Profiteering of A Corporate Perpetrator or Industry – Lots of Deaths

Davos Man

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Davos Man, How the Billionaires Devoured the World” by Peter S. Goodman, published in 2022. As the now-cliche joke goes, “You can tell Monopoly is an ancient game because there’s a luxury tax and rich people can go to jail.”

Yearly, about three thousand, super-rich people gather in Switzerland at a five-day conference called “Davos.” The least wealthy people there consist of journalists, academics, diplomats, entrepreneurs, activists and senior government officials. The billionaire-attendees (whom the author called “Davos Man”) pay lip service to the world’s social, economic and environmental problems, and behind closed doors, discuss how to profiteer in connection therewith.

In the last half century, Davos Man has enriched himself through making campaign contributions to politicians who have legislated:

monopolistic practices
tax cuts
excessive deregulation and
gutting of social programs.

The above favor powerful, rich people in Silicon Valley, New York City and Washington, D.C. Their propaganda campaigns brainwash the masses into blaming:

China
immigrants whom they believe are taking their jobs away, and
automation

for the working classes’ job losses.

The author argued that the common people in most industrialized nations of the world should blame DAVOS MAN and politicians, who are sometimes one and the same!

Davos Man– the modern-day Robber Barons– salve their consciences through philanthropic activities that are comprised of a tiny, tiny percentage of their businesses’ profits. Plus, the author contended that it is a Cosmic Lie that tax cuts pay for themselves by spurring spending.

During the COVID pandemic, the American Davos Man enriched himself through incestuous corporate / political relationships: “The United States had employed a Rube Goldberg contraption, with [Steven] Mnuchin’s slush fund [in the U.S. Treasury] funneled through Jamie Dimon’s bank [JPMorgan Chase], and Larry Fink’s firm [BlackRock] buying bonds on behalf of the Fed, allowing Steve Schwartzman’s private equity empire [Blackstone Group] to borrow for free.”

The English government convinced many of its people that through Brexit, their nation could decide its own financial fate. But Davos Man actually ended up collecting a boatload of their hard-earned taxes. Meanwhile, Argentina was defaulting on its loans for the tenth time in the last half-century. The aforementioned Davos Man, Larry Fink, blamed Argentina for the resulting disastrous losses of his clients at BlackRock. BUT– his firm was the sucker that lent it the money!

Anyway, read the book to learn of: Davos Man’s activities in various countries of the world– that resulted in skyrocketing wealth for him, and plummeting economic security for everyone else; why the author is still optimistic that the world can reverse the current, cold-hearted global financial climate in which inequality between rich and poor is ever-widening (hint: creative ideas on community cooperatives are in the air, but also– read Amy Klobuchar’s tome on antitrust issues); and the economic history explaining how Davos Man has become so rich and powerful.

Misfire

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Misfire, Inside the Downfall of the NRA” by Tim Mak, published in 2021. This volume told the all-too-frequent story of alpha-male executives with hubris syndrome, who use their employer as their personal piggy bank, and bankrupt them. That of the National Rifle Association (NRA) was just the latest in a series of such scandals in recent decades.

As it began to go belly up, the NRA had 76 people on its board of directors, a few of whom were celebrities. They received no salary, but took ridiculous advantage of their expense accounts, and at the same time, and, in an obvious conflict, some were tasked with overseeing the NRA’s finances.

A power vacuum that started in the late 1980’s allowed Wayne LaPierre to assume the most powerful executive position in the organization by 1991. His colleagues– the NRA’s officers, and executives of its outside communications agency — manipulated him in order to form a cult of personality around him. This way, they, too, could partake of all the first-class travel, shopping and host of other aspects of a luxury lifestyle through their outsized salaries and expense accounts.

After the Sandy Hook elementary-school shooting in December 2012, the NRA became even more sociopathic, throwing up distractions in its messaging. It was already aggressively– as it had been since 1977– defeating every bit of firearms-restriction-legislation it possibly could using not only its money, but also its ability to influence politicians and voters through its network of priceless, powerful contacts; even to its own financial and reputational detriment. It argued that politicians should seek to improve America’s mental health system, and that everyone in the country had a right to own a firearm for the purpose of self-defense!

Countless, cowardly politicians have caved under pressure to the NRA’s demands; they voted against even weak proposed laws that would restrict gun acquisitions and gun usage, that would hardly have made a dent in sales of firearms, because they wanted to get reelected. As is well known, the NRA was a monster-sized lobbyist and political donor. It had a mean-spirited cancel-culture: publicly shaming its ex-employees on social media if they criticized it, even years after their employ.

Beginning in April 2019, a decades-long power struggle resulted in an orgy of litigation between and among the NRA, its communications agency, and its law firm, whose main go-to executive had become besties with LaPierre. That executive, too, was availing himself of the benefits derived from financial crimes of excess typical of these kinds of organizations.

Read the book to learn all about it. Wayne LaPierre has been just one (of those countless who are actually caught!) of a few poster boys whose financial crimes borne of excessive greed have been exposed, but sooo few organization leaders such as he, are punished for their misdeeds. Here are a few others, who were actually punished (and the year in which they went to jail):

2005, Dennis Kozlowski

2005, Bernie Ebbers

2006, Jack Abramoff

2007, Richard Scrushy

2012, Bernie Madoff

And here is the song they sing when caught:

I TOOK IT EASY

sung to the tune of “Take It Easy” with apologies to the Eagles.

Well, I got out on BAIL.
You can’t put me in JAIL.
I got SEVen sins on my mind.
Whistleblowers betrayed me.
Prosecutors flayed me.
My lawyers are close friends of mine.

I took it easy.
I took it easy.

Don’t believe the evil liars who say I’m guil-ty.

I live it up while I still can.
I hid my assets. Then it hit the fan.
I found a place to make my millions.
I took it easy.

Well I’m STILL your leading male.
I’m just too great to fail.
My claques, flacks and sycophants all aGREE.
I DID nothing wrong.
I’ll delay this CASE so long you’ll give up on punishing me.

Come on, payyy me,
my bonus and sa-alary.
I have no doubt that friends in high places are gonna SAVE me.

TaxPAYERS lose. I win.
You’ll never catch ME again.
So eat your heart out. Look at ME grin.
I took it easy.

Well, I got out on BAIL.
You can’t put me in JAIL.
I got NO remorse on my mind.
No matter how much you hover,
you’ll NEVER recover, all the money you say is not mine.

I took it easy.
I took it easy.
Don’t believe the evil liars who say I’m guil-ty.
Come on, payyy me,
my bonus and sa-alary.
I have no doubt that friends in high places are gonna SAVE me.

Oh, I got it easy.
YOU’RE the one who’s slea-eazy…

The Real Cost of Fracking / The Buffalo Creek Disaster / A Trust Betrayed – BONUS POST

The first Bonus Book of the Week is “The Real Cost of Fracking, How America’s Shale Gas Boom is Threatening Our Families, Pets, and Food” by Michelle Bamberger and Robert Oswald, published in 2014.

Through the decades, monster-sized American corporations have mastered the game of political machinations, public relations and propaganda in doing tremendous harm to Americans (and getting away with it!), and in defending themselves against environmental-damage lawsuits, and premises-liability, personal-injury and wrongful death lawsuits. These corporations tend to be energy companies. See the following posts in this blog for several other examples (in no particular order):

Klondike

The Law of the Jungle

Sons of Wichita

Fateful Harvest

The World According to Monsanto

Superpower: One Man’s Quest…

The Oil Road

In the Name of Profit

Killers of the Flower Moon, and

Let the People In (see boldfaced paragraphs)

American companies that do fracking is the same story. The authors loosely define fracking as “unconventional drilling” for gas and oil, and hydraulic fracturing. The fracking industry has successfully convinced landowners (through omissions, half-truths and outright lies in their pitches) that they (the owners of small farms) could make big bucks from leasing their land for the purpose of fracking (when it turned out to be the other way around, most every time).

There are three major reasons it takes so long for the public to catch on to companies that damage the earth and people and can destroy communities and/or a way of life:

The companies put political pressure on the EPA and state-politicians to shut up;

The companies have the damaged parties sign non-disclosure agreements; and

The companies pay hush money to, or threaten any other parties who might give them bad publicity.

“Proving proximate cause for illness is complex because the water, soil and air have multiple chemicals of varying toxicities, and [have] hardly any pre- and post-drilling testing of air, and water, soil, people and animals.”

The consequences of fracking have far-reaching potential to contaminate the nation’s food supply, when cows, chickens and other food-animals are exposed to fracking toxins.

Sadly, Pennsylvania is only one of several states that has sold out to the pro-fracking interests. The authors had hours of discussions with those very adversely affected by the litany of unpronounceable toxins very likely produced by fracking. Beginning in September of 2009, those owners of small farms developed the following health problems: rashes, burning eyes, sore throats, headaches, nosebleeds and unpleasant gastrointestinal symptoms.

The victims’ farm animals and pets had trouble reproducing, or they died. Air pollution resulted from dust, dirt and noise from heavy earth-moving vehicles and tanker trucks. In spring 2010, one family’s only water supply was terminated by the fracking company.

In addition, the family lost their livelihood breeding horses and dogs. They couldn’t afford to buy bottled water for the horses. The fracking company graciously offered to incinerate the horse’s corpse. One of their dogs also died even though it was drinking bottled water and was barely two years old. The suspected reason was that it drank wastewater that was poured on the family’s property.

Further, tests sufficiently specific to provide evidence of proximate cause between:

the family’s health problems, their animals’ deaths, and the drop in their property’s value due to contamination; and

the fracking company’s toxic practices

were prohibitively expensive.

Also, apparently, the company wasn’t legally required to disclose which toxins were produced by its operations, because it didn’t– when the leasing documents were signed with the landowners.

In central Arkansas, fracking wastewater was recycled when it was injected into deep wells, causing small earthquakes. Other states that allowed fracking at the book’s writing included: Ohio, Texas, Louisiana, Colorado, North Dakota and New York.

Read the book to learn a wealth of additional details on fracking, its adverse effects, of the complicated laws governing (or not governing) land in Pennsylvania and New York State at the book’s writing, and the authors’ suggestions for how to regulate the oil and gas industry to strike a balance between extracting needed fossil fuels and public health and safety; and sensible energy policy.

The second Bonus Book of the Week is “The Buffalo Creek Disaster, The Story of the Survivors’ Unprecedented Lawsuit” by Gerald M. Stern, published in 1976.

“If the government ever did knock on my door, I’d probably expect harm and harassment instead of help.”

-The [Caucasian] author’s attitude when he was a federal civil-rights attorney, personally visiting unannounced, helpless black families in Southern States, to inquire whether they required assistance with registering to vote, or with being protected, during the Civil Rights movement in the 1960’s.

In West Virginia coal country in the 1950’s, one dam overflowed. Then two more dams were built. The construction of the third dam– built cheaply– was subpar pursuant to civil engineering standards. The dam-builder was the Buffalo Creek Mining Company. Its holding company Pittston Company knowingly allowed a burning pile of coal waste-products to obstruct the stream, so that sooner or later, a tidal wave would flood the area.

In February 1972, it happened. More than 125 people drowned and hundreds were left homeless in a valley when the third dam broke, causing a stream to overflow in Middle Fork Hollow.

The possible causes of action in the ensuing class action suit included involuntary manslaughter and criminal negligence, but “psychic impairment” was a relatively new concept that had yet to be commonly litigated. It was known as “shell shock” in WWI. The new label for it after the Vietnam War was “Post-Traumatic Stress Disorder” (PTSD).

In April 1972, the author and his public-interest law firm, Arnold & Porter began to represent people harmed by the flood. They had to take the case on contingency, a rarity, only because those survivors couldn’t afford to pay the lawyers with any other fee structure. There occurred the usual frustrations, uncertainties and wrenches in the works that complicated the case, making it more expensive and time-consuming. Just a few included:

the fact that the wife of and daughter of, and the rival himself of the recently elected United Mine Workers Union’s president were murdered;

Once the lawyers decided whom to sue and in which court, it was hard to guess which of three judges would be assigned to the case (bringing up the cliche, “good to know the law, better to know the judge”);

At that time, there was a limit of $110,000 that could be awarded to each personal injury / wrongful death victim in the state of West Virginia; and

The disaster occurred less than two months prior to the West Virginia gubernatorial election.

Read the book to learn of the slew of additional details on the case and the fate of the stakeholders.

Yet one more largely similar disaster case was documented in the third Bonus Book of the Week, “A Trust Betrayed, The Untold Story of Camp Lejeune and the Poisoning of Generations of Marines and Their Families” by Mike Magner, published in 2014.

Like the fracking and coal-country stories, this story involved contaminated water, too. However, it was not a monster-sized corporation’s, but the United States government’s, negligence and secrecy that harmed people.

This story also differed in that the residents of the community were fluid– living there only months or a few years, compared to the fracking and coal-country victims. So they didn’t immediately connect the harm done to them with their drinking water, and communication among them was more scattered.

At the dawn of the 1980’s, an under-resourced water-testing lab at Camp Lejeune (where U.S. Marines were stationed) in North Carolina began to get an inkling that wells that provided drinking-water contained toxins such as THM’s, TCE, PCE, pesticides, PCB’s, VOC’s and benzene.

New federal clean-water laws were going into effect, so the Navy had to comply. The water was supposed to be tested regularly for grease, oil and suspended solids. If results showed contamination above a certain level, the lab was supposed to tell the EPA, but it didn’t handle cleanup.

The lab’s five (alarming) test-results between October 1980 and February 1981, were sent to Naval Facilities Engineering Command, Atlantic Division, where they disappeared into a black hole; not necessarily because there was a cover-up at that time, but merely due to bureaucracy– the lab workers thought the Navy knew what they were doing and would do the testing and regulating.

Camp Lejeune’s base commanders didn’t want to know whether individual wells were polluted. They hoped the base had sufficient clean wells to dilute the water from the contaminated ones. Shutting down any of the wells would produce a water shortage for the whole base during the summer, when demand for water was highest. Besides, water-testing was expensive.

Starting in the 1960’s and for decades thereafter, the military families and employees who lived in a certain geographic area on the base saw a disproportionate number of miscarriages, birth defects, and in later years, cancer. The suspected sources of pollution (or legal-defense scapegoats) included a dry cleaners, fuel tanks and a pumping station that exuded gallons and gallons of fuels and chemicals (through spills, leaks and inadequate safety practices) all the time.

In spring 1985, the crisis started to hit the fan, when the Navy was compelled to notify the residents that their drinking water might be unsafe (when in reality, for decades, it definitely had been).

Read the book to learn lots of additional details of what happened then (hint: the usual federal and state inter-agency (and military-branch) fighting, finger-pointing, report-writing, excuses for delays in the form of follow-up-research, and all manner of bureaucratic secrecy and shenanigans; after which the victims and taxpayers were the ones who paid the price).

Pharma

The Book of the Week is “Pharma– Greed, Lies, and the Poisoning of America” by Gerald Posner, published in 2020.

In 2016, the “superbug” Enterobacteriaceae turned out to be resistant to 26 different antibiotics. About half of patients who contract it, die. There are a bunch of other similar bacteria in the world. The author warned that in the future, a bacterial pandemic was on the way, for which there would be no antibiotic cure. Apparently, there can be a viral pandemic, too– one that cannot be treated with antibiotics at all.

For, antibiotics kill only bacteria, if that. Yet, in the United States, for decades, antibiotics have been prescribed to treat (mild!) viral illnesses. That is one major reason that superbugs have become a trend. And there has been an epidemic of diabetes type II. And many other adverse consequences.

Anyway, the author recounted the history of big-name drug companies, which began selling morphine to soldiers during the American Civil War. In the second half of the 1800’s, Pfizer, Squibb, Wyeth, Parke-Davis, Eli Lilly, and Burroughs-Wellcome began mostly as family proprietorships that sold highly addictive, unregulated drugs. Bayer produced heroin in 1898. The twentieth century saw Merck put cocaine in its products; other companies jumped on the cocaine bandwagon.

In 1904, the head of the United States government’s Bureau of Chemistry, Harvey Wiley, was concerned about contaminants in the nation’s food supply. Consumers were being sickened by chemicals that were supposed to retard spoilage or enhance the appeal of foods. They included, but were far from limited to: borax, salicylic acid, formaldehyde, benzoate, copper sulfate and sulfites. Trendy patent medicines were also doing harm to consumers. The word “patent” gave the impression of approval or regulation of some kind, but actually meant nothing.

Through the first third of the twentieth century, the government continued categorizing, monitoring and taxing drugs, but the pharmaceutical companies continued using trade groups and legal strategists to protect their profits. The 1930’s saw the big drug companies start research laboratories. Finally in 1938, the government established the Food and Drug Administration, and began to require extensive product-testing and labeling, and factory inspections. That same year, the Wheeler-Lea Act prohibited false advertising of drugs, except for previously manufactured barbiturates and amphetamines.

After Pearl Harbor was attacked in December 1941, America sought to manufacture penicillin in volume. For, the newly introduced antibiotic would be very helpful to the war wounded. But the drug’s fermentation process required a rare ingredient. In spring 1942, one patient who had friends in high places was cured. That largely used up the penicillin supply in the entire country. Other kinds of antibiotics were produced in the next decade, but their profitability was hampered by the bureaucratic processes of patent applications and FDA approval applications.

In the late 1940’s, Arthur Sackler and his brothers founded a family drug-company dynasty. The author revealed excessive trivia from FBI files on them and other greedy characters whose tentacles pervaded all businesses that could help sell (translation: maximize profits of) the family’s healthcare goods and services. This meant consulting, advertising, publishing, charities, public relations, database services, etc. The parties failed to disclose countless conflicts of interest.

In the early 1950’s, drug companies successfully lobbied the U.S. Patent and Trademark Office to allow drugs with strikingly similar molecular structures to be deemed different so that they could be granted separate patents. A higher number of drugs could then be rushed to market sooner, and make the most money.

In 1952, farmers fed Pfizer’s antibiotics to their animals so that they grew bigger (both Pfizer and the animals). In the mid-1950’s, Pfizer, Lederle, Squibb, Bristol and Upjohn engaged in an illegal tetracycline price-fixing scheme. They reaped hundreds of millions of dollars in earnings. The FDA chief was in Sackler’s back pocket. So when violations came to light, the FTC and FDA gave the offenders a slap on the wrist. However, senator Estes Kefauver was a thorn in their side.

Kefauver led an investigation as to why America’s drug prices were so excessively high when compared with those in other nations. In fighting back, the drug industry smeared Kefauver as a liberal pinko, claiming he had designs on forcing socialized medicine on the United States. The nineteen drugmakers under the gun gave bogus excuses. The real reason is that America’s drug prices and patents are subjected to minimal or no regulation, unlike everywhere else.

In 1956, Americans were told they were stressed, but a wonder drug called “Miltown” would help calm them down. The mild tranquilizer became a best-seller, until it was counterfeited and appeared on the black market, and its adverse side effects gave it bad publicity. Oh, well.

Then in the 1960’s came the culture-changing birth control Pill, and Valium– also called “mother’s little helper” that was marketed as a weight-loss aid. The next game-changer was thalidomide. Kefauver used the worldwide backlash against this drug to push through some drug safety and effectiveness regulation in the United States in 1963. For a change. Even so, in 1972, when the U.S. Supreme Court confirmed certain regulatory powers conferred on the FDA, drugmakers merely sought additional markets for their products on other continents.

In 1976, there was a swine flu epidemic in America. Healthcare companies were reluctant to develop a vaccine for it, fearing an orgy of litigation from victims if any harm was done. So the government unwisely agreed to foot any legal bills. Sure enough, some vaccine recipients developed cases of Guillain Barre syndrome, and neurological complications. The (taxpayer-funded) Justice Department took the hit. Other parties piled on. “The CDC had exploited ‘Washington’s panic’ to ‘increase the size of its empire and multiply its budget.’ “

Moving on, the author told the whole sordid story of the “opioid crisis” in America. In a nutshell: in May 2002, Purdue Pharma, maker and unethical marketer of OxyContin, hired Rudy Giuliani’s firm to defend it against the firestorm from its host of illegal activities. The firm collected a $3 million fee per month. Purdue collected $30 million per week from OxyContin sales. To be fair, Purdue and the Sackler family were the poster-scapegoats of the crisis. Numerous other parties aided and abetted them: other pharmaceutical companies, doctors, FDA bureaucrats, and pain management “experts” and pharmacists. The far-reaching consequences have caused a lot of trouble for society as a whole in the areas of: increased healthcare costs, criminal justice, social services, drug rehabilitation services, lost productivity and earnings, etc.

Read the book to learn an additional wealth of details and the details of wealth of the healthcare industry’s evolution into a hegemonic legal behemoth / excessive profit center, in the form of a series of cautionary tales in various topic areas– drug advertising, blood donations, biotech, epidemics, pharmacy benefit managers– that wrought major good and bad (mostly bad) cultural and regulatory changes (including the Hatch-Waxman Act and the Orphan Drug Act); plus the family battles following the sudden death of Arthur Sackler.

Killers of the Flower Moon / Heist

The First Book of the Week is “Killers of the Flower Moon, The Osage Murders and the Birth of the FBI” by David Grann, published in 2017. This volume described in suspenseful anecdotes– a political, social and cultural system suffused with evil– and it highlighted what happened to just one of countless families whose members were victims of the conspiracy.

In 1870, the Osage Native Americans were forced by light-skinned Americans to flee from their homeland in Kansas, to wasteland in northeastern Oklahoma. In 1893, the United States government’s Indian Affairs Department ordered that all children on the Osage reservation attend school. One consequence was that the young people in the area adopted the ways of the “white man.”

On September 16, 1893, the U.S. government shot a gun to kick off a land-grab. The Cherokee Outlet, territory bordering on the Osage’s that was bought by the U.S. government, was handed over to the Cherokees on a first-claimed via physical presence, first-owned basis.

About 42,000 members of the Cherokee nation waited on the border for days until the appointed time of the free-for-all. The fight for land ended in a massacre galore. The government didn’t bother to repeat the above process with the Osage reservation.

Yet, by the very early 1900’s, oil was discovered on the Osage’s land; this opened a Pandora’s box. In 1912, the Department of the Interior auctioned off the then-super-valuable parcels, to which the Osage had mineral rights. The Osage became millionaires overnight, paid royalties by the oil barons.

The local (white) politicians of the oil-rich lands stuck like leeches to the Osage residents, under the guise of regulating commerce. They deemed that (white) guardians of the property be appointed for full-blooded Osage people, as the Native Americans weren’t sufficiently educated or competent to manage their own money. Unsurprisingly, the guardians were thieves and worse.

Read the book to learn about a statistics-defying (but not uncommon among the Osage) rash of deaths (by poisonings, shootings and explosives) that occurred in one Osage family due to the “system” and the growing-pains the Wild West experienced as it evolved into a civilized, law-abiding society with the help of a national law enforcement organization now known as the FBI.

A more recent example of exploitation of Native Americans was described in the Second Book of the Week, “Heist, Superlobbyist Jack Abramoff, His Republican Allies, and the Buying of Washington” by Peter H. Stone, published in 2006. Yet again, the hypothetical board game “Survival Roulette” could be applied to this scandal: Native American Exploitation Edition (See “Highly Confident” post).

There have been countless ultimate winners of this game through the centuries: all the people never caught for committing crimes against Native Americans. The vast majority have gone unpunished, including several people mentioned in the book, whose names have already faded from the public’s memory.

However, the most famous hypothetical losers of the game in this book were lobbyists Jack Abramoff and Michael Scanlon, and Congressman Tom DeLay. Instead of a Monopoly board, in keeping with the casino theme, the central structure of the game could be an actual roulette wheel, whose ball could land on spaces that describe the financial crimes of: bribery, money laundering, fraud, disclosure failures and influence peddling. Plus tax evasion. Just for good measure.

In short, with Abramoff as the ringleader, during the course of three years, the gang milked six Native American tribes for $82 million– that paid for political bribes, funding for a school, lavish gifts, and entertainment and recreation expenses– disguised as lobbying and public relations services on behalf of the tribes.

In this slim volume, the author dispensed with suspense by revealing up front that, when they got caught, Abramoff and his sidekick Scanlon accepted plea deals for their unethical opportunism, unconscionable greed and unmitigated hubris. The author then failed to explain why the Texas state government closed a casino run by the Tigua Indians in February 2002, but did explain later on.

Nevertheless, the story thereafter unfolded in more or less chronological order, starting with backstory from the 1990’s. The Tigua casino actually stayed closed, despite Abramoff’s fat fee, part of which he circuitously funneled through nonprofit organizations that ended up as political donations, and paid for a luxurious golf vacation in the United Kingdom for himself and his cronies.

Abramoff’s shamelessness knew no bounds. He had his friends, in order to service one of his tribal clients, marshal support from the likes of the Christian Coalition to convince the U.S. government that gambling was against their religion, and a reason to close the Tigua casino. At the same, he was lobbying on behalf of the Tiguas through illegal means, to reopen the casino (!) For that, he made megabucks from both sides.

Abramoff also helped to quash legislation that would have taxed his Choctaw client, and would have imposed tougher labor laws on his offshore client that manufactured clothing in the Marianas.

Kevin Sickey, who represented an Indian tribe that hired Abramoff, described the lobbyist’s propaganda thusly: “They exaggerated political threats and they exaggerated economic threats. Then they exaggerated their ability to deal with threats.”

Read the book to learn what led to the start of investigations by the Senate Indian Affairs Committee and the Justice Department; Abramoff’s and Scanlon’s early-career adventures; and details of their and others’ punishments, among other nothing-new-under-the-sun type political opportunism, greed and hubris.

As an aside, the dollar value of political wrongdoing has reached dizzying heights in the past few decades, and it has been the same kind of wrongdoing, over and over again– committed mostly by alpha males. People who have an insatiable need for power and money apparently never learn from others whose stories have been well-publicized!

Halliburton’s Army – LONG BONUS POST

The Bonus Book of the Week is “Halliburton’s Army, How a Well-Connected Texas Oil Company Revolutionized the Way America Makes War” by Pratap Chatterjee, published in 2009.

This slightly sloppily proofread volume was also slightly redundant and very disorganized. Nevertheless, it was extremely well-documented and detailed. The author personally visited various sites and personally interviewed various people– in addition to sourcing information from documents– about which and whom he wrote.

In the late 1930’s, president Franklin Roosevelt, Congressman Lyndon Johnson and the company Brown & Root (BR) formed a public-private partnership to build the Marshall Ford Dam in Texas. In the early 1940’s, the company built the naval air station Corpus Christi. Taxpayers way overpaid for those projects. The reason was partly because the sweetheart terms of its contract guaranteed it a profit.

BR also built warships for World War II. It allegedly financed Lyndon Johnson’s run for the U.S. Senate in 1948. It built military bases during the Vietnam War. In August 1966, U.S. Congressman Donald Rumsfeld contended that, due to conflicts of interest, the federal government had signed contracts with BR that were “illegal by statute.” Of course, Rumsfeld hated President Johnson.

In October 1966, Rumsfeld and Bob Dole reported that BR had refused to let any government officials see documents associated with a BR construction site. The company and its subcontractors had lost track of $120 million and had thefts of millions of dollars of equipment by the end of its ($1.9-billion-in-costs) ten-year contract.

After the First Gulf War, a company named Halliburton pioneered the user-friendly assembly of cheap, prefab structures on military bases that were comfortable for soldiers in global hotspots. In early 1998, Dick Cheney assisted with the creation of Kellogg, Brown & Root when M.W. Kellogg was added to BR. Then Halliburton took over the whole kit and caboodle.

Through the 1990’s, Halliburton finagled $167.7 million worth of contracts from the U.S. government in Rwanda, Haiti, Saudi Arabia, Kuwait and Italy. “But it’s hard to convince people that the company had no influence when your entire upper management once worked for the very agencies that awarded the contracts.”

Halliburton’s tentacles also reached into Somalian and Nigerian territory through bribery. It had fun in the Balkans with “… double-billing, inflating prices and providing of unsuitable products.” By the late 1990’s, thanks to Halliburton and Chevron, the previously unspoiled, tourist-filled beaches in Angola’s Cabinda province had turned black.

Donald Rumsfeld was named Secretary of Defense in the United States beginning in 2001. Just prior to 9/11, “Rumsfeld said that the Pentagon was wasting at least $3 billion a year.” In the next eight years, he proceeded to eliminate most of the military’s in-house operations, including payroll, warehousing and sanitation.

Rumsfeld was adding one more area of American life– the military– to the privatization trend of recent decades. It has already gained traction in education, prisons, government entitlements, student loans, spying and courier services. Curiously, healthcare is going in the opposite direction. Why is that?

Well, medicine has undergone a major cultural change in the last fifty years. The family doctor who made house calls used to be a trusted family friend who charged a reasonable rate for his services. Now depersonalized medicine whose costs are sky-high due to technology and specialization is the norm. Healthcare is a mature industry.

Some aspects of healthcare have become capitalism gone hog-wild, especially those that are a matter of life and death. They have become as out of control as Halliburton.

That is why Americans are welcoming the intervention of government regulation to stem the incompetence, fraud, abuse and waste that have inevitably resulted from too much capitalism. Yes, capitalism is good– up to a point.

Anyway, the George H.W. Bush administration initially signed a military-services contract of a few million dollars with Halliburton. Dick Cheney served as CEO of Halliburton from late summer 1995 through 2000.

In those years and beyond, Cheney successfully spurred specific American foreign policy initiatives to win more lucrative contracts for Halliburton. By January 2002, in one of several nefarious policy changes, he got President George W. Bush to lift economic sanctions against the Muslim country of Azerbaijan, human rights and environmentalism be damned. On Halliburton’s behalf, Cheney engaged in friendly dealings with such oil producers as Iran, Libya, Russia, Saudi Arabia, and prior to the war, Iraq.

Azerbaijan’s president, Azeri Aliyev came to the United States for prostate cancer surgery in February 2002. A year later, he ran for reelection and won. As a quid pro quo, in November 2003, President George W. Bush got him a World Bank loan for an oil pipeline.

Of course, in February 2003, the fix was in and Halliburton was automatically awarded the contract that spelled out the terms of the fait accompli restoration of Iraq’s oil fields after the fait accompli war, ethics be damned. To top it off, the contract guaranteed a hefty profit for Halliburton. The company argued that there was no time for a fair, sealed-bid process before the war.

The “… contract would effectively make Halliburton the biggest recipient of Iraq’s oil money, with no input from the Iraqi people.” More than half of the billings for Halliburton’s oil-related services that the U.S. government would presumably pay for, were actually paid with Iraq cash. In other words, the proceeds of Iraq oil sales were used to pay Halliburton.

An organization that studied the quality of Halliburton’s work in Iraq calculated that “… the potential revenue lost from reduced oil production and exports” was $14.8 billion. Gross incompetence, fraud, abuse and waste were not isolated incidents. The holding company’s entities had a few contracts whose epic failures were hushed up until their projects’ entire budgets were spent, at which time those contracts were cancelled.

For example, there were many inexcusable episodes of oil smuggling by corrupt Iraqi officials, right under the noses of U.S. contractors. Halliburton was supposed to be the party responsible for preventing those episodes until it was fired in mid-2005.

In early 2004, due to public outcry over the no-bid, rigged Halliburton contract, there was new bidding, which was still rigged. The military, politicians and top employees of Halliburton were all co-conspirators in the illegality.

Workers of Halliburton’s subsidiaries and its subcontractors have hailed from a range of nations, including but not limited to: Fiji, Uganda, Egypt, Sri Lanka, Saudi Arabia, the Philippines, Pakistan, Afghanistan, Kyrgyzstan, Bosnia, India and America. Both non-American and American hirees are lured by the promise of high pay.

But often that promise comes with a price; the workers are subjected to mean living quarters, do hard manual labor for long hours, such as twelve hours a day, seven days a week in dangerous conditions, get no health insurance and no paid time off, and might go for months with no pay.

If they’re non-American, workers can’t complain because they’ll likely be threatened with dismissal. They likely borrowed money to travel to their expatriate work in the first place. If they quit their jobs, they would be greatly indebted, and their families back home would be made even more impoverished.

Just a few of the kinds of functions the worldwide network of cheap labor fulfills include: food delivery, preparation and catering, lodging, golf course maintenance, civil engineering, motor vehicle transport of the United States Air Force, United States customs inspection and security.

Read the book to learn the details of numerous Halliburton-related outrages in addition to the aforementioned, and how in 2003 and later, the voices of the handful of people who might have had the power to stop the corruption were eventually drowned out by political actions imposed by the powers that were.

Into the Raging Sea

The Book of the Week is “Into the Raging Sea, Thirty-Three Mariners, One Megastorm, and the Sinking of El Faro” by Rachel Slade, published in 2018. This sloppily proofread volume recounts a suspenseful, emotionally charged story about a rare but preventable epic fail. It is a cautionary tale of how TOO MUCH DEREGULATION in the shipping industry turned out to be penny-wise and pound foolish.

Just as a little bit of socialism is good (in the form of public libraries and the like), too much socialism is bad. So too– some deregulation might be good, but too much deregulation leads to conflicts, corruption, monopolies and crashes (financial and physical). With the ship El Faro, one thing led to another: Getting rid of pesky laws that hindered commerce ultimately increased the risk of deaths, as will be explained.

All the money the government and El Faro‘s owner thought they were “saving” with the help of deregulation, was wasted in the accident in various, extremely high costs– rescue-resources, the emotional toll taken on all of the parties involved, litigation, etc. What happened to the ship showcased the extremes of human nature– greed and hubris of shipping-company executives and their accomplices (politicians) versus the braving of life-threatening conditions, by rescuers trying to prevent deaths in the disaster.

At the beginning of October 2015, El Faro was hauling commercial cargo heading for San Juan in Puerto Rico, but ended up in the path of hurricane Joaquin. The whole voyage was one long cluster screw-up.

For starters, the shipping industry had an abusive, hierarchical culture. There had been a long period of deregulation starting in the 1970’s in the interest of political expedience and profit-seeking; safety be damned. But by the 2010’s in the shipping industry, the gravy train was over.

Due to the safety crackdown, El Faro‘s corporate owner had been doing some lean and mean cost-cutting in connection with all of its holdings, at the expense of vessels and their personnel. El Faro had been grandfathered in under older regulations that made its long-term seaworthiness doubtful. But it was lucrative enough not to be scrapped.

Architecturally, the ship had been designed for speed rather than safety, and the physical arrangement of the cargo caused the ship to ride low in the water, and list in rough seas. Rushed workers sloppily loaded the cargo– consisting of cars and other heavy, unwieldy items, and they weren’t entirely secure (both the workers and cargo). The ship’s anemometer was broken. But for deregulation, the government would have taken the ship’s owners to task on these and various other accident-prevention issues.

During this, El Faro‘s last voyage, in which it encountered a horrific storm, the captain could pick and choose from a few different sources of weather forecasts. He happened to choose the most outdated one, unbeknownst to him. Nevertheless, he stubbornly refused to consider any others, or significantly change the ship’s route, even when his subordinates tried to tell him about storm data from other sources. He needed to please his bosses, whom he knew preferred that he get the ship to its destination ASAP, to minimize costs. In transportation, time is money.

Also, the captain lacked social graces. Not only that, he was a survivalist, one of those nutjobs who was prepared for the end of the world, with weaponry and provisions and planned to defend himself if necessary, against other survivalists. Thanks to deregulation, he was still employed.

The sleep-deprived chief mate of the ship was a new employee, just getting to know the captain, so he was eager to impress him and reluctant to question his authority. The second mate was psychologically weary of her job.

Other ship workers were less than loyal, as they had no job security. To add insult to injury, racial tension pervaded the ranks. To boot, the ship was understaffed.

To be fair, the storm formed faster than anyone had anticipated. But obviously, TOO MUCH DEREGULATION played a major role in the incident.

As an aside, “It’s an open secret in the meteorological community that the ECMWF [the European weather service and hurricane software modeler] is consistently better than the NWS [American National Weather Service and hurricane software modeler].” The former collects more data worldwide and gets more funding than the latter. (Apparently, whenever a storm is brewing near the United States, the American weather media still show the projected route of the American model, as a point of pride).

Read the book to learn: other disturbing lessons; the fate of the ship; and fascinating details of the investigation.

Deadly Spin

The Book of the Week is “Deadly Spin” by Wendell Potter, published in 2010. This is a book that explains how health insurance companies engage in unethical behavior in the name of profit, that results in needless deaths in the United States.

It follows then, that serving as a top executive at a health insurance company requires sociopathic tendencies, favoring money over people. One reason the insurance companies are so obsessed with their bottom lines (aside from the greed of their top executives) is that they have to answer to Wall Street.

Potter worked for Humana and then CIGNA a combined approximately twenty years as head of their public relations departments. By the late 1980’s, Humana realized it had a conflict in running a for-profit hospital and a managed-care plan simultaneously. The hospital was more than happy to maximize the stays of its most lucrative patients, while the plan’s goal was to minimize costs through preventive health care– promoting wellness.

The author learned to play the game of maximizing his employer’s profits through fighting legislative changes to his industry; and protecting, defending and enhancing his employer’s reputation. For, there was a direct relationship between his employer’s profits and his raises and bonuses. He therefore emotionally detached himself from health insurance plan members, and focused specifically on actuarial tables and legalese to help him project an image of his employer as a reasonable, if not caring participant in patient care.

Whenever a threat to his former employers’ profits arose, such as the movie “Sicko” or proposed legislation that financially favored patients, his former employers hired a big-name, monster-sized public relations firm, and secretly co-funded and co-founded a political front group, such as “Health Care America” that publicly pretended to favor health care consumers, but truly sought to maximize insurance industry profits. The group was a propaganda machine, and an object lesson in how to lie with statistics.

Other tricks of the trade include: “…rescinding individual policies, denying claims, cheating doctors, pushing new mothers and breast cancer patients out of the hospital prematurely and shifting costs to consumers.”

Read the book to learn additional details of the hegemony of the health insurance companies. One interesting endnote: “Obama opposed any requirement that everyone buy insurance, one of the few points on which he disagreed with Hillary.”

The World According to Monsanto – URGENT POST

The Book of the Decade is “The World According to Monsanto– Pollution, Corruption, and the Control of Our Food Supply” by Marie-Monique Robin, published in 2010.

The author wrote, “When one dissects Monsanto’s activity reports (contained in 10-K forms [annual reports filed with the Securities and Exchange Commission in the United States]) since 1997, one is struck by the place taken up by litigation.”

There are no companies that can fairly be compared to Monsanto in terms of payments to victims for irreparable harm, permanent injury and wrongful deaths caused by the environmental damage done by Monsanto. They couldn’t possibly compete. But the following is a summary of recent expenses of the legal bullying of, and financial punishments handed down, to Monsanto.

Monsanto’s 2017 annual report’s footnotes showed $33 million in expenses associated with “environmental and litigation matters.” The company’s 2015 Restructuring Plan included $167 million of the same kinds of aforementioned expenses and “a SEC settlement.” The cost of goods sold was $101 million. That means, its litigation expenses exceeded the costs of producing its products. Besides, annual reports don’t normally contain the exact phrase “environmental and litigation matters.”

Another item included $32 million of expenses related to “legacy environmental settlements.” Monsanto recorded the settlement of its polychlorinated biphenyls (PCBs) legal troubles for $280 million in fiscal 2016. Lastly (finally!), the “Long-Term Portion of Environmental and Litigation Liabilities” accounts for almost 1 1/2% of the company’s “Total Liabilities” for the year.

What makes Monsanto’s excessive litigation egregious is that it has so much worldwide hegemony that it wins its cases most of the time– the company itself sues everyone who gets in the way of its profit-making, and successfully defends itself against the countless plaintiffs who have legitimate causes of action against it.

Not to mention the fact that it had basically formed a public-private partnership (largely via political contributions and lobbying), with the American government as of the book’s writing. That is why whistleblowers and activists get crushed in its wake.

Sounds familiar… Unfortunately, the reason history repeats itself so often is that human nature doesn’t change. What makes Monsanto’s case so much scarier than the situations with other, similar monstrous entities is that Monsanto has the potential to permanently contaminate nearly the entire world’s food supply, and there have already been significant consequences of that nature due to its unbridled greed. Yes, it is that bad.

Founded as a chemical and plastics company in 1901 in Saint Louis, Missouri– Monsanto went public in 1929. It made DDT, dioxin, aspartame, (and inadvertently but knowingly and ruthlessly, PCBs), among other substances that have done permanent harm to a large number of people.

As of this book’s writing, Monsanto had a presence in 46 nations and owned 90% of the patents for all Genetically Modified Organisms internationally grown. It makes billions of dollars in profit annually.

The author traveled extensively to interview numerous people to gather a voluminous amount of data on Monsanto’s quest to make the maximum amount of money it possibly can, at the expense of humanity. The scientists she interviewed– including friends and foes of Monsanto– all said they wouldn’t eat the genetically modified foods borne of Monsanto products.

The author tells lots of anecdotes about people from all different geographic areas who have been adversely affected by the chemicals and genetically modified organisms sold by Monsanto, plus about several people previously affiliated with the company and U.S. government agencies, who were clearly still loyal to their former employers. One such interviewee displayed the body language of a liar: excessive blinking when answering her pressing questions. She also pored over declassified documents that indicate outrageous corporate wrongdoing.

Monsanto’s employees currently research, apply for patents to, and sell genetically modified seeds for growing soybeans, corn, cotton and rapeseed; plus a herbicide– Roundup, an insecticide– Bt toxin, and the bovine growth hormone rBST.

The author wrote that in 1983, the American federal government set aside funds called the Superfund Program to decontaminate toxic waste sites around the nation. When some of those funds were diverted to “… finance the electoral campaigns of Republican candidates, Congress discovered that documents that would compromise the companies[,] disappeared.”

As might be recalled, the Reagan administration had a reputation for being staunchly pro-business; so much so that it made EPA worker Anne Burford and her colleague Rita Lavelle the scapegoats of a scandal after pressuring them to shred documents (which would have implicated Monsanto) and commit other crimes in connection with the town of Times Beach, Missouri– a dioxin-and-PCBs-contaminated site.

That contamination resulted in the deaths of numerous animals, serious health problems for the people there, and forced permanent evacuation of the eight-hundred family resort town.

The author spoke with several whistleblowers. All were punished by their employers. One from the EPA distributed an inflammatory memo saying Monsanto published false research results on its products. Another from the FDA wrote a report on the flaws in Monsanto’s application for approval of the artificial growth hormone rBST. He was fired in 1989, sued, and years later, won a job back at the FDA, but not one for which he was suited.

Monsanto’s rBST (still currently used at some dairy farms), when injected into cows, causes them to produce more milk (translation: more money). With the hormone, other substances are also likely to get into the milk, such as pus and antibiotics. This is because the injection sites on the cows form abscesses, necessitating the administering of antibiotics to the cows. Further, with rBST, the cows develop serious health problems, like ovarian cysts, mastitis and uterine disorders. Never mind humans who drink their milk.

In an unprecedented move, the FDA changed its own rules and approved rBST in November 1993 without forcing Monsanto to reply to its concerns and recommendations.

In the late 1980’s, a genetically modified dietary supplement sold by prescription only caused serious health problems, killing at least 37 and permanently disabling 1,500. If that kind of harm was done by a regulated item meant to be eaten that was genetically modified around the same time that Monsanto was testing rBST– a part of a product that millions of people would consume, shouldn’t the FDA have been more prudent in its approval process of rBST??

Monsanto sued the dairies that said on their milk-container labels that their milk contained no rBST. The defendants were forced to change their labeling.

In the late 1990’s, there was the TV-journalist-couple who were working on a show with negative coverage on Monsanto, when their employer was taken over by Fox News. They were fired because they refused to switch from telling the truth, to lying about Monsanto.

In 2003, after the couple suffered years of emotionally and bank-account draining litigation, “The [federal] judges considered that no law prohibited a television network or a newspaper company from lying to the public. To be sure, the rules established by the FCC prohibited it, but they did not have the force of law.” No wonder journalism is dead.

Conflicts of interest abounded in the 1990’s , when supposedly scholarly journal (peer-reviewed) articles (like Science, Nature and the Journal of the American Medical Association) declared that Monsanto’s products were safe; those articles were written by people paid by Monsanto.

Reputable scientists pointed out that Monsanto’s scientific testing involved non-standard procedures, and was statistically suspect as it was of too short a duration, and had too small a sample size.

Read the book to learn about:

horror stories resulting from Monsanto’s underhanded tactics regarding testing and use of its products, including the herbicide Roundup;
its victims in Anniston, Alabama who were subjected to PCBs;
which of Monsanto’s products was banned in 2000 in Canada and Europe;
how Monsanto is active in the United Nations;
how deregulation perpetuates Monsanto’s worldwide hegemony;
which ten or so individual American government officials acted on Monsanto’s behalf, but had undisclosed conflicts of interest [there was scant room in the book to list all those who were ethically challenged Monsanto affiliates— wait, that’s redundant];
the percentages of all foods genetically modified in specific categories in 2005;
how taxpayers footed the bill for Monsanto’s aggressive use of legal and political weaponry against American soybean farmers (whom it seriously harmed by taking away their livelihoods through duress and illegally spying on them in the late 1990’s) from 1999 into 2002;
why Monsanto dropped its initiative to introduce a transgenic wheat, even after spending hundreds of millions of dollars in connection therewith;
how Mexico has been harmed by Monsanto’s transgenic corn;
how Argentina and Paraguay have been harmed by Monsanto’s transgenic soybeans;
how India has been harmed by Monsanto’s transgenic cotton;
how Canadian farmers have been harmed by transgenic canola;
what transpired when, in January 2005, the Securities and Exchange Commission launched a legal proceeding against Monsanto for corruption in Indonesia;
why the World Trade Organization should share some blame for allowing the worldwide spread of Monsanto’s tentacles;
and much more.

Endnote: Feel free to browse other posts for additional examples of entities behaving badly under the category “Business Ethics.”

The Truth with Jokes – Bonus Post

With the U.S. midterm elections approaching, this blogger paged through Al Franken’s book, “The Truth with jokes” (but it isn’t funny), published in 2005. It is mostly about: election, military and economic issues in connection with George W. Bush’s first term.

One controversial issue (still a relevant question years later) that Franken covers is that “…seven months into the [Iraq] war, Donald Rumsfeld wrote a memo asking whether we were creating more terrorists than we were eliminating. ‘We lack the metrics to know,’ he lamented at the time.” A few years later, the government admitted it had the metrics– statistics on terrorist attacks– and the answer was yes.

In 2000-2001, when Bush was first “elected,” Federal Reserve Chair Alan Greenspan was excited that “After eight years of Clinton-style fiscal discipline and economic growth, the era of big deficits was over, and we were running surpluses…” As is known now, Greenspan’s assessment of America’s financial shape turned out to be a bit off the mark. By 2005, the U.S. government had to borrow $2 trillion.

Therefore, the Bush administration might have been wrong in predicting that Social Security would run out of money by 2042. There were then murmurs about privatizing it. Al Franken and his political ilk squelched Bush’s attempt.

Nevertheless, Franken has done extensive economics research, as is shown in this video:

This blogger thinks it is well worth watching in its entirety.