There is no place in the United States that more cruelly illustrates the intensifying conflict between corporate power and democracy than Benton Harbor, Mich., the first city to be placed under what
some Michiganders call “financial martial law.”
About 100 Benton Harbor residents and supporters protested the opening of Whirlpool's "Jack Nicklaus signature golf course" in Jean Klock Park, on August 10, 2010. (Photo by Daymon Hartley/VoiceofDetroit.net)In March, Michigan Gov. Rick Snyder won approval of Public Act 4, which permits him to declare that a city is in fiscal crisis and then to appoint an overseer with unlimited powers including the elimination of existing union contracts. Significantly, chief sponsors of Public Act 4 were State Rep. Al Pscholka, who was a former aide to Whirlpool heir U.S. Rep. Fred Upton, and also "a former vice president for one of the major entities involved in building the luxury golf development," The
Rachel Maddow Show reported last week.
One of the first battlegrounds in Benton Harbor is the Jean Klock Park: Will it continue to be a public facility on Lake Michigan for poor kids or will it be converted into the massive proposed Harbor Shores golf course, condo and marina development?
Benton Harbor's population is
92% African-American and deeply impoverished by the de-industrialization of the city and surrounding area. Whirlpool’s recent plant shutdown is the most recent, crushing blow as the corporation continues to expand significantly in low-wage plants in Mexico, despite taking
$19 million in federal recovery funds. Benton Harbor is plagued by the
lowest per capita income in Michigan ($8,965), with 42.6 percent of the population living below the poverty line, including a majority of kids under age 18.
Like a set of other overwhelmingly poor and black cities whose economic hearts have been torn out by de-industrialization—such as East St. Louis, Ill., Gary, Ind., Chester, Pa.—Benton Harbor‘s plight was largely ignored by the state legislature (although past Democratic Gov. Jennifer Granholm staged a more limited intervention into the city's troubled finances.).
But Benton Harbor was selected as the first target for takeover. With new emergency financial manager Joseph Harris making all decisions unilaterally, elected bodies like the City Council and School Board can meet, but cannot make any decisions. The votes of neither elected bodies nor Benton Harbor voters simply do not count; the sole decider is Harris.
State Rep. Fred Dunhal, interviewed by MSNBC's Rachel Maddow, views the takeover legislation as part of a national drive by a new crop of fiercely right-wing governors, exemplified by Snyder, Wisconsin’s Scott Walker and Ohio’s John Kasich.
Their goal is to virtually eliminate any forces that counter corporate domination of state and local government.
“This is part of a national agenda,” said Rep. Dunhal. “It involves breaking the contracts of unions and interfering with the ability of cities to make their own decisions.“
MUCH OF STATE RIPE FOR TAKOVER
With Michigan already staggering from the effects of de-industrialization, the Great Recession hammered the state relentlessly with blow after blow. Every mass layoff caused by the recession means more job losses down the street and less tax revenue to cover rising social needs associated with rising hunger, homelessness, disappeaing healthcare coverage and increasing violence both within the home and on the street.
About 100 other cities, villages and townships are on the verge of fiscal collapse, along with 120 school districts, said Dunhal. Long-suffering Detroit is due for a $179 million cut in state aid thanks to Gov. Snyder, and it too looks vulnerable for a takeover.
Snyder is taking a step normally unthinkable for a Republican: He is raising taxes to the tune of $1.7 billion. But these tax increases are not designed to ease the pain of the recession or address the state's budget deficit. The tax increases will come at the expense of seniors who lose their property tax credits, the poor who are deprived of Earned Income Tax Credits, and people who want to make tax-deductible donation to public universities.
Incredibly, Snyder is also planning on handing out $1.8 billion to corporations in new tax cuts. While these corporate subsidies will be handed out in the name of “job creation,” a half century of using this approach nationally shows a pattern of abject failure when viewed from the national level.
"Success" in pirating a plant from another state comes at the expense of another region; the $70 billion annually spent on tax cuts and other incentives fail to secure long-term, high-wage employment from foot-loose corporatioins always on the hunt for a better deal; and the tax incentives drain state governments of revenues needed for schools and healthcare, as Greg LeRoy documents in The Great American Job Scam.
However, rather than take steps to address the fiscal crises breaking out all over the state, Snyder’s strategy will leave him in a position to take over more and more of the state’s cities and towns and school districts. He can thus fundamentally reshape Michigan through his appointees by breaking union contracts, substituting private voucher schools for public schools, sell off or lease public assets (e.g., parks, public buildings, power plants, etc.), and privatize water and power systems.
PARK FOR KIDS OR PRIVATE GOLF COURSE FOR ELITES?
One contentious issue in Benton Harbor is the fate of the Jean Klock Park, where developers want to complete a full-scale private golf course. The land was originally given to Benton Harbor in 1917 by the Klock family in honor of their daughter who died at a very young age. At the ceremony where the land was given over to the city, John Nellis Klock, the girl’s father, movingly made clear his
intentions and those of his wife:
The giving of this park to the city of Benton Harbor has been to Mrs. Klock and myself, the happiest moment of our lives. The deed of this park in the courthouse of St. Joseph will live forever. Perhaps some of you do not own a foot of ground, remember then, that this is your park, it belongs to you. …The beach is yours, the drive is yours, the dunes are yours, all yours. It is not so much a gift from my wife and myself, it’s a gift from a little child. See to it that the park is the children's.
John Klock believed strongly, “There is little joy in piling up money that you do not need, and so the majority of my earnings have been spent in providing beaches, parks, churches and schools." But to Harbor Shores developers close to the Whirlpool Corp., the Klocks' dedication of the park appears to be merely an obstacle to their profits.
The developers have gained enough land in the park for a three-hole private golf course designed by golfing legend Jack Nicklaus. In exchange, Harbor Shores developers swapped the city with land owned by Whirlpool that turned out to be highly contaminated; "taxpayers are now paying for the cleanup of that land through a brownfield redevelopment credit worth millions of dollars," according to a
local blogger and activist.
Fortunately, the developers’ plan is being fought both in the courts and at the grassroots level by community and environmental groups. But the courts have seemed remarkably pliable in response to the developers' claims about proper public use of parkland.
'DISASTER CAPITALISM' AND 'THE SHOCK DOCTRINE'
Thus far, the Michigan martial-law plan closely follows Naomi Klein’s description of corporate elites’ practice of “disaster capitalism” as discussed in her superb
book
Shock Doctrine. When a disaster strikes—be it the 1973 military coup in Chile or the 2005 Katrina hurricane—it inevitably disorients and disorganizes a population. It creates an opportunity for corporate elites to rush in with plans for a new economic order that would never gain majority support if majority rule and democracy were functioning.
Rev. Jesse Jackson, who has been helping Benton Harbor organizations to resist the state takeover just as he aided workers in Wisconsin to fight against Scott Walker’s union-busting efforts, has called attention to Gov. Snyder's use of fiscal problems to justify terminating democracy in Benton Harbor:
There's nothing about the economic crisis that says we should decimate a democracy for a dictatorship. Tyrants often, in the name of emergency, will suspend democracy and seize control of all levels of the government.
© 2011 In These Times
AC TODAY!!
Sound familiar folks? This is exactly what is happening to Atlantic City, NJ, as I write this. A faux so called "Economic Emergency" has been cooked up by the State's leadership and the democratically elected city Gov't has been pushed aside and an unelected authority the CRDA ( appointed solely by the Gov.) has taken control of the town's resources. In essence the Gov. is now AC's Dictator. Where does this stop is the big ?
WITH WHAT JUSTIFICATION?
Did AC cause the Great Depression 2? Is it the fault of the elected Mayor and Council that 25% of the demand out here has vanished because Wall st. and its "captured" DC elites have essentially "looted" the World's finances and then colluded to cover up this sour reality by lying and cooking the books. Even now an elaborate "kabuki show" is being carried on in DC called the deficit dance which is trying to lay blame for this disaster on everyone and anyone but the actual criminals that brought this all about through they're central roles in rigging the markets with the creation & use of elaborately conceived and fraudalent financial instruments. ( CDOs derivatives etc.) The Gov. and other GOP Govs. are using the terrible economic conditions that still exist everywhere in America today to justify these anti-democratic takeovers. IMO this is the beginning of the end of democracy in America after a 250 yr. trial run. The forces of economic royal-ism and conservative / neo-liberal political elitism are essentially saying, "YOU FOLKS CAN'T RULE YOURSELVES, or at least some of you can't." That the so called Democratic party in NJ and DC is going along with this charade tells you that in essence we are under the rule of a ONE party State ( the $$ party) with it's two wings the Dems. and the Gopers.
COINCIDENCE?
Is it any coincidence then that the first priority of the powers in Trenton was to remove any "real" oversight of AC's Casino Industry under the guise of merely bringing it up to "existing Industry standards?" What does that mean? I think it means the State has adopted a policy of turning away or benign neglect. In short, enforcing the law isn't that important anymore, or at least not as important as profits. Why is the State turning over the Cities marketing to the Casino Industry, when its failing? Does this make any sense? It seems whats happening here is that the biggest failures in town ( the present managements of the 11 casinos) are being given even more power to foul things up. Reality and reason would beg the question why? Why is the Gov. and the rest of Trenton's establishment buying into the notion that what AC needs is more of the same failed strategies and failed leadership by these companies and others? Haven't they already demonstrated these last 4 yrs. they're largely clueless? Instead, were being asked to in essence double down on a losing group of proven fuck ups. Pathetic and were to accept that this is now (sic) LEADERSHIP? Cut me a break, what it really is is just more PR as leadership. My guess is two yrs. from now when little has changed but a few name plates on some fancy offices, we'll be back wondering out loud , what happened?
By What Measures?
The real question everyone should be asking is, what constitutes success for AC now? Is success more revenue for the Casinos or taxes for the State? Or Is it broad based opportunity for the community? Or is it being narrowly defined as essentially whatever Gov. Christie and Sen. Sweeney say it is? By what objective measures do we judge the success or failure of the State run tourism zone ( AKA Atlantic City) in the future? if the State itself is doing the grading you can expect an A no matter what really happens.