Jeff Immelt – Jason Pramas

PRESS FAIL: AS GE CEO STEPS DOWN, BOSTON JOURNALISTS MUST DO THEIR JOB

June 14, 2017

BY JASON PRAMAS @JASONPRAMAS

A recent column by the Boston Globe‘s Shirley Leung perfectly encapsulates the problem with local media cheerleading for General Electric’s decision to move its headquarters to Boston. The title alone says it all: “Will GE’s new CEO remain committed to Boston?” Because, like so many pieces on the subject by Leung and company, it fails to ask the key question: why did state and local government shovel huge amounts of public money to a private enterprise, and put it in a position to potentially cause grievous harm to a major city’s economy, to begin with? And why did the region’s newspaper of record — and much of the Boston press corps — back the scheme so uncritically?

But now, after all the prattle by fawning journalists about the days of wine and roses to come, it turns out that the various moves GE CEO Jeff Immelt made to reinvent the conglomerate as an “innovation” company came at the expense of a significant drop in profits. And it looks like the GE board balked and forced Immelt out — although the official line is that he “stepped down.” Doubtless after noting a rise in share prices in March after activist investors told Fox News that he might be pushed into retirement. He’s been replaced with a new CEO from within GE’s own ranks, John Flannery. Who hails from Chicago, and may not have the same warm fuzzies for the Hub that Immelt at least pretended to have. If Flannery doesn’t back the Boston deal as strongly as Immelt that could mean disaster for everyone who shilled for it. And if GE’s stock prices continue to tank, fuggedaboutit!

In that spirit, it’s worth recalling that the whole boondoggle was dumped on the public by Mayor Marty Walsh and Gov. Charlie Baker as a done deal in January 2016. There were no public forums on the plan, no deliberation by the state legislature or the Boston City Council, and certainly no referendums. The whole thing was cooked up on the quiet by high level politicians, their aides, and top GE brass. In the end, over $145 million in state and city tax breaks and direct aid was promised to GE — together with another $25 million in state money to fix up the area around the site of the company’s new Fort Point HQ, and up to $100 million in repairs to the Old Northern Ave. bridge. Up to $270 million in public money in total. Although the bridge project is now up in the air; so the final total — as with all final totals in public spending — remains to be seen. Still, a huge amount of money to spend on a vast multinational any way you slice it. Especially when GE is not yet being asked to pay rent for the 20 year lease on the public property its new headquarters is using.

As my own series of columns on the deal showed last year, GE has a decades-long track record of screwing government at all levels, communities it operates in, and its own workers six ways from Sunday. Which is why unearthing corporate crime after corporate crime by way of demonstrating why the people of Massachusetts have absolutely no reason to trust the company did not require much new reporting on my part. It was a relatively simple matter of looking at major investigative stories on GE by several news outlets — including the Globe itself. What I found was disturbing in the extreme. Yet the largest Boston news outlets were virtually silent about the very obvious downsides to championing the payoff of a corporate behemoth to relocate its HQ to our fair city. And now the most prominent of them is clearly getting worried about its violation of the public trust.

To review, General Electric has done a lot of bad stuff over the last forty years — much of it in Massachusetts. It slashed tens of thousands of good unionized jobs here. Destroying the economies of Bay State cities like Lynn, Pittsfield, and Fitchburg in the process. GE played highly illegal games with municipal bond investment funds nationwide — and got away with it. It wreaked havoc with the environment in many of the places it did business. Notably in Pittsfield and the Housatonic River valley south to Long Island Sound. Which it polluted with carcinogenic PCBs. A horrendous mess that it partially cleaned up after a protracted struggle with the EPA and local activists. Yet it continues to try to weasel out of finishing the job to save some small fraction of its annual profits. Like it did in a similar Hudson River cleanup. GE also played a major role in creating the toxic housing debt that led to the 2008 financial crash, and was then bailed out by the federal government with boatloads of practically free public money. In exchange for ruining the lives of thousands of poor mortgage holders. And it did all this while paying hardly any taxes at all relative to its huge size.

Ultimately, far too many area journalists dropped bags of balls with the GE Boston Deal story. If they had been doing their job — instead of engaging in a particularly crass form of unthinking civic boosterism that one would expect of low rent PR consultants for a down-on-the-heels rust belt city — Boston might not be in the position it’s now in. Stuck with a bad deal and light a bunch of money that the city and state desperately need during our ongoing fiscal crisis. Which was created by the very neoliberal playbook that still guides both government policy and kid glove news coverage of same.

But that’s what passes for thinking on economic development in the American press of today. My colleagues in major news media generally don’t push for regional planning controlled by democratically elected politicians and overseen by the public in real ways. They don’t support a grassroots process directly involving local communities that start by asking “what do working families need, and how might those needs be best served?” No, they just figure “let’s encourage the pols to throw public money at big corporations, and then they’ll come to Boston, and we’ll have a great economy.”

Well an economy that’s not great for working people is not a great economy. It’s a bad, unequal economy. And that’s the root of most of our major societal woes in this era.

Whatever happens going forward, I hope that next time top politicians cook up another backroom deal with corporate titans that the rest of the Boston news media will join my teammates and I at DigBoston in calling it what it is: corruption. Those who won’t should just go ahead and get jobs in the sleaziest PR operations they can find. Because they’re not fit to be journalists.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston.