Daily Archives: September 8, 2004

The Junk-Fax Enabling Act

If there is any question left in your mind about who’s pulling the strings that make the US puppet govt jump, consider House Bill S 2603, the so-called Junk Fax Prevention Act of 2004. Lauded by its Republican supporters as a bill that fights the epidemic of pervasive junk mail, what it actually does is help corporations spread the infection even further.

In one of the most dishonestly named bills of all time, the House recently passed the Junk Fax Prevention Act of 2004. The legislation would, in fact, open the floodgates for these intrusions into our lives.

The bill, S 2603, would allow anyone who’s done any kind of business with you during the last seven years — seven years! — to send you faxes without getting your permission first. You would have to opt out each time.

The FCC’s latest regulations, which proposed to tighten the current rules against junk faxes, were too much for corporate America and its marketing wizards who continue to invade every corner of our lives. Their power with Congress is far greater than yours, so far.

At least they could tell the truth, naming S 2603 the “Junk Fax Enabling Act.”

I have to quibble with the phrase ‘most dishonestly named’–there’s way too much competition in this Orwellian, corporate-owned govt for that particular title–but dishonest it certainly is. What struck me most, though, was how specialized this pandering is. Apparently corporate forces have successfully moved most of the macro legislation they wanted and are now working their way down into the details, those little things that mean so much–like legislation allowing their brazen band of marketing spammers to jam your fax machine from here to Tempie, Idaho.

Of course, it doesn’t stop there, no no no no no. There’s a lot of other legislation pending that was written by and for corporations to make their lives easier. For example, HB S 1890. Forced during the Enron/WorldCom/Global et al scandals to put the breaks on corporate accounting tricks designed to fool investors, one of the changes made was a requirement to include the cost of stock options on their balance sheets. S 1890 would simply…remove it. No sweat, no muss, no fuss, and the rule is history.

Listing the cost of options as expenses would not change the actual financial condition of any company. It would, however, reduce reported earnings in many cases.

For that reason, many in Silicon Valley furiously oppose the change, saying it will introduce new uncertainties in understanding a company’s books. As I’ve noted before, the valley approach seems to be that investors are smart enough today to figure out what’s going on, but will suddenly become too stupid to understand if we move to a system that notes the very real cost to shareholders of options grants.

Bills like these suggest that corporations are moving to consolidate their hold on what used to be our govt. They’re already treating our Treasury as their own private piggy bank; now they’re down to using the Republican Congress as a business-enhancement and policy-enforcement tool. This is the wave of the future, campers. Anybody who thinks this is going to go away once Kerry is elected President is living in a fantasy world–these guys are dug in so deep it’s going to take a bulldozer and several tons of dynamite to dislodge them now.

Rove’s Next Slime: Get Edwards

With the Swift Boat slime more or less played out, we were wondering where the next one was going to be aimed. MoJo says John Edwards is a good bet.

The White House has long been laying the groundwork for a campaign against the North Carolina senator, who made his fortune representing people with injury claims against doctors and corporations. Bush and other Republicans have blamed lawsuits for everything from rising health care costs to unemployment; with Edwards on the Democratic ticket, the GOP — and its allies in the corporate world — have dramatically turned up the volume. Treasury Secretary John Snow fired the first shot, two days after John Kerry announced his selection: “An abusive lawsuit has never created a single job, except for personal injury lawyers,” he told an audience in Maine, “but baseless and excessive suits have killed many.” Vice President Dick Cheney struck the same chord at a July 12 fundraiser in Pennsylvania, saying, “For the good of this economy, we need to end lawsuit abuse. Junk and frivolous lawsuits put people out of work.” The Bush campaign has also unleashed a new TV ad, attacking Kerry for missing a vote “to lower health care costs by reducing frivolous lawsuits against doctors.”

But this time it’s no off-the-rack, Bob Perry bought-and-paid-for hustle-of-the-minute. No, this one’s been in the works for a looooong time.

Behind those slogans are years of painstaking fine-tuning by Republican consultants, focus groups, and corporate think tanks. The term “lawsuit abuse” was coined in the early 1990s by Jan van Lohuizan, a Washington pollster wholater helped plan Bush’s 2000 presidential campaign. More than 100 corporate-funded groups have been working to convince the public that the legal system is out of control; organizations such as the American Tort Reform Association and Citizens Against Lawsuit Abuse, using expensive PR firms and funds from companies like Philip Morris, have spent years testing sound bites and spreading stories of a court system out of control.

That multimillion-dollar investment has turned corporate concerns about such esoteric things as “joint and several liability” into a populist crusade to “stop lawsuit abuse” and return the country to the good old days when old ladies who spilled hot coffee on themselves got sympathy, not punitive damages. The U.S. Chamber of Commerce has spent more than $100 million over the past three years on TV ads and lobbying for legislation to restrict citizens’ right to sue, a goal known as “tort reform.” (In the courts, “tort” means an injury, which can include anything from libel to malpractice.) The issue is such a high priority for the Chamber that its president, Thomas J. Donohue, moved in the wake of Edwards’ selection toward abandoning a longstanding policy of neutrality in presidential elections. Jerry Jasinowski, president of the National Association of Manufacturers, told the New York Times that businesspeople are “more frightened by [trial lawyers] than terrorists.”

This may be a mite earlier than they originally intended–they were probably planning an all-out assault for early in Junior’s second term–but Kerry’s selection of a trial lawyer as a running mate is too good an opportunity to miss.

I am sometimes asked, ‘Why all this emphasis on trial lawyers?’ and I usually give an answer I cribbed from radio’s Michael Feldman (What D’ya Know?): ‘It’s mostly Democratic trial lawyers who are collecting in lawsuits and Republicans who are paying.’ That’s a paraphrase–he said it better–but it gets at the point. Trial lawyers support Democrats because Republicans are always trying to get out from under responsibility for the injuries their faulty if not shoddy products cause by changing the laws so they don’t apply.

The conservative effort to disembowel any and all legal protections against the harm that might come from corporate cost-cutting and corner-shaving has been going under the harmless-sounding rubric ‘tort reform’, but the trial lawyers know that it means people will no longer be protected from corporate bean-counters who decide that it’s cheaper to pay $3Mil in negotiated, low-balled wrongful death settlements than $30Mil for a product recall just because the flaw in it might kill a few thousand of the people who use it. What the hell, they would have died eventually anyway, and $27Mil is $27Mil. We’re talking profits here, and those damn trial lawyers just can’t get their priorities straight.

However, there’s more going on here than corporate self-protection at our expense. If you think about how much corporations hate paying for their mistakes–or greed–it won’t come as much of a surprise that the ‘tort reform’ issue has proven to be a great fund-raiser for the Pubs.

In 2000, one of the Bush presidential campaign’s cochairs was Ralph Wayne, the president of the Texas Civil Justice League, a tort reform group whose board members include executives from Halliburton, Dow Chemical, and other major oil and chemical companies. Wayne told reporters that three-quarters of the league’s members supported Bush’s 2000 bid.

Many of them have signed on for 2004 as well. Among Bush’s major fundraisers this year is Allan “Bud” Shivers Jr., a board member of Texans for Lawsuit Reform. And the Bush campaign’s list of “Rangers” — people who’ve pledged to raise at least $200,000 — includes Maurice Greenberg, chief executive of AIG, the nation’s largest liability insurance company. Greenberg, whose company foots the bill when doctors or companies lose lawsuits, has been a vocal tort reform advocate. Changes to the court system are also an issue for many of Bush’s other corporate backers, including Exxon — which still hasn’t paid a $4.5 billion judgment from the Exxon Valdez spill — and Halliburton, which has lobbied hard to limit asbestos claims, a move that would save it hundreds of millions of dollars.

If it ever paid them.

Then there’s the effect of using tort reform as a way to deflect concerns and criticism over the Pubs’ disinterest in doing anything to ease, let alone solve, the health care crisis. Conservatives, who contemptuously label the single-payer system ‘socialized medicine’ and are not-so-secretly terrified of its inevitable creation, want a return to pay-as-you-go because they believe–mnistakenly–that their premiums will go down. As it happens, they won’t. After Junior claimed that Pennsylvania was suffering from a ‘malpractice insurance crisis’, a study showed quite the opposite.

[T]he state’s deputy insurance commissioner reported that malpractice payouts had fallen for the second year in a row, and lawsuit filings were also declining. (Not that doctors necessarily benefited: Insurers, in Pennsylvania and nationwide, have raised premiums even as malpractice suits have declined.)

What a shock. Conservative greed and naivete seem to go hand-in-hand, don’t they?

Unfortunately, we live in a time when the press is apathetic to facts–having swallowed hook-line-and-sinker the conservative claim that their job is simply to repeat what’s said about an issue and that fact-checking proves bias–and the appeal of an attack on lawyers, especially trial lawyers, is an easy sell.

Michael McCann, the director of the Comparative Law and Society Studies Center at the University of Washington, says anti-lawsuit rhetoric works in spite of the facts because it feeds into well-established stereotypes. “The image of the irresponsible plaintiff is right up there with the welfare queen,” says McCann. “That’s why Americans respond to this because it’s a morality tale.” Pollster Frank Luntz once told Republican members of Congress that “it’s almost impossible to go too far when it comes to demonizing lawyers.”

So look for ‘John Edwards: Demon!’ Coming soon to your tv.