by Nisa Islam Muhammad
Staff Writer
WASHINGTON
(Finalcall.com)�National consumer groups
say it�s time for President Bush and Congress to stop the corporate
milking of America by wartime opportunists.
From industry bailouts to sweetheart deals and wildly
skewed tax breaks, big business is taking advantage of calls to
patriotism, critics complain.
This new round of "corporate welfare" has an alliance of
citizens groups organizing protests through cards, letters and emails
and the power of their vote.
"Under the guise of �national security� our federal
treasury is being raided and our democratic rights are being taken away
while Congress feeds sympathetic campaign contributors at taxpayer
expense, sends working people to fight and leaves the unemployed, the
disenfranchised and American families to suffer," said Ralph Nader,
consumer advocate and founder of Citizen Works.
The Citizen Coalition, a group of anti-corporate
organizations, charge the Bush administration�s activity fits a Wall
Street Journal editorial page blueprint for taking advantage of the
post Sept. 11 environment.
The Journal said, "Now is the time to push for
next generation weaponry, big defense budgets, tax cuts, judicial
nominees, drilling in Alaska and more."
From the "Economic Stimulus" Plan that finances
corporate treasuries to pharmaceutical price gouging to bailouts for
billionaire industry, the rich are getting richer and the poor are
�well, still the poor, critics complain.
Pharmaceutical industry price gouging?
When the scare of anthrax hit, the antibiotic Cipro
became the drug of choice for treatment. Faced with rising protests
about its expense�a 60-day supply costs around $700�the government
negotiated a price reduction Oct. 24 with Bayer Corporation, instead of
authorizing generic competitors to manufacture the drug.
According to Health Secretary Tommy Thompson, "The
beneficial price also means that we can have more funds available to
assist state and local health responders to be ready for all
eventualities."
Under the agreement valued at $95 million, HHS will pay
95 cents per tablet for a total initial order of 100 million tablets.
This compares with a previously discounted price of $1.77 per tablet
paid by the federal government.
According to a Lehman Brothers financial analyst, the
"beneficial price" as Sec. Thompson calls it, just reduces Bayer�s
profit margin on the drug from 95 percent to 65 percent.
Overseas, a 60-day supply of generic Cipro costs only
about $20, added Rep. Marion Berry (D-Ark.), the only pharmacist in
Congress.
The pharmaceutical industry, which stands by Bayer�s
monopoly, spent $197 million on campaign contributions and lobbying in
1999-2000, more than any other industry.
It has more registered lobbyists�625�than there are
members of Congress. Two top members of the administration are former
pharmaceutical executives. President George W. Bush is the industry�s
second favorite politician, receiving $472,333 from pharmaceuticals for
his presidential campaign, activists say.
These lobbyists have pushed Congress to quietly pass
legislation that will give a six-month monopoly patent extension to
Cipro and more than 100 other drugs, according to a new Public Citizen
study.
"The drug industry has put on a cynical PR front about
its patriotic efforts to fight bioterrorism," said Frank Clemente,
director of Public Citizen�s Congress Watch. "Meanwhile, it has refused
to sacrifice a penny�not even for children�s health�in its uncontrolled
drive for monopoly patent extensions and sky-high profits."
"The pharmaceutical industry stands always at the ready
to turn tragedy to opportunity, and to ensure public health imperatives
do not interfere with the industry�s narrow commercial interests.
Unfortunately, the Bush administration is too willing to assist the
industry�s designs," commented Robert Weissman, co-director of Essential
Action on Corporate Profiteering and Wartime Opportunism.
Billion dollar bailouts
On Sept. 14, Congress approved $15 billion in airline
assistance, as well as provisions to limit airlines� liability for the
terrorist attacks.
"In the aftermath of Sept. 11, more than 130,000 airline
and civilian aircraft aviation workers have been laid off and nearly one
million people employed by the hotel industry have been either laid off
or are working only one or two days per week," said Theresa Amato,
president of Citizen Works. "Congress gave the airlines companies a cash
and loan guarantees bailout of $15 billion. Congress gave laid off
aviation workers and hotel industry workers nothing."
Peter Fitzgerald (R-Ill.), the only senator to vote
against the bailout, opposed the airline package because it paid more
than losses suffered as a result of the Department of Transportation�s
flight stoppage Sept. 11.
Speaking to a group of travel industry executives and
labor leaders seeking aid for the hundreds of thousands of workers, Sen.
Fitzgerald complained, "The payouts to the airline industry were grossly
excessive. The only people who got bailed out were the shareholders. The
one million airline employees were left twisting in the wind."
Working with Senator Jon Corzine (D-N.J.), he added a
provision to the airline bailout bill to protect U.S. taxpayers, who
would otherwise be asked to shoulder the full burden of bailing out the
troubled airline industry.
The Fitzgerald-Corzine provision would ensure that
taxpayers share in any airline profits or financial gains generated by
federal assistance to the industry. In exchange for federally guaranteed
loans to financially troubled airlines, the taxpayers�represented by the
U.S. Treasury�would be entitled, under the Fitzgerald-Corzine plan, to
negotiate an equity stake in the airlines.
"If the federal government is going to guarantee $10
billion in loans to the industry, the taxpayers deserve something in
return," Sen. Fitzgerald said.
President Bush wants to build a missile defense system
and withdraw from the 1972 Anti-Ballistic Missile (ABM) Treaty with
Russia. On Oct. 24, the House Appropriations Committee approved
missile defense spending up to $7.9 billion.
According to retired Rear Admiral Eugene J. Carroll Jr.,
Americans should care deeply about the decision to deploy a national
missile defense system. "By such an action we will signal to the world
that we are willing to pursue illusory defenses against non-existent
threats even though we subject all nations to continued nuclear
competition and increased risks of a future nuclear war," he warns.
The Bush administration also made an appeal to the
Senate on Oct. 26 to approve his proposal to boost domestic energy
supply and production, including a plan to allow drilling in the Artic
National Wildlife Refuge.
The average American is so focused on handling their
mail carefully so as not to get anthrax, wondering whether or not to fly
for the holidays and whether or not their son or daughter is going off
to war, that most of these things go right by them without notice,
activists said.
According to journalist Bill Moyers, corporate marauders
are "counting on your patriotism to distract you from their
plunder. They�re counting on you to be standing at attention with your
hand over your heart, pledging allegiance to the flag, while they pick
your pocket."
Economic Stimulus Plan
Bush administration officials said the government
expects to spend more than $1 billion a month on the war in Afghanistan,
even as the administration pumps billions more into the economy to
stimulate the economy. Mr. Bush�s economic stimulus package plans to
repeal the corporate alternative minimum tax, accelerate tax cuts
scheduled for 2004 and 2006, enhance write-offs for business investment
and rebate checks targeting lower income workers.
"The Alternative Minimum Tax law requires hugely
profitable corporations to pay at least some federal income tax each
year, no matter how many loopholes they can exploit. If this law is
repealed, some multinational companies will be able to pay little or
nothing in U.S. income taxes forever," said Rev. Jesse Jackson.
"The companies will also receive full refunds of all the
Alternative Minimum Tax they�ve paid for the last 15 years. These
corporations will receive rebate checks under the stimulus plan approved
by the House."
Rev.Jackson detailed the amounts corporations would
receive, "IBM $1.4 billion, Ford $1.0 billion, GM $833 million, GE $671
million, Texas Utilities $608 million, Chevron $572 million, Enron $254
million and American Airlines $184 million. This is robbing the poor to
pay the rich."
The Senate Finance Committee passed a $66.4 billion
Democratic economic stimulus package on Nov. 8. Senate Majority Leader
Tom Daschle (D-S.D.) has defended the plan, saying it included
unemployment provisions and subsidies for laid-off workers� health
insurance. The plan gives low-income workers, who did not benefit from
the previous income tax rebates, cash payments of $300 for individuals,
$500 for single heads of households and $600 per couple.
The Democratic plan faces a Republican Senate, which
wants a plan that provides greater business tax cuts and helps laid-off
workers indirectly by giving federal grants to states. The states could
use the money to expand unemployment benefits and help with health
insurance costs.
Activists want Congress to help more people with
unemployment insurance, implement a foreclosure/eviction prevention plan
to prevent families hurt by the bad economy from being forced out of
their homes and $5 billion in immediate funds for the HOME Investment
Program to build affordable housing.
They also want the Bush administration to stop holding
up $300 million in emergency funds Congress appropriated for the
Low-Income Home Energy Assistance Program. Medicaid should be expanded
to provide coverage for unemployed workers and the minimum wage raised
from $5.15 to $6.65, activists argue.
"None of these proposals line up with what major
corporations are instructing the Republicans to produce. It�s hard to
fathom which is worse, the greed of a company that would ask for
corporate welfare at a time like this and at the expense of proposals
like the ones we�ve suggested or the cowardice, dishonesty and
opportunism of a government that would play along," said Mildred Brown,
of ACORN, the Association of Community Organizations for Reform Now.
Photo: Nearly 70 protesters in front of
Boeing Corp. World headquarters at 100 N. Riverside Plaza who opposes
the war and inordinate corporate power.