Rare is the evening when we would suggest that turning on the television set could represent the best way to study up on a vital issue -- especially so complex an issue as the damage done to workers, the environment and democracy by the North American Free Trade Agreement. For the most part, we would argue that reading a newspaper or magazine would be the better route to knowledge.
But Tuesday, February 5, is different. Author and commentator Bill Moyers, whose rare, documentary-style reports are the closest thing to serious investigative reporting on broadcast television these days, will focus his attention on one of the least-examined stories in America today. "Bill Moyers Reports: Trading Democracy" (PBS stations on Tuesday, Feb. 5, at 10 p.m. EST, check local listings) examines the way in which NAFTA restrictions on barriers to trade are being used by multinational corporations to overturn environmental protections enacted by governments in the U.S., Canada and Mexico.
"When the North American Free Trade Agreement became the law of the land almost a decade ago, the debate we heard was about jobs," explains Moyers, in a discussion of the program. "One provision was too obscure to stir up controversy. It was called Chapter Eleven, and it was supposedly written to protect investors from having their property seized by foreign governments. But since NAFTA was ratified, corporations have used Chapter Eleven to challenge the powers of government to protect its citizens, to undermine environmental and health laws, even to attack our system of justice."
Studies of the Chapter 11 provision by Public Citizen's Global Trade Watch and Friends of the Earth, as well as detailed reports by The Nation's William Greider, have illustrated the ways in which corporations use NAFTA provisions and tribunals to undermine local, state and national law. But getting this dramatic story on national television represents an important breakthrough in the struggle to inform American citizens about a genuine threat to democracy.
In addition to providing a rare glimpse into the workings of existing trade policy, Moyers' report has serious political ramifications.
The US Senate will soon vote on whether to grant the Bush administration Fast Track authority to negotiate in secret a Free Trade Area of the Americas (FTAA) agreement. Referred to by Public Citizen's Lori Wallach as "NAFTA on steroids," the FTAA would create a corporate free-trade zone covering the entire western hemisphere -- except Cuba.
At a when every Americans should be asking tough questions about whether democracy and the rule of law ought to be sacrificed in order to make it easier for corporations such as Enron to do business however and wherever they choose, most Americans do not even know that important debates on trade policy are taking place. That is how the corporations want it; they like to operate in secret -- especially when they are at cross purposes with democracy.
That's why Bill Moyers' "Trading Democracy" report is not merely good programming. It is essential viewing for everyone who worries about whether America is still a democratic state.
I had hoped to be reporting in this space today the answers of disgraced Enron CEO Ken Lay to a host of impolite questions. As you might have heard, Lay was scheduled to make his first appearance before a Congressional committee this morning--and I had planned to join the gawkers at the press tables. But yesterday, Lay canceled, claiming that recent remarks from members of Congress had led him to conclude that an anti-Lay bias had set in on Capitol Hill. Which meant that a lawyer finally had managed to talk some sense into Lay. Since he is the potential subject of criminal investigations and civil lawsuits, it would not have been wise for Lay to subject himself to wide-ranging questions from members of the Senate Commerce, Science and Transportation Committee. Consequently, I--and you--did not get to see him respond to such questions as:
* What did you expect in return for the hundreds of thousands of dollars you donated to George W. Bush over the years?
* Did you or anyone else at Enron ever try to exert influence over a regulatory matter of the US government? If so, could you please run us through all the details?
* Did you pull strings to replace the chairman of the Federal Energy Regulatory Commission last year? Did campaign contributions come in handy in such an endeavor?
* Why did you find it useful to retain as lobbyists high-level GOP operatives, such as Ralph Reed and Ed Gillespie? Did Enron place Reed on its payroll as a favor to the Bush campaign, as has been reported (but denied by Reed)?
* Did your donations to the Democratic party during the Clinton years help Enron win highly-coveted seats on trade missions led by Commerce Secretaries Ron Brown and Mickey Kantor?
* What did Enron officials and the staff of Vice President Dick Cheney's energy task force talk about?
I am presuming the Senators would have dared to ask such direct questions. But Lay is lying low, and these and other mysteries will remain for the time being.
As a public service, then, let me put to good use the space otherwise reserved for the Lay testimony.
A few days ago, the inimitable Molly Ivins called me. There was a slight dire tone in her voice, which is unusual. Molly gets dire about few things. What had riled her was a quote put out by the White House. In yet one more attempt to distance Bush from his (previously) good friend Lay (once known to Bush as "Kenny Boy"), a White House aide had told reporters that Bush was outraged that Lay and other executives had sold hundreds of millions in Enron stock before the company collapsed and the stock plummeted. The aide quoted an angered Bush as saying, "I thought the captain was supposed to be the last one off the sinking ship, not the first one."
This was hypocrisy, Molly noted. See my book, she said, and you'll see why. As soon as I could, I found my copy of "Shrub: The Short But Happy Political Life of George W. Bush" (cowritten with Lou Dubose), and located the relevant passage. (For those of you playing at home, pages 27 to 33.)
This section of the book covered the years before Bush entered electoral politics, the time when he was a failing-upward oil man. When W.'s father was president of the United States, George the Younger was a major shareholder in a sinking oil venture called Spectrum 7. But before Spectrum 7 sank completely, the Harken Energy Corporation, which was run by a GOP funder, bailed out the company. Bush got about $500,000 in Harken stock for his piece of Spectrum 7, and Harken signed him up as a consultant. Harken went on to win a 35-year exploration contract with the emirate of Bahrain in the Persian Gulf--an odd deal, since the company had no previous experience in international or offshore drilling. Some observers wondered if Harken's Bush connection had been a factor. But that's not the part of the story we care about at this moment.
In June of 1990, Bush sold two-thirds of the Harken stock he had received in the Spectrum 7 deal--and collected $318,430 more than it was worth when he first obtained it. Get low, sell high? Anything wrong with that? The month before this sale, Harken appointed Bush to a committee to determine, as Ivins and Dubose put it, "how restructuring [of the firm] would affect ordinary shareholders." According to Ivins and Dubose, who note the previous reporting work of "U.S. News and World Report," when Bush served on this committee, he was privy to information indicating the company was in trouble. He then dumped his stocks before this news became public. "U.S. News" concluded that at the time of the sale there was "substantial evidence to suggest that Bush knew Harken was in dire straits."
Bush claims he had merely sold at an opportune time, when word of the Bahrain deal was bolstering the company's position. But he then neglected to notify the Securities and Exchange Commission of his stock-dump, as he was required to do. Is that the tip-off something was amiss? (He filed the appropriate paperwork eight months after the deadline.) In the meantime, two months after he sold his shares, Harken stock dropped 25 percent, and it would sink further in the months ahead. As Ivins and Dubose note, "three years later, during his 1994 race against [Texas Governor] Ann Richards, he claimed he had filed the required report and that the SEC must have misplaced it. SEC spokesman John Heine told 'Time' that no one at the agency ever found any lost document."
Did Bush, one of the captains of Harken, jump that sinking ship because he had inside information the vessel was foundering? The chronology is suspicious. Yet now he is shocked, shocked that his close friend Ken Lay engaged in the same pattern of behavior. Perhaps if Ken Lay ever does permit himself to be questioned by a Congressional committee an additional query ought to be added to the list above: Did George W. Bush ever offer you advice on how to betray the shareholders of your own company by selling stock in response to bad-news known only to insiders?
Few presidents in the history of the United States have been given the opportunity handed George W. Bush to lead the nation to higher ground.
No president, with the possible exception of the current chief executive's father, has ever blown so great an opportunity so completely.
Maintaining an approval rating that "popular" presidents such as Ronald Reagan or Bill Clinton would have gladly traded a vice president to register, Bush could have used last week's State of the Union address to turn a moment of rare national unity and resolve into the stuff of greatness.
The president could have announced that the U.S. would not merely lead an ill-defined war on terrorism but also a dramatic war on want at home and abroad -- declaring that the success of food drops over Afghanistan had inspired him to forge an international coalition to provide food to every starving region on the planet.
The president could have recognized the reality that disease poses the deadliest threat to humanity and accepted a challenge from Pennsylvania Republican U.S. Sen. Arlen Specter to dedicate an additional $1 billion in U.S. funding to the Global Fund to fight AIDS. He could have gone a step further and endorsed the call by the Health GAP Coalition for a commitment of $2.5 billion to fight AIDS, TB, and Malaria -- with its wise focus on filling the funding gap for programs that treat people with HIV in impoverished nations.
The president could have acknowledged the basic economic truth that, with the dramatic increases in military spending he is proposing, it will be impossible to keep the vague promises his speech featured in regard to job creation, extension of health care coverage for the newly unemployed, pension protections, cleaning up the environment, implementing a patients bill of rights, providing affordable prescription drug coverage for the elderly, raising home ownership rates, training more teachers and expansion of early childhood development programs.
The president could have admitted that, in a time of economic stagnation, a farm crisis and rapid deindustrialization, it no longer makes sense to restructure tax policies in order to provide massive tax cuts for the wealthiest 7/10ths of one percent of Americans or to rebate 15 years of tax payments to the nation's largest corporations. By simply announcing that the U.S. would maintain the tax rates that were in place when the country's economy was growing rapidly in the late 1990s, Bush could have freed up more than $500 billion for investment in rebuilding America's crumbling infrastructure and schools -- along the lines of a plan proposed by U.S. Rep. Jan Schakowsky, D-Ill., to create jobs and more stable communities.
There is so much the president could have done with all his polling popularity.
Instead, he squandered it -- much as his father did the 91 percent approval rating he achieved in the Gulf War year of 1991. Indeed, Bush the Junior borrowed a page from his father to suggest that the American people ought to take responsibility for keeping presidential promises. The Bush of the moment devoted much of his State of the Union's address's scant domestic-policy section to promoting a variation on Dad's old "thousand-points-of-light" scheme. Young Bush is now busy touring the nation to sell this new vision of volunteerism as the cure for what ails America.
Let's be clear: There is nothing wrong with volunteerism. It has long been the favored activity of those "do-gooder liberals" Bush backers such as Rush Limbaugh routinely savage.
But the most ardent proponents of volunteerism will tell you that a few hours of community service should never be seen as an alternative to the serious commitment that is needed from the federal government to address the problems that plague American communities -- let alone the world.
"One hopes the president doesn't think (America's) needs will easily be met by his call for two years or 4,000 hours of volunteer service from every American. Having called for such commitment all my life, I don't believe the problems in neighborhoods (that are impoverished) will ever be solved without a massive political and societal commitment to match citizen action," explains Jim Wallis, author of books such as "Faith Works" and "The Soul of Politics," and a man whose "Call to Renewal" activism on behalf of increased citizen involvement in problem solving is so well regarded that Bush aides have sought his advice on such matters.
"When it comes to terrorism, America pledges its full commitment to whatever resources it takes, but when it comes to poverty, America calls for volunteerism," argues a disappointed Wallis. "The president says we will ‘act at home with the same purpose and resolve we have shown overseas.' That promise remains unfulfilled. I was especially disappointed that President Bush called for welfare reform that replaces ‘dependency on government' with the ‘dignity of a job' without an expressed commitment to make work really work for the millions of people who are now off the welfare roles and working, but remain in poverty."
While most television commentators remain ridiculously enthusiastic about Bush's State of the Union speech, the editor-in-chief of Sojourners magazine offers a more sober -- and sobering take.
"I really like presidential talk about values, and we saw some fine language (in the State of the Union address) about turning away from the ethic of ‘if it feels good, do it,' and moving from ‘the goods we can accumulate' to ‘the good we can do.' I particularly liked the call for a ‘culture of responsibility' that ‘serves goals larger than self.' We indeed must ‘change our culture,'" notes Wallis. "But values have to be implemented to have any value. And a country dominated by a commitment to endless war abroad and volunteerism at home will fall far short of the best values expressed (by George W. Bush)."
George W. Bush could not bring himself to mention the name "Enron" inhis State of the Union address. But no one doubted that, when thepresident spoke of the need for greater corporate accountability Tuesdaynight, he was refering to the economic and political scandals that havearisen in the aftermath of the collapse of Houston-based Enron Corp.
Credit Bush with a few calming lines in response to mounting concernsregarding the behavior not just of Enron executives but of members ofhis own administration with close ties to the bankrupt energyconglomerate. It was good to hear the most corporate president inAmerican history tell Congress that, "Through stricter accountingstandards and tougher disclosure requirements, corporate America must bemade more accountable to employees and shareholders and held to thehighest standards of conduct."
But, as Bill Clinton illustrated year after year, State of the Uniontalk comes cheap.
So how can Bush prove to the American people he is serious about thiswhole accountability thing?
The president could start by identifying the executives of Enron andother corporations who met with him and Vice President Dick Cheney toforge the administration's energy policy. So far, the president hasrefused to release any of the names, calling demands for details frommembers of Congress and the General Accounting Office "an encroachmenton the executive branch's ability to conduct business."
Here's a hint for the president as he explores "the highest standards ofconduct": If he wants to teach corporations to be more accountable, hemight start by being more accountable about the official business hehimself is conducting with corporations such as Enron.
He sure didn't leave the Democrats much room to maneuver. When George W. Bush delivered his first State of the Union address--a two-ply speech divided between a so-called war on terrorism and a supposed war on the recession--he depicted himself as a Rooseveltian president, as in both (Republican) Teddy and (Democrat) Franklin Delano.
In Speech One, Bush warned the war on terrorism--now targeting "tens of thousands of trained terrorists" throughout the world, in jungles and in cities--has only just begun and may extend for years beyond his time in office, and he declared himself a roughrider ready to take this war to nations that are "threatening America or our friends and allies with weapons of mass destruction." Never referring to Osama bin Laden by name, he announced that North Korea, Iran and Iraq--especially Iraq--were in his crosshairs and noted, "I will not wait on events, while dangers gather. I will not stand by, as peril draws closer and closer." In other words, if those wimpy coalition partners don't have the stomach for this, if Americans, as heroic as they were on and after September 11, are not be ready to invade Baghdad, none of that will matter. Bush will still lead the charge.
In Speech Two, he came across as a New Dealer. Without providing details, he called for extending unemployment benefits and direct assistance for health care coverage, for strengthening Head Start and early child development programs, for enhanced teacher training and recruitment, for a Patient's Bill of Rights, for extending Medicare to include coverage of prescription drugs, for protection of 401(k) plans and pension fund protection (without mentioning a certain belly-up energy company), for greater accountability within corporate America. He said he was in full favor of "jobs." There was no standard-fare GOP rhetoric about the need to limit big-government or the wonders of unfettered, entrepreneurial capitalism.
This was calculation, not conversion. Taking a cue from Bill Clinton, Bush has learned the value of strategically appropriating portions of the rhetoric and policies of his foes. His Medicare drug prescription plan is meager. It would devote about $77 billion for medication for only the poorest of senior citizens. Even Republican House Speaker Dennis Hastert has suggested spending $300 billion in this area. His Patient's Bill of Rights? Bush, no surprise, didn't say how far he is willing to go in permitting consumers to sue HMOs. And while he urged the lawmakers sitting before him to work "on these important domestic issues in the same spirit of cooperation we have applied to our war against terrorism," Bush was not above sticking it to the Democrats by pressing those items that cause them to see red: ballistic missile defense, Social Security privatization, a pro-industry energy bill that plunders the Alaskan wilderness, and his tax cuts. (He asked Congress to make the ten-year tax-cut legislation passed last year permanent.)
Karl Rove and Company could be proud of the speech, for it provided few openings to the opposition. One cliche among Washington commentators has long been that the Republicans are the Daddy Party (the warriors, the tough-on-crime guys) and the Democrats are the Mommy Party (the gang that worries about health care, education, and such.) Bush was striving to be both Ma and Pa. Seeking the holy grail of most presidents--a strategic political realignment--Bush is attempting to turn the GOP into the Both Parents party, which smites enemies abroad and then tucks you in when the economy falters.
The Democrats have already signaled they have no intention of undermining Bush's daddy credentials. So far they have pledged no-questions-asked loyalty to Bush as the commander-in-chief. Will any prominent Dems now challenge Bush on his intention to expand--unilaterally, if need be--the war on terrorism, or on his blank-check attitude toward military spending? Regarding foreign policy matters, Bush has rendered it tougher for the Democrats by making sure not to sound only like a go-it-alone militarist. He pledged to double the size of the Peace Corps, as part of an initiative to create a USA Freedom Corps, which, he said, "will expand the good efforts" of AmeriCorps. Thus, Bush was celebrating and building upon the accomplishments of John Kennedy and, yes, Bill Clinton. And he even got a bit Wilsonian. He loftily remarked, "America will always stand firm for the non-negotiable demands of human dignity: the rule of law, limits on the power of the state, respect for women, private property, free speech, equal justice, and religious tolerance. America will take the side of brave men and women who advocate these values around the world--including the Islamic world." Now there's something for the princes of Saudi Arabia to consider, as well as Bush's not-so-freedom-loving allies in Turkey and Uzbekistan. The President just placed the United States on the side of dissidents in these nations and elsewhere. Was he serious? (Don't email me; that's a rhetorical question.)
So what was House minority leader Dick Gephardt to do when he delivered the Democratic response to Bush's speech? He surgically attached his party to the President on matters of war and homeland protection. (There is "no daylight between us" on the war of terrorism, he assured the public.) And when he offered the Democrat's domestic agenda, it did not seem that distant from what Bush had proposed: helping the unemployed, recruiting high-quality teachers, protecting pensions. Gephardt, of course, referenced that particular energy company.
There were a few differences. Gephardt advocated raising the minimum wage and providing a tax deduction for the first $10,000 spent on college tuition. He took a glancing shot at Bush by opposing "gambling" on Social Security privatization. And he cried out for campaign finance reform. But Gephardt presented little to distinguish Democrats from Bush in a meta way. Confronting a wartime president with an approval rating somewhere in the area of 137 percent, Gephardt and other Democrats cannot bring themselves to bash Bush as a tool of Big Bidness--or a conservative ideologue or anything else. Gephardt did not question Bush's intentions or overall aims. He did not even mention the tilted-to-the-rich tax cuts Bush rammed through Congress.
Perhaps Democrats are hoping that in this election year Americans who vote will eventually pay sufficient attention to the policy fights of Washington to conclude the Democrats are indeed the better mommies and that voters will believe that even during a war economic concerns come first. But with the Democrats praising Bush's performance as a daddy, and with Bush using his wartime-enhanced standing to score points as a mommy, there is not much of a contest at the moment between Bush and the Democrats.
"Those of us who have lived through these challenging times have been changed by them," Bush said toward the end of his address. That surely is true for him. As crass as it may be to suggest, he was lucky September 11 happened on his watch. (It's easy to believe those post-9/11 reports that quoted Clinton saying he wished he had been confronted with such a tragedy.) But, as this speech demonstrated, Bush--now an amalgamation of TR, WW, FDR, JFK, WJC and (don't forget) RR--and his posse have been damn smart in figuring out how to make the most of it
Members of Congress return to Washington this week. After afall in which their tenure was characterized by unprecedentedinaction, politicians who occupy positions of public trust willattempt once more to act as public servants.
Unfortunately, the track record on which Congress returnscannot inspire confidence.
Consider the dramatic failure of federal officials to doanything that might merit their $12,500-a-month salaries during thelast months of 2001. A war was launched after four hours ofcongressional debate, civil liberties were undermined with just onedissenting vote in the Senate, and billions in corporate welfarepayouts were approved while laid-off workers were denied basicprotections.
Even as they constitute themselves anew, there are noguarantees that federal lawmakers will govern with the requisitecommitment to pursue the public good. Indeed, there were all too fewsigns on the eve of the new sitting of Congress that any good willcome of its gatherings.
This was the disturbing prospect we pondered Sunday in thesmall Wisconsin town of Sauk City, where I spoke to that community'shistoric Free Congregation on the eve of my return to Washington.
Members of the 150-year-old congregation had asked me todiscuss the subject of "Integrity in Politics." We had agreed on thetopic before the whole Enron scandal began to spin out of control.But, even without the overwhelming evidence of political corruptionon the part of Republicans and a good many Democrats so far exposedin the burgeoning scandal, it would have been easy to make the casethat political integrity is in short supply these days.
I appreciated the invitation from the good freethinkers ofSauk City as an opportunity to discuss the current crisis with somegrassroots Americans before returning to the surreal world ofWashington, circa 2002. I did not insult them by restating theobvious: that campaign money has warped our politics. They did notneed to be told that reform of election financing is no longer a goodidea but an absolute necessity. What they were interested in was thedeeper question of how things got so bad in Washington that a scandalof the proportions of the Enron debacle could unfold without thecertainty that members of the Bush administration and Congress wouldbe removed from office for their blatant wrongdoing.
The notion I suggested was that the current crisis has lessto do with campaign money -- as corrupting as it may be -- than withthe most damaging of all forces in politics and governance: Theimpulse toward "bipartisanship."
Bipartisanship is still regularly promoted by many in themedia and the political class -- especially the Enron-financedaffiliates of the thoroughly corrupted Democratic Leadership Council-- as the antidote to the messy work of governing. (It is notablethat, according to the Federal Election Commission records, the DLC'spolitical arm, the New Democrat Network, has collected more than$250,000 in contributions from firms tied to the Enron scandal. EnronCorp. gave the Network -- for which scandal investigating US Sen. JoeLieberman, D-Conn., serves as a combination icon/rainmaker -- $25,000in 2000. Enron's "auditors" at Arthur Andersen gave the Network$20,000 last year.)
Bipartisanship as it is currently practiced in Washington islittle more than an excuse to get Democrats to help hold open thedoor through which corrupting influence enters the Capitol. And,while Center for Responsive Politics surveys show that Enron'spolitical action committee and Enron executives showed a 3-1preference for Republicans in their campaign contributing, enoughDemocrats collected those Enron-linked checks to prevent this fromever being an easy, Watergate-style scandal. Already, conservativecommentators have seized on the evidence of big-name Democrats withties to Enron -- a substantial number of whom fall into the DLC camp,as Enron executives consistently used their campaign giving to rewardDemocrats who supported its pro-free trade agenda on votes regardingthe North American Free Trade Agreement and related legislationfavored by so-called "New Democrats." (U.S. Trade RepresentativeRobert Zoellick, Bush's pointman in the fight to win Congressionalapproval for a grant of "fast track" authority to negotiate a FreeTrade Area of the Americans agreement was paid $50,000 to serve on anEnron advisory board in 2000, at the same time he was helping toshape the Bush campaign's trade policies. But among the high-dollarrecipients of contributions from Enron PAC and Enron executives wereDemocrats such as California Rep. Cal Dooley, the leading pointmanfor free-trade Democrats; and the top House recipient of Enron-linkedcash, in either party, was Texas Democrat Ken Bentsen, who hascollected $42,750 over the past decade.)
When Democrats join Republicans in practicing the politics ofcooperation and compromise, with both parties embracing acorporations-uber-alles ethic, Enron scandals are the predictableresult. As Democrats abandon ideological differences with Republicansin order to occupy a murky middle of the political spectrum, leadersof both parties no longer spend much time fashioning policy. Instead,they busy themselves collecting contribution checks from the samecorporate sources and integrity is invariably sacrificed on the altarof political expedience.
When, despite the best efforts of the CongressionalProgressive Caucus, the ideological divide between CongressionalDemocrats and Republicans on issues of corporate power and influencecontinues to narrow, the quality of the discourse is not the onlything that suffers. The failure on the part of too many Democraticleaders, especially those in the orbit of the Democratic LeadershipCouncil, to draw lines of distinction between a party of corporationsand a party of the rest of us has made sessions of Congress littlemore than seasons of posturing to please potential contributors.Anyone who doubts this reality need only consider the course of theeconomic stimulus package debate of December, in which Democrats andRepublicans displayed a unique form of bipartisanship: Determined toposition their parties for the 2002 Congressional elections,"leaders" on both sides were united in their willingness to donothing, even as hundreds of thousands of laid off workers edgedcloser to the cut-off point for their unemployment benefits.
This argument that bipartisanship does more harm than goodwas well accepted by the freethinkers of Sauk City; indeed, thecomments from the crowd regarding the failings of both parties were agood deal more scathing than anything the folks heard from theirspeaker. Experience with crowds in cities and towns across thecountry tells me that this sentiment is a common one. Citizens at thegrassroots do not want Congress to become a snakepit of partisanbackbiting. But they recognize that democracy cannot function so longas both major political parties report to the same corporatepaymasters.
Beyond the Beltway, there is not much confusion about whatails our politics. Citizens well understand that so long as Democratscontinue to position themselves as the second party of big business,the Enron scandal will not be the end of this dark passage. It willsimply be another reminder that political integrity is impossiblewithout political ideology.



