Will the Public End Up Paying to Clean Up the Fracking Boom?
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=51914"><span class="small">Justin Mikulka, DeSmogBlog</span></a>
Tuesday, 22 October 2019 08:12
Mikulka writes: "Increasingly, U.S. shale firms appear unable to pay back investors for the money borrowed to fuel the last decade of the fracking boom."
Cleanup costs for abandoned oil and gas wells once the producers have moved on could fall heavily on the public. (photo: Susan Vineyard/iStock/Getty Images)
Will the Public End Up Paying to Clean Up the Fracking Boom?
By Justin Mikulka, DeSmogBlog
22 October 19
ncreasingly, U.S. shale firms appear unable to pay back investors for the money borrowed to fuel the last decade of the fracking boom. In a similar vein, those companies also seem poised to stiff the public on cleanup costs for abandoned oil and gas wells once the producers have moved on.
"It's starting to become out of control, and we want to rein this in," Bruce Hicks, assistant director of the North Dakota Oil and Gas Division, said in August about companies abandoning oil and gas wells. If North Dakota's regulators, some of the most industry-friendly in the country, are sounding the alarm, then that doesn't bode well for the rest of the nation.
In fact, officials in North Dakota are using Pennsylvania as an example of what they want to avoid when it comes to abandoned wells, and with good reason.
The first oil well drilled in America was in Pennsylvania in 1859, and the oil and gas industry has been drilling — and abandoning — wells there ever since. Pennsylvania's Department of Environmental Protection (DEP) says that while it only has documentation of 8,000 orphaned and abandoned wells, it estimates the state actually has over a half million.
"We anticipate as many as 560,000 are in existence that we just don't know of yet," DEP spokesperson Laura Fraley told StateImpact Pennsylvania. "There's no responsible party and so it's on state government to pay to have those potential environmental and public health hazards remediated."
According to StateImpact, "The state considers any well that doesn't produce oil and gas for a calendar year to be an abandoned well."
That first oil well drilled in Pennsylvania was 70 feet deep. Modern fracked wells, however, can be well over 10,000 feet in total length (most new fracked wells are drilled vertically to a depth where they turn horizontal to fracture the shale that contains the oil and gas). Because the longer the total length of the well, the more it costs to clean up, the funding required to properly clean up and cap wells has grown as drillers have continued to use new technologies to greatly extend well lengths. Evidence from the federal government points to the potential for these costs being shifted to the tax-paying public.
The Government Accountability Office (GAO) released a report this September about the risks from insufficient bonds to reclaim wells on public lands. It said, "the bonds operators provide as insurance are often not enough to cover the costs of this cleanup." The report cited a Bureau of Land Management (BLM) official's estimate of $10 a foot for well cleanup costs.
StateImpact Pennsylvania noted that costs to reclaim a well could add up to $20,000, and DEP spokesperson Fraley said they could be "much, much higher." The GAO report noted that "low-cost wells typically cost about $20,000 to reclaim, and high-cost wells typically cost about $145,000 to reclaim."
In North Dakota, where state regulators have raised concerns about this growing problem, one of the top industry regulators, State Mineral Resources Director Lynn Helms, estimated that wells there cost $150,000 to plug and reclaim.
And this problem isn't just in the U.S. Canada is facing a similar cleanup crisis.
We always talk about the oil biz in Canada as BIG MONEY on the one hand, environmental issues on the other. But this episode taught me that cleaning up abandoned oil wells will soon COST Canada $50 Billion+. So....? https://t.co/qcn3d2invI
Legally, oil and gas companies are required to set aside money to pay for well cleanup costs, a process known as bonding. These requirements vary by state and for public lands, but in all cases, the amounts required are so small as to be practically irrelevant.
The GAO report reviewed the bonds held by the Bureau of Land Management for wells on public lands and found that the average bond per well in 2018 was worth $2,122.
The Western Organization of Resource Councils summarized bonding requirements by state, and none of them came even close to being adequate to cover estimated costs to deal with old wells. In North Dakota, a $50,000 bond is required for a well. But a $100,000 bond can cover up to 6 wells, which comes out to $16,667 per well — or approximately one tenth of the estimated cost to reclaim a well in that state.
North Dakota has a history of bending to oil and gas industry pressure when it comes to regulations. While North Dakota's bonding rules fall far short of what's needed to actually cover full cleanup costs, the reality on the ground is much worse. Regulators allow companies to "temporarily abandon" wells, which requires no action from companies for at least seven years. Wells can hold this "temporary status" for decades. And another practice in the state allows a company to sell old, under-performing wells to another company, passing along the liability but not the bonding funds.
By any measure, the amount of private money currently allocated in the U.S. to plug and reclaim oil and gas wells is a small fraction of the real costs. That means oil and gas wells — and the U.S. had one million active wells in 2017, and even more abandoned — will either be left to fail and potentially contaminate the surrounding water, air and soil, or the public will have to pick up the tab. This represents just one of the many ways the public subsidizes the oil and gas industry.
Statewide, 639 oil wells are considered abandoned.
The fund has a balance of $22 million, yet Helms estimates the state could potentially be on the hook for a far greater amount.https://t.co/58Oz4rrQ5i
South Dakota allows companies to post a $30,000 bond for as many wells as the company chooses to drill. Spyglass Cedar Creek is a Texas-based company that was operating in South Dakota and recently abandoned 40 wells, which the state has estimated will have a cleanup cost of $1.2 million.
However, there is a twist to this story. That $30,000 bond doesn't really exist. The owners of the company had put $20,000 of it into a Certificate of Deposit. But when the state went looking for that money, the owners said they had cashed it in 2015 because, as reported by the Rapid City Journal, "company officials did not remember what the money was for."
Spyglass Cedar Creek does not have the money set aside that was required to clean up these wells, the state does not have recourse to get that money, and some of the wells are reportedly leaking. So, what can be done?
According to Doyle Karpen, member of the South Dakota Board of Minerals and Environment, the answer is for the taxpayers of that state to cover the cost.
"I think the only way we can correct this is go to the Legislature and ask for money," Karpen said earlier this year.
Following the Coal Industry Business Model
What is starting to unfold with the oil and gas industry is very similar to what has already been playing out with the U.S. coal industry.
The paper notes how the bankruptcy process is used by coal companies to rid themselves of environmental cleanup liabilities and pension costs "in a manner that has eviscerated the regulatory schemes that gave rise to those obligations."
Yet coal company executives often receive healthy bonuses, even as they are driving companies into bankruptcy.
This summer, Blackjewel famously failed to pay its coal miners, and even pulled funds out of their bank accounts, after the company suddenly declared bankruptcy in July. That prompted workers to sit on train tracks in Kentucky, blocking a $1 million shipment of coal, in a two-month protest. And Blackjewel is poised to leave behind thousands of acres of mined land in Appalachia without adequate reclamation.
Privatize the Profits, Socialize the Losses
The mineral extraction business model in the U.S. is set up to maximize profits for executives, even as they lose investor money and bankrupt their companies. That is true of the coal industry and that is true of the shale oil and gas industry.
At the same time, the regulatory capture by these industries at both state and federal levels allows private companies to pass on environmental cleanup costs to the public, and the inadequate bonding system for oil and gas well reclamation represents just one more example.
The so-called fracking revolution in America has resulted in many new records: record amounts of U.S. oil and gas exported (to the detriment of a livable climate), new levels of human health impacts on surrounding communities, record numbers of industry-induced earthquakes, record amounts of flaring natural gas in oil and gas fields, and record-breaking depths and lengths of wells.
And the cleanup costs for the fracking boom are also poised to be staggering.
Mark Zuckerberg's Plea for the Billionaire Class Is Deeply Anti-Democratic
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=43002"><span class="small">Kate Aronoff, Guardian UK</span></a>
Monday, 21 October 2019 13:00
Aronoff writes: "Zuckerberg's plea for the billionaire class is above all else deeply anti-democratic, casting doubt on the huddled masses' ability to decide what's best for themselves while repeating myths that the public sector is doomed to be wasteful and stagnant."
'Vital innovation, Zuckerberg threatens, will only happen if you're nice enough to him and his rich friends.' (photo: Andrew Caballero-Reynolds/AFP/Getty Images)
Mark Zuckerberg's Plea for the Billionaire Class Is Deeply Anti-Democratic
By Kate Aronoff, Guardian UK
21 October 19
In his defense against Bernie Sanders’ call to abolish billionaires, Mark Zuckerberg makes claims that are elitist and wrong
itting back against presidential candidate Bernie Sanders’s assertion that billionaires should not exist – and his calls to tax their wealth at much higher rates – Facebook CEO Mark Zuckerberg, worth $70bn, took to Fox News to defend his beleaguered class. Billionaires, he argued, should not exist in a “cosmic sense,” but in reality most of them are simply “people who do really good things and kind of help a lot of other people. And you get well compensated for that.” He warned too about the dangers of ceding too much control over their wealth to the government, allegedly bound to stifle innovation and competition and “deprive the market” of his fellow billionaires’ funding for philanthropy and scientific research.
“Some people think that, okay, well the issue or the way to deal with this sort of accumulation of wealth is, ‘Let’s just have the government take it all,” Zuckerberg said. “And now the government can basically decide, you know, all of the medical research that gets done.” What he didn’t mention is that Sanders’s tax would cost him $5.5bn in its first year.
Zuckerberg’s reasoning isn’t unique among the 1%, especially in Silicon Valley: people with outrageous wealth have earned it through their own cunning, creating a vital service for the world that furthers the common good. Their success, this myth tells us, is a testament to their ability to divine what’s best for society and bring it into existence; their fortunes are commensurate to their genius. Philanthropy, as such, isn’t just an alternative to taxing them more but far preferable. After all, what could some collection of nameless, faceless bureaucrats know better than a man – and they’re usually men – who has built such vast wealth? Vital innovation, Zuckerberg threatens, will only happen if you’re nice enough to him and his rich friends.
As common as this argument is, it also happens not to be true. Take the basis of Mark Zuckerberg’s fortune. The internet was developed out of a small Pentagon network intended to allow the military to exchange information during the Cold War. In her book The Entrepreneurial State, economist Mariana Mazzucato shows that iPhones – the ones that Facebook skims prolific amounts of data off of to sell to the highest bidder – are in large part a collection of technologies created by various state agencies, cobbled together by Apple into the same sleek case.
Instead of leading the way to improve health outcomes, the quest for profits in medicine has led drug companies to produce products just different enough from those of their competitors to patent, effectively allowing these firms collect rent from the sick. And of the top 88 innovations rated by R&D Magazine as the most important between 1971 and 2006, economists Fred Block and Matthew Keller have found that 77 were the beneficiaries of substantial federal research funding, particularly in early stage development. “If one is looking for a golden age in which the private sector did most of the innovating on its own without federal help,” they write, “one has to go back to the era before World War II.” Along the same timeline that the right has dragged the reputation of the public sector, it has only become more central to progress the private sector has taken credit for.
Let’s also not forget about the myriad boondoggles pumped out of Silicon Valley in the last decade, from Theranos to the Fyre Festival to Juicero. The recent implosion of the real estate company WeWork – backed heartily by SoftBank and JP Morgan Chase, and losing one dollar for every dollar it makes – should cast some doubt on the supposed genius of the private sector to overcome society’s most pressing challenges, or even to pick winners. Besides government funding, too, most wunderkind tech companies are propped up by armies of typically underpaid workers, whether they’re driving Ubers, mining the rare earth minerals needed for smartphones under brutal working conditions or watching hour after hour of grisly videos to moderate them out of our Facebook timelines.
This isn’t all to say that the private sector hasn’t played a significant role in driving innovation; someone needed to design the iPhone, after all. But the the fortunes built off of each couldn’t exist were it not for the government more often than not taking the first step, funding innovation far riskier than venture capitalists and angel investors can usually stomach. “Not only has government funded the riskiest research,” Mazzucato writes, “but it has indeed often been the source of the most radical, path-breaking types of innovation.” The Mark Zuckerbergs of the world, in other words, can make good things happen. But they hardly ever do it alone.
Moreover, billionaires’ extravagant wealth is by and large not spent, as Zuckerberg suggests, on cutting edge research and philanthropic efforts. After they’ve bought up enough yachts and private jets they mainly invest in making themselves richer through casino-style financial speculation and in luxury real estate in starkly unequal cities like San Francisco, Miami and New York, where mostly vacant homes act as safety deposit boxes to shield wealth from taxation. Their money might also end up in tax havens like the Cayman Islands, where it can sit undisturbed by the long arm of the state. Very little of that ever trickles down to the 99%, where inequality has skyrocketed and wages have stagnated.
Zuckerberg’s plea for the billionaire class is above all else deeply anti-democratic, casting doubt on the huddled masses’ ability to decide what’s best for themselves while repeating myths that the public sector is doomed to be wasteful and stagnant. While they could play some role in funding the genuinely cutting edge research coming out of places like ARPA-E and the National Institutes of Health, perhaps the best argument for the kinds of policies Sanders has proposed would be to make it clear that billionaires can’t transcend democracy and call all the shots about what society needs and what it doesn’t. In a truly democratic world – where labor is valued fairly – they wouldn’t exist at all.
No, Trump Isn't Bringing Troops Home: Not Those in Syria, or Any of the 60,000 in the Mideast
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=51519"><span class="small">Juan Cole, Informed Comment</span></a>
Monday, 21 October 2019 13:00
Cole writes: "Although Trump keeps talking about bringing the troops home from the Middle East, that isn't what he is doing."
An American soldier stands guard during a joint patrol with Turkish troops in the Syrian village of al-Hashisha. (photo: Delil Souleiman/AFP/Getty Images)
No, Trump Isn't Bringing Troops Home: Not Those in Syria, or Any of the 60,000 in the Mideast
By Juan Cole, Informed Comment
21 October 19
lthough Trump keeps talking about bringing the troops home from the Middle East, that isn’t what he is doing.
There are some 60,000 US troops in and around the Middle East. There is no prospect of any significant number of them “coming home” any time soon.
In fact, Trump just sent nearly 2,000 troops to Saudi Arabia after the attack, attributed by many to Iran, on the Abqaiq oil processing facility.
I guess the difference between Syrian Kurds, whom he abandoned, and Saudi Arabia, to which he’s sending more troops, is about 9 million barrels a day of oil.
Moreover, Trump implies that there are cost savings to bringing the troops home, but he put up spending on the Department of Defense $130 billion a year. The 2015 Defense budget was $586 billion and that in 2019 was $716 billion. Trump wants to go on up to $750 billion. So there is no peace dividend, no extra investment in American infrastructure or bringing factory jobs back. There is just squandering of money on the military. Money invested in the Defense Department produces relatively few jobs compared to what would happen if you invested it in something useful.
So Trump hasn’t saved any money on the military and he hasn’t brought troops home.
Secretary of Defense Mark Esper, or Esperanto as Trump calls him, has announced that all the 1,000 US special operations personnel who had been embedded with the Kurdish-led Syrian Democratic Forces will go to Iraq.
Initially the plan had apparently been to send them to the Incirlik Air Force Base in Turkey, but since Turkey was targeting them with artillery, I suppose someone in Washington figured out that getting them through Turkish lines in the north and then basing them at Incirlik would be extremely awkward. Moreover, since Turkish president Tayyip Erdogan has shown almost no interest in fighting ISIL, Turkey would not be a very welcoming home for US troops so tasked.
In contrast, the Shiite government of Baghdad is extremely worried about a recrudescence of cultic ultra-right Muslim terrorism now that the US is mostly getting out of Syria.
So special operations forces will be able to strike from Iraq into eastern Syria to hit any resurgent ISIL cells. In fact, the Iraqi government has considered doing this itself, and actually launched some such strikes last November.
Just to sum up: 60,000 US troops in the Middle East, with no prospect of the number being reduced or units “brought home” except on ordinary rotations. The 1,000 troops in Syria will mostly relocate to Iraq, not to the United States. More troops have been sent to Saudi Arabia. A $750 billion Defense budget in the offing.
Not coming home. Not saving money. Not creating jobs.
It's Not Just Ronan Farrow: NBC News Killed My Rape-Allegation Story Too
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=51912"><span class="small">Sil Lai Abrams, The Daily Beast</span></a>
Monday, 21 October 2019 13:00
Abrams writes: "NBC threw Joy-Ann Reid and me under the bus. It killed her story and - at least temporarily - silenced me."
Sil Lai Abrams. (photo: Daily Beast/Getty Images)
It's Not Just Ronan Farrow: NBC News Killed My Rape-Allegation Story Too
By Sil Lai Abrams, The Daily Beast
21 October 19
n the days leading up to the publication of Catch and Kill, Ronan Farrow’s blockbuster account of his dealings with NBC News, I have been struck by the company’s insistence that Farrow didn’t have the Harvey Weinstein story in the bag. I don’t believe a word of what it says because in 2018, the network killed my #MeToo story that was being reported by MSNBC host Joy-Ann Reid. Incredibly, a year after NBC botched Farrow’s reporting on Harvey Weinstein, it had the audacity to do it again.
In November 2017, I told Joy about my experience of being raped by Russell Simmons in 1994. I also shared that in 2006, former Extra co-host A.J. Calloway sexually assaulted me in his car and was subsequently arrested for his crime. When Joy and I first spoke, Russell had already been accused of rape by Keri Claussen Khalighi. In fact, she appeared as a guest on the now-defunct NBC show Megyn Kelly Today. However, I would be the first woman to allege being sexually assaulted by Calloway. When NBC chose to quash my story, it not only abdicated its obligation to report news; it provided cover for a man who would later be accused of serial rape and sexual assault when my story was eventually published by The Hollywood Reporter the following summer.
When I approached Joy, I had no idea that NBC had a reputation for not breaking news about men accused of sexual assault. Therefore, I had no reason to believe my story would be derailed by the network. After going through a thorough vetting process, an on-camera interview with Joy was taped on Jan. 7, 2018. While she’s a host on MSNBC, I was told that NBC was not taping it for the cable network but NBC itself, in order to get it a larger audience beyond Joy’s weekend show; also, it was to be paired with a lengthy print piece written by Joy for New York magazine. I was told the TV portion was scheduled to air on Jan. 13, 2018, but I received an email the day before from Joy asking me to reach out to her.
When we spoke a few hours later, she informed me that Russell Simmons’ attorney had gone ballistic and NBC was not going to air the segment, and the New York magazine story was also on hold since they were paired. She assured me the story wasn’t dead, but that NBC simply needed more vetting done in order to feel comfortable with moving forward.
I was disappointed, but still hopeful. As I would come to learn, my optimism was profoundly naive.
Over the next several months, NBC put me through an elaborate and bizarre vetting process. I provided legal documentation, hospital bills, and more than a dozen corroborating witnesses. Still, they stonewalled. I asked Joy repeatedly if NBC was going to do to her what it did to Ronan, and she said that she didn’t think so. We both agreed that it would reflect very poorly if word got out that the network had suppressed yet another story of alleged sexual assault.
To expedite the increasingly expansive vetting process, Joy’s piece was assigned to an investigative unit that was supposed to help her clear the hurdles that NBC kept throwing in front of her about my story. In mid-February, she emailed me an explanation about why it was taking NBC so long to pull the trigger:
“So basically the story got caught up in a couple of vices: the struggle to get comments from the principals (now mostly alleviated), threats from Russell’s lawyer that spooked NBC,” Joy told me via email. “So now NBC… is demanding that I do all of this additional reporting to meet a legal and standards review.”
Joy then said all that was left was for her to seek comment from people in Simmons’ camp who were aware of the assault, and corroboration of Calloway’s arrest.
I responded to her email by thanking her for the update. I added, “Still not clear why NBC is demanding more corroboration regarding A.J. [arrest]... his lawyer already confirmed the case, but I know this isn’t about you.”
Almost two weeks went by before Joy contacted me with an update.
“My team and I, my PA and senior producer helping me with the story met with the standards department rep today just to figure out what the heck’s going on,” she told me by phone. “I just have to get my company to have the guts to do the story,” she conceded. “I’ve never done a story that has this much evidence before. I have more evidence than the LA Times and The New York Times stories combined. So the whole thing is, if my company will trust the evidence that I’ve shown them, which is substantial, they will do the story.” (Reid declined to comment on this story.)
I then asked her if NBC was going to kill my story based upon the ongoing threats from Simmons’ and Calloway’s attorneys. “We have enough that we have satisfied the standards side, but this is now in the hands of lawyers who have to determine the likelihood of a lawsuit by two people now, and what is the likelihood that we will prevail.” She added, “This has now gone up past the attorneys I deal with to the head of NBCUniversal’s lawyers. I’ve never been through anything like this.”
Two more months of back and forth over email would occur before it became clear that NBC had no intention of airing my interview. The last time I spoke with Joy was on April 6, 2018, when she called to tell me that senior management had stopped responding to her inquiries about her piece on me. She said I should take the story elsewhere.
Just like that, NBC threw Joy and me under the bus. It killed her story and—at least temporarily—silenced me.
NBCUniversal declined to comment for this story. A New York magazine spokesperson said that they did not publish the written piece because Reid withdrew it.
Two weeks after my final call with Joy, I was referred to Kim Masters at The Hollywood Reporter. She and I communicated for the first time on April 26, 2018. Two months later, on June 28, The Hollywood Reporterbroke the news of my allegations against Russell Simmons and A.J. Calloway, along with the cover-up of my story by NBC.
Masters provided the following statement: “Joy’s reporting was extremely thorough. While obviously I had to review everything, she laid out an excellent roadmap. Everything checked and we published. The story was ready to go.”
I am one of the many survivors that NBC silenced, and bore witness to how it treated one of their top talents for trying to break a story on sexual predators. Given what has been exposed thus far by Farrow and others, it’s clear that NBC thinks it can spin their way out of this—again. What it fails to recognize is that this is a much bigger issue than their cover-ups, payoffs, and excuses. The media is supposed to be a watchdog for abuses of power. Reporting on the behavior of alleged serial predators is more than news. It’s an act of social good.
Actions have consequences. Inaction does as well. In their response to the Hollywood Reporter piece, NBC claimed it didn’t have enough on one of my assailants to air my interview. Yet at the time my account was published, at least a dozen women had already accused Simmons of attempted sexual assault or rape. Despite what the network said, they had enough on Calloway and still held the story. Once my story became public, close to a dozen women reached out to tell me their own stories of alleged sexual victimization at the hands of Calloway. In the absence of publication, these women never would have known they weren’t the only ones he had assaulted. Each of these brave survivors would have gone to their graves thinking they were the only one he attacked, when in fact their assaults are part of a pattern of alleged sexual predation by Calloway that goes back decades.
Misogyny and protectionism of alleged serial rapists is not simply an NBC issue. I lobbied Calloway’s parent company, Warner Media, for close to a year before it took action. It took four other stories, including one by The Daily Beast, before it finally did an investigation into Calloway’s behavior.
After The Hollywood Reporter ran my story, Simmons sold all his U.S. properties and moved to Bali in Indonesia, a country without an extradition treaty with the U.S. Warner Media severed ties with Calloway, who is no longer employed by Extra. He is also currently under investigation for rape in two states.
The media is supposed to be a watchdog for abuses of power. Yet we keep learning how NBC uses its power to protect those in power. Initially, I thought that NBC failed to act on my story because I’m a black woman, and my assailants were black as well (it is well-documented that mainstream media outlets ignore accusations of sexual assault lobbed at black men unless their victims are mainly white, as in the case of Bill Cosby). I thought maybe it decided to pass on my story because Calloway’s show Extra aired on NBC affiliates and a negative story about someone whose program airs on their network could hurt NBC’s bottom line.
Recently, however, there has been a spate of stories about sexual misconduct in the upper echelons of the company: Noah Oppenheim’s misogynistic Harvard Crimson pieces, Andy Lack’s predation of underlings, MSNBC head Phil Griffin showing a photo of Maria Menounos’ genitalia in a staff meeting. The issue at NBC is larger than what I’d feared about its reporting policies on assaults committed against women of color. What we have seen over and over again with NBC is its use of its power to protect those in power. This entire sordid mess is solely about power and NBC’s choice to side with those in possession of it. NBC is a media conglomerate with tentacles that extend around the globe. It has the power to make or break careers and lives. It has shown that when it comes down to breaking news on the sexual abuse of women by men who also have power, it will protect assailants under the guise of “not meeting standards and practices.”
Oppenheim and Lack continue to make the rounds internally and externally claiming innocence and due diligence. The frat boy rape apologist. The serial sexual harasser. These are the people at NBC who are the arbiters of justice and injustice. Yet what is lost in this endless discussion about who knew what and when is a grave truth: NBC put women’s lives at risk. This is one of the darkest of NBC’s sins. By refusing to stand by their hard-working reporters’ work, it knowingly placed members of the public in harm’s way. By discrediting and minimizing the strength of allegations, NBC is complicit in maintaining structures of gender inequality and rape culture. The bottom line is this: It kept dangerous men from being held accountable.
Farrow’s PBS NewsHour interview last week sums up his former network’s failures succinctly: “The New Yorker looked at the same reporting as NBC had… and four weeks later it was a Pulitzer Prize-winning story. So people can decide if the reporting had valid journalistic grounds. I think it’s pretty clear.”
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=48990"><span class="small">Norman Solomon, Reader Supported News</span></a>
Monday, 21 October 2019 11:54
Solomon writes: "Pete Buttigieg burst on the national scene early this year as a new sort of presidential candidate. But it turns out he's a very old kind - a glib ally of corporate America posing as an advocate for working people and their families."
Pete Buttigieg. (photo: WP)
Pete Buttigieg Is a Sharp Corporate Tool
By Norman Solomon, Reader Supported News
21 October 19
ete Buttigieg burst on the national scene early this year as a new sort of presidential candidate. But it turns out he’s a very old kind — a glib ally of corporate America posing as an advocate for working people and their families. That has become apparent this fall as Buttigieg escalates his offensive against Medicare for All.
A not-funny thing has happened to Buttigieg on the campaign trail. As he kept collecting big checks from corporate executives and wealthy donors, he went from being “all for” a single-payer Medicare for All system in January to trashing it in the debate last week as a plan that would kick “150 million Americans off of their insurance in four short years.” The demagoguery won praise from corporate media outlets.
Those outlets have often lauded Buttigieg for his fundraising totals this year without scrutiny of the funding sources. They skew toward the wealthy — and toward donors with a vested interest in protecting the status quo.
“Of course, from a voter’s point of view, what really matters is not how much financial support a candidate is getting, but who they’re getting it from — because those supporters may not have the same interests as the voter,” Jim Naureckas at the media watchdog FAIR pointed out this summer. “In the case of Buttigieg, the two main sources of funds seem to be the tech industry … and the financial industry, that traditional source of funds for corporate-oriented Democrats.”
So far this year, Buttigieg has reported $27 million in contributions of $200 and above — accounting for 52.5 percent of his total dollars raised. Compare that to Elizabeth Warren at 29.6 percent and Bernie Sanders at 24.9 percent.
And major sources of Buttigieg’s funding are in harmony with his recent hostility toward Medicare for All. “Pharmaceutical, health insurance, and hospital industry donors have flocked to Mayor Pete all year,” journalist Alex Kotch reported last week. “As of mid-2019, he was second only to Donald Trump in overall campaign cash from donors in the health sector. Among Democratic candidates, he was second to former Vice President Joe Biden in terms of pharmaceutical and health insurance donations.”
Reporting for the investigative website Sludge, Kotch wrote: “Over 100 individuals in leadership, legal, consulting, or financing roles in health sector donated $200 or more to Pete for America between July and September. These donors include pharmaceutical industry leaders such as the chief corporate affairs officer at drugmaker Pfizer, the president of Astex Pharmaceuticals, a state lobbyist for Biogen, a vice president of public policy at Novartis, and the deputy vice president at the nation’s largest pharmaceutical trade association, PhRMA, as well as attorneys for AbbVie, Johnson & Johnson, and Merck.”
Buttigieg’s reversal of avowed support for Medicare for All is classic opportunism. In early 2018, he was unequivocal via Twitter: “I, Pete Buttigieg, politician, do henceforth and forthwith declare, most affirmatively and indubitably, unto the ages, that I do favor Medicare for All.”
Eight months ago, as The Hill noted, “Buttigieg also appeared to defend single-payer [Medicare for All] health insurance in a February 2019 interview on MSNBC’s ‘Morning Joe.’” But now, on its website, the Buttigieg campaign is engaged in a herculean pretzel effort at doubletalk, declaring that his “affordable public plan will incentivize private insurers to compete on price and bring down costs. If private insurers are not able to offer something dramatically better, this public plan will create a natural glide-path to Medicare for All.”
Left unexplained is how Buttigieg is providing any sort of “glide-path” to Medicare for All by now deploying insurance-industry talking points to denounce Medicare for All. Buttigieg is trying to poison the well by conjuring up an effort to precipitously dump people off of health coverage and deprive them of “choice” — deliberately confusing the current “choice” of predatory for-profit insurance plans with the genuine full choice of healthcare providers that enhanced Medicare for everyone would provide.
“The efficiencies of a single-payer system would make universal coverage affordable and give everyone in the United States their free choice of doctors and hospitals,” David Himmelstein and Steffie Woolhandler wrote this month in The Nation. “But that goal will remain out of reach if private insurers are allowed to continue gaming the system.”
Himmelstein and Woolhandler, who are professors of public health and cofounders of Physicians for a National Health Program, assessed the healthcare scenarios being touted by the two most prominent candidates now attacking Warren and Sanders: “Some proposals, including those by Joe Biden and Pete Buttigieg, would offer a Medicare-like public plan for sale alongside private plans on the insurance exchanges now available under the Affordable Care Act. These buy-in reforms would minimize the need for new taxes, since most enrollees would be charged premiums. But tens of millions would remain uninsured or with coverage so skimpy, they still couldn’t afford care.”
The sordid story of Buttigieg’s about-face on Medicare for All was well-documented and deftly analyzed days ago by Jezebel writer Esther Wang under the headline “A Brief History of Pete Buttigieg Faking It on Medicare for All.” She observed: “Buttigieg is not the only Democratic presidential candidate who has switched positions on supporting Medicare for All, or is just generally using the public and political confusion around the issue to undermine real efforts to move to a universal system. Kamala Harris, who co-sponsored Bernie Sanders’ Senate bill, has consistently waffled, and has settled on a plan that continues to let private insurers play a role. But Buttigieg is the only candidate who is now making opposition to the Sanders- and Warren-backed Medicare for All a central focus of his campaign.”
With the mutual alignment of Buttigieg and his corporate healthcare-industry donors, Mayor Pete’s approach seems to be a case of a flimflamming candidate who poses as a forthright leader. For the general public, instead of “Mayor Pete,” a more apt nickname might be “Mayor Elite.”
As for Buttigieg’s slippery slogan of “Medicare for all who want it,” Rep. Ro Khanna pointed out that such a setup “won’t bring the administrative costs down of private insurers or maximize negotiation with Big Pharma and hospitals.” And: “This means higher premiums, higher drug costs, higher deductibles, and more denied claims for the middle class.”
An in-depth report from the Political Economy Research Institute — “Economic Analysis of Medicare for All” — concluded that “Medicare for All has the potential to achieve major cost savings in its operations relative to the existing U.S. health care system. We estimate that, through implementation of Medicare for All, overall U.S. health care costs could fall by about 19 percent relative to the existing system.”
Yet Buttigieg has joined with Joe Biden to open up a well-funded, double-barreled assault on Medicare for All.
“I am tired of seeing Democrats defend a dysfunctional healthcare system where 87 million people are uninsured or underinsured and 30,000 people die every year because they lack adequate coverage,” Bernie Sanders wrote last Friday in an email to supporters. “So I was disappointed this week to see that Joe Biden used the talking points of the health insurance industry to attack Medicare for All and our campaign.”
While Buttigieg is not strong in national polls right now, he’s polling notably well in Iowa, where the first voting for the Democratic presidential nomination will occur in early-February caucuses. And with $23.4 million in the bank, he’s got much more money in hand than Biden ($9 million). The only rivals with more money than Buttigieg are the two he’s assailing for their resolute support of Medicare for All — Sanders ($33.7 million) and Warren ($25.7 million).
While I personally support Sanders, I’m equally appalled by Buttigieg’s attacks on Warren. As part of a campaign strategy that aims to undermine both of his progressive opponents, the mayor continues to falsely characterize Medicare for All — no matter how much confusion and disinformation he creates along the way.
Whether or not Pete Buttigieg can win the nomination, he has certainly emerged as a sharp corporate tool.
Norman Solomon is co-founder and national coordinator of RootsAction.org. He was a Bernie Sanders delegate from California to the 2016 Democratic National Convention and is currently a coordinator of the relaunched independent Bernie Delegates Network. Solomon is the author of a dozen books including War Made Easy: How Presidents and Pundits Keep Spinning Us to Death.
Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.
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