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BROKEN MEDIA, BROKEN POLITICS

Charlie Baker

 

If Mass journalists were doing their jobs, Baker would not be so popular

 

May 1, 2018

BY JASON PRAMAS @JASONPRAMAS

 

It’s always funny to hear that Charlie Baker is a very popular governor… The most popular governor in the country at the moment, according to polls. Because he doesn’t do anything very differently than his predecessor Deval Patrick did. Or than Mass House speaker Robert DeLeo does. Or than most any state Democratic leader when it comes down to core economic issues—with the exception of the leaders with little actual power.

 

Baker, Patrick, DeLeo, and all their ilk in both major parties essentially follow the same game plan. They work to lower taxes for those most able to afford them, cut desperately needed social programs to the bone, and give away as much money as possible to giant corporations.

 

Much of the rest of what they do is posturing for the various constituencies that make up their particular electorates. And that’s the stuff that gets the most media coverage. Which is not to say they’re necessarily insincere about such activity. But they’re elected to represent the wealthy interests that run the Commonwealth, and the work they do for that most important constituency is always their top priority.

 

So when Patrick and Baker, for example, shovel over $1.5 billion in free public money at the biotech industry or arrange millions in tax breaks and direct state aid for huge companies that don’t need them on an ongoing basis—with DeLeo’s blessing in both administrations—to the extent those acts get coverage, they’re presented as done deals that are “good for the economy.” Then it’s on to the next press spectacle of the day. Events where they can “show leadership” and the like. As when there’s a snowstorm. In Massachusetts, a northern state noted for its frequent snowstorms. And the current governor gets on TV and says “stay indoors during the snowstorm.” That is apparently showing leadership.

 

Which explains Baker’s high numbers, I think. Simple public relations. Accentuate the positive, eliminate the negative, and all that. With most of the major news outlets gamely playing along. And his numbers are higher than Patrick’s were because he’s a white guy in a super racist state that likes to think it’s super anti-racist.

 

That’s what results in people that don’t pay attention to politics—including the vast majority of white voters—going, “Oh, Baker’s such a nice man” when pollsters ask their opinion of him. More than they did with Patrick. No doubt Baker is a nice man in person or whatever. Lots of people who do bad things when they have power are personally “nice.” Like, I’m sure when some buddy of his from childhood needs money, he’ll give it to him. Or at least loan it to him. But when all the legions of people he doesn’t know personally need good jobs with benefits, need free higher education, need major improvement to infrastructure like the MBTA—because of entrenched structural inequality—that’s a different story.

 

A story whose narrative you can hear if you listen to Baker’s remarks to the 2018 Mass Republican Convention in Worcester last weekend.

 

Stripping away obligatory pleasantries and nods to major supporters, the speech was aimed at the same white middle-class suburbanites who remain the base of the state Republican Party. Baker addressed them directly at one point while enumerating the “successes” of his administration: “We offered early college programs, our Commonwealth Commitment program, which dramatically reduces the cost of a college education. And increases in state scholarships to make the price of college more affordable for moderate- and middle-income families.”

 

See, he thinks they’re so important he mentioned them twice in a row: “moderate- and middle-income families.” No word about low-income families, though. At all. Not even a nod. Sure, working families are discussed. But in Republican-speak, “working families” isn’t code for “working class” as it often is for Democrats. It means “those who work.” As opposed to “those who do not work.” Like all those “lazy shiftless” folks that used to be called working class in more honest times. And those totally nonindustrious [ha!] immigrants. And the “undeserving” poor in general. Everyone who supposedly lives off the bounty of “our”––the good “moderate- and middle-income” people’s, the “taxpayers’”—labor.

 

But no mention of his most important constituency, the one he actually works for, either. “Small business” is mentioned a number of times. But not major corporations and the rich people that own them.

 

Still, they’re there. Lurking behind all of Baker’s remarks. Especially when he said several things that are completely and obviously false to anyone who follows politics reasonably closely. Like taking credit for “dramatically” reducing the cost of a college education. When public higher education is an absolute disaster in Massachusetts. When both the working-class families he seemingly deplores and the middle class he purports to represent—immigrant and nonimmigrant alike—are forced to run up ruinous amounts of debt just to put kids through schools that were once so cheap as to nearly be free. While tuition and fees keep getting raised year after year. Under both Democratic and Republican administrations.

 

The rich and the corporations are there because public higher ed, like virtually every other beneficial government program, is being starved for operating funds. To fatten that 1 percent’s coffers. Because politicians like Baker make a virtue out of cutting taxes. Slashing budgets. Laying off public workers. Privatizing anything they can get away with. As Baker himself has certainly been doing at the much-beleaguered MBTA. Another public service he addressed in Worcester, saying: “We took on the special interests at the MBTA. Created a Fiscal Management and Control Board. And saved taxpayers hundreds of millions of dollars, and we’re rebuilding its core infrastructure.” While, in the real world, that same public transportation infrastructure continues to fall apart for lack of the needed direct infusion of state funds.

 

Is everything Baker does bad? No. Is he as dangerous as federal counterparts like President Donald Trump? Or the feral reactionary theocrat Scott Lively that fully 28 percent of Mass Republican delegates just chose to run against Baker in a primary this fall? No. Not yet at least.

 

But that’s not the point.

 

The point is that a polity where a Charlie Baker can be incredibly popular is a broken polity. And a news media that enables him is a broken news media. Baker does not represent even the interest of the white middle class that keeps voting him into office, let alone the working class as a whole. A media that was doing its job would make that patently clear. Every hour of every day. Yet it does the opposite. Because it too is controlled by the same rich and powerful interests that control politics and ensure pols like Baker keep getting elected. Whether those pols call themselves Republicans or Democrats.

 

So to fix politics, we have to fix the media. And I can’t address how that might be done in a single column. But my colleagues and I are trying our damndest to do it in practice at DigBoston and the Boston Institute for Nonprofit Journalism. And the fix starts with journalists who are independent and strive to tell the truth about problems in media and the political system. Every hour of every day. Beyond that, there’s much more to say. So, I’ll plan to talk about specific potential fixes in future columns and editorials.

 

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. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

YOUR MOVE, BOSTON

Boston Women's March 2017. Photo by Ryan Dorsey, CC-BY-SA 2.0 Generic.
Boston Women’s March 2017. Photo by Ryan Dorsey, CC-BY-SA 2.0 Generic.

 

Only a massive protest movement can stop government giveaways to megacorps

 

March, 2018

BY JASON PRAMAS @JASONPRAMAS

 

Boston politics—in both its state and local variants—seems to consist largely of backroom deals between government officials and major corporations punctuated by rituals of representative democracy that are increasingly put on just for show. Perhaps it has ever been thus. But that doesn’t mean that Bostonians have to like it.

 

One would be tempted to call this politics incipient fascism were it not all such a desultory affair—unsullied by any ideology other than a very primitive capitalist greed. And in that way, it is reminiscent of current federal politics. The fact that most of the damage is being done by people calling themselves “Democrats” rather than people calling themselves “Republicans” making almost no discernible difference.

 

Which is why it becomes tiresome to write about. One disgusting display of government servility to corporate power replaces another week by week, month by month. The storyline is always the same. Only the brand names change.

 

On the ground—physically close to the halls of actual power in the Financial District, Back Bay, and now the Seaport District, but a million miles away in terms of elite awareness—the situation is dire. People don’t have good jobs. Or affordable housing. Or adequate public schools. Or cheap, safe, frequent, and environmentally friendly public transportation. Or a proper healthcare system. Or pensions. Or sufficient leisure time. Or freedom from several kinds of debt peonage.

 

But city and state political leadership have no plans to fix these problems. Because they can’t do so without discomfiting the ascendant rich and powerful. So they squirrel around the edges. They juggle budget lines, and change program names, and reorganize departments, and send out obfuscatory press releases, and do whatever they can do to cover up the fact that they aren’t taxing giant companies and their owners nearly as much as they should be. And in failing to collect sufficient tax revenue, they lack the needed funds to fix the worst damage done by those companies.

 

Yet they never fail to find millions in ready cash for vast conglomerates like General Electric. And now Amazon. A multibillion dollar trust that did not pay a cent in US income taxes last year, according to the Institute on Taxation and Economic Policy—and is expecting a one-time $789 million break from thanks to Pres. Donald Trump’s kinder, more corporate-friendly tax plan.

 

So, sure, I could write another column this week inveighing against Mayor Marty Walsh’s new scheme to dump $5 million in local tax breaks on Amazon in exchange for bringing another 2,000 jobs to the city. Well, not to the actual city, but to job sites within 25 miles of the city, according to the Boston Globe. And not right away, but by 2025. Maybe. And dumping another $5 million if Amazon brings yet another 2,000 jobs to (Greater) Boston. Not the decent working class jobs that most Bostonians need, of course. Jobs that highly educated people from around the world will come to the area to fill. Exacerbating our housing, transportation, and environmental crises in the process.

 

And, yes, the proposed $5-10 million is not as much as Walsh arranged to throw at GE—in a deal swiftly running off the rails as that corporate behemoth crashes and burns thanks to the gentle ministrations of its own “activist” investors. But once Gov. Charlie Baker adds state money to the kitty, the new Amazon deal will start to look very similar to the earlier deal. Which he will almost certainly do. Given that he’s so excited for Boston to “win” the far larger “HQ2” boondoggle that he wants to pass a new law that will allow the Commonwealth to shovel truly epic wads of public lucre at the rapacious anti-worker multinational, according to State House News Service.

 

Yet with such deals becoming so frequent, it really strikes me that writing is never enough to change the politics that allows this kind of backroom deal making by itself—regardless of how boring or exciting it is for me to crank out. After all, providing information to the population at large only goes so far.

 

Political action is inevitably required. And not just by one journalist. Because stopping the public gravy train for corporations that are also among the biggest donors to state and local politicians’ war chests is going to take truly massive and sustained protest on the part of the people of Boston (and the rest of Massachusetts).

 

How massive? Well, remember last year’s Women’s March of over 175,000? Or last year’s 40,000-strong march against a few ultra-right weasels? That’s the scale of the street actions that would be required on a regular basis—in tandem with concerted and well-coordinated lobbying efforts—to not only stop particular giveaways to corporations like GE and Amazon, but to outlaw them. And, for good measure, start criminal proceedings against politicians and corporate leaders that collude to loot the public till.

 

Who will lead such efforts? Hard to say. But at the end of the day, I think it will be new entrants that will step into the political vacuum I’ve outlined, and directly challenge state and local government deals with major corporations. People like most of my regular audience. Working people, many without college degrees, that will finally decide that enough is enough. I think that the existing oppositional forces—ranging from the left wing of the Democratic Party through formations like Our Revolution to grassroots activist coalitions like Poor People’s Campaign to rising socialist organizations like Democratic Socialists of America to some of the more enlightened elements of organized labor—will play a role in the necessary popular movement that will emerge. But I suspect that the main energy will not come from those forces, but from new ones. As has been the case with the Occupy and Black Lives Matter movements in recent years. The trick will be sustaining early momentum long enough to bring some big corporations down to earth. And then moving on to tackling the truly terrifying federal corruption.

 

Until that happens, it’s going to be one sad government giveaway to huge companies after another in Boston. And I’ll do my best to keep you all up to speed on at least the worst of them. But I look forward to the day that I can help chronicle the victory of a powerful movement for social justice. Rather than merely track democracy’s looming demise.

 

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. Copyright 2018 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: CORPORATE TAX FABLES AND COMMUNITARIAN KIDDIE TABLES

CORPORATE TAX FABLES AND COMMUNITARIAN KIDDIE TABLES

 

December 12, 2017

BY JASON PRAMAS @JASONPRAMAS

 

Big local corps quiet about huge profits to come from Repub tax scheme… except GE

An interesting WBUR article, “Largest Mass. Companies Are Mostly Silent On GOP Tax Plans,” asked the top 12 corporations in the Commonwealth to comment on the recently passed Republican scheme to transfer vast amounts of money from the working and middle classes to the rich and the corporations they control—euphemistically called “tax reform” in most of the major news media. Unsurprisingly, Bay State business leaders didn’t want to take time away from rubbing their hands together and cackling with glee about all the free money they’re going to get—choosing instead to remain mum for the moment.

 

But WBUR did get a statement out of General Electric after the Senate vote on the tax plan:

 

GE commends Congress and the White House for their commitment to comprehensive tax reform. GE supports the Senate tax reform plan because it would upgrade the U.S. to a territorial tax system, bring rates in line with other countries, and allow U.S. businesses and workers to compete fairly around the world, so it’s the quality of our products that determine whether we win global deals, and not tax differences.

 

No surprise GE would say that, since it will benefit tremendously from the drop in federal corporate tax from 35 percent to only 20 percent. But it will also get to repatriate as much of the lucre it’s been offshoring as it would like at a one-time tax rate of merely 12 percent. And now that the feds are “upgrading” to a “territorial tax system,” the company will make even more money. Why? Because a territorial tax system means that all the profits multinationals sock away in offshore tax havens will be taxed at a rate of zero percent. You read that correctly. Nada. No taxes at all on foreign profits.

 

Currently, companies like GE stash profits in other countries because, although they have been technically taxed on all profits—foreign and domestic—at the base 35 percent rate (basically a total joke since there are so many corporate tax loopholes that big companies like GE actually end up with a negative tax rate some years, but let’s play along for the purpose of this explanation), they are only required to pay those taxes when they “repatriate” the money back to the US. Which has often been never thanks to a complicated system called “transfer pricing” where corporations book profits in low tax countries, and take deductions in the US and other higher tax countries. And then borrow cheap money on the strength of their foreign bank accounts to make more profits.

 

The result will be even more offshoring of both money and jobs by megacorps. Because why would a company like GE not move more of both away from the US if foreign profits are  tax free—without nearly as much of the tricky accounting that’s currently needed to play the transfer pricing game? Just really bad news for Mass workers. And for boosters of the GE Boston deal. And anyone who thinks big companies like Amazon are going to have much incentive to add lots of jobs anywhere in the US going forward.

 

BPDA “PLAN: Glover’s Corner” protested in Dorchester

As the neoliberal capture of the government and the public sector continues apace, earnest technocrats at the Boston Planning and Development Agency (BPDA, formerly known as the BRA) still find it necessary to play the communitarian “public meeting” game when trying to sell bad deals that advance corporate interests to the working families who are all too often the targets of such deals.

 

Communitarianism being the decades-old fad where institutions representing the rich and powerful work hard to make sure that “every constituency has a seat at the table” when they want to do something that will harm those constituencies. But, of course, the power relations remain unchanged. The rich and powerful remain rich and powerful. Everyone else does not. And “the table” isn’t the real table—where bankers, CEOs, and top government leaders meet to make policy decisions happen. Usually behind closed doors. It’s basically a kiddie table where regular people can pretend they have some impact on a process that’s over before it begins.

 

Which is why it’s nice to see that housing activists with the Dorchester Not For Sale coalition decided to crash a recent BPDA transit-oriented public meeting on its “PLAN: Glover’s Corner”—which is slated, among other things, to add hundreds of units of housing that will be mostly unaffordable to current Dot residents.

 

According to the Bay State Banner and the Dorchester Reporter, the Dorchester activists are taking a page from JP and Roxbury housing activists with the Keep It 100% for Egleston coalition who protested the larger BPDA PLAN: JP/Rox—which might ultimately involve thousands of units of new housing—until the city relented and mandated that 36 percent of the new units (and 40 percent overall, including units currently permitted for construction) must be affordable.

 

The definition of “affordable” for the JP/Rox plan area is pegged to percentages of the average median income of the Boston region set by the US Department of Housing and Urban Development (HUD). So, for example, according to an August Spare Change News article, some “affordable” units being rented and sold as part of the 3200 Washington complex are being offered to households making 70 percent of the region’s average median income, and some to households making 100 percent.

 

But JP and Roxbury advocates have continued to protest PLAN: JP/Rox even after it was made official because its definition of “affordable” remains too high.

 

Spare Change continues, “For the Boston metropolitan region, the average median income is just over $100,000, and according to the U.S. Census Bureau, the average household income for all of Jamaica Plain is $76,968. However, households within the plan’s range have an average income of just over $50,000.”

 

According to a March Bay State Banner article, activists three goals for the plan are “to deepen the affordability level on designated affordable housing units so that they are attainable by households making less than $35,000 per year; increase goals for the portion of new housing that’s designated as affordable from 36 percent to 55 percent; and require the conversion of 250 market-rate units into affordable units..”

 

So while their activism raised the amount of “affordable” housing the BPDA planned to offer in the deal from 30 percent to 36 percent, it’s not going to help many people currently living in or near the affected neighborhoods to stay in the area unless the definition of affordable is changed to reflect economic reality. Given that fact, Mayor Marty Walsh’s much-vaunted progress on getting more affordable housing built on his watch is based largely on smoke and mirrors because much of it remains unaffordable to the people who need it most.

 

The Dorchester activists, meanwhile, are demanding that the BPDA accept a six-month moratorium on PLAN: Glover’s Corner, use the extra time to provide more data to the community on the plan, and do things like provide childcare at public meetings to allow more locals to attend.

 

Thus far, the BPDA is blowing off such demands and trying to plow forward without significant changes to its plan. Boston City Councilor Frank Baker, who attended the Glover’s Corner meeting, agreed with the BPDA in a recent Spare Change article, saying “As far as I’m concerned, it’s not a valid request.”

 

Seems the fight for housing justice is far from over in Dorchester.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

TOWNIE: UMB DRUBBING, PAWSOX GRUBBING

UMB DRUBBING, PAWSOX GRUBBING

 

University cuts and a (possible) corporate scam just in time for the holidays

 

November 27, 2017

BY JASON PRAMAS @JASONPRAMAS

 

UMass Boston admin lays off more staff, unions push back

The neoliberal war on public higher education continues unabated in Massachusetts as the UMass Boston administration announced the layoff of 36 personnel last week, and a reduction in hours for seven more. According to the Boston Globe, all of them are “staff who clean the school, help run academic programs, work in the student health office, or in other ways support the daily operations of the university. Some have worked there more than 30 years.” UMB had 2,095 employees in 2016, but has cut 130 jobs so far this year. The university serves over 16,000 students.

 

As of this writing, campus unions are planning protests. Hopefully, such actions will ultimately build a political movement capable of operationalizing the prescriptions of the fine report a coalition of UMB “students, staff unions, and faculty” released in September. Entitled “Crumbling Public Foundations: Privatization and UMass Boston’s Financial Crisis,” it lays the responsibility for the budget crisis currently engulfing the university at the feet of the UMB administration, the UMass Board of Trustees, and the state legislature.

 

As well it should. The legislature has been slashing the state higher ed budget since the 1980s. The board keeps raising the tuition and fees paid by students and families to cover the resulting gap. And the UMB administration continues increasing the number of high-level administrators with questionable job descriptions and fat paychecks who somehow rarely face layoffs—despite costing the school far more per capita than each of the low-level employees who keep getting axed of late. All while expanding the campus in ways that don’t always benefit the urban students that institution was built to serve… running up unsustainable debt loads in the process.

 

The report calls for five major reforms that its authors believe would set the campus to rights:

 

  1. UMass Boston should not be required to show a positive net income in its budget. Instead, it should be allowed to make debt payments using the reserves it’s been forced to build up for the last few years—and the Board of Trustees should “release Central Office reserves” to help with those payments. Rather than compelling students and their families to shoulder such costs through ever-increasing tuition and fees.
  2. The UMB administration should engage in an open and transparent planning process with faculty, staff, and students that will “ensure that the campus can continue to provide an affordable and diverse education along with appropriate support services to its students,” review interest and principal payments, and review the rapid increase in high-level administrator expenses.
  3. The UMass Board of Trustees should endorse the Fair Share Amendment that will levy an additional 4 percent income tax on millionaires and spend the money on public higher education, pre-K-12 education, and transportation if passed by binding statewide referendum next year.
  4. The Mass Legislature should cover the cost of rebuilding crumbling campus infrastructure.
  5. The Mass Legislature should annually increase appropriations for public higher education until we are at least on par with the national average based on our state’s wealth.  The Commonwealth is presently at the bottom of the pack for state appropriations for public higher ed.

 

The white paper concludes with a visionary sentiment that’s worth reprinting in full: “In considering these recommendations, we ask that we all—members of the Massachusetts legislature, the UMass Board of Trustees, UMass Boston’s administration, and the larger community of Boston—remember the purpose with which we are tasked. Chancellor John W. Ryan, at UMass Boston’s 1966 Founding Day Convocation, reminded those gathered that ‘we have an obligation to see that the opportunities we offer… are indeed equal to the best that private schools have to offer.’ This is the expectation that the citizens of our Commonwealth have for themselves and their family members when they come to UMass Boston. This is the responsibility that UMB staff, faculty, and administrators take on each day on behalf of our students. This should be what guides the decision of the Board of Trustees and the Mass legislature as we work to address the crisis at UMB.”

 

PawSox Worcester visit: boondoggle in the making?

Meanwhile, in faraway central Mass, my Worcester Magazine colleague Bill Shaner is tracking what could be another big giveaway of local and state money. Seems that the Pawtucket Red Sox—the BoSox Triple A affiliate team—have been courting Worcester for a few months and might be looking to move there in exchange for lashings of public lucre. Shaner reports that multiple sources said that Jay Ash, secretary of Gov. Baker’s Executive Office of Housing and Economic Development, attended a meeting last week between Worcester officials and PawSox bigs. Though “City and PawSox officials both declined to comment on the meeting, or whether or not it took place.” While “Ash’s staff confirmed he was in Worcester Monday but couldn’t say what for.” All I can say for now is that, like some capitalist Santa Claus, whenever Ash appears corporate leaders can virtually always expect a yuuuuge present from the Bay State and any municipal government in range in the near future. So this nascent Woo-town deal is definitely worth watching.

 

Townie (a worm’s eye view of the Mass power structure) is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

AMAZON OCTAGON

Mass pols stand ready to fight each other for the right to bribe a multinational

October 10, 2017

BY JASON PRAMAS @JASONPRAMAS

 

At least 17 Massachusetts cities and towns are now preparing to do battle with each other—and hundreds more municipalities nationwide—for the dubious “honor” of “winning” the right to throw enough public money and tax breaks at Amazon to become the site of its new Headquarters 2 (HQ2). Despite the fact that such a “victory” will result in a worse regional housing crisis, provide mainly low-paying unstable jobs with subcontractors to working class natives without college degrees while tossing thousands of good jobs to software engineers from out of state, and give the vast corporation far too much power in state politics.

To prevent those unfortunate outcomes, here’s a non-exhaustive list of local, state, and federal public officials that should be contacted by constituents and reminded of their responsibilities to defend the public interest. Like, immediately. The deadline to submit HQ2 bids to Amazon is Oct 19. Careful readers will note that many of these bids are being pushed hardest by private developers and by “economic development” nonprofits and government offices that are basically run on behalf of private developers. Fancy that.

Local Government

BOSTON

Mayor Marty Walsh is all over this one. Fresh off of colluding with Gov. Charlie Baker to cut a secret deal to lavish tens of millions on General Electric to bring its once-and-future headquarters to the Hub, he’s back to his old tricks with Amazon. Four possible HQ2 sites are being considered, according to the Boston Globe: putative front-runner Suffolk Downs (partially in Revere), Widett Circle in South Boston, Beacon Yards in Allston, and an area adjacent to South Station.

REVERE

At a Sept 29 meeting, the Revere City Council Economic Development Sub-Committee reacted positively to the Suffolk Downs proposal presented by developer Thomas O’Brien, managing director of the Boston-based Hym Investment Group that owns the property. According to the Boston Herald, committee chair and council vice president Councilor Patrick M. Keefe Jr. then called Amazon the “1A plan” for the land.

SOMERVILLE

CommonWealth reports that Mayor Joe Curtatone is working on a proposal that would include buildings along the Orange Line from Assembly Row in Somerville to North Station in Boston. Which is, according to a DigBoston investigative series, perfectly in keeping with his track record of making a big stink when developers come to town, then ultimately giving them exactly what they want.

ABINGTON, ROCKLAND, and WEYMOUTH

Kyle Corkum, CEO and managing partner of LStar Communities, the company developing Union Point—the former US Naval Air Station—is pushing a bid for the property. According to Wicked Local, Weymouth Mayor Robert Hedlund is supportive of the bid. Rockland Selectmen Chairman Ed Kimball said, “Rockland will extend open arms to them and Abington will receive indirect benefits as well.”

HAVERHILL, LAWRENCE, METHUEN, AND NORTH ANDOVER

Haverhill Mayor James Fiorentini, Lawrence Mayor Daniel Rivera, Methuen Mayor Stephen Zanni, and North Andover Town Manager Andrew Maylor are all preparing a joint proposal featuring the former North Andover Lucent site—which I addressed in detail in my Sept 26 column—likely in tandem with other nearby sites.

BILLERICA, LOWELL, AND TEWKSBURY

According to the Lowell Sun, Lowell Mayor Edward Kennedy has said “we should at least take serious look” at the possibility of bringing Amazon to the area. Also, “City Manager Kevin Murphy said he has already directed his staff to begin working with the Middlesex 3 Coalition, an organization of nearby communities, to explore the possibilities.” Wicked Local reports that Billerica selectmen unanimously support the effort. Billerica Community Development Director Rob Anderson also supports the bid. One possible site is Riverview Technology Park at 495 Woburn St in Tewksbury.

NEW BEDFORD

The entire city council sent a letter to Mayor Jon Mitchell enjoining him to support an Amazon bid, according to the New Bedford Standard-Times, and he’s been in touch with Mass Secretary of Housing and Economic Development Jay Ash about pursuing a bid. The city has a 100 acres of a municipal golf course that has been slated for business development.

FALL RIVER

According to the Herald News, Fall River Office of Economic Development (FROED) Executive Vice President Ken Fiola—a key figure behind bringing a huge Amazon warehouse to the city—is pushing hard for the Amazon HQ2 contract but apparently doesn’t get along with Mayor Jasiel Correia II. WJAR-TV reports that his challenger in the upcoming election, Councilor Linda Pereira, is attacking Correia for resigning from the FROED board. So it’s not clear if Fall River will manage to field a proposal.

WORCESTER

The city council is unanimously in support of an Amazon deal but was not initially in agreement about whether HQ2 should be sited in Worcester or Boston. Councilor-at-Large Konnie Lukes has been the most vocal supporter of a Worcester site, pushed for council discussion about the deal, and requested that City Manager Ed Augustus Jr. prepare the application. According to MassLive.com, Augustus and some of the council were initially leaning toward supporting a Boston bid, but the city is now planning an independent bid for the contract. According to Worcester Magazine, “Councilor At-Large Kate Toomey said the south side of Worcester, by the intersection of routes 20 and 146, would be an ideal location” for HQ2.

WESTERN MASS

The Republican reports that Springfield Mayor Domenic Sarno and the entire city council are supporting a bidwith other Connecticut River valley communities (the so-called “Knowledge Corridor”) in Massachusetts and Connecticut. Enfield, Connecticut, is a possible site. The main Bay State booster of the plan is Rick Sullivan, president and CEO of the Economic Development Council of Western Massachusetts.

State Government

GOV. CHARLIE BAKER

The governor said that the state won’t back a specific site and has urged local governments to “go for it.” Strongly in support of spending public money to bring the Amazon HQ2 to Massachusetts. According to the Boston Herald, Baker has recently stated that the Commonwealth’s request to Suffolk Superior Court to order Amazon to provide records for any third-party vendor who “stores or has stored” products in Massachusetts since 2012 was “routine” and shouldn’t affect an HQ2 deal. The order could result in a flood of similar legal actions around the US to collect back state sales taxes—which will probably tick off the tax-shy multinational.

SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENT JAY ASH (D)

An important public servant, though not an elected one. Totally in support of an Amazon HQ2 deal for Massachusetts. In his role as chairman of the quasi-public agency MassDevelopment, he has already overseen a vote “to increase its contract with consulting firm VHB Inc. by up to $200,000 for a technical analysis” in support of the state’s Amazon bids. His bio brags that he “has played a leadership role in the recruitment and expansion of major employers, including Amazon, General Electric, IBM Watson Health, Kronos, and Siemens.”

SPEAKER ROBERT DELEO (D-WINTHROP)

Flacking for the Suffolk Downs site. Completely on board with dumping public money on Amazon and has “said he’s open to legislation that would include financial incentives to draw Amazon to the state regardless of the location,” according to the Boston Globe.

SEN. JOSEPH BONCORE (D-WINTHROP) AND REP. ADRIAN MADARO (D-EAST BOSTON)

Support the Suffolk Downs bid, according to the East Boston Times-Free Press.

SEN. CINDY FRIEDMAN (D-ARLINGTON) AND REP. MARC LOMBARDO (R-BILLERICA)

Support the Billerica, Lowell, Tewksbury bid, according to Wicked Local.

Federal Government

US REP. STEPHEN LYNCH (D-SOUTH BOSTON)

Supports the Weymouth proposal, according to the Boston Herald.

And a Few Cool Kids

REP. MIKE CONNOLLY (D-CAMBRIDGE), SEN. PAT JEHLEN (D-SOMERVILLE), REP. MARJORIE DECKER (D-CAMBRIDGE), AND SEN. JAMIE ELDRIDGE (D-ACTON)

Among the only politicians in the state to speak against spending public funds to “win” the Amazon HQ2 “contest.”

Rep. Connolly of Cambridge put his opinion succinctly on the matter in a Facebook chat to me Monday: “I was asked about it by some Cambridge residents last week and here’s what I told them: ‘I think it’s reasonable for cities and the state to want to be in the discussion, but at the end of the day, when/if I have to vote on something or support a proposal, I am not going to support a neoliberal approach to economic development, so if a deal is on the table I would be looking to scrutinize it in terms of whether it helps the folks who we represent in our communities and in the neighborhoods I represent right now.’”

Massachusetts needs more pols like these. Fast.

UPDATE 10/12/17: LYNN

A reader just pointed me to an article indicating that there is some interest in bringing Amazon to the “City of Sin.” According to The Daily Item, “Mayor Judith Flanagan Kennedy said the city is in no position to compete with Boston, Revere, Lawrence and Worcester to bring the world’s largest e-commerce company’s second headquarters to Massachusetts.” However, City Councilor-at Large and Rep. Daniel Cahill (D-Lynn), Senator and mayoral candidate Thomas M. McGee (D-Lynn), and Charles Patsios—the Swampscott developer who plans to transform the 68-acre former General Electric Co. Gear Works property into a $500 million neighborhood—are all supportive of a Lynn bid.

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. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

AN AMAZON NORTH ANDOVER DEAL?

Sketch of the Merrimack Valley Works plant at North Andover while under construction in 1955

Merrimack Valley pols courting the tech behemoth have forgotten recent history

Sept 26, 2017

BY JASON PRAMAS @JASONPRAMAS

A couple of weeks ago, I criticized the possibility of an Amazon Boston deal—on the grounds that most of the jobs it would provide would be for software engineers, not our struggling local working class. And that allowing a single company to build a 50,000-employee operation here overnight would give it way too much political economic power in our region. However, it’s not just Boston politicians who are hot to dump vast amounts of public funds on the huge multinational. Several other Massachusetts cities and towns are following suit.

Perhaps the strongest proposal of that group of entrants is coming from four municipalities in the Merrimack Valley region of the state: Haverhill, Lawrence, Methuen, and North Andover. They are offering to broker a deal with the owners of the underutilized 1.8 million-square-foot industrial facility called Osgood Landing in North Andover. This could conceivably fit Amazon’s bill, although the site is not located in the midst of a major city. Which the company has made clear is a priority. Also at issue is that Osgood Landing’s owners have been working to build a giant marijuana farm on the site instead. But the siren call of ready corporate cash will likely be enough to change their minds given that they’ve already signaled their support for the new venture.

Lost in most of the media chatter about the drive to “win” the Amazon deal is the fact that Osgood Landing was once a Lucent plant—and the context of its shutdown is completely absent. Lucent was the successor corporation to Western Electric. Which was better known as the old AT&T’s manufacturing division. And the North Andover plant was once Western Electric’s Merrimack Valley Works. Which built the transmission equipment that kept the nation’s phone system going. The company set up shop in Haverhill and Lawrence during World War II—just as the region’s famed textile and shoe industries began to decline. In 1956, it opened the North Andover plant and consolidated its regional operations there, becoming the new dominant industry in the area.

Video: “AT&T Archives: In the Merrimack Valley” [1959] (hat tip to Ryan W. Owen’s website for the find)

The jobs at the Merrimack Valley Works were mostly unionized, and they raised thousands of local families into the ranks of the middle class. But the chaos following the federally ordered breakup of AT&T’s near-monopoly of the US telephone system in 1984 saw the plant’s workforce fall from over 12,000 at the height of the Western Electric era in the 1970sto 7,000 in 1991, to 5,500 under Lucent in 2001 (well into a quick collapse five years after taking over the Western Electric business)… to zero in 2008, after the French telecom multinational Alcatel bought Lucent in 2006 and ordered the facility’s shutdown. The plant itself had already been sold to current owner Ozzy Properties in 2003. Alcatel-Lucent ended up being absorbed by Nokia in 2016.

Ironically, this sad outcome was predicted by local policy experts. In 1991, according to the “History Corner” of the Lucent Retirees’ website, “the Merrimack Valley Planning Commission investigated what the potential loss of … the Merrimack Valley Works might cost the region. The study found that a worst case decline that eliminated the plant’s then 7,000 jobs would cost 15 Valley communities $880 million. Lost supply orders for smaller companies in the area would eliminate another 7,700 secondary jobs.”

That all came to pass by 2008. Compounding the damage already done by the loss of the other 5,000-plus jobs at the plant between the 1970s and the early 1990s. Lucent’s unions slowed but ultimately could not stop the destruction of thousands more good jobs in the Merrimack Valley.

Which highlights the problem of spending public money to attract giant corporations like Amazon. Big companies can change their plans at the drop of a dime. And, without the kind of government regulation and unionization that major companies like AT&T had to operate under between WWII and the 1970s, the promised 50,000 jobs can become no jobs in the blink of an eye. Because who’s to stop an anti-regulation, anti-union company like Amazon from shutting down an operation as fast as it sets it up in this era? No one. No one at all. And, naturally, regions that fall for this “jobs creation” shell game have no plan B.

One would think that political leaders in Haverhill, Lawrence, Methuen, and North Andover, informed by their own regional planners, would remember such history and focus on more sustainable economic development options. After all, the 2013 Merrimack Valley Comprehensive Economic Development Strategy produced by the Merrimack Valley Planning Commission stated, “The region’s best prospects for future economic growth are its local entrepreneurs.” Local entrepreneurs like the Osgood Landing owners, if they choose to start their marijuana farm rather than grab for the brass ring Amazon could offer them. A sustainable “growth” industry if ever there was one that could provide an estimated 2,500 good jobs to the region—two-thirds of which would not require college degrees. But it seems like local residents, perhaps with former Lucent employees in the lead, will now have to remind their elected officials. If not in lobby days and protests prior to an Amazon deal, then definitely at the ballot box come next election should such a disastrous initiative ever actually come to pass.

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. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

STOP THE AMAZON BOSTON DEAL

Stop the Amazon Boston Deal

 

Locals have until Oct 19 to say ‘No Public Bribes to Corporate Scofflaws’

Sept. 12, 2017

BY JASON PRAMAS @JASONPRAMAS

Fresh off of throwing tens of millions of dollars at General Electric, Boston Mayor Marty Walsh and Massachusetts Gov. Charlie Baker are now planning to enter the international horse race to convince Amazon to let the city and the commonwealth shovel vast amounts of public money at it in exchange for building a new second headquarters (“HQ2” for short) here.

But this HQ2 won’t be just any corporate headquarters. No no no. None of this GE business — with maybe kinda sorta up to a piddling 800 jobs at a new Boston HQ at some point. Amazon plans to put 50,000 workers in its new digs. Fast.

Thing is, the bulk of those jobs are apparently slated for software developers. Which, true, our colleges produce in some numbers. But most of the students who train for high-tech jobs are from “outta town.” So the new jobs are not going to benefit our shell-shocked Boston-area working class. If the Seattle experience is any guide, the gigs they’re going to get from the deal will be the same unstable jobs as subcontractors — ranging from cafeteria workers to security guards — that they’re already struggling to survive on now. And those jobs do not “raise” any “boats” in anyone’s fantasy scheme of how capitalist economics works.

For both the city and the state, there’s another big red flag: Amazon proposes to spend $5 billion building a campus of around 8 million square feet. Leaving aside the lack of the necessary 100-acre plot in or near downtown Boston, that kind of build-out is going to place a huge burden on both our metro housing and transportation infrastructures. Yet Amazon is coming on to cities like Boston with hand outstretched. Looking for the tax breaks and direct aid (read: bribes) that all big companies expect when they move to a new location these days. And after starving even more social programs to pay for this latest boondoggle, what are working families going to get back from the huge multinational?

Probably not much. According to the New York Times, Amazon only paid an average local, state, federal, and foreign tax rate of 13 percent between 2007 and 2015 — far less than the official federal corporate tax rate of 35 percent alone, and less than even the 15 percent corporate tax rate that the Trump administration is trying to pass. Given that Boston real estate developers have been allowed to build primarily “luxury” condo complexes in the last many years, vacant units will be quickly snatched up by Amazon employees, and then the remaining downmarket properties will be upgraded by landlords looking to cash in. The result will be even more Bostonians without decent housing, legions more homeless people, and little new tax revenue to pay for the mounting social crisis thus created — or for making the desperately needed repairs and upgrades to our crumbling and utterly underfunded public transportation infrastructure.

Back on the labor tip, Amazon has gone out of its way to crush even the most insignificant union drives at its facilities worldwide since its inception. As when a small group of maintenance and repair technicians at its Middletown, Delaware, facility voted 21–6 against joining the International Association of Machinists and Aerospace Workers after an intense management campaign against the workers. Meanwhile, in Germany, where better labor policies and worker militance have forced Amazon to accept some unionization, management was recently shown to be “using peer pressure” to convince workers to not use their government-guaranteed sick days. No surprise, for a company which has made some of its warehouse workers walk 15 miles a day on a typical shift.

So is this the kind of company we should let state and local government bigs lavish public money on?

Hell no. And there’s one big reason, aside from the above, why we shouldn’t. Allowing a company as large as Amazon to suddenly parachute a huge operation into our midst means it will immediately command an inordinate amount of political and economic power in Boston and Massachusetts. Particularly, the ability to threaten a capital strike in the form of leaving the area if any future demands for public lucre aren’t met.

Once Amazon arrives, it is going to distort the metro political economy so severely that we’ll be stuck with it. The ultimate white elephant.

Which is why any potential Amazon Boston deal must be stopped — with even more finality than the Olympics deal was torpedoed. Fortunately, unlike the GE Boston Deal — that got sprung on Boston and Massachusetts residents after months of secret negotiations — there’s still time to organize a very strong “NO” campaign. The deadline for Boston to get a proposal to Amazon is Oct 19.

Readers have a bit over a month to force Walsh, Baker, and other local pols to stand down on this one. I recommend hitting the ground running.

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. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.