From Shanghai to San Francisco, the rent is too damn high

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By Jerome Roos

Source: RoarMag.org

Capitalism is a strange beast. Though incredibly resilient in the face of systemic crises and remarkably adaptive to ever-changing conditions, it never truly overcomes its structural contradictions. As the Marxist geographer David Harvey often points out, it merely displaces them in space and time.

The global financial crisis of 2008-’09 has been no exception in this regard. In fact, the very response to that calamity has already laid the foundations for the next big crisis. And just like its immediate predecessor, it looks like this one will be centered, at least in part, on a massive speculative housing bubble.

Officials and investors may still be turning a blind eye, but the warning signs are flashing red everywhere. From Shanghai to San Francisco, from London to L.A., a wave of real-estate speculation is washing over the world, gentrifying popular neighborhoods, pushing housing prices and rents to historically unprecedented highs, and forcing low-income tenants out of their increasingly unaffordable homes. The result is widespread social displacement and deepening discontent.

Unlike the subprime mortgage crisis of 2007-’08, which was centered on the complex packaging of risky loans to low-income households across the U.S., the new housing crisis is a product of real-estate speculation in the world’s major metropolitan areas. Take London, which according to the Financial Times finds itself confronted with “its biggest housing challenge since the Victorian era.” Residential property prices in the British capital have risen 44 percent since 2008, and are now well above their pre-crisis highs.

According to an analysis by the UK charity Shelter, there are currently only 43 homes in Greater London that could still be considered affordable to the average first-time buyer, pushing everyone but the richest of the rich into the rental market, where landlords are known to exact more than a pound of flesh in return for a roof and running water. In the majority of London boroughs, the median rent for a one-bedroom apartment is now over £1,000 per month. On average, Londoners spend about 60 percent of their income on rent.

A similar picture has emerged in New York, where property prices — in the words of the BBC — “have gone turbo-ballistic, as global capital in search of a safe haven has rocketed in.” The average monthly rent in Manhattan now exceeds $3,800, even as half of New York’s urban population lives near or below the poverty line. As a gubernatorial candidate for New York once aptly pointed out, “the rent is too damn high.”

Again, the unsurprising result has been widespread social displacement. Al Jazeera recently reported that “evictions [in New York] have reached epidemic proportions and created a new homeless crisis born out of an affordable housing shortage.” Other major cities like Boston and Los Angeles are not doing much better, as gentrification proceeds apace from coast to coast. Today, even the downtown area of derelict Detroit is rapidly gentrifying, while much of the city still languishes in a state of post-industrial decline.

It is San Francisco, however, that has emerged in recent years as the most paradigmatic case of unbridled gentrification. With median monthly rent hitting $3,530, the city has become the most expensive in the U.S. Desperate to get rid of old tenants who still enjoy rent controls and attract high-income professionals from the tech industry in their place, landlords have gone on an eviction spree: in the past five years, the eviction rate has soared more than 50 percent. Immigrant and working class neighborhoods like the Mission have been reduced to multi-million dollar playgrounds for the “bohemian bourgeois”, complete with snazzy coffee places and expensive vegan restaurants.

The urban sociologist Saskia Sassen has encapsulated the nature of this violent process in strikingly succinct terms: the social reality of financialized capitalism, she argues in her book Expulsions, is all about “systemic complexity producing simple brutality.” And as usual, those feeling the brunt of this brutality are the urban poor and marginalized communities, especially immigrants and people of color, who — along with artists and precarious youths — are increasingly being displaced from city centers towards the periphery.

It is not just cities in the advanced capitalist countries that have been undergoing this turbulent process of urban stratification: the major metropolitan areas of the Global South are firing on all cylinders as well — with the notable difference being that the bubble in emerging markets already appears to be in the process of popping, raising fears of a new international financial crisis centered on China, Brazil and Turkey, among others.

In China’s biggest cities, property prices shot up 60 percent between 2008 and 2014, with residential prices in Shanghai and Beijing rapidly closing in on those of London, Paris and New York. According the consultancy firm McKinsey, some$9 trillion — almost half of China’s total debt, excluding financial sector debt — “is directly or indirectly tied to real estate.” Price increases have exceeded the rise in income by 30 percent in Shanghai and by 80 percent in Beijing.

Other major cities that have been experiencing similar real-estate booms include São Paulo and Rio de Janeiro in Brazil, where residential property prices in the most-desired neighborhoods doubled between 2008 and 2013, and Istanbul, along with the other big cities of Turkey, where a credit-fueled construction boom has accounted for 30 percent of GDP in the period since Erdogan’s AKP came to power on the heels of a previous financial crisis in 2002. Since 2007, property prices in Turkey have shot up 36 percent.

To be sure, the local specificities vary from place to place. In London, the housing crisis has been fueled at least in part by massive capital inflows from wealthy elites in countries like China, Saudi Arabia and the Gulf States, as well as the municipality’s failure to build adequate housing for the large influx of new inhabitants. In Barcelona, by contrast, it has been driven primarily by the tourism industry, while in San Francisco it is largely driven by the tech industry. In Rio, the process has been intensified by preparations for the FIFA World Cup and the Olympic Games, while widespread cronyism and corruption have been an important catalyst for the construction boom in Istanbul.

Yet for all differences between them, the gentrification processes and housing crises in each of these global cities share two crucial commonalities: first in their causes, and second in their consequences.

In terms of the underlying causes, the new housing crisis should be seen as a direct outcome of the response to the previous crisis, which was based on massive bank bailouts and central banks opening the floodgates of cheap credit. With the notable exception of the ECB, which only embarked on quantitative easing earlier this year, the world’s largest central banks dropped interest rates to historic lows, kept them there for years on end, and pumped trillions of dollars of fresh liquidity into the global financial system, effectively subsidizing private investors out of bankruptcy.

This unlimited flow of free money (for the 1% only, of course) produced a tide of surplus capital that had to be absorbed somewhere. With “secular stagnation” taking hold across the developed world, investors were still wary to direct this surplus towards the productive economy, where profit margins remained relatively low. And so, in their insatiable quest for yield, they turned to speculative investment in various asset classes instead: stocks, bonds — and, once again, real-estate. The profits were phenomenal. By 2012-’13, the resulting speculative boom had led U.S. corporate profits back to a new all-time high.

But now that the first signs of overheating have become apparent, we can already begin to identify the second crucial commonality between today’s urban housing crises; a commonality that sets the current crisis apart from the last one: in almost all of the major world cities today, ordinary citizens are already actively mobilizing and fighting back against processes of gentrification, dispossession and displacement, building innovative social movements and powerful political platforms in the process.

From urban insurrections to defend the last-remaining green space of Istanbul or the favelas and public transport system of Rio, to the local direct action of anti-gentrification activists targeting Google buses in the San Francisco Bay Area and reclaiming housing projects in London, it is already clear that the next major crisis, unlike the last one, will not go uncontested.

Of all the urban struggles that have ignited across the globe in recent years, the radically democratic municipal platforms of Spain are undoubtedly among the most advanced and the most promising. With the left-wing anti-eviction activist Ada Colau now holding the mayoralty of Barcelona, an important sign is being sent to the landlords, gentrifiers and real-estate speculators of the world: even in the deepest crises, there will be a limit to your capacity to evict us from our homes and destroy our cities — and that limit, ultimately, is us.

Jerome Roos is a PhD researcher in International Political Economy at the European University Institute, and founding editor of ROAR Magazine. Follow him on Twitter at @JeromeRoos.

The Fine Edge Between Comedy and Horror: The Millions Interviews Margaret Atwood

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By Claire Cameron

Source: The Millions

The Heart Goes Last — Margaret Atwood’s first standalone novel since The Blind Assassin, which won the Man Booker in 2000 — is a novel that teeters on the fine edge between comedy and horror. The writing is full of Atwood’s wry humor, but the dystopian world in which the characters live, whether they are a sleeping in a car and fleeing thugs or under surveillance in a tightly controlled community, is an alternate world that is full of horror.

The novel tells the story of Stan and Charmaine. After a great financial crash, their home is repossessed, their credit is frozen, and they are left to eek out a meager life living in their cramped Honda for shelter. Stan sleeps in the driver’s seat so they can flee quickly during the night if need be. With only Charmaine’s money from a bartending job, they dumpster dive, eat day old doughnuts, and have no viable prospects for their future. When Charmaine sees an ad on TV for Consilience, a suburban utopia and a ‘social experiment,’ she signs them up to take a look. Participants are given a home of their own in exchange for going to prison every other month.

The idea behind Consilience is that a full prison creates full employment and all prosper. While Charmaine and Stan do their month in jail, they swap places with an alternate couple who live their life, drive their scooters, and sleep in their bed until the month is up and they trade places again. In a set up that recalls a Midsummer’s Night Dream-like mix up, unknown to each other both Stan and Charmaine have chance encounters with their alternates. Confusion, obsession, and mistrust turn into revelations about the truth about Consilience.

The more I read, the more I questioned whether I could describe the community of Consilience and the chaos outside its gates as taking place in an alternate world. So much of what happens in this novel, from foreclosed houses to private prisons, is already part of our world. The world of The Heart Goes Last feels more like a twisted version of our current reality. Only small changes would be needed to make it all ‘true.’ Just as Charmaine and Stan’s lives contort when they seek out their alternates, utopian turns dystopian and comedy bends into horror with, as Atwood says, “one small turn of the wrench.”

I interviewed Atwood over the phone from her hotel room in New York. We spoke about not having sex with furniture, Pepper the greeting robot, themes in Victorian literature, and quotas in private prisons.

The Millions: The Heart Goes Last has your trademark humor, but the circumstances that Stan and Charmaine find themselves in are horrifying.

Margaret Atwood: A lot of things are funny to those watching them, but not to the person undergoing them. The person who slips on the banana peel doesn’t think it’s funny as a rule.

TM: Charmaine says near the beginning of the book that, “comedy is so cold and heartless, it makes fun of people’s sadness.”

MA: It does, unfortunately. Sometimes people make fun of themselves, but if you dig down there’s a bit of that too. On the other hand, where would we be if we couldn’t laugh? I think they’ve always been joined at the hip.

TM: At the beginning of the novel, you quote Ovid, William Shakespeare, and a blog post by writer Adam Frucci[1] — who sets out to test an ottoman with a fake vagina. I have to ask: Did you have sex with furniture to research this novel?

MA: I think that piece of furniture is intended only for men?

TM: Frucci warned that it was, “no Kleenex clean up, my friends.” Actually, what he endured to test the ottoman is a good example of something that is funny for the reader, but not so for the person going through the experience.

MA: One of the headlines of that post is “I did this so you don’t have to.” Frucci has probably woken to find himself strangely famous. A lot of people are reading that blog post.

The other thing that has to trouble your mind is — who had this idea for this piece of furniture? And would you have this in your living room? I have many questions.

TM: Maybe you’ve given the ottoman maker a little sales bump?

MA: I have a feeling that a piece of furniture with a sex thing built into it came and went fairly swiftly. If that blog post was written in 2009, the furniture has fairly quickly been superseded by the advances in robotics.

Do you know about Pepper the robot? Pepper is not a sex robot. In fact, Pepper comes with instructions that say explicitly that you are not supposed to use it for sex, though I don’t know how you could.

Pepper is a greeting robot, like one that Stan, the main character in The Heart Goes Last, is working on before he gets fired at Dimple Robotics. Except that Stan’s is a grocery bagging robot. It is supposed to smile at you.

Pepper is supposed to be able to read your emotions. They were installing Pepper as a greeting robot in Japan where greeting is a social custom. And then they put him/her on for private sale and he/she sold out very quickly. Apparently we want someone who can read our emotions.

TM: At Dimple Robotics, Stan’s job, before he looses it, was working on the empathy module of his robot.

MA: Personally, I don’t want someone who can read my emotions, because then you can’t dissimulate, can you? If somebody asks if you are having a nice day and you say yes, but you’re actually not…it spoils your act.

TM: It’s the white lies that get us through.

MA: I’m afraid that’s correct. They do. “That’s a lovely dress! You look wonderful!”

TM: The novel is filled with this kind of joke — your humor is always close to hand. I love a line on writing from Sheila Heti’s How Should a Person Be?: “You have to know where the funny is, and if you know where the funny is, you know everything.” Do you agree?

MA: No, but it’s a good hint. You don’t know everything if you know that, but you know some things. It’s true in a negative way. If something is unintentionally funny, you ought to know. If you intended it to be very serious and dramatic, but actually it’s funny, then you are in trouble.

There is a wonderful book called The Stuffed Owl. It’s an anthology of good, but bad, verse. It’s well worth reading. It is full of writers who were aiming for the heights and tripped on the banana peel.

TM: As I was reading The Heart Goes Last, I kept thinking back to Survival, your thematic guide to Canadian literature that was published in 1972. In it you said: “I read then primarily to be entertained.” Do you still?

MA: Go back to what the ancients used to say, that art should entertain and instruct. They didn’t say to what degree. If it doesn’t entertain, and by entertain I don’t mean just frivolous, I mean engage your attention and keep you going. If that doesn’t happen, you’re not going to turn the page. So there has to be something engaging enough to keep you reading.

That is why first chapters are so important. If you can’t get the reader through the first chapter, they are never going to get to your pithy piece of wisdom on page 85.

On the other hand, if there is nothing serious in it, you may be entertained on a superficial level and it’s a one time read. Or it’s what we call a “beach read.” Or what I sometimes call a “hotel room drawer read.” I leave them there for others to enjoy. I did that in Hong Kong once and they were so screamingly honest that they collected the books and mailed them back to me. I thought that was so sweet.

TM: The Heart Goes Last is about characters who give up their freedom for comfort. When Stan and Charmaine tour Consilience for the first time they both feel reason to worry about how it runs. However, after experiencing the discomfort and fright of life in a car, they opt for comfort, “the bath towels clinched the deal.”

MA: Yes. It’s also about how circumstances cause people to do things that they would otherwise not do. That is a human universal truth. Stan and Charmaine give up their freedom, but of what does their freedom consist? They don’t have a lot of money, they are living in their car, they are subject to every thug and criminal that stumbles across them, so that is maybe “freedom,” but of a very limited kind.

TM: Can we expect a scared or thirsty human to make good decisions?

MA: You can’t. Self-preservation kicks in. A person will make the decision that you think gives him or her the best chance of getting through.

TM: In that way, is The Heart Goes Last a survival story?

MA: A lot of people lived that, or something close to it, when the 2008 crash happened. They were thrown out onto their front lawn or living in their cars. That is ongoing.

There’s a movie that just came out that I must go and see called 99 Homes — it’s the story of a man who evicts people from their houses because they couldn’t pay their mortgages. As I said, the situation is ongoing.

I was listening to the radio in London, England, and there was a show about people who had moved back into their parents’ houses, or parents who have had their kids move back in, because they could not afford to either rent or buy in London. It was too expensive.

TM: The set up of your novel felt so real.

MA: It is real.

TM: But it’s not necessarily your reality. David Mitchell wrote about how he imagines the far past or the far future, that to get in the right mindset he thinks about the things that the characters might take for granted in life.

MA: We did a lot of car travel when I was a child. We also did a lot of camping out. So that wasn’t under duress, but I know what it’s like to sleep in a car.

TM: There are other parts of the book that could be taken as speculative fiction, but aren’t, like private prisons.

MA: There are private prisons in the U.S. The Atlantic just did a huge piece on this. There is nothing in the U.S. constitution that says you can’t make people do enforced labor if they are convicted criminals.

There’s a history of that kind of prison as enterprise. The Australian penal colony was one of them. They would send people to work off their sentence. Someone was making money out of it.

TM: I also read that in Arizona there are three private prisons that require 100 percent inmate occupancy.

MA: You have to keep them full to make them profitable and that is a recipe for creating more prisoners.

TM: In 2008, when you published Payback, a book of non-fiction about the nature of debt, it almost felt like the world of finance had collapsed at your feet. The timing was quite something. Tell me about your crystal ball?

MA: I don’t actually have a crystal ball, but I do read advertisements when I’m sitting on the subway. I was seeing a lot of them that said “let us help you get out of debt.” I thought, boy, if there are all these enterprises doing that, there must be an awful lot of people in debt.

The other thing is that, if you are a student of Victorian literature, as once I was, debt is a big theme. Not only with Dickens, but a number of other writers as well. So is the prison system.

TM: In Survival you wrote, “Literature is not only a mirror; it is also a map.” Can The Heart Goes Last be read as a map?

MA: Maybe a map, but also a door. Open the door and what’s inside? Stan and Charmaine are in a planned prison system, a for-profit enterprise. What they don’t know when they go in is how the enterprise is making its money. The thing to ask about private prisons is who is making the profit? And how much are they making. Maybe it’s time to rethink. What should we have instead?

__

[1] I contacted Adam Frucci, author of “I Had Sex with Furniture: The Shameful (NSFW) Fleshlight Motion Review,” to comment about the honor of becoming an Atwood epigraph: “I didn’t really believe it at first — Ovid, Shakespeare, and my goofy blog post from 2009. I can’t say that of all of the things I’ve ever written that this is the one I want people to remember and attach to my name, but what can you do? All I can really do is be honored and assume that Margaret Atwood is a huge fan of all of my work and looks to me for inspiration all the time. That’s about accurate, right?”

 

 

Saturday Matinee: Casshern

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“Casshern” (2004) is a live-action adaptation of the anime of the same name written and directed by Kazuaki Kiriya. The story takes place during a period after a 50 year war in which a resistance movement regularly clashes with the military. When scientist Azuma’s soldier son Tetsuya is killed in battle, Azuma uses his research to bring him back to life. After learning the truth about supposed terrorists he was once ordered to kill, Tetsuya fights against the military with the aid of a prototype cyborg suit. The film is notable for strikingly anime-like special effects and action set pieces, atmospheric score, and poignant conclusion with a clearly pacifist message.

Watch the full movie with English subtitles here.

The glorification of Antonin Scalia

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By Tom Carter

Source: WSWS.org

The sickening tributes across the official US political and media spectrum to Supreme Court Justice Antonin Scalia, who died suddenly on Saturday at the age of 79, are a barometer of the putrefaction of American democracy.

The universal deference towards Scalia from what passes for the “liberal” faction of the establishment is particularly repulsive. The statements of the Democratic presidential candidates, the supposed “socialist” Bernie Sanders no less than Hillary Clinton—echoing similarly sycophantic drivel from the likes of the New York Times—are monuments to political cowardice.

One would say these people lack the courage of their convictions if they had any convictions to lack!

They have sprung into action to join their Republican counterparts in hailing Scalia as a towering figure in American jurisprudence. Virtually every description of the deceased justice includes the words “brilliant” and “intellectual.” One is reminded of the programmed acclamation of Sergeant Raymond Shaw recited by his brainwashed fellow soldiers in the film The Manchurian Candidate: “Raymond Shaw is the kindest, bravest, warmest, most wonderful human being I’ve ever known in my life.”

Sanders took time off from his hollow calls for a “political revolution” to demonstrate his political obeisance to the ruling class, declaring, “While I differed with Justice Scalia’s views and jurisprudence, he was a brilliant, colorful and outspoken member of the Supreme Court.”

Clinton praised Scalia as “a dedicated public servant who brought energy and passion to the bench.”

President Obama called Scalia a “towering legal figure.” The New York Times’ Ross Douthat hailed Scalia for “putting originalist principle above a partisan conservatism,” and for his “combination of brilliance, eloquence, and good timing.”

No one dares say what needs to be said. The object of their veneration was a black-robed thug and sadist who used his position on the bench to attack the basic civil liberties laid down in the US Constitution and Bill of Rights—separation of church and state; due process; protection from arbitrary arrest, search and seizure; the right to trial by jury; protection from cruel and unusual punishment; the right to vote.

His supposed juridical brilliance boiled down to starting with the political outcome he desired (invariably reactionary) and then cobbling together pseudo-legal arguments to justify his ruling—often with flagrant disregard for legal precedent and the unambiguous language of statutes and constitutional provisions.

In one case last year, Scalia argued that a police officer did not use “deadly force” when he climbed onto an overpass and used an assault rifle to kill an unarmed man fleeing in a car. According to Scalia’s reasoning, it was not deadly force because the officer claimed to have been aiming at the car, not the person in the car.

Perhaps the most infamous example of this method—absurdly described in the media as “constitutional originalism”—was the 2000 Supreme Court decision Scalia engineered to halt the counting of votes in Florida and hand the White House to the loser of the election, Republican candidate George W. Bush.

The 5-4 decision to steal the election all but acknowledged its own speciousness when it declared that the justifications it advanced could not be applied to any future cases. In his separate concurring opinion, Scalia declared that the Constitution did not give the people the right to elect the president.

At the time of the theft of the 2000 elections, the World Socialist Web Site wrote that the Supreme Court’s decision to stop the counting of votes, and the acceptance of that ruling by the Democrats and the entire political establishment, demonstrated that there was no longer any significant constituency for democratic rights within the American ruling class. The reaction to Scalia’s death is a measure of the further erosion of democratic sentiment in the ruling elite.

Scalia personified the decay of bourgeois democracy in the United States over a protracted period of time. Appointed to the bench by Ronald Reagan, he flourished and exerted increasing influence in the decades of political reaction, militarism and Wall Street criminality that ensued, continuing without a hitch under Obama. Not only in the anti-democratic substance of his rulings, but also in his methods and bearing, he embodied the promotion by the ruling elite of backwardness, prejudice and outright cruelty.

He was corrupt and made no bones about his corruption, proudly voting to remove limits on corporate bribes in elections and flaunting his private outings with Vice President Dick Cheney while the latter was a party in a case before the court. He was a bully, making a practice of baiting and harassing lawyers who came before him.

Throughout his career, Scalia consistently advocated positions that can only be described as barbarous and fascistic. Fittingly, his last judicial act was to deny a stay of execution. He was a figure who relished the power and trappings of the state, openly defending torture and internment camps.

Scalia worked tirelessly to break down constitutional and democratic limits on state power, infiltrating fascistic doctrines into Supreme Court jurisprudence. His theory of executive power, according to which the American president has unlimited and unreviewable powers for the duration of the “war on terror,” resurrects Nazi jurist Carl Schmitt’s “state of exception” doctrine in all but name.

Scalia’s mere presence on the court testified to the advanced decay of American democracy. That decay is linked, on the one hand, to the extreme growth of social inequality, accompanied by the rampant parasitism and criminality of the ruling class, and on the other hand to unending war, which has its domestic reflection in the build up of the repressive state apparatus that Scalia championed.

The bitterness of the disputes over his replacement is a reflection of the importance of his role in American politics over three decades during which the political establishment shifted violently to the right.

The deference shown to such a figure from all quarters of the political establishment should be taken as a warning by the working class. The ruling elite fears above all the growth of social opposition and class struggle. It exalts the legacy of Scalia because it is preparing police state methods to defend its power and property against an insurgent working class.

 

Related Article: Scalia’s Black Beemer by Greg Palast

Tap runs brown in Louisiana’s impoverished northeast

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With infrastructure funds going unspent, residents have lack of drinking supplies and iron sediment flowing from pipes

By

Source: Al Jazeera

ST. JOSEPH, Louisiana – “I’m scared to take a bath,” said Ethel Strum, who lives in St. Joseph, a community of barely 1,000 people in northeast Louisiana.

She turned on the tap in the bathroom sink of her tidy one-story home and the water flowed clear for a second before fading to a milky brown. In her kitchen, a few cases of bottled water, which she uses for everything from brushing her teeth to cooking, are stacked on the table.

“I drive to Newellton to shower. It’s a 20-minute drive but I can do it in 12,” she laughed.

But talking about the town’s water issues makes her visibly upset. Among the many problems are frequent outages, water thick with iron sediment from the aging pipes, and poorly communicated boil-water advisories. “Water should be free until it’s fixed,” she said.

Strum can’t even wash her car with town water because it leaves a rust coating. Despite minimal use, she says she has received high bills and has to buy 20 cases of bottled water every month.

While state officials and the EPA have deemed the water safe to drink, virtually no one risks it. Most here do not even use tap water to cook or brush teeth, and many, especially children, bathe with bottled water. Lots of residents spend several hundred a month on store-bought water.

To add to the mounting frustration, $6 million of state funds allocated to St. Joseph for water line repairs in 2013 are still being withheld because the town’s mayor, Edward Brown, has failed several times to turn in a mandatory financial audit on time. New Governor John Bel Edwards said this week his office was working with the town of St. Joseph and the Department of Health and Hospitals (DHH) to fast track the allocation of at least some of that money to start system repair work. Mayor Brown said he expects to file the overdue audit by the end of February.

“What we’ve experienced here is policy failures that have allowed these communities to fall through the cracks,” said St. Joseph resident Garrett Boyte, drawing a comparison to the disaster in Flint, Michigan.

Boyte, along with colleagues in the Servant Leadership Corps of the Episcopal Diocese of Western Louisiana, have sought to attract public attention on the issue through a recent social media push and an online petition to the Obama administration for federal assistance to St. Joseph. The effort has just over one-tenth of the 100,000 signatures it needs by Feb. 19 to reach its goal. The group notes, however, that with no evidence of lead contamination, the situation in St. Joseph is considerably less dire than in Flint.

Nevertheless, the town’s water woes illustrate a more slow-moving and commonplace catastrophe: failing infrastructure in small, impoverished communities that cannot afford to replace their systems, leaving residents with limited resources to cope on their own.

Established in 1834, St. Joseph lies squarely in the so-called Black Belt, a term coined by Booker T. Washington at the turn of the century to refer to the swath of dark, fertile soil that spans much of the American south. It has evolved to describe the largely black, poor communities that have been in decline since the mechanization of farming drove out small farmers, with no industry to replace it.

The town is the seat of Tensas Parish — one of the state’s poorest, with 34 percent of residents living in poverty and a median household income of around $27,000 (compared to $45,000 statewide). The least populous parish in the state, over half of its population is African-American. Unemployment in St. Joseph is likely higher than the official parish average of 9 percent, and the town’s poverty is written in its shoddy roads and houses in dire need of repair.

St. Joseph’s decaying water distribution system, installed in the 1930’s, is the main cause of the town’s water problems. “Over time, these old cast iron pipes that convey the water, they deteriorate and start to crack and leak,” said Davis Cole, a Baton Rouge-based civil engineer working on the redesign of St. Joseph’s water system. Leaks cost the town money; according to Mayor Brown, the system loses 50 percent of its water. And with resources already stretched thin, long-term repairs are out of reach. “This is typical of communities probably all over the U.S., especially poor communities,” Cole said.

The water’s rusty tint comes from naturally occurring iron and manganese sediment in the underground well that has built up in the water lines over the years. Every time the system has to be shut down for repairs, and then restarted, sediment is injected into the water flow. The problem started to become obvious over a decade ago, according to residents, but has gotten progressively worse. The water main reportedly broke four times last month alone.

While the state does monthly bacterial tests, the last detailed analysis of St. Joseph’s water was in 2013. It showed 32 times the EPA-recommended level of iron and 9 times that of manganese, according to an analysis by the local Sierra Club. But the EPA considers these contaminants to have merely “aesthetic” affects on the water. They are not regulated by the EPA or the state.

The state’s official approval of the water quality is of little comfort to most residents here. “We don’t know what’s in that water. They say it’s rust but there are so many ‘what if’s’,” said Marie, a grandmother and lifelong resident of St. Joseph who declined to give her real name because of the sensitivities around local politics.

“Who’s more important: the people or the paperwork?” asked Marie, implying that the audit issue was to blame. “Get the water straight and then work on that. It’s not the community’s fault, don’t make it hard on us.”

Iron contamination and aging infrastructure are not uncommon problems in the region. Dr. Jimmy Guidry, state health officer at the Department of Health and Hospitals, confirms that water discoloration caused by iron is a common complaint across the state. “There are probably several hundred water systems that deal with this,” Guidry said, out of approximately 1,360 local water systems in Louisiana.

“As a physician, I’m not going to tell you a lot of iron in your system is not going to affect your health,” Guidry said, when asked about the long-term effects of high iron exposure. “But that’s not something we regulate.” In light of renewed attention on the issue, he said the DHH would be looking again at an iron and manganese water rule that was legislated in 2014.

Of more pressing concern to Guidry was replacing St. Joseph’s decrepit water pipes, which pose a risk of bacterial contamination every time they break. Many Louisianans have been on high alert for water contamination after a brain-eating amoeba was found in four separate water systems last year.

Guidry also noted that frequent leaks in the St. Joseph water main present another threat — they have started to erode the nearby levee. The Mississippi River has swelled to record heights in some areas this winter following heavy rainfall.

“I understand their urgency to [fix the water color]. That will take time,” said Dr. Guidry. “The urgency to get their system back to where they are not at risk of contamination is most important to me.” He said that if they receive approval for two grants totaling around $600,000, the most-needed repairs on the town’s storage tank and water pipes could begin in a matter of weeks.

However, he noted that even with a full revamp of the system, which is planned once an additional $2 million in funding is secured, the brown water of St. Joseph might not disappear. “It may not get rid of it completely, because it doesn’t address the treatment part,” he said. While there are expensive chemicals and filters that can get rid of iron discoloration, “for a poor community, it’s not an easy option to address the iron,” he added.

“If you were born after 2000 in this parish, you were always taught not to drink that water,” said Rosalie Bouobda, who moved to St. Joseph two years ago as a consultant for the Servant Leadership Corps of the Episcopal Diocese of Western Louisiana. That group has been meeting with state and local officials about the water issue for the past two years. “Children are taught not to deal with [the water]. It’s a reflex to them…They’ve never known clean water.”

Bouobda, along with Garrett Boyte, who started posting pictures of the muddy water on Twitter, has been instrumental in garnering attention beyond social media. But many lifelong residents of St. Joseph have been reluctant to speak out, either because of a fatalistic sense that nothing will change, or out of deference to local politics in a town where so many people are related to each other.

“They just accept it as a fact of life, their water is dirty and there is nothing they can do about it,” Boyte says of people’s perceptions.

For St. Joseph, dirty water may be as much a fact of life as high unemployment and failing schools.

“It’s like nobody cares. That’s how people in this town feel,” Michael Thomas, Jr., a 25-year old father of two, said. His apartment in a small subsidized housing complex stands across from the overgrown ruins of a long-abandoned Tensas Rosenwald High School, one of many built in the early 20th century with funds from Julius Rosenwald, the president of Sears, Roebuck and Company, to educate African-Americans in the South.

“We gotta boil the water just to wash the babies,” he said. “If I could afford it, I’d move.” He said he spends as much as $300 every month on bottled water.

Sitting nearby, Kristi McWilliams, 23, and John Jackson, 24, echoed Thomas’ frustration. “I think about moving all the time, but we don’t have the jobs or the money,” said McWilliams.

“There is more they could be doing,” said Jackson of state officials. “They could drop the water bill. Water should be cheaper in the stores.”

Some residents, like Ann South, an elderly woman who recently suffered a stroke and a heart attack, were frustrated by the disparities with other communities. “Around the lake there is no water problem,” she said, referring to the more affluent, largely white area around Lake Bruin nearby. “Who in the world do we have to talk to about helping my people in St. Joseph?”

Others, like Ethel Strum, were more sharply critical of Mayor Brown’s role in the water crisis. “The Mayor – he’s doing nothing!” she said. Valerie and Chip Sloan, a white couple who own a large house by the levee, claims that Mayor Brown has kicked them out of multiple town hall meetings for asking questions about the water, and that he has ignored their Freedom of Information Act requests for data on town finances.

“There are residents who have spoken out and they are retaliated against, either by the community at large or someone from the city,” added Boyte.

For his part, Brown, the town’s first African-American mayor, says his hands are largely tied on the water issue. “The state of Louisiana is testing this water and is saying that it is safe. And for me to overrule, [the Department of] Health and Hospitals or EPA … I don’t have that expertise, and no one in this town does,” he told Al Jazeera.

He says that with a budget of around $1.5 million – including a $500,000 general fund and around $1 million in water and gas sales – he is left with around $50,000 a year. That would leave little cash for infrastructure upgrades.

As for the lapsed financial audits that have delayed water system funding, Brown says that after an audit firm pulled out mid-audit in 2013, the town was forced to file late. With various lawsuits looming over the town since then, he says he has struggled to find an audit firm that will take on his case.

Brown also points to tight oversight from legislative auditors closely monitoring the town, in light of its failure to comply with financial audit rules. He says state law requires him to cut off utility connections after two months of missed payments and that, in the past, he has been issued a citation by auditors for granting extensions to individuals. Now, he turns off about 10-15 utility connections per month, including houses where he knows there are children and elderly people.

“You tell me what the state cares about the people in this town,” said Brown. “Did they care about people in Flint? They care about them now.”

Should Taxpayers Be Subsidizing Obscene Salaries?

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By Adnan Al-Daini

Source: Dissident Voice

An article in the Guardian on bosses’ pay by the director of the High Pay Centre, Deborah Hargreaves, presents the disparity between bosses’ pay and the average wage in the UK thus:

“Chief executives in the FTSE 100 companies took home £4.96m in 2014 compared with average wages of £27,645. And, if anything, the pay gap is getting wider. A typical incentive award for a top boss increased by 50% of salary compared with the previous year, while workforce wages were up by £445. Bosses’ remuneration has risen from around 47 times average wages in the 1990s to around 180 times today.”

The pay gap shown by the above figures will be even wider if the salaries of bosses are expressed as a multiple of the median wage instead of the average wage. The average wage is skewed towards the top, thus most workers will earn below the average. The median wage is a better measure as it means half of the workers will earn below it and the other half above it.

Free-market ideologues would argue that salaries are fixed by market forces, and questioning such a disparity in income is tantamount to the politics of envy and interference in the freedom of markets. Such an argument is not really sustainable.

A company is a joint enterprise, and for it to be successful all its employees need to feel valued and justly rewarded. Such a disparity in income sends the wrong message to the many people who are working hard to make the company successful. It will lead to dissatisfaction and low morale amongst the workforce, and will eventually negatively impact the success of the company. A good boss will not accept such an obscene disparity in income between himself and his employees. Such salaries have become a virility symbol for bosses to compete with each other. It shouts – I am more important than you; just look at the size of my package!

If the wages paid by a company to its poorest employees are so low that it requires the state to top up their wages to provide them with the basics of life, then inflated salaries paid to the bosses are effectively being subsidized by the taxes we pay. It is a transfer of wealth from the many to the very few at the top. How can that be right? Where is the free-market in such practices?

If the income distribution is more equitable, the subsidy by the state to the low paid will be reduced, leaving more money for the government to spend on the NHS, infrastructure, police etc., things that are necessary for a civilized, functioning society.

Surely, then, that gives our elected government the right to enact laws and regulations to fix maximum salaries of bosses as a multiple of the lowest wage in that particular company. This will incentivize the bosses to increase the pay of their poorest employees to increase their own pay. The multiple should be certainly much lower than the figures quoted above.

Our taxation system needs to be overhauled to reflect the huge disparity in incomes; it is too narrowly set. Currently, we have a tax-free allowance of £10,600 and then a jump to 20% up to £42,385 then 40% up to income of £150,000, and a tax rate of 45% on income above £150,000.

A more progressive taxation system would start at a much lower rate and continue to rise incrementally well beyond the 45%. I am not a tax expert, so I leave it to those with the expertise to set the rates in such a way that we as a society ensure that the wealth of the nation is more equitably distributed.

Fairness and justice are the pillars on which successful, happy societies are built. The present system that siphons so much wealth to the top 1% to the impoverishment of the rest is neither fair, nor just. Failure to take action will result in the whole of society becoming the poorer; we will all suffer rich and poor.

 

Adnan Al-Daini (PhD, Birmingham University, UK) is a retired University Engineering lecturer. He is a British citizen born in Iraq. He writes regularly on issues of social justice and the Middle East. Read other articles by Adnan.

 

The Popular Myth of Democracy in America

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By Stephen Lendman

Source: SteveLendmanBlog

No nation in world history promised more and delivered less to its citizens and people worldwide. None more greatly threatens world peace – putting humanity’s survival up for grabs like never before.

None did more harm to more people globally over a longer duration. None matches the menace it represents – a presstitute media supported fascist gangster state willing to risk destroying planet earth to own it, run by a bipartisan criminal class.

From inception, America was always run by the people who own it, as first Supreme Court Chief Justice John Jay explained.

John Adams believed power belonged exclusively to the rich, well-born and able. Today it’s about monied interests in charge – deciding who holds all top positions in government, elected and appointed.

People have no say whatever. Ignore electoral politics, intended solely to deceive – manipulating people to believe new bums are more worthy than current ones.

Voting is a waste of time, accomplishing nothing. Duopoly power rules.

America is a one-party state with two wings, indistinguishable from each other on issues mattering most – militantly pro-war, pro-business, anti-populist no matter what names and faces hold top positions.

Police state laws enforced by powerful security forces at the federal, state and local levels assure wealth and privilege interests are exclusively served at the expense of public welfare.

Elections are farcical, exercises in theater, not democracy. Candidates for the nation’s top offices are cardboard cutouts of each other, distinguishable only by their disingenuous rhetoric – promises made, forgotten and broken once in office.

The public interest be damned. People are used, not served, deceived to believe politicians represent them.

Embedded power runs America, politicians serving entrenched interests exclusively, chosen for that reason. Ordinary people thinking their enfranchisement matters are living in a fantasy world.

Government of, by and for the people is the grandest of grand hoaxes. Media scoundrels perpetuate the myth with all the familiar slogans and high-minded posturing.

Jimmy Carter was right last summer calling America an “oligarchy with unlimited political bribery…a complete subversion of our political system as a payoff to major contributors.”

Republicans and Democrats operate by the same corrupted standards. “(U)nlimited) money” serves their interests at the expense of constituents they represent.

America’s system is too debauched to fix. It’s too late for tinkering around the edges.

A complete makeover is needed – a popular revolution, replacing oligarchy with grassroots democracy for the first time in the nation’s history, freed from money control.

Today is the most perilous time in world history. We have a choice.

Accept the status quo, its endless wars, oligarch control over the greater good, unprecedented wealth disparity between rich and all others, along with harsh crackdowns on nonbelievers and risk of potential humanity destroying nuclear war – or refuse any longer to tolerate a system responsible for so much harm and misery to so many people worldwide.

Survival depends on choosing wisely. What kind of world do you want to live in? What kind do you want your children to inherit?

 

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net. 

His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.