Occupy Wall Street Meets Fahrenheit 451 – Whose Property Rights?

I’m not the most regular blogger.  I really do strive to post daily, it often doesn’t work out. Sometimes my schedule pinched.  Other times, health issues get in the way (ever try to write with a toothache?).  But then there are times when the news makes me so angry I can’t find civil words that might illuminate instead of inflame.  This past week my tooth hurt, but it was really the latter.

As most know by now, the New York City Police organized and conducted a raid to evict the Occupy Wall Street protesters last week.  They did it under cover of night using paramilitary tactics.  There was excessive and unnecessary violence.  I won’t go into that here. You can try one of the literally thousands of YouTube videos about the police brutality.  It was an apparent coordinated national effort since 18 other cities conducted similar raids with similar tactics on the same day.

Yale University lecturer John Stoehr has written how the order for the police to clear the Occupy Wall Street crowd from Zucotti Park came from Brookfield Properties, a private company, despite a court order allowing the protesters. For Mayor Bloomberg private property rights trump any kind of public rights, even when the public’s right is backed by a court.  Stoehr also observes how Brookfield Properties is also subsidized by the public coffers to the tune of $174.5 million.  Apparently those private property rights include the right to the public’s money.  It’s no wonder that JP Morgan Chase has felt the need to bribe donate to the Police Department.

The mayor and his police force’s concern with property rights doesn’t extend to everybody.  Only the rich, the 1%, are entitled to property rights protection.  Ordinary citizens are not.  Consider the police department’s treatment of the property of a private library.  Many have told the story of the police’s destruction of the Occupy Wall Street movement’s public library, but I’ll let the American Library Association tell it here:

The People’s Library, a library constructed by the New York Occupy Wall Street movement, was seized in the early morning hours of Nov. 15, by the New York Police Department during a planned raid to evict Occupy Wall Street protesters from Zuccotti Park. The library held a collection of more than 5,000 items and provided free access to books, magazines, newspapers and other materials.  According to ALA members who visited the site, the library reflected many of ALA’s core intellectual freedom values and best practices—a balanced, cataloged collection, representing diverse points of view, that included children’s books and reference service often provided by professional librarians.

City officials assured library staff that library materials would be safely transported to a sanitation depot, but the majority of the collection is still missing and returned items were damaged, including laptops and other equipment.  The likelihood of recovering all library materials is bleak, as witnesses reported that library materials were thrown into dumpsters by police and city sanitation workers.

Longstanding ALA policy states:

“The American Library Association deplores the destruction of libraries, library collections and property, and the disruption of the educational purpose by that act, whether it be done by individuals or groups of individuals and whether it be in the name of honest dissent, the desire to control or limit thought or ideas, or for any other purpose.”

American Library Association (ALA) President Molly Raphael released the following statement regarding the destruction of the People’s Library:

“The dissolution of a library is unacceptable. Libraries serve as the cornerstone of our democracy and must be safeguarded. An informed public constitutes the very foundation of a democracy, and libraries ensure that everyone has free access to information.

“The very existence of the People’s Library demonstrates that libraries are an organic part of all communities. Libraries serve the needs of community members and preserve the record of community history.  In the case of the People’s Library, this included irreplaceable records and material related to the occupation movement and the temporary community that it represented.

“We support the librarians and volunteers of the Library Working Group as they re-establish the People’s Library.”

The American Library Association is the oldest and largest library association in the world, with more than 60,000 members. Its mission is to promote the highest quality library and information services and public access to information.

The police and Mayor Bloomberg had no right to destroy these books, magazines, and computers. They had no court orders to do it.  They simply did it because they could. Because they can’t tolerate people learning and thinking for themselves.  In doing so, Mayor Bloomberg and the entire police force have revealed that none of this is about property rights as conservatives and libertarians like to claim. It’s not about the “rule of law” – they ignored the courts. It’s not about protecting some “liberty” or “Western cultural tradition”.  It makes no difference whether the police seize steal private books and destroy them in hiding, or they burn them in public. There’s a long history of  governments and police forces that destroy books. None of it is democratic or supportive of freedom.  It’s about enforcing special privilege for an elite and for destroying democracy.  It is in service to oligarchy, not democracy or liberty.

The Economy Has Caused Riots Before – In the Great Depression

Washington’s Blog reminds us that things got ugly during the last prolonged depression in the United States.  This interesting historical footage from the Great Depression shows what happens when large numbers of people are unemployed for years at a time, get desperate, and perceive that the game is rigged to the benefit of Wall Street.

This depression isn’t as deep or severe as the Great Depression – the bank bailouts and the 2009 Obama stimulus spending/tax cut bill (ARRA) made sure of that.  But as this week’s GDP numbers show, we simply aren’t growing enough to fully recover.  For workers, the nightmare is real.  With the #OccupyWallStreet movement (#OWS) growing stronger, spreading, and continuing now for well over 6 weeks, perhaps the Wall Street banks are having nightmares of their own about such scenarios as what happened in the video.  Could that be why JP Morgan Chase bank is making such large payoffs donations to the New York City Police department?  Yves Smith at Naked Capitalism fills us in:

Is JP Morgan Getting a Good Return on $4.6 Million “Gift” to NYC Police? (Like Special Protection from OccupyWallStreet?)

No matter how you look at this development, it does not smell right. From JP Morgan’s website, hat tip Lisa Epstein:

JPMorgan Chase recently donated an unprecedented $4.6 million to the New York City Police Foundation. The gift was the largest in the history of the foundation and will enable the New York City Police Department to strengthen security in the Big Apple. The money will pay for 1,000 new patrol car laptops, as well as security monitoring software in the NYPD’s main data center.

New York City Police Commissioner Raymond Kelly sent CEO and Chairman Jamie Dimon a note expressing “profound gratitude” for the company’s donation.

“These officers put their lives on the line every day to keep us safe,” Dimon said. “We’re incredibly proud to help them build this program and let them know how much we value their hard work.”

But what, pray tell, is this about? The JPM money is going directly from the foundation to the NYPD proper, not to, say, cops injured in the course of duty or police widows and orphans…

And look at the magnitude of the JP Morgan “gift”. The Foundation has been in existence for 40 years. If you assume that the $100 million it has received over that time is likely to mean “not much over $100 million” this contribution could easily be 3-4% of the total the Foundation have ever received.

Now readers can point out that this gift is bupkis relative to the budget of the police department, which is close to $4 billion. But looking at it on a mathematical basis likely misses the incentives at work. Dimon is one of the most powerful and connected corporate leaders in Gotham City. If he thinks the police donation was worthwhile, he might encourage other bank and big company CEOs to make large donations.

And what sort of benefits might JPM get? It is unlikely that there would be anything as crass as an explicit quid pro quo. But it certainly is useful to be confident that the police are on your side, say if an executive or worse an entire desk is caught in a sex or drugs scandal. Recall that Charles Ferguson in Inside Job alleged that the use of hookers is pervasive on Wall Street (duh) and is invoiced to the banks.

Or the police might be extra protective of your interests. Today, [Oct 5] OccupyWallStreet decided to march across the Brooklyn Bridge (a proud New York tradition) to Chase Manhattan Plaza in Brooklyn. Reports in the media indicate that the police at first seemed to be encouraging the protestors not only to cross the bridge, but were walking in front of the crowd, seemingly escorting them across…

The wee problem is that the police are in the street, and part of the crowd is also on the street (others are on a pedestrian walkway that is above street level). That puts them in violation of NYC rules that against interfering with traffic. Note the protest were aware fo the rules; they were careful to stay on the sidewalk on the way to the bridge.

…some (many?) the protestors who used the walkway and got across the bridge were also corralled and not permitted to proceed to the Chase plaza. Greg Basta, deputy director of the New York Communities for Change, told me by phone, based on multiple reports from people who participated in the march, that as soon as protestors got to the Brooklyn side of the bridge, they were kettled. Greg was under the impression that there were construction barricades at the foot of the bridge which made it impossible for the marchers not to walk on the street. Because the focus has been on the what happened on the bridge, the coverage of what happened to the rest of crowd is sparse.

Some confirmation in passing comes from MsExPat at Corrente (apparently some of the very first off the bridge were permitted to proceed):

My friends and I made it to the Brooklyn side okay–we ended up with about 350 other marchers in Cadman Plaza, a lovely 19th century park. What I didn’t find out until later is that several hundred people behind me also got kettled and barred from going all the way to Brooklyn. So I was among the lucky marchers in the middle.

But notice even then that the procession to Chase Manhattan Plaza [correction, Cadman Plaza} was effectively barred. [Note JPM may have operations nearby, Bear Stearns had much of its back office there, and if the leases were cheap, JPM may have kept the space].

We simply don’t know whether the police would have behaved one iota differently in the absence of the JP Morgan donation. But it raises the troubling perspective that they might have. …

So far, the JP Morgan donation is an isolated example. But the high odds of continuing deep budget cuts at the state and local level open up the opportunity for corporate funding of preferred services, and with it, much greater private sector influence on the apparatus of government. This is a worrisome enough possibility to warrant a high degree of vigilance by all of us.

Robert Reich Connects The Dots to Tell What’s Happened To Our Economy In 2 Minutes

Berkeley Professor and former U.S. Department of Labor Secretary Robert Reich has put together a good, short 2 minute 15 second video that explains a large part of what’s happened to the economy over the last 30 years.

In summary, Reich connects five “dots”:

  1. The economy has doubled since 1980 but wages have been flat.  So where did the money go?
  2. All the gains have gone to the super rich.   And…
  3. With money goes political power.  Taxes on the super rich have been slashed, government revenues have fallen, leading to…
  4. Huge budget deficits. The middle class gets agitated.  To balance budgets, governments slash spending and set middle class to fighting amongst itself…
  5. Middle class is divided.  It fights for scraps.  When borrowing ability dries up, spending slows and can’t return…
  6. We get an anemic recover.

He explains it better (and draws neat pictures, too), but that’s the jist of it.  I would add more such as how the financial industry gained such power in Washington and pushed an ideological but economically flawed agenda of deregulation that led to the monumental but avoidable financial crises in 2007-2009.  But Reich gets the basics right.

Banking Welfare Queens – part I

The banking and finance industry is broken. We need overhaul and need it badly.
Exhibit #1 from Yves Smith at Naked Capitalism:  Indefensible Men

Since inequalities of privilege are greater than could possibly be defended rationally, the intelligence of privileged groups is usually applied to the task of inventing specious proofs for the theory that universal values spring from, and that general interests are served by, the special privileges which they hold.

Reinhold Niebuhr, Moral Man and Immoral Society

A year on from its brush with Armageddon, the financial services industry has resumed its reckless, self-serving ways It isn’t hard to see why this has aroused simmering rage in normally complacent, pro-capitalist Main Street America. The budget commitments to salvaging the financial sector come to nearly $3 trillion, equivalent to more than $20,000 per federal income tax payer. To add insult to injury, the miscreants have also availed themselves of more welfare programs in the form of lending facilities and guarantees, totaling nearly $12 trillion, not all of which will prove to be money well spent.

Wall Street just looted the public on a massive scale. Having found this to be a wondrously lucrative exercise, it looks set to do it all over again.