General Electric

The Globe Still Needs to Apologize for Cheerleading the GE Boston Deal

"Oh What a Tangled Web We Weave ... ." Effects by Jason Pramas on a selection from a photo of GE's Boston headquarters by Chris Faraone. Copyright 2022 Chris Faraone and Jason Pramas. — *“Oh What a Tangled Web We Weave … .” Effects by Jason Pramas on a selection from a photo of GE’s Boston headquarters by Chris Faraone. Copyright 2022 Chris Faraone and Jason Pramas.*

As the one-time corporate behemoth slinks away from the chaos it created in the Bay State (yet again)

While my DigBoston and BINJ colleagues and I do occasionally skewer the Boston Globe, we don’t make a habit of it. Because, as I’ve written before, we recognize that the venerable newspaper is at the center of the regional news ecology in the northeastern United States. And we, like every other news outlet from Hartford to Bangor, rely on Globe reporting to decide what we should cover and how we should cover it. In the case of my crew, we’re looking for issues that the Globe missed … or issues that we think the Globe covered poorly.

By the same token, sometimes we don’t cover something because we think the Globe did a great job. Most recently, in my case, I was going to write on Rep. Mike Connolly’s (D-Cambridge) spot-on drive to get the legislature to put a $6,500 cap on money the state is shortly planning to give to rich people under Gov. Charlie Baker’s unfortunate Chapter 62F tax rebate scheme. But the Globe then published such a fine editorial in support of Connolly’s move—later sadly (and weakly) rebuffed by House Speaker Ron Mariano (D-Quincy)—that I thought “You know what? That piece is so good and will reach such a large audience that I don’t need to say another word on the subject for the moment.”

However, earlier this week, the Globe’s Jon Chesto wrote a disappointing coda to its coverage of the GE Boston deal between January 2016 and now. Disappointing to me at least. Because neither Chesto nor his bosses could find it in themselves to evince even the barest hint of contrition for the unusually egregious violations of journalist ethics that I believe the Globe committed by openly cheerleading for the backroom political deal concocted by Baker, former Boston Mayor Marty Walsh, Mass legislative leaders, and the Boston Planning & Development Agency (among others) to attract the once-vast multinational corporation to move its headquarters to Boston’s Seaport District … by promising to give GE up to $270 million in city and state funds in cash, land deals, customized public works, and tax breaks. Acting, in effect, not only as an arm of GE’s PR department, but also of the PR staffs of the outgoing governor and the former Boston mayor, former speaker of the House, former Senate president, and the BPDA.

When I wrapped up my 15th column on the by-then-failed deal in 2019, I explained why the Globe needed to apologize for the dereliction of its duty to defend the public interest in its coverage of same over the interests of the rich and powerful. To afflict the comfortable and comfort the afflicted, as the old but still serviceable saw goes.

Now, as GE announces that it’s pulling most of the mere 200 top-level staff that it ultimately based here out of the Hub—having never built its promised gleaming 12-story tower or its (much derided) helipad and certainly never having never brought its local workforce up to 800 people—I am writing this 16th column to simply note that, apparently, the best Globe staff and editors can do is to rewrite the history of the GE Boston deal to absolve themselves of all blame for their role in shamelessly propagandizing for it.

Ignoring the damage GE did to the people of Connecticut by abruptly moving its world headquarters out of that state to punish it for levying a temporary tax on major corporations to cover desperately needed spending on public goods like mass transit—and the tremendous harm GE had already done to tens of thousands of working families in several Massachusetts communities (notably Pittsfield, Fitchburg, and Lynn) by shutting down (or severely cutting the workforce of, in the case of GE’s Lynn Works) massive factories here over the last few decades. All while completely downplaying the devastating environmental costs (somewhat mitigated by EPA-brokered settlements) that GE stranded with those same communities (particularly in Western Massachusetts along the Housatonic River) as it left. Which earlier generations of Globe reporters and editors had done excellent work on, I hasten to add.

Obviously, I have no power to force the Boston Globe to apologize for what I adjudge to be its journalistic malfeasance—or even to embarrass it into defending itself from my critique. I am a mere gnat to the Globe’s elephant, after all.

But we happen to have a lot of Boston University journalism student interns working with us at DigBoston this and every semester. And Globe Editor Brian McGrory is taking over as BU’s journalism department chair soon. And the Globe’s GE Boston deal coverage happened under his watch … and was therefore led by him. And I think that it’s unseemly for him to be purporting to set a high bar for journalistic ethics as my interns’ top professor, yet remain unwilling to admit the failings of the publication he has worked at since 1989 and led since 2012. The same goes for other editors (particularly Shirley Leung) and staffers that participated in the long series of grave ethical violations in question. Whether they ever teach journalism students or not.

I must then encourage the “Globies” in question to think seriously about their journalistic legacies. And remember that whenever people look up “GE Boston deal” going forward, they’re always going to see the many columns I have written for the Boston Institute for Nonprofit Journalism and syndicated to DigBoston on the subject. Even if BINJ and Dig are long gone and they’re only reading them on archive.org. And those researchers and scholars—and future journalists—are going to know that the Boston Globe didn’t just cover that terrible deal. It was, in some significant sense, part of it.

Given that, I think an apology from the responsible parties is simply the right thing to do. Especially at a time when the profession of journalism is already under relentless political and economic assault by powerful corporate forces that are definitely looking to eliminate the fourth estate. Why help them hasten the demise of the independent press by rolling over and becoming just another bunch of PR flacks?

Apparent Horizon—an award-winning political column—is syndicated by the MassWire news service of the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s executive director, editor of the Somerville Wire, and executive editor and associate publisher of DigBoston.

MORE REASONS TO RESIGN FROM THE MIT MEDIA LAB

*MIT Media Lab image by ckelly, CC BY 2.0. Modified by Jason Pramas.*

The connection to Jeffrey Epstein is just one of many questionable relationships

Recently, two scholars announced their plans to cut ties with the MIT Media Lab over its longstanding relationship with Jeffrey Epstein—the New York financier who had been arrested on federal charges for the alleged sex trafficking of minors in Florida and New York and committed (a suspiciously convenient) suicide in custody on Aug 10. Ethan Zuckerman, director of the Center for Civic Media at MIT (which is “a collaboration between the MIT Media Lab and Comparative Media Studies at MIT,” according to its website) and an associate professor of the practice at the MIT Media Lab, and J. Nathan Matias, a Cornell University professor and visiting scholar at the lab, are certainly to be commended for having the courage of their convictions. Particularly Zuckerman, who is literally leaving his job over the Epstein affair.

The lab’s direct connection to such a highly placed, dangerous, previously convicted sex offender is certainly more than enough reason for staffers, affiliates, and grad students to consider resigning their posts. However, it must be said to those who stay on that there have always been plenty of other reasons to resign from the MIT Media Lab from the moment it opened its doors. Because “capitalism’s advanced R&D lab”—as a colleague of mine close to the current fray calls it—has never been picky about which donors it will accept funding from. And that presents a major dilemma for other people of good conscience who happen to be working there.

So, I decided it would be worth a quick spin through some of the misdeeds of a few of the most well-known Media Lab corporate donors. In hopes that other people connected to the highly problematic institution might also decide to announce an abrupt career change in the name of social justice. Better still, they could organize themselves into a movement to either reform where the lab gets its money—and on whose behalf it works—or simply break it up. And maybe spread its projects around to other, less compromised, institutions.

BP and ExxonMobil. Every energy company engaged in extracting oil, natural gas, and coal, processing it, and/or distributing it to be burned in internal combustion engines or power plants is hastening the extinction of the human race by inducing ever-worsening global warming. With knowledge aforethought. As evinced by the organized campaign of disinformation they have all led against climate science, according to the noted book and documentary Merchants of Doubt by Naomi Oreskes of Harvard University and Erik M. Conway of NASA’s Jet Propulsion Laboratory at the California Institute of Technology. There is no way to take this money and still have clean hands. Whether it’s a thousand dollars or a million. MIT Media Lab leadership knows this and does it anyway.

Ford Motor Company. A company as old and as large as Ford has inevitably done a lot of reprehensible things. Two of the worst: a) producing carbon-burning, greenhouse gas-emitting vehicles for over a century (almost 400 million since 1903) and b) working with energy companies like the ones that became ExxonMobil to form the Global Climate Coalition—a key international lobby group that spearheaded the fight by major corporations against climate science to prevent environmental regulation that would negatively affect their bottom line, according to Oreskes and Conway. It is the fifth-largest vehicle manufacturing company in the world.

Hyundai Motor Company. The third-largest vehicle manufacturing company in the world. And therefore another corporate scofflaw even without looking at its miserable record of union busting. Continuing to flood the planet with millions more carbon-spewing, global warming exacerbating machines every year. Oh, and the Korean conglomerate also got caught “overstating” its vehicles’ mileage a few years back, according to US News and World Report.

Honeywell SPS. While the Safety and Productivity Solutions “strategic business unit” of Honeywell International Inc. is the one giving money to the MIT Media Lab, its parent corporation is a major defense contractor. And a particularly dangerous strain of that breed of sociopathic capitalist entity. According to the Don’t Bank on the Bomb website produced by the interfaith Dutch antiwar group PAX, “Honeywell is involved in US nuclear weapon facilities as well as producing key components for the US Minuteman III ICBM and the Trident II (D5) system, currently in use by the US and UK.” Because what could possibly go wrong with continuing to produce more nukes?

Citigroup. One of the main American banks responsible for the 2008 global financial collapse thanks to heavy investment in derivatives based on subprime housing mortgages. Also, the recipient of one of the largest bailout packages from the federal government in US history. That was either as “little” as $45 billion in Troubled Asset Relief Program (TARP) money (which it paid back), or as much as $500 billion—when all government assistance it received is included (much of which it didn’t have to pay back)… according to a Wall Street Journal op-ed by James Freeman, co-author of the critical Citigroup history Borrowed Time. Most of the tens of thousands of working families whose lives were ruined when their homes were seized for mortgage nonpayment by the banks which set them up to fail did not get a bailout.

GE. A company I have written a baker’s dozen pieces on, between the start of the GE Boston Deal in 2016 and this year (when said deal fell apart). Once a major employer in Massachusetts, GE not only destroyed the economies of several cities around the state by precipitously shutting down major plants—in part to cut costs by eliminating thousands of good unionized jobs—but also polluted the entire Housatonic River valley from northwest Mass to Long Island Sound, as I covered in parts one and seven of my GE Boston Deal: The Missing Manual series. Yet is still trying to avoid having to finish cleaning that toxic mess up. Furthermore, GE was heavily involved in causing the 2008 global financial collapse through its former “shadow bank” division GE Capital and was the recipient of a huge government bailout via $90 billion in cheap credit it definitely did not deserve, as I outlined in parts two and three of my series.

McKinsey & Company. A virtually unaccountable private consulting firm with its fingers in many multinational corporate pies—and a special emphasis on working with authoritarian governments. The New York Times has spent years exposing some of its more sordid activities, including running the $12.3 billion offshore hedge fund MIO Partners, identifying the social media accounts of three prominent online critics of the Saudi government (one of whom was subsequently arrested), and helping Boeing find some needed titanium by getting a Ukrainian oligarch to bribe eight Indian officials. Plus, it reported—close to home and perhaps worst of all—that the “[Commonwealth] of Massachusetts released new documents from 2013 that detailed McKinsey’s recommendations on how Purdue Pharma could ‘turbocharge’ sales of its widely abused opioid OxyContin. The state said McKinsey advised Purdue to sharply increase sales visits to targeted doctors and to consider mail orders as a way to bypass pharmacies that had been tightening oversight of opioid prescriptions.” The thousands of opiate deaths in the Bay State alone since that time are on the criminal consultancy’s head—along with Purdue, and other corrupt pharmaceutical companies.

GlaxoSmithKline, F. Hoffmann-La Roche AG (Roche), Novartis, and Takeda. And speaking of pharmas, here are four that donate to the Media Lab. All of which make huge profits by converting largely publicly funded basic science research into privately owned drug formulas protected by patents and other exclusive rights granted to them by governments. Then repurposing older medications for different uses—for which they receive new patents. According to a Washington Post op-ed by Robin Feldman, the author of Drugs, Money, & Secret Handshakes, “…78 percent of the drugs associated with new patents were not new drugs coming on the market but existing ones. The cycle of innovation, reward, then competition is being distorted into a system of innovation, reward, then more reward.” Ultimately, big pharmas extend their monopolies over the most profitable drugs by using their dominant positions to keep cheaper generic versions produced by smaller pharmas from gaining a foothold for years after they’re finally allowed to enter the market. The amount of unnecessary misery created by such companies in countries like the US that lack a comprehensive national healthcare system able to keep drug prices low is, therefore, immense. On top of the more specific misery caused when Takeda’s diabetes drug Actos was found to cause bladder cancer, according to the New York Times. Or when Roche made serious bank by convincing government to stockpile the influenza drug Tamiflu and was later found to have been withholding vital clinical trial data showing it wasn’t very effective, according to the Guardian. Or when GlaxoSmithKline “agreed to plead guilty to criminal charges and pay $3 billion in fines for promoting its best-selling antidepressants for unapproved uses and failing to report safety data about a top diabetes drug,” according to the New York Times. Or the ongoing scandal resulting from the FDA accusing Novartis of manipulating the “data used to support approval of the drug Zolgensma,” according to Stat. Which is supposed to be a treatment for the rare baby-killing genetic disorder spinal muscular atrophy and is the most expensive drug in the world at $2.1 million for a one-dose treatment, according to NPR.

Deloitte. Just a bunch of harmless accountants, right? Wrong. According to Canada’s National Observer, Deloitte is the largest of the “Big Four” audit firms that have “emerged as central players in the creation and abuse of offshore tax havens.” They also “become champions of the privatization of government services.” Giving a hearty assist to the consolidation of wealth by ever smaller numbers of corporations and individuals. Thus diminishing the governments that were once able to tax the rich and powerful and use the money to provide the very public services that have gradually been privatized—and concentrating more of the remaining public funds in those same private hands.

That’s just a sample of the dozens of MIT Media Lab “member companies.” Not all of them are as bad as the ones above. But few are above reproach. Check them out yourself at media.mit.edu/posts/member-companies/. And consider what kind of university would allow one of its major initiatives to run for decades with such little regard for social responsibility.

Full disclosure: Jason Pramas has interacted with Ethan Zuckerman professionally from time to time.

Apparent Horizon—recipient of 2018 and 2019 Association of Alternative Newsmedia Political Column Awards—is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s executive director, and executive editor and associate publisher of DigBoston. Copyright 2019 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

NO MOONSHOT REQUIRED

It’s hardly a secret that I’m no fan of Boston Globe columnist Shirley Leung’s writing on matters political and economic. Which clearly reflects her belief that bringing big corporations to Boston and shovelling public money at them is the best way to improve the city’s fortunes. And she’s none too picky about what corporations she supports either. Despite recently criticizing Wayfair’s $200,000 sale to a government contractor doing business with baby concentration camps near the Mexican border, she has had no difficulty at all shamelessly flacking for companies like General Electric and Amazon. Both of which, as I’ve written on numerous occasions, have done far worse things to the people of the Bay State and the world than Wayfair has done to date.

THE FALL OF THE GE BOSTON DEAL, PART II

AG Healey should form independent commission to investigate the failed agreement Last week in the first installment of this two-part column, I ran through the many problems with […]

THE FALL OF THE GE BOSTON DEAL, PART I

The official narrative and the real story Readers might feel that this should be a time for me to take a victory lap. The GE Boston deal that […]

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.

GENERAL ELECTRIC FAIL

Conglomerate’s woes throw Boston HQ deal contradictions into bold relief

November 15, 2017

BY JASON PRAMAS @JASONPRAMAS

What a surprise. General Electric is tanking, and the scheme to bring the multinational’s headquarters to Boston is looking worse by the day. And whom shall the public blame if that once-secret deal cut by Gov. Charlie Baker and Mayor Marty Walsh in January 2016 goes south? Potentially tossing away millions in tax breaks and direct aid to a company that has already done massive damage to the Bay State over the past few decades? Readers of the dozen columns I’ve written criticizing the boondoggle will already know the answer to that question. But for those of you who have made the mistake of believing all the massive amounts of PR bullshit that the Boston Globe and other area press have been tossing around about the affair since that time, here’s a bit of a recap.

Where to begin? So, the governments of Boston and Massachusetts agreed to shovel tens of millions of dollars at GE in “exchange” for “800 jobs” in a new corporate headquarters campus in the Fort Point district of the Hub. Many of which would simply be transferred from the old headquarters, and most of which would be executive level jobs that will not help Boston’s struggling, underemployed working class.

Now there’s a problem. GE’s been losing money all year. According to the New York Times, its stock price had already dropped by 35 percent since January. Then, according to CNBC, the company’s share value dropped another 13 percent this week as of this writing after new CEO John Flannery announced a restructuring initiative—including the one thing investors hate most of all: dividend cuts. Only the second for GE since the Great Depression. So the knives are coming out around the beleaguered behemoth, and it remains to be seen whether some internal reorganization (doubtless costing legions of employees their jobs) and some belt-tightening by its execs will be enough to stop investors from moving to carve the conglomerate up like a Thanksgiving turkey. But let’s not assume the worst just yet.

Funny thing about that belt-tightening, though. According to the Boston Herald, cuts are now in store for GE’s still-small local workforce, and construction of the new Fort Point headquarters building was already pushed back two years from 2019 to 2021 in August. The plan is to make do with the two old Necco buildings already being refurbished on the site at first. The PILOT (payment in lieu of taxes) agreement signed by the Boston Planning and Development Agency (formerly the Boston Redevelopment Authority) and the city of Boston guarantees up to $25 million in tax breaks to GE if it provides the much-ballyhooed 800 full-time jobs. But by what date?

The discussion around GE moving its HQ to Boston has focused on the corporation creating those jobs by 2024. Herein, then, lies the rub about the PILOT deal: The agreement is framed around GE hiring “approximately 800 employees at the Headquarters Building and the Necco Buildings within eight years of the Occupancy Date.” But that occupancy date is explicitly defined as “the date upon which the Company initially occupies the Headquarters Building.” Which has now been pushed back from 2019 to 2021, according to the Boston Business Journal. So 2024 cannot be the year that GE will need to have 800 employees on its new campus. 2027 would have been the earliest it had to meet that target. And now that’s been pushed back to 2029, given the delay with the headquarters building.

Yet it turns out that the PILOT agreement doesn’t actually require 800 jobs to be created. Remember, it starts by stating GE will employ “approximately” 800 people on the Fort Point campus. But further down in the document, in a table explaining the specific tax break the city will actually give the company during each year of the deal, it allows for the creation of as few as 400 jobs in a chart with five tax break tiers between “Job Figure is between 400 and 499” and “Job Figure meets or exceeds 800.” Keeping in mind that the agreement also specifies a “stabilization” period of seven years between 2018 and 2024, during which GE gets $5.5 million in tax breaks no matter what and isn’t required to provide any jobs at all for the first six years. GE is then only required to provide between 400 and 800 jobs from 2024 until the agreement ends in 2037.

*Job figure table from the GE Boston PILOT agreement*

What’s super puzzling is that agreement first requires the company to start providing annual job figures “from and after” the aforementioned occupancy date. But the agreement already established that it only really has to start meeting any job targets as far out as eight years from the date it occupies its headquarters building. Making the job target requirement trigger as late as 2029, according to current plans. Despite the tax break table in the PILOT agreement using job targets to calculate tax breaks beginning in 2025 based on the 2024 job count.

The state, for its part, committed a total of about $120 million to the project. Late last year, GE spent $25.6 million to buy 2.5 acres on the Fort Point Channel that includes the land the existing buildings sit on and the land the new headquarters building will (perhaps) one day occupy from Procter & Gamble. MassDevelopment, part of the Commonwealth’s economic development apparatus, took out a $90 million loan from Citizens Bank—an interesting maneuver worth looking into—using $57.4 million to purchase the two old Necco buildings on the site from P&G, and the rest to refurbish the buildings. The remainder of the state’s “investment” is slated to go to fixing up the area around the site.

So, GE is getting basically free rent on the Necco buildings plus free upgrades on abutting public land courtesy of the state. And a big chunk of the taxes it would normally pay over the next 20 years is coming free from the city. Without any real requirement that it actually provide any jobs in Boston for many years, and then only (maybe) 400 jobs by 2029—assuming the headquarters building is built in 2021.

Which is the problem with all such erstwhile “economic development” deals in the Bay State. From their origin as a way to help encourage investment in areas of the state that were down on their luck precisely because GE and companies like it moved their manufacturing operations away from cities like Pittsfield, Lynn, and Fitchburg to places without the decent labor and environmental regulation that was in place by the 1970s, they have become yet another way for rich and powerful corporations to get richer and more powerful. Worst of all, such corporations hold all the cards in the deals. If they don’t get lavished with free public money, they can refuse to move their operations here or can leave if they’re already operating in the area. Once they get the cash they’re looking for, they can basically pull out at any time. Or as is the case with GE, they can “alter” the deal Darth Vader-style, leaving our local “Lando Calrissians” like Baker and Walsh to “pray” the deal is not altered “any further.”

The Boston Business Journal was correct to point out that GE will get $2.1 million in tax breaks on the Fort Point Complex by 2021—the year that the company now claims it’ll be completing its new 12-story headquarters building on the site. But what if it doesn’t build the new structure at all? It’s not clear. Because the PILOT agreement is pegged to job creation starting as far out as eight years after the headquarters building is built, and then allows for the company providing as few as 400 jobs between 2024 and 2037 rather than the 800 everyone’s been assuming. While not actually demanding any job creation until as late as 2029, making it unclear how the tax break will be calculated between 2025 and 2029 should GE drag its feet for the full eight years. The conditions for the company defaulting on the agreement are also pegged to job creation. Not to the construction of the headquarters building. Oh, and by the way, the PILOT deal only covers the headquarters building and the land the company purchased under and just around it (which the agreement calls the “Headquarters Project”). Not the Necco buildings, now owned by the state. Also, there’s no word about what happens if the company has less than 400 workers in Boston at any point from 2024 to 2037. Do these curious contradictions amount to loopholes for GE to bag the whole deal? It certainly looks that way.

The minimum GE will get in tax breaks from the city of Boston over 20 years is $5.5 million by 2024 plus whatever breaks it qualifies for between 2025 and 2037. However, the amount the company actually puts out in annual PILOT payments after 2024 is calculated by a complicated formula based on the taxes that would have been assessed without the PILOT agreement. And the assessed value of the relevant property could change from current projections. So it’s hard to know what the total value of the PILOT deal will ultimately be to GE, other than that it will be a bunch of money… however many jobs it actually creates.

But why exactly are Boston and Massachusetts giving a huge company that’s still profitable any money at all? And what happens if GE bails on the scheme by hook (simply running and fighting its PILOT default in court with its vast legal department) or by crook (not building the headquarters building at Fort Point and possibly getting away with delaying the job creation target trigger until the deal ends in 2037)? And what happens if worse comes to worst for GE, and the company actually does collapse?

These remain my central questions. And I continue to encourage all of you to ask those and related questions to every Boston and Massachusetts politician you can find. And ask the Globe while you’re at it. They’ve got a loooot of ’splaining to do about their cheap boosterism… which they’ve become awfully quiet about of late. Preferring, it seems, to focus on the next giant company that’s demanding public bribes to come to town, Amazon.

A shorter version of this column appears in this week’s DigBoston print edition.

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 1970s, to 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

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.