Robert Reich: Corporate Power in Overdrive

From: Per I. Mathisen (Per.Inge.Mathisen@idi.ntnu.no)
Date: Wed Mar 21 2001 - 12:52:22 MET

  • Next message: Kari Wester: "Biologisk mangfald."

    Bare for å understreke noe vi alle visste på forhånd - George Bush er
    storkapitalens mann. Nå vil storkapitalen ha politisk utbytte for pengene
    de ga ham under valgkampen.

    Mvh,
    Per

    ---------- Forwarded message ----------
    March 18, 2001
    Corporate Power in Overdrive
    By ROBERT B. REICH

    CAMBRIDGE, Mass. — With last week's reversal of his campaign pledge to
    limit power plants' emissions of carbon dioxide, a key contributor to
    global warming, President Bush surrendered to coal companies and utilities
    dependent on coal. He had little choice. It's payback time, and every
    industry and trade association is busily cashing in.

    There's no longer any countervailing power in Washington. Business is in
    complete control of the machinery of government. The House, the Senate and
    the White House are all run by business-friendly Republicans who are
    deeply indebted to American business for their electoral victories. If
    corporate America understood its long-term interest, it would use this
    unique moment to establish in the public's mind the principle that
    business can be trusted. But it's doing the opposite, and the danger for
    American business as a whole is profound.

    Credit-card companies are getting a bankruptcy bill that will make it
    harder for overstretched people who succumbed to these companies'
    blandishments ever to get out from under the resulting debts. Oil
    companies are on the way to obtaining rights to drill on Alaska's coastal
    plain.

    Cigarette manufacturers are confident the administration will drop the
    federal lawsuit against them. Pharmaceutical companies are hoping to get
    longer patent protections. Big, labor-intensive businesses want to get
    rules that weaken unions, and they've already killed the Labor
    Department's ergonomics rules, which would have protected workers against
    repetitive-stress injuries. Airlines with labor problems can count on
    White House actions to ward off strikes. And so on.

    In normal times — when business has to cope with some political resistance
    — its leaders are forced to set strict priorities. There is only a fixed
    amount of political capital to spend. The Business Roundtable, comprising
    the chief executives of large American companies, typically establishes at
    the start of a new Congress a legislative agenda reflecting what its
    members consider the most important issues. The United States Chamber of
    Commerce, after canvassing its mostly small and medium-sized member
    businesses to determine their priorities, also develops a strategy. The
    National Association of Manufacturers weighs in with its wish list. And
    the National Federation of Independent Business, composed of small firms,
    sets its goals.

    These groups do not always see eye to eye, but under normal circumstances
    they understand that legislative success requires coordination.
    Separately, they lack the political clout to overcome determined
    resistance in one or both houses of Congress or from a president at least
    partly dependent for his political future on organized labor,
    environmentalists and other interests besides business.

    The trade associations representing specific industries — coal-powered
    utilities, pharmaceuticals, hospitals, electronics, securities, oil and
    gas, for example — typically play supporting roles. Their own parochial
    legislative goals can't interfere directly with the priorities of business
    as a whole because the industries often have to depend on the larger
    business groups to be heard. Specific firms may retain their own
    Washington lobbyists, but they, too, have to work with others in order to
    have significant effect.

    Political resistance, in other words, forces the business community to
    decide what's most important to it. It thereby enables corporate America
    to exert some discipline over itself. Business leaders can prevent or at
    least distance themselves from excesses by any single company or industry
    that might otherwise taint business as a whole in the minds of the public.

    American business notably did not come to the aid of cigarette
    manufacturers when lawsuits against them began several years ago. Nor has
    corporate America as a whole fought on behalf of the gun lobby. Labor and
    environmental rules with broad consequences typically become high
    priorities for legislative attack, but not all such rules. In the first
    Clinton administration, the business community was quite happy to let the
    Labor Department target apparel manufacturers and major retailers in its
    crackdown on sweatshops. I recall a number of White House meetings in
    which the leaders of major business organizations quietly assented to the
    administration's plans to block subsidies flowing to a particular
    industry, or to impose new clean-air rules on another industry, or to move
    aggressively with an antitrust complaint.

    With political resistance gone, the business community can, paradoxically,
    no longer discipline itself. Every business lobbyist on K Street is under
    enormous pressure from clients to reap something from the new bonanza.

    Every trade association must demonstrate to its members large returns from
    their investments in getting an all-Republican business-friendly
    government. And the pressure only ratchets upward: Every time one company
    or one industry receives its reward, other Washington lobbyists,
    representing other firms or industries, come under even more pressure to
    score victories.

    Nor can the Republicans themselves provide any discipline. Washington is
    awash in corporate i.o.u.'s, all waiting to be cashed in, and George W.
    Bush can't argue that the Democrats will block the payoffs. Under these
    circumstances, the Bush forces are finding it next to impossible to
    maintain order. Demands for regulatory relief are growing louder, and most
    will have to be met. Corporate welfare will flow ever more freely. Once
    the tax bill is open to amendment, corporate tax breaks will blossom like
    the cherry trees.

    At some point — perhaps as soon as the 2002 midterm elections, surely no
    later than the next presidential election — the public will be aghast at
    what is happening. The backlash against business may be thunderous. Hence
    the great danger that corporate American confronts.

    Robert B. Reich, former labor secretary, is professor of economic and so-
    cial policy at Brandeis University and author of "The Future of Success."

    Copyright 2001 The New York Times Company

    (Siste nytt fra denne fronten:)
    ---------- Forwarded message ----------
    WASHINGTON, DC, March 20, 2001 (ENS) - The Bush administration has opted
    to defer - perhaps permanently - new arsenic standards that would slash
    the acceptable limits for this toxic chemical in drinking water by 80
    percent. U.S. Environmental Protection Agency Administrator Christine
    Todd Whitman announced today that EPA will propose to withdraw the pending
    arsenic standard for drinking water that was issued on January 22.

    The rule would have reduced the acceptable level of arsenic in water to 10
    parts per billion (ppb). The current standard of 50 ppb, set in 1942, is
    five times higher than the international standard adopted several years
    ago by the World Health Organization and the European Union.
    ...
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