton or Russia’s Gazprom.) But what’s the real value of these companies’ connections? If you ask politicians or investors, you’re likely to hear a lot of denials. To get the truth, we could ask insiders to put some money where their mouths are, making them bet some of their own cash on whether particular companies are making back-alley deals with politicians to increase their profits. In this political betting pool, raw financial self-interest would lead bettors in the know to reveal their true beliefs about corruption. 

That betting pool is, of course, the stock market. The scholars wrote, “If connections buy tax breaks, valuable licenses, and advantages in bidding for government contracts, then strengthening political ties should boost profits. These higher profits translate directly into higher stock prices, and conversely, removing those ties should send profits—and stock prices—tumbling.”

Purdue University economist Mara Faccio studied those ties in every country that had a functional stock market. Not surprisingly, Faccio found strong connections between business and government across the board, but she also noted that the value of those connections in terms of stock prices varied greatly. In the United Kingdom, for example, stock prices don’t move at all when a firm’s political ties wax or wane. When Rolls-Royce chairman John Moore was appointed to the House of Lords, Rolls-Royce’s stock price remained unchanged. But in Italy, the picture is quite different. When Fiat chief Giovanni Agnelli was appointed to the Italian Senate, the automaker’s stock soared by 3.4 percent, adding millions of dollars in value to the company in a single day.

We’re a lot closer to Italy’s infamous level of public corruption than we are to that of our British cousins. And, as Fishman and Miguel noted, that’s already been pretty well established in this country:

 

Numerous studies have found that the economic fortunes of well-connected U.S. companies mirror the political fortunes of their connections. When U.S. Sen. Jim Jeffords defected from the Republican Party and handed Senate Democrats a slim majority in 2001, Democratically connected companies benefited in the immediate aftermath. Similarly, the stock value of companies with former Republican lawmakers on their boards increased an average of 4 percent when the Supreme Court handed the 2000 election to George W. Bush, while companies with former Democratic politicians on their boards declined.

All of this represents the most significant structural barrier to passing progressive policies, even those with extensive popular support. It explains why a Congress and White House controlled by Democrats were unable to fulfill a number of the party's key campaign promises – while those with a “D” next to their names enjoyed a majority in 2009 and 2010, it was the “Money Party,” as David Sirota calls it, that maintained a numerical advantage throughout.

Chris Hedges (WikiLeeks) on Moral Courage


Raped