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Separating Production from Consumption

[ 45 ] June 12, 2013 | Erik Loomis

Arguably capitalism’s greatest feat in the last century is the almost complete separation of production from consumption. Modern Americans rarely see where anything is produced, whether food or consumer goods. This is an intentional move by corporations to shelter themselves from pressures to produce goods in anything other than brutal conditions that maximize profit.

I thought of this when reading this article about a person in a Chinese prison camp slipping pleas for help inside the goods the prison produced for export.
An Oregon woman found one of them in a package of Halloween decorations. We simply have no idea of knowing what goods are produced under any sort of labor conditions, but especially prison labor. What corporations are directly benefiting from prison labor? At what point do Americans enter into the process? What responsibility do we have to find out? But because of the extreme capital mobility lauded by the political and economic elite for the last fifty years, we simply have almost no way to find out the answers to the questions.

And that’s the way capital likes it.

Daley

[ 32 ] June 12, 2013 | Erik Loomis

If there’s one thing the state of Illinois needs, it’s another centrist insider Democrat running for high office on a position of tearing down the good life for working-class people. Always important to follow Rahm Emanuel’s example.

Evers

[ 33 ] June 12, 2013 | Erik Loomis

Shortly after midnight on June 12, 1963, NAACP leader Medgar Evers was assassinated in front of his home by white supremacist Byron De La Beckwith.

Today marks the 50th anniversary of this tragedy.

Foreign Entanglements: Talk Turkey to Me

[ 0 ] June 11, 2013 | Robert Farley

On this week’s episode of Foreign Entanglements, Matt speaks to Hugh Pope about US-Turkish relations:

How to get a job, 2013 style

[ 109 ] June 11, 2013 | Paul Campos

business cards

I’m posting this for its sociological interest. The topic being addressed is how to get a summer associate position (SA) after your second year of law school, via on campus interviewing (OCI) if you have middle of the class grades at Michigan (i.e., a top ten law school). Getting a 2L SA through OCI in the weeks just before the beginning of the second year of law school (and then a subsequent offer of post-graduation employment) is pretty much the only way to get a job as a lawyer that pays enough to justify what has become the cost of attending the typical law school. (Michigan’s annual cost of attendance is now around $70,000). BTW the answer to the question “how do you get an SA via OCI at a non-elite school if you have less than top of the class grades” is “you can’t.” Read more…

MOAR TEBOW!!!!!!!!

[ 123 ] June 11, 2013 | Scott Lemieux

Essentially, this is the perfect role for him, as this will mean he won’t have to do what he can’t, i.e. play quarterback in the NFL. And putting him behind a Hall of Famer eliminates the biggest problem with adding Tebow as some kind of special teams gimmick player — the distraction created by the fact that every time your team loses the media won’t shut up about how TEBOW JUST WINS THE FOOTBALL GAMES (if you can hold the opposition to fewer than 10 points and kick some 60-yard field goals).

Having said that, this seems like another of the puzzling moves late-period Belichick has made trying to fill out his roster. The most egregious celebrity signing was the decaying corpse of Chad Johnson — you have to think that the 2012 Super Bowl would have come out differently if the Patriots had a football player rather than a reality television star to play wideout with Welker. The Tebow signing is an improvement because it’s merely irrelevant rather than detrimental, but it doesn’t encourage you to think that Brady/Belichick have another Super Bowl in them either.

I Demand A Digital Reissue!

[ 133 ] June 11, 2013 | Scott Lemieux

What good is having a blog if nobody has bought this for me yet?

If the LBJ library hasn’t converted this into a poster, they’re leaving a lot of money on the table.

[HT reader MKL.]

Nice work if you can get it

[ 70 ] June 11, 2013 | Paul Campos

John Sexton’s game is strong:

According to documents unearthed in a month-long search of public records, NYU Law School has created an array of nonprofits to funnel money into lavish perks for its professors. The money has been used by professors to buy multi-million dollar brownstones and condos in Manhattan and Brooklyn with portions of some loans forgiven over time. In some cases, even the interest charged on the loans has been reimbursed . . .

Ten days ago, the Dean of the NYU School of Law, Richard Revesz, who has served in that post since June 1, 2002, stepped down to head up the Marron Institute on Cities and the Urban Environment, a nonprofit made possible by a $40 million gift from Donald Marron, the former Chairman and CEO for two decades of the Wall Street firm, Paine Webber.

Revesz’ mortgage deals with NYU date all the way back to June 24, 1998 when the NYU School of Law Foundation bestowed on he and his partner, Vicki Been (also a law professor at NYU), a 46.5465 percent interest in a brownstone on West 11th Street in the West Village. The home had been purchased by the Foundation on October 16, 1995 at a cost of $1,450,000. With considerable improvements made by the Foundation, the fair value was placed at $2,664,000 on the date Revesz and Been acquired their interests. The Foundation sold the 46.5465 percent interest to the law professors for $1,240,000 and provided their full purchase price in two mortgage notes. On December 19, 2002, a little over six months after Revesz became Dean of the Law School, the Foundation transferred its 53.45 percent interest in the property to Revesz and Been.

According to documents on file with New York City, large amounts of the interest on the Revesz mortgage loans were not being paid but were, instead, allowed to accrue and be added to principal. On March 30, 2012, Revesz and Been entered a mortgage modification directly with NYU, not the Foundation. The document notes that as of March 30, 2012 there was a combined outstanding principal balance in the amount of $2,180,597 (including capitalized interest) and a second outstanding principal balance of $1,197,661. The deal was renegotiated to reduce the amount of interest and extend the maturity date on the larger balance.

According to NYU’s 2010 federal tax filing with the IRS (the most recent one made public), Revesz owed the University at that time a total of $5,683,652
. It is not known what the amount in excess of the mortgage debt represents.

There’s much, much more in the same vein, including Sexton’s own sweetheart deal, which includes a $1.5 million annual salary package, and which pay him a $2.5 milllion “length of service bonus” in two years. If you’re worried about whether Sexton’s social security payments will cover the co-op fees, don’t: he will also be paid $800,000 per year for life after he retires. (It’s perhaps not purely coincidental that the faculty at NYU Law who are getting the big payoffs –Sexton was the law school’s dean for 14 years before becoming university president — are, like Sexton, closely connected to Wall Street’s regulatory structure, such as it is.)

Anyway, read the whole thing; once you’ve finished throwing up you can cleanse the palate with this amusing juxtaposition. I’ll have more to say about The Lawyer Bubble soon, but for the time being it’s worth noting that uber-Libertarian Richard Epstein (among other things he thinks most of the New Deal is unconstitutional) is now apparently triple-dipping in three federally tax-subsidized ponds: the University of Chicago, where he retains a faculty position, NYU Law School, where Revez paid Hayek only knows how much to reel in yet another prestigious hire, and the Hoover Institution, aka the Taj Mahal of well-heeled right-wing think tanks. No wonder he thinks everything’s just fine in Lawyerland.

As Long As Poor People Are Saved From the Tyranny of Medical Care…

[ 22 ] June 11, 2013 | Scott Lemieux

You may remember Roger Vinson from his particularly embarrassing opinion holding the ACA unconstitutional. The very existence of freedom for the American individual, you see, rested on whether measures to prevent free-riding in major health care legislation were structured as a “penalty” or a “tax.” And if you think that’s an absurdly trivial liberty interest for the fate of western civilization to be hanging on, you just don’t understand how little traction is on that slope, sheeple. Enjoying your mandatory broccoli?

Anyway, this valiant freedom fighter is back in the news:

Judge Vinson has reentered the news for having approved the National Security Agency’s program of collecting all of the phone records in America. There’s no way something like that could lead to any kind of abuse.

At least we know his hackery isn’t entirely partisan!

BREAKING! Crucial Ex Post Facto Clause Case!

[ 20 ] June 11, 2013 | Scott Lemieux

The Supreme Court yet again declined to hand down any of the big civil rights cases that are still pending (I’ll put the over/under on Breyer‘s Fisher dissent at 500 pages.) Perhaps it’s saving the Voting Rights Act and affirmative action cases for one big “let’s destroy the Great Society” day, which will end with John Roberts solemnly urinating on a picture of Lyndon Johnson giving the “We Shall Overcome” speech. In the meantime, however, the Court did hand down a civil liberties decision that’s interesting in its own right.

One other interesting aspect of yesterday’s case is that it was the latest example of the running debate between Thomas and Scalia (now joined by Alito) about whether precedents should be re-evaluated in light of the “original understanding.” Thomas had a section in his dissent arguing that the test being used by the Court should be rejected; Alito and Scalia responded with a one-paragraph dissent noting that they “do not have occasion in this case to reconsider that test’s merits or its relation to the original understanding of the Clause.”

The most interesting example of this disagreement, as some of you will know, occurred during McDonald v. Chicago. Thomas wrote a lengthy concurrence arguing that the Bill of Rights should be incorporated through the privileges and immunities clause rather than the due process clause; Scalia briefly dismissed the argument in his concurrence and more extensively dismissed it oral argument. I’m of two minds about this dispute (leaving aside the merits of originalism itself, which I think are minimal.) My instinct is to side with Thomas — it’s not clear why we should continue to pretend that the evisceration of the p & i clause in the Slaughterhouse cases remains good law when almost everyone across the ideological spectrum holds it in contempt. But I also see Scalia’s point — at this late date the due process clause has been used to incorporate all of the fundamental rights that would have been incorporated through p & i, so it’s not clear what value their is in overruling more than a century of precedent to make a purely academic logical point. And as the fact that Scalia and Thomas generally agree on the bottom line indicates, these grand theoretical disputes tend to be of very limited practical import.

This Day in Labor History: June 11, 1925

[ 13 ] June 11, 2013 | Erik Loomis

This is a guest post by Jacob Remes, who is assistant professor and mentor at SUNY Empire State College, where he teaches public affairs and history. His book, Disaster Citizenship: Urban Disasters and the Formation of the North American Progressive State, is forthcoming from the University of Illinois Press. He tweets at @jacremes.

Happy Davis Day

Today in 1925, soldiers in New Waterford, Nova Scotia, shot and killed William Davis, a striking coal miner. Members of District 26 of the United Mine Workers, representing miners in Nova Scotia, have never worked on June 11 since.

Davis was killed after a militant turn in a long and bitter strike in the coal fields of eastern Nova Scotia. The previous contract had expired in January, and relief committees in each of the towns had been operating since the winter. To pressure the workers, the employer, the British Empire Steel Company, or BESCO, cut off credit at the company stores at the most militant mine heads. The miners walked off the job in March, and BESCO retaliated by pulling out the ponies and maintenance equipment from three collieries and allowing them to flood. The the men who left work at those mines, they knew, would probably never return.

Even so, the UMW international insisted on a strategy of waiting. John L. Lewis, the UMW’s virulently anti-radical international president, had colluded with the company to break the last strike, watching as District President J.B. McLachlan had been carted off the jail on trumped-up sedition charges and replacing him with a docile and unelected executive. Now McLachlan was out of prison and running a radical newspaper, and by early June the miners were frustrated that no progress had been made.

So they stopped waiting and called for a total strike. Before, only actual miners had stopped work. Now, nobody would be allowed to work for the company. On June 4, the men who had been operating a company power plant in New Waterford walked off the job, cutting off the town’s water and electricity. On June 11, fifty managers and mounted company police overtook the few picketers guarding the plant. In response hundreds—estimates ranged from 700 to 3,000—of striking miners marched to the plant to enforce the strike.

They were met with gunfire. Many were beaten by police, several were injured by bullets, and one was killed. The death of William Davis sparked a riot in which company stores—which had remained tauntingly well stocked but closed to strikers—were looted and burned. Angry miners ran the police out of town and would perhaps have killed them had it not been for the intercession of Father J.H. Nicholson, Mt. Carmel Parish Priest in New Waterford, who calmed the men until the police had a chance to escape. William Davis, killed for striking, had not been given that chance.

Even with this violence, it took until August for a newly elected Conservative premier, Edgar Rhodes, to negotiate a stop-gap contract while a Royal Commission investigated the coal industry. By this point, the union was fighting for its life, and any contract at was a victory. Other than the continued existence of the union, the one victory was that it kept the dues check-off for the length of the final contract. It was, otherwise, a lost strike.

To keep alive the memory of the Strike of 1925 and the murder of William Davis, the members of District 26 swore they would never work again on June 11. Davis Day became a holiday in the coal mining region of Cape Breton. But gradually, Davis Day has become a day associated less with remember the killing of a striker and more with remembering all the dead of Nova Scotia’s mines. There have been many, from the 75 men killed in the Springhill mine collapse of 1958, to the 26 non-union miners killed in the Westray explosion of 1992. In 2008, after the social democratic New Democratic Party was elected to the Nova Scotia government, the province finally recognized Miners’ Memorial Day. But Davis Day should be more than a commemoration of mining accidents, as terrible as those are. Davis did not die accidentally in a tragic, if avoidable, disaster. He was murdered by the military for striking.

Like Davis Day, Workers’ Memorial Day (April 25) began as a Canadian commemoration. Perhaps, like Workers’ Memorial Day, we can spread Davis Day south. One way to so so is to donate to the Rosenberg Fund for Children. Founded by Robert Meeropol in honor of his parents, Julius and Ethel Rosenberg, the Rosenberg Fund supports the children of those who are killed, jailed, or lose their jobs for their progressive political activities. Included in this group are parents whose bosses fire them for union activism. Americans have few better ways to commemorate Davis Day than with a donation to the Rosenberg Fund, perhaps to the Clinton Jencks fund, which is “designated to assist children of workers who have been penalized, injured, fired, jailed or have died for their organizing efforts to build unions, improve working conditions and elevate living standards for all in the work force.”

William Davis was neither the first murdered striker nor the last. The labor movement has too many martyrs. This Davis Day, let us remember them all.

company store

Further Reading:

David Frank, J.B. McLachlan: A Biography (Toronto: James Lorimer, 1999).

John Mellor, The Company Store: James Bryson McLachlan and the Cape Breton Coal Miners (Toronto: Doubleday, 1983)

Paul MacEwan, Miners and Steelworkers: Labour in Cape Breton (Toronto: Hakkert, 1976).

Donald Macgillivray, “Military Aid to the Civil Power: The Cape Breton Experience in the 1920s,” in Cape Breton Historical Essays, ed. Don Macgillivray and Brian Tennyson (Sydney, N.S.: College of Cape Breton Press, 1980): 95-109.

David Frank, “The Cape Breton Coal Industry and the Rise and Fall of the British Empire Steel Corporation,” Acadiensis VII no. 1 (autumn 1977): 3-34.

Jacob Remes, “In Search of ‘Saner Minds’: Bishop James Morrison and the Origins of the Antigonish Movement,” Acadiensis XXXIX no 1 (winter/spring 2010): 58-82.

This is the 64th post in this series. Previous entries are archived here.

The End of an Error

[ 150 ] June 10, 2013 | Scott Lemieux

About damned time:

The Obama administration has decided to stop trying to block over-the-counter availability of the most popular morning-after contraceptive pill for all women and girls, a move fraught with political repercussions for President Obama.

The reversal by the government means that any woman or girl will soon be able to walk into a drugstore and buy the pill, Plan B One-Step, without a prescription.

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