Detroit’s water problem and the Koch brothers
Yesterday at the Alt Banking group we discussed the recent Koch brothers article from Rolling Stone Magazine, written by Tim Dickinson. You should read it now if you haven’t already.
There are tons of issues that came up, but one of them in particular was the control of information that the Koch brothers maintain over their activities. If you read the article, you realize that the brothers are die-hard libertarians but at some point realized that saying out loud that they are die-hard libertarians was working against them, specifically in terms of getting into trouble for polluting the environment with their chemical factories, so instead they started talking about how much they love the environment and work to protect it.
It’s not that they stopped polluting, it’s that their rhetoric changed. In fact there’s no reason to think they stopped polluting, since they still had plenty of regulators going after them for various violations. Since their apparent change of heart they’ve also decided to be publicly philanthropic, giving money to hospitals, and Lincoln Center, and even PBS (see how that worked out on Stephen Colbert).
The problem with all this window dressing is that people are actually starting to think the Koch brothers may be good guys after all, and what with the fancy lawyers that the Koch brothers hire to control information about them, the public view is very skewed.
For example, how many economists have they bought and inserted into universities nationwide? We will never really know. There’s no way we can keep a score sheet with “good deeds” on one side and “shitty deeds” on the other. We don’t have enough information for the second side.
The exception to this information control is when they get in trouble with regulators and it becomes a matter of public record. And thank goodness those court documents exist, and thank goodness investigative journalist Tim Dickinson did all the work he did to explain it to us.
A couple of conclusions. First, we complain a lot about the bank settlements for the misdeeds of the big banks. Nobody went to jail, and the system is just as likely to repeat this kind of thing again as it was in 2005. But another problem with this out-of-court settlement process, we now realize, is that we actually don’t know what happened except in big, vague terms. There will be no Tim Dickinson reporting on big banks.
Second, the connection to Detroit. Right now there are 15,000 residents of Detroit whose water has been shut down, basically so they can privatize the water system with the best deal from Wall Street. They owe less than $10 million, on average a measly $540. The United Nations has called this water shutoff a violation of the human rights of the people of Detroit.
If you feel bad about that, you can donate to someone’s water bill directly, which is kind of neat.
Or is it? Shouldn’t Obama be declaring Detroit a state of emergency? Wouldn’t we be doing that in another city that had 15,000 residents without water? Why is this an exception to that rule? Because the victims are poor? Don’t we recognize Detroit as a place where it’s unusually difficult to find work? Are we going to allow people to shut off heat as well, once winter comes?
Once you think about it, the idea of a “private solution” to the Detroit water emergency seems wrong. In fact, you can almost imagine David Koch coming to the rescue here, as part of his “positive optics” campaign, and bailing out the Detroit citizens and then, for good measure, buying up the water system altogether. A hero!
And if you’re in that mode, you can think about the asymptotic limit of that approach, whereby a few very rich people gradually take control of resources, and then there are intermittent famines of various types in different cities, and the rich people swoop in and heroically save the day whilst scooping up even more ownership of what used to be public infrastructure. And we might thank them every time, because it was a dire situation and they didn’t really need to do that with all their money.
It’s frustrating to live in a country that has so many resources but which can’t seem to get it together to meet the basic human needs of its citizens. We need a basic income, at least for the people in Detroit, at least right now.