News and Features
The new Daedalus is out. I have to admit to having not read Daedalus with much fervor in the past, say, fifteen years (well, if ever, to be honest), but I was curious about the venerable journal now that it's under the editorship of James Miller, professor of political science and director of liberal studies at the New School, and author, most notably, of Flowers in the Dustbin, a book about rock and roll that actually won a music-book award, to say nothing of his other books (one on Foucault, another on the SDS, another on Rousseau, plus History and Human Existence: From Marx to Merleau-Ponty).
Miller's first issue (Winter 2002) is about inequality. Whoever would have suspected twenty or thirty years ago that inequality could be considered good or that a discussion about its attributes could fuel an entire 117 pages of intelligent commentary? I'm aware of the debates--say, since Reagan--about the societal advantages of greed and inequality, but has any decent person ever seriously thought that inequality was good for anything other than sustaining the kind of high culture that produces journals like Daedalus, and of course for people like Marie Antoinette and Kenneth Lay? Anyhow, as Daedalus has traditionally, the new magazine suffers painfully from the kind of writing academics do ("In this essay, I shall attempt...," etc.) and the kind of writing policy wonks do ("The Luxembourg Income Study, which is the best current source of data on economic inequality in different countries, has calculated 90/10 ratios for fourteen rich democracies in the mid-1990s").
Yet because Daedalus has in the end a liberal mind, the new issue provides, if you can plow through it, a strong restatement of the value (economic, political and moral) of equality; and convincing arguments that inequality is pretty regularly--if sometimes more subtly than one would imagine--an evil. A historical essay that happens to be written by my distant cousin Sean Wilentz offers, among other things, lively illumination of the idea, dimly seized by me in my sporadic and unsuccessful attempts to buy a house, that the ability to purchase real estate lies at the heart of all equality or inequality.
In spite of the general impenetrability, many of the pieces have good bits. Martha Nussbaum's essay on women in India begins with an unforgettable story: A Bangladeshi woman waiting for a train at Howrah Station in Calcutta is first gallantly helped by railroad officials, and then drugged, kidnapped and gang-raped by four station employees; when she finally makes her way back to the station, battered, blood-stained and disoriented, she's tricked once again by other kindly, courtly, decent-seeming chemin de fer types into another gang-rape hideaway. Amazingly (cheerful Indian ending), she survives to bring suit against her attackers. This one anecdote brings life to Nussbaum's piece, while reminding us (as if one needed reminding, after the recent train burnings, etc.) that all the exotic incident and violence in Indian literature does not come from nowhere.
Quarrel & Quandary
As long as we're looking at venerable journals that I haven't read recently (an ever-widening category, it seems), let's talk about Partisan Review. I picked up the first issue of 2002 because it contains an article arrestingly titled "Melville's Skull and the Idea of Jerusalem," by Cynthia Ozick. Ozick is a great writer; her style is fluid and personal, and there is wonderful voice in everything she touches. This essay is no exception--if I agreed with any of its passions or arguments, it would be a beloved object of reflection. In it, among other things, Ozick claims that the modern state of Israel has at its foundations "ethical visionariness," unlike the states of Europe and other contemporary nationalist movements. Zionism, she says, "is distinct because it is inextricably bound with a coherent concept of the moral obligations of civilization: land cannot mean land alone, land bare of civilized purpose, land bare of law." This, by the way, is someone writing about Zionism not in the nineteenth century or two years ago, but today, as Israel's tanks roll back into the territories (land bedecked, no doubt, in "civilized purpose," so long as it remains occupied by those equipped with ethical visionariness). Ah, well; in her Zionist arrogation of all indignation, all righteousness, all suffering, Ozick even indicts Herman Melville for not recognizing Jerusalem's holiness, because he preferred the whiteness of the whale. She can't bear that.
Woman Is the Deejay of the World
Yoko Ono, an equally self-possessed woman, is on the cover of Mixer magazine, a decidedly unvenerable journal devoted to "music, clubs, life." In my house, we have a Don't Diss Yoko rule. Amazingly, my small sons have learned to despise her. They've informed me that Yoko "broke up the Beatles" and that she is "bad"--by "bad" they mean "bad." The great thing about Yoko is that, at age 68, she goes on being herself. She recently refused to give Paul McCartney any special credit on the Lennon-McCartney songs that he in fact wrote himself ("Yesterday" comes to mind), keeping the old enmity with Sir Cheerful simmering. Ono's latest prank: She's become an occasional club deejay down in New York's meatpacking district. "It's weird," says Peter Rauhofer, a city deejay, "when you're in a deejay booth...and find Yoko Ono standing beside you...at 3 am." He goes on: "Her manager asked me if I had a microphone, because Ono wanted to do some 'orgasmic moans.' I thought he was joking." He wasn't, of course. She does the moans, to the supposed delight of the dance floor. Later she repairs with a reporter for further insight to her "vast, conservatively decorated kitchen" in the Dakota. Yoko's evolution from child of Japan's banking aristocracy to alternative artist and outrageous darling of New York's demimonde would make an instructive entry in the annals of inequality. But if someone has to be rich, it should be Ono. Why? Because at a happening in Hyde Park in 1968 or so, she blindfolded an entire fashionable audience with sanitary pads--and then silently left them there to contemplate their own ridiculous abandonment. That's visionariness.
It all began with a missing sheet of homework. "Contractions," my son had written very clearly in his assignment log. "What's this?" I asked when he announced he'd finished everything else, noting that there was no book or worksheet to which the reference logically applied. "Don't know," replied my son.
I was off to the races, astride my high horse, afroth with my mission of dutiful motherhood, my son sniveling that he had No Idea what it meant.
"The teacher made you write it down, n'est-ce pas?"
"No buts--I am calling for reinforcements." So we called his best friend. No Idea. Aha, I thought, the two of them must be in league. We called his next best friend. No Idea. Three in league? Better try the girls, girls are sober, reliable, always bright as buttons. But girls were not home, out sick, at gymnastics, No Idea.
I called my mother: How will he ever get to college at this rate, I moaned. "Is this a joke or are you working out for the high blood pressure Olympics?" she asked quietly.
By 6 o'clock, I gave up, took two aspirin and went off to a school board meeting. Most unfortunate for my throbbing temples, gifted and talented programs were the topic of the evening, and the room was packed with parents, 100 percent of whom were banking on the hope that their children were in the ninety-ninth percentile. An expensive array of options was on the table, products and "packages," computer programs and reading lists. It was a veritable Tupperware party of the education industry, but what most people seemed to want most was A Separate Class.
One of the things I get to do in my profession is travel around to schools and talk about the benefits of equal access in all its forms. I find myself increasingly concerned that a kind of triage mentality has settled over schools, a vise of constraint that has led to a bottom-dollar hunt for top students. Triage is a theory that makes a certain sense in extremely dire settings where such a cruel cost-benefit analysis has the remote moral justification of salvage-under-fire. That educational opportunity should at all resemble such a configuration in this, the wealthiest and most technologically developed country on the planet, speaks of a deep and troubling class divide.
I cannot help thinking of this as I read headlines about libraries being shut, public universities shrinking, school music programs disappearing everywhere. I cannot help thinking about this as I sit in yet another roomful of parents desperately touting their children's special attributes, waving credentials about as though clawing their way up from the steerage deck of the Titanic.
The guest expert at this particular meeting defined "gifted" as the top 3 or 4 percent of the population, although that particular cutoff reflected a monetary limit, rather than any rational relation to the potential of a child "only" in the ninety-fifth percentile. In a different district there might be enough money to provide services for only the top 1 percent; in yet another, for the top tenth.
But I can't help believing that in a world of universally well-funded education, schools could provide for almost all their students much of the enrichment that is now reserved only for the most endowed. We seem to have forgotten that there are many successful models in which all levels are accommodated, in which neither gifted nor special education students are segregated but are given materials that both educate and engage; programs where individual differences in ability can be negotiated in small classes, by teachers who are well-educated and well-supported.
As I glanced around the room, I did the math that a lot of people seem to be ignoring: A Separate Class for the top 3 or 4 percent would mean that no more than one or two students in a given grade would have access to the truly wonderful materials being discussed--materials from which any child could profit. There will be a heap of hurt feelings if this plan comes to pass. But more important to the state of our union, it is wasteful of precious human resources. It is inconceivable to me why we Americans can't cough up enough money so that the "bottom" 95 percent are exposed to Shakespeare and calculus and music theory from as young an age as possible. If they can't all write a concerto by the time they're 7, at least a whole lot more of them will be able to enjoy one.
While I think programs and materials for the gifted are fine and good, I worry about meetings like this in which the dominant sentiment is that the only way to educate the gifted is to remove them from the company of mere mortal riff-raff. In a world where public schools are shuddering beneath hatcheted budget cuts, gifted programs have become a kind of status symbol, the equivalent of those new "designer" medical practices where doctors charge exorbitant fees to make themselves available to only a few patients for round-the-clock cell-phone access and midnight consultations.
The board meeting ended with a description of how a special class for the gifted had helped maximize the strengths of one particular child described as "brilliant but unmotivated"--a child of such genius that he was too preoccupied to get to school before the day was half over. His tardiness was so great that the teacher would actually go to his house in the morning and drag him to school herself. Hmm, I thought. What a wonderful world it would be if we put together the resources to push all children with such unyielding solicitude.
When I got home, I checked my e-mail to find a note from my son's teacher explaining that she had simply forgotten to give the children the worksheet on contractions. All the tension drained from me. Education has become such an awfully anxious rat race. I kissed my son--who in the meantime had come up with the inventive theory that contractions are the physical product of any given page of long division--on the tip of his nose. How lucky our worries. How perfect the children.
On Andrew Sullivan.
International law offers too little protection for prisoners of the new war.
Tom White, who pocketed millions running Enron Energy Services, one of Enron's more egregious frauds, remains Army Secretary even after lying to the Senate about his Enron holdings. White continues to say he didn't mislead investors about EES's profitability even as his former Enron employees describe how he goaded them to pretend the unit was making money when it was losing money.
Harvey Pitt, lawyer-lobbyist for the big five accounting firms, continues to serve his former clients as head of the Securities and Exchange Commission, where he defends self-regulation. George W. Bush rebuffed Treasury Secretary O'Neill's recommendation that executives and accountants be held personally responsible for misleading investors, relying instead on Pitt's SEC to oversee executives--even as his budget starves the agency of resources needed merely to retain its staff, much less police the Fortune 500.
Enron's Ken Lay and Andrew Fastow remain at large, neither yet having seen the inside of a grand jury room. The secret partners in the off-balance-sheet enterprises remain undisclosed. The Justice Department--in an investigation headed by Larry Thompson, whose former law firm represented both Enron and Arthur Andersen--appears to be joining Pitt's SEC in pushing Arthur Andersen to cop a plea and settle claims before discovery.
The Bush Administration is staffed with more than fifty high-level appointees with ties to Enron, as documented by Steve Pizzo in a study for American Family Voices. It dismisses all Enron inquiries with imperial disdain. The President stonewalls Government Accounting Office efforts to gain access to Dick Cheney's Energy Task Force records while he continues to peddle the Enron energy plan, which lards more subsidies on big oil companies. Republicans held unemployed workers hostage to win passage of the corporate tax giveaways that Ken Lay lobbied for personally. And Bush continues to argue for turning Social Security into 401(k)-type retirement accounts like the ones that evaporated on Enron employees.
Each day brings another revelation of Enron's remarkable penetration of the Bush Administration, but the White House refuses to reveal the contacts its appointees had with Enron officials and executives. One result is that too little attention has been paid to the delay in imposing price controls when energy companies, led by Enron, were gouging California and other Western states in last year's ersatz "energy crisis." Bush brags that his Administration did nothing to help Enron, but holding off on price controls bought enough time for Lay and other executives to unload substantial amounts of stock.
The Administration's attempt to dismiss Enron as a business scandal, the case of a rogue company run by desperado executives, is laughable on its face. After all, Enron's "Kenny Boy" Lay was Bush's most generous financial patron. Enron's business plan, such as it was, depended on political favors. Enron's freedom from regulation was the result of political fixes. And now the fate of Enron's policies and principals depends in large part on political calculations.
Yet the Bush dodge seems to be working. The press has done its job, but Democrats have failed to find their voices or their spines. If Enron had been a Clinton patron and Gore was in the White House, Congressional Republicans would have forced a special counsel and resignations of compromised officials weeks ago.
Concerned citizens--and Democrats with a pulse--should take off the gloves. White and Pitt should be forced to resign. The criminal investigation should be taken out of the hands of compromised Republican appointees and placed under an independent prosecutor. Enron's energy, tax and privatization plans should be exposed and defeated. And fundamental reforms to protect investors, defend retirement accounts, shut down tax havens, and hold corporate executives, accountants and lawyers personally and criminally accountable are long overdue. For that to happen, voters will have to teach a lesson to the Enron conservatives of both parties who continue to betray their trust.
Targeted by authorities, immigrants are organizing to defend their rights.
Campaign for a Living Wage
The Houston company was part of the biggest "big idea" of the past decade.
Let's say there was a school system or a chain of clinics on whose professional staff were a certain number of men who molested the children in their care and who, whenever this behavior came to the attention of their superiors, were shifted to another school or clinic, with parents and colleagues, not to mention the justice system, kept in the dark whenever possible. Imagine that this practice continued for thirty years through a combination of out-of-court settlements, sympathetic judges and politicians, stonewalling lawyers, suppression of information, fulminations against the media. Don't you think that when the story finally broke, the men who had made and implemented the policy would be held legally responsible--for something? Certainly they would lose their jobs.
Bring God into the picture, though, and everything changes. The bishops who presided over the priestly pedophilia in the Catholic Church's ever-expanding scandal are not likely to follow Boston's Father Geoghan, convicted and sentenced to nine to ten years and facing more charges, into the dock, much less the cellblock. After all, they are men of God. Thanks to God, the Catholic Church can run a healthcare system--10 percent of private hospitals in the United States--that refuses to practice modern medicine where women are concerned: not just no abortion but also no birth control, no emergency contraception for rape victims, no sterilization, no in vitro fertilization. The church can agitate against the use of condoms to prevent the spread of AIDS, even in desperate Africa, a position as insane as South African President Thabo Mbeki's stance against antiretroviral AIDS drugs, but that generates a lot less outrage in the West. It can lobby in Ireland against allowing suicidal women to have abortions and intimidate a 14-year-old rape victim in Mexico into carrying to term; it can practice total sex discrimination, barring women from the priesthood and therefore from sharing in the political life of the church, and still demand to be taken seriously when it speaks of human rights or ethics--rather like the Philadelphia parochial school recently reported as giving academic extra credit to students who march in antiabortion-rights demonstrations even as the church goes after public funding through vouchers. No secular institution could get away with any of this, any more than a secular psychotherapist or family counselor could get away with telling poor mad Andrea Yates what the Protestant evangelist Michael Peter Woroniecki did: that Eve was a witch whose sin required atonement in the form of perfect motherhood and that working mothers are "wicked."
Another example: Let's say a group of Americans decide that they would like to live where they believe their ancestors lived 2,000 years ago, even though other people have been living there for centuries and don't like the idea one bit. If these people were Cajuns who wanted to park themselves in the Bois de Boulogne, everyone would think they were out of their minds. If they were American blacks taking over swatches of Ghana, people--including many black people--would laugh at their historical pretensions and militaristic grandiosity. It would certainly be a relevant point that these settlers are not displaced persons or refugees--they have perfectly good homes already. But once again, God changes everything: The former Brooklynites, Philadelphians and Baltimoreans now camping out in "Judea" and "Samaria" (the West Bank to you) wave the Bible and the Israeli government lavishes on them all sorts of privileges--cheaper mortgages, income tax breaks, business development and housing grants--with results that are disastrous for Israel and Palestinians alike and that now threaten the peace of the entire world. In a recent front-page story, the New York Times treated the longing of Palestinians in the West Bank and Gaza to return to their homes in Israel proper as a psychological obstacle to their forging any kind of rational future, individual or collective, and maybe it is-- maybe it would be better for them to forget the old homestead and demand reparations. But at least the old woman mourning a sewing machine left behind when she fled Beersheba fifty years ago really, personally owned that sewing machine; the family picnicking year after year in the ruins of its former property has living memories of farming that plot of land. It is not a notional "ancestral" possession supposedly guaranteed in perpetuity by God. In this case, the religious fanaticism is not coming from the Muslims.
Elsewhere, of course, it is. God has been particularly busy in the Islamic world, building madrassahs, issuing fatwas, bringing in Sharia with its bloody stumps and beheadings and floggings and stonings--seventeen people have been stoned to death so far under the "progressive" Khatami regime in Iran--and underwriting a wide variety of dictators and monarchs and warlords. When gods start multiplying, matters don't improve: Polytheistic Hindu zealots have slaughtered 700 people, including many children, in revenge for the torching by Muslims of a train carrying Hindus from the site of the Ayodhya mosque, destroyed by a Hindu mob in 1992 because it supposedly occupied the site where the god-king Ram was supposedly born. As I write, Hindu fanatics are threatening to fight Muslims for a strand of beard hair preserved in a Muslim shrine in Srinagar, which they claim belongs not to Mohammed but to Hindu religious leader Nimnath Baba. How many children will be burned to death over the proper attribution of that holy facial hair?
Think of all the ongoing conflicts involving religion: India versus Pakistan, Russia versus Chechnya, Protestants versus Catholics in Northern Ireland, Muslim guerrillas in the Philippines, bloody clashes between Christians and Muslims in Indonesia and Nigeria, civil war in Sudan and Uganda and Sri Lanka, in which last the Buddhist Sinhalese show a capacity for inflicting harm on the admittedly ferocious Hindu Tamils that doesn't get written up in Tricycle. It's enough to make one nostalgic for the cold war--as if the thin film of twentieth-century political ideology has been stripped away like the ozone layer to reveal a world reverting to seventeenth-century-style religious warfare, fought with twenty-first-century weapons. God changes everything.
On February 21 the California Public Employees Retirement System stunned financial markets in Asia when it said it would withdraw its $450 million investments in publicly traded companies in Indonesia, Thailand, the Philippines and Malaysia to comply with new investment guidelines on human rights, labor standards and other political factors.
But the new guidelines don't apply to the fund's substantial investments in private equity markets, including its $475 million stake in the Carlyle Group--nor does CalPERS, the nation's largest public pension fund, see any reason why it should. "I don't have any moral reservations at all" about Carlyle, said Michael Flaherman, chairman of the investment committee of CalPERS.
The $151 billion CalPERS retirement fund, the largest such fund in the world, is invested on behalf of California's 1.2 million state workers and includes $35 billion invested overseas. The fund's relationship with Carlyle began in 1996; over the next four years it invested $330 million in two Carlyle funds, including $75 million in Carlyle Asia Partners. The relationship deepened last spring when CalPERS invested $175 million to buy a 5.5 percent stake in Carlyle. The relationship--so close that CalPERS owns the elegant office building in Washington, DC, where Carlyle's headquarters are located--is far more important to Carlyle than it is to CalPERS, industry analysts said. "CalPERS is called an anchor investor," explained David Snow, editor of PrivateEquityCentral.net, an industry newsletter. "When Carlyle goes to other investors, they can say CalPERS is in."
Carlyle's experience with CalPERS has apparently whetted its appetite for labor pension money. According to an official close to Carlyle, the bank is raising money for a $750 million fund to invest in "worker-friendly companies." Of that total, Carlyle hopes to attract at least $250 million in labor pension money, the official said. Questions about pension fund investments in private equity have become more relevant since the collapse of Enron, with which CalPERS had extensive private business partnerships. Several unions, including the Service Employees International Union (SEIU), strongly opposed the partnerships as well as CalPERS investments in Enron stocks and bonds. Those concerns included Enron's support for energy privatization, its employment of former government officials to lobby for privatization and its sordid human rights record in India. (CalPERS made $133 million from one Enron partnership and may see a gain on another; it lost $105 million on its stock and bond holdings.)
Within the labor movement, CalPERS is highly respected for its cooperation in challenging managers and corporations suspected of violating human rights or abusing workers. In 1999 CalPERS supported two union-backed candidates for the board of Maxxam during a bitter strike by the United Steelworkers of America (USWA). Two years ago CalPERS joined the AFL-CIO in an investors' boycott when the Chinese government and Goldman Sachs took Petrochina, a state-owned oil company, public. The fund's new standards for public investments in emerging markets are the culmination of more than two years of sometimes fierce internal debate. CalPERS investment managers must now consider a wide range of non-economic factors, including a country's political stability, financial transparency and record on labor standards, workers' rights and building democracy. Based on a review by Wilshire Associates, the CalPERS pension consultant, thirteen emerging markets, including Turkey, South Korea and South Africa, passed the test, compared with four that failed. The fund had already banned its managers from investing in publicly traded companies in China and India. "CalPERS is taking more steps in this direction than any pension fund we know about," said Damon Silvers, the AFL-CIO's associate general counsel who focuses on investment strategy.
In December Carlyle sent its three founding partners to Sacramento to brief the CalPERS investment board. One, David Rubenstein, made passing reference to the budding media interest in Carlyle, noting that Carlyle's activities are "visible and under increasing scrutiny." To protect the Carlyle and CalPERS names, he assured the board that Carlyle is "following the highest ethical standards" by "avoiding investments in industries including tobacco, gambling and firearms."
But Carlyle's deep involvement with the military-industrial complex and its ties to the Bush Administration continue to raise questions. Both the SEIU and the Communications Workers of America are collecting information on Carlyle to provide to their pension trustees.
Down the road, Carlyle's investments in Asian companies facing downsizing, manufacturers in China and military conglomerates in Turkey could present serious dilemmas. It's not hard to find contradictions: Carlyle already has investments in China, which is on the CalPERS blacklist for public stock markets, and it is gearing up for more. Liu Hong-Ru, a former official with China's central bank who sits on Carlyle's Asian Advisory Board, is a senior adviser to Petrochina, the company whose public offering CalPERS boycotted in 2000. Until last year, Carlyle was the official adviser to Saudi Arabia's offset program, which allows buyers of US military hardware to use their purchasing power to pressure companies to transfer technology and jobs to their economies. "In effect, Carlyle was telling another country how to leverage their purchases of military equipment in ways that create the most jobs in that country, not this country," said Randy Barber, an expert on offsets at the Center for Economic Organizing in Washington.
Some trade unionists also know from experience that private equity funds aren't the best judge of what constitutes a worker-friendly environment. In 1998 several unions involved with CalPERS were shocked to learn that CalPERS was a partner with a private restructuring fund for Asia run by New York financier Wilbur Ross that played a key role in the suppression of a strike in South Korea. The strike led to the imprisonment of forty Korean trade unionists.
Investors in Carlyle's equity funds include state pension plans in Delaware, Florida, Louisiana, Michigan, New York and Texas, as well as in Los Angeles County. Others are the Ohio Workers Compensation Bureau and Union Labor Life Insurance, a union-run insurance company. According to industry newsletters, union pension funds with significant holdings in private equity markets include SEIU, the USWA, the Hotel and Restaurant Employees, the United Food and Commercial Workers, and the Union of Needletrades, Industrial and Textile Employees.