30 September 2008

The Iron is Hot

What, exactly, constitutes a "crisis" in this nation?

On the way to answering this, let's take a moment for a history lesson. A chartered corporation is, under American law, what is known as "juristic person." That is, in the development of legal precedent around the issue, corporations in America have, over time, been treated - from the standpoint of the law - more and more like human beings. There is a certain logic to this, of course. Corporations engage in commerce, just like real persons do, and therefore the "naturalization" of corporations as "citizens" is tantamount to the removal of impediments to commerce. Good business sense, there.

A strange moment happened in 1886, however. The Supreme Court that year heard a case known as Santa Clara County v.Southern Pacific Railroad. Prior to the rendering of the actual judicial decision in the case, Chief Justice Morrison R. Waite stated clearly, "The court does not wish to hear argument on the question whether the provision in the Fourteenth Amendment to the Constitution, which forbids a State to deny to any person within its jurisdiction the equal protection of the laws, applies to these corporations. We are all of the opinion that it does."

While this opinion was not a proper legal precedent, it has been reported and repeated as if it were, resulting in a de facto extension of Fourteenth Amendment protections to American corporations.

Now remember, it took seventy years to begin to "fully" extend these rights to actual flesh-and-blood American persons (persons who happened to have the "wrong" color flesh or "non-white" blood), if we take the civil rights decisions of the mid-1950's as a benchmark. Of course, it could be argued that the Fourteenth Amendment has never actually been fully inclusive of the actual flesh-and-blood human persons it was (ostensibly) designed to protect. Our legacies of Jim Crow, and still-economically-and-racially-segregated cities, attest this fact.

Thomas Jefferson opposed the chartering of corporations, unilaterally, deriding them as "monopolies of commerce," and a threat to the health of the nation. So the 1886 "decision," and its effects, it can be argued, mark a radical change from the founding ideals of American government. The most radical effect of these changes is the preference of fictional persons over actual flesh-and-blood persons.

We see this effect writ large today, as our country groans and flexes its fear muscles over the pain being felt by many of these corporate "persons" - today mainly banks and financial institutions, yesterday semi-government loan agencies. We are being cajoled into swallowing a truly staggering amount of debt - nearly a trillion dollars - to assuage the suffering of these fictional persons.

The one upside to this 700 billion dollar debacle is this: all talk of universal health care "costing too much" is, by my lights, instantly nullified.

I was just reading the New York Times, and they reported recently that the estimates for the cost of universal, comprehensive health care for (nearly) all Americans would be somewhere in the 60- 90 billion dollar range. That is somewhere in the range of one tenth the cost of the proposed bailout.

It is a bargain at that price, certainly, but it is a clincher when you add that real flesh-and-blood humans, not legal fictions, would be directly helped by such a move. That, it seems to me, is a clear mandate for enacting such measures immediately - especially since we now know the money and the means are obviously available.

On NPR's "Marketplace Morning Report" this morning, Scott Jagow used words like "crisis" and "peril" to describe the situation. Dan Gretch, commenting from Miami, talks about the man in Miami Lakes whose condo is now losing value.

Excuse me?

Come to Nashville, and I will introduce you to Steve, who occasionally lives in the Post Office at night when the weather is cold. Folks in my city - real flesh-and-blood people - don't have homes, and they don't have health care. Their concern is not about losing investment value or market share. Their concern is about losing teeth, getting beaten up or harrassed by police, or their kidneys failing.

I don't say this to diss the man in Miami Lakes. I feel for him, too. His losses, relative to his context, are significant. But in both cases - Steve and the man in Miami Lakes - we are talking about people.

It is a very different thing to talk about a fictional person, and its pain, and its groaning, as if it were equal in importance, or more important, than Steve. Steve - though insignificant by economic indicators - is a living human being. No matter how little he contributes, he is, he must be, considered more important than any legal fiction. His pain and hardship must be considered more real and more important than the pain and hardship of any legal fiction.

Let me put this in concrete terms. Imagine there is a burning building. Inside the burning building is a baby and a corporate charter. The firemen who rush into the building ignore the baby and use all their resources to secure and protect the piece of paper from damage.

Think about that for a minute, and then try and convince me that such behavior is not a textbook definition of moral perversity. Yet the equivalent of this abhorrent, evil, immoral action is being played out before our very eyes this very day.

I say, do not stand for it. Stand for something better.

I say, stand up for the health and safety of your flesh-and-blood sisters and brothers - the guy in Miami Lakes, sure, but especially for the "least of these" among us, the millions of Steves in the post offices and under the bridges of America.

Stand up by contacting your representatives and saying to them that if they vote for the bailout of fictions and against the healthcare of real persons, you will vote them out of office.

Stand up by saying "no" to the insanity that would protect the piece of paper and let the human baby burn.

Stand up to a news media that cries "crisis, peril!" in the face of corporate discomfort, while remaining mute, uncaring and unnoticing of the human disaster of health care and housing in our nation.

For God's sake, stand up.

3 comments:

Anonymous said...

yea, David. good for you.
please, i really really want health insurance.
mmr

dault said...

So I emailed my representatives.

This was Congressman Jim Cooper's response to the email I sent him (I also sent emails to both senators), urging him, in the same spirit of this post, to not fund the bail out and to fully fund education, comprehensive health care, and housing for the homeless. As you can see, his response was sadly "boilerplate."


Dear Mr. Dault:

Thank you for taking the time to contact me about the current
financial crisis. Over the past several days I have heard from
hundreds of concerned Middle Tennesseans just like you. Wall Street
excesses have put the rest of America in a very difficult position. I
hate that Congress has been asked to commit hundreds of billions of
dollars of taxpayer money to stabilize the markets.

After studying the data and talking to numerous experts, I have
concluded that we face the possibility of a real economic collapse.
There has never been a more serious threat to the American
economy in my lifetime. If we fail to act, we could see a collapse in
our banking system comparable to the one that triggered the Great
Depression in 1929. This would undeniably be felt at home, causing
credit card rates to skyrocket, mortgages and small business loans to
dry up, and companies to lay off workers.

My colleagues and I worked around the clock and through the
weekend putting together legislation to provide necessary liquidity to
credit markets and to restore solvency to our financial institutions,
while at the same time protecting taxpayers and keeping people in
their homes. The Emergency Economic Stabilization Act took
Treasury Secretary Paulson's three-page plan and added one hundred
pages of Congressional oversight: strong protections for
homeowners, tough limits on CEO pay, and the abolishment of
"golden parachutes."

Rather than give Secretary Paulson a $700 billion blank check to
purchase troubled assets, the bill provided $250 billion up front.
Congress would have to approve further expenditures, giving us the
authority to pull the emergency brake if the program was not
working. I also pushed for a plan to ensure that taxpayers did not get
stuck with the bill. Under this proposal, included in the final bill, the
financial industry would pay for any taxpayer loss in the program
after five years. The bill also provided authority to suspend the
mark-to-market accounting procedures that many have claimed to be
part of the problem, and did not include a controversial provision
many thought would unduly benefit organizations such as ACORN.

Though the bill faced considerable opposition, it was supported by a
vast spectrum of advocacy groups like AARP, U.S. Chamber of
Commerce, and the National Association of Manufacturers. Even
with support from both Democrats and Republicans, there were not
enough votes to pass this legislation, and the bill failed 205 - 228.
Our financial markets felt the gravity of the situation immediately as
the Dow Jones Industrial Average fell a record 777 points.

My priority is to do whatever is necessary to keep our economy
strong, to grow more jobs, and to promote prosperity. My colleagues
and I will continue to work toward a solution to this crisis, and I am
confident we will find one. The stakes are simply too high for
America's economy if we do nothing.

David J. Dunn, PhD said...

David,

I have been about 60% for the bailout. Furious, but for it, because I saw too many parallels to the lack of liquidity that preceded the Great Depression. It's extortion, but I saw few viable alternatives. By the way, I've been scared for years! On the other hand, it's also socialist. You and I just became Wall Street investors.

The current plan also allows individuals to renegotiate their mortgages in bankruptcy court (a provision that used to apply only to second homes! WTF?).