Tuesday, April 9, 2013

The Stalemated State



Lobbies, and the corporations behind them, block almost all change in the US.

Back in the 1830's, de Tocqueville rhapsodized about how the new United States had groups organized wherever he went. He saw it as the blossoming of democracy.

Now, however, organization itself is big business. Lobbyists in the thousands insure that the powers-that-be maintain their monopoly-oligopoly, their stifling of innovation that might threaten a lock on their markets--as well as a government that caters to their interests and therefore discriminates against smaller, more nimble competitors.

The IMF recently held that subsidies for traditional energy companies (oil, coal, gas) were holding back the move to non-traditional sources (wind, solar, bio-fuels). Still, even the elite-led demand for reducing government expenditures hardly touches on those subsidies: billions a year to companies making billions in profits. In addition, thanks to people like VP Cheney, drilling companies are largely free of regulation. We still don't know what poisons frackers inject into the earth in order to force out oil or gas, because that's a "proprietary secret." Pennsylvania even gives frackers powers of eminent domain!

Chemical companies (mostly petroleum based) are also protected. Smaller competitors attempting to replace toxic materials like styrene with bio-based non-toxic materials are stymied: the EPA is not allowed to declare styrene's known carcinogenicity, let alone ban it, and similar hands off treatment is SOP for a whole raft of other chemicals. In addition, Monsanto succeeded in inserting language in the new food law that virtually exempts GMO's from regulation. Meanwhile, the FDA can't require them to be labeled as GMO's, either.

Big Pharma protects its monopoly patents world-wide, but especially in the US, and Medicare/Medicaid is required to buy drugs at inflated prices (often 10 times a possible generic); no negotiated prices are permitted.

So, it's not surprising that Congress, after much effort on the part of gun victims families, gun control advocates, governors and even the President, may or may not pass the most minimal of gun control measures: universal background checks, despite 90% support for it in most polls. Gun manufacturers have organized the NRA and now the even more militantly "pro-gun" Gun Buyers of America, to lobby all their captive Congressmen against any regulation except for militarizing the schools with subsidized armed guards (creating another subsidized market).

The ultimate subsidized market is Defense. Corporate contractors still get cost-plus contracts, still get reimbursed even for hotel taxes in Maryland--and then, Lockheed has the chutzpah to demand that Maryland reimburse it, too! And that's in addition to the huge subsidy derived from US insistence on maintaining hegemony worldwide.

The US is truly a corporate state wedded to outdated technologies, corporate behemoths and the greedy class, our Roman Senators, who own them. Stalemate will doom it, unless it and the corporations are able to transfer their dominance worldwide. That's why the Indian decision against Novartis is so important: the sclerotic American Empire is losing control.

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