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ALEC Politicians Spin Special "Interest" Bill to Protect Corporate Wrongdoers as "Job Creation"
For years, the American Legislative Exchange Council (ALEC), has been itching to protect big corporations from high interest rates charged in cases where corporations have killed or injured Americans. Now, Wisconsin politicians serving on key ALEC task forces are pushing a bill embracing this idea as part of ALEC alumnus Scott Walker's latest effort to force the ALEC agenda into law based on claims that doing so will help "job creators."
Citizens Pay 12% but Companies that Injure or Kill Pay 4.25%The bill, introduced by Wisconsin State Senator Rich Zipperer of Pewaukee and Representative Paul Farrow, also of Pewaukee, would reduce the interest rate on court-ordered payments for Wisconsin residents who have convinced a jury and a judge that a corporation injured them, killed their loved ones, or violated consumer protections guaranteed by law. Under current law, in almost all types of civil lawsuits, Wisconsin requires the losing party to pay 12% interest on the judgment, until the amount owed is paid in full or unless overturned on appeal.
But ALEC politicians Zipperer and Farrow want to slash the interest rate charged (to about 4.25%) -- but only in cases involving personal injury and consumer claims. By definition these are cases in which virtually the only time there will be a financial judgment is when a Wisconsin resident proves in court that the defendant company violated his or her rights. But when a corporation, such as a bank or leasing company, sues a citizen and wins, the Wisconsin citizen still has to pay interest at 12% until the bill is paid in full.
How does this aid job creation?
"Lowering the price of breaking the law doesn't target job creation or economic development," says Laura Dresser an economist from the Center on Wisconsin Strategy. To put it less academically, "the only jobs it creates are for undertakers," said Democratic Rep. Brett Hulsey at a press conference about the so-called job creation bill package. To call legislation that rewards adjudicated corporate wrongdoers "job creation" is simply spin.
Anti-Consumer Bill Echoes ALEC "Model"The Zipperer-Farrow bill serves very special interests with their own special interest rate. It looks like ALEC's Pewaukee Posse -- a former estate lawyer and a current home inspector -- has taken a page from ALEC's "Prejudgment and Post-Judgment Act." That so-called "model" bill, which the Center for Media and Democracy exposed this summer through our ALECexposed.org project, would reduce the interest charged to corporations that kill or maim Americans.
This ALEC wish list item is a piece of the ALEC corporations' so-called "tort reform" agenda, an unabashed effort to tilt the scales of justice in favor of corporations in nearly every imaginable way. But Zipperer and Farrow have one-upped ALEC by adding consumer cases into the mix, on top of the cases involving Americans who have lost their lives or livelihood to corporate neglect, malfeasance, or greed. The Pewaukee Posse also tweaked the interest rate calculation of ALEC from using the Treasury bill rate to the prime rate plus one percent. These are differences without distinction -- both slash the interest rate paid by corporations that kill or maim. The Zipperer-Farrow bill is the ALEC bill on steroids by sweeping in all consumer cases in the state as well.
Pewaukee Posse Pushes ALEC Agenda in StateIt should come as no surprise that Zipperer sits on the ALEC Civil Justice Task Force. "Civil justice," in this case, is an Orwellian term for giving corporations whose products or policies happen to ruin people's lives more "justice" in the judicial system than corporations get under longstanding rules that protect people done wrong by corporate greed or negligence. The "private sector" head of that task force is none other than the so-called "King of Tort Reform," Victor Schwarz, who has long advanced the interests of tobacco and asbestos companies that for decades deep-sixed scientific proof that their products were literally killing Americans.
Zipperer is also one of the politicians who asked Wisconsin taxpayers to pay the $50 bucks a year ALEC charges for politicians to be members. And he's received financial compensation of over $1000 from ALEC for at least one trip, likely to an ALEC gathering known for schmoozing with corporate lobbyists -- lobbyists interested in legislation just like the one Zipperer and Farrow introduced. Like Zipperer, Farrow is no ordinary member of ALEC. He was chosen to sit on its Telecommunications and Information Technology Task Force alongside lobbyists from AT&T and other companies that have been sued for policies and practices that take advantage of consumers.
Pfizer Lobbyist One of ALEC's Corporate Co-Chairs for WisconsinThis is not the only bill being spun as job creation that has ALEC DNA and that would adversely affect injured Wisconsin residents. Another ALEC bill sponsored by Zipperer would limit the rights of Wisconsin residents to recover any damages in strict liability cases (the primary legal basis for cases involving injurious products) if they are injured by prescription or over-the-counter drugs. Like the special interest rate bill, the drug bill goes even further than the ALEC model -- adding in medical devices and barring lawsuits for drugs approved by the FDA, not just barring punitive damages for regulated drugs, ALEC policy since 1995.
Perhaps, it should come as no surprise that the latest corporate co-chair of ALEC assigned to the state of Wisconsin is none other than Pfizer through its lobbyist Bryon Wornson. The list of drugs Pfizer has gotten through the inadequate FDA review process only to recall them later is long. Last year, an intravenous drug it distributed was recalled because it "might kill" hospital patients. That's just the tip of the iceberg on unsafe products produced and recalled over the years by Pfizer, and Pfizer is just one of the many transnational corporations whose drugs or devices got through the FDA's process only to end up killing or causing life-threatening harm to American consumers.
"This proposal does nothing to help employ the people of Wisconsin and everything to help big-time, special interest drug company CEOs," says Phil Neuenfeldt of the state's AFL-CIO, speaking of the drug and device bill.
The interest rate bill and the drug and device bill are part of a package being considered under Governor Walker's "Special Session on Job Creation," but so far it's hard to spot the bills that actually focus on creating jobs.
Very Special Interest Bill Just One of the Posse's ALEC EchoesThe Pewaukee Posse has proven to be such eager sponsers of legislation with ALEC DNA that perhaps they will get gold stars, or "scholarships," from ALEC's new state co-chair Robyn Vos to attend coming ALEC conventions/vacations along with invitation-only parties hosted by global corps. Vos and his predecessor as ALEC state co-chair, Senate Leader Scott Fitzgerald, have been charged under ALEC by-laws with a "duty" to get ALEC bills introduced in their home states. ALEC's politician co-chairs also are tasked with distributing the largess raised by state corporate co-chairs, like Pfizer, from corporate coffers to fund trips for loyal legislators.
Zipperer has put his name and effort behind: SB-1, which echoes several ALEC provisions to limit the rights of Pewaukee residents and other citizens of Wisconsin killed or injured by corporations, including negligent nursing homes (signed into law by ALEC alum Walker); AB-7, the so-called "Voter ID" bill that may block tens of thousands of students and others from voting in 2012, and which includes provisions consistent with ALEC's model bill (made law by Walker); SB-10, a tax give-away that benefits Wall Street speculators, similar to ALEC's "capital gains tax elimination act"; and AB-94, which expands taxpayer subsidies for private schools, echoing ALEC's privatization agenda in its "parental choice" bills.
Farrow has also pushed bills echoing the ALEC voter suppression agenda, capital gains, and school privatization efforts, and has introduced even more ALEC-like bills than his Pewaukee brother, including bills limiting the use of transportation taxes and embracing the NRA's shoot first bill known as the "Castle Doctrine," which shares core concepts with a parallel ALEC bill urged by the NRA, the former ALEC Criminal Justice Task Force Co-Chair.
These lists do not include all of the other bills similar to the cookie cutter legislation flowing out of the ALEC bill factory that the Pewaukee Posse voted for or that ALEC Alum Scott Walker signed into law this year.
But their latest foray into advancing the corporate wish list, through their very special interest bill, goes even further than ALEC has dared by targeting not just Wisconsinites physically injured by corporations but also consumers statewide.
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10 Comments so far
Show AllZZZIP(erer)! Bend over America and prepare to get screwed again.
Don't worry. Obama will save us. Or was the Clinton... or Sanders... or was it Feingold... which one was going to save us again?
Sanders' head is in the right place.
The Democratic Party's sole mission is to get more corporate funding than the GOP.
Democrats gun for corporations or their Party marginalizes them.
I am so sick and tired of hearing "job creator". It now ranks up there with "common sense" as a phrase a politician uses when he/she is reading to stick a big lie in you ears.
I wonder how many people don't see through this B/S?
Many don't see through this. Unless people search out alternative sites for information and educate themselves (don't expect most educators to do this, as they risk losing their jobs), they have little idea of the corporatist takeover, the piecemeal destruction of our safety nets, and the diminishment of jobs through automation, computerization, and outsourcing.
The cry of "we want jobs" strikes me as ignorant. The problem, since the Industrial Revolution, has been the need for less labor, and this has grown exponentially since computerization and the opportunities for corporations to find the best and cheapest workers across the globe. We have not grappled with the central problem of how to deal with a society where fewer and fewer labor hours are needed, and in a global economy, US labor will always be disfavored given cheaper labor elsewhere. Marx could not have envisioned the situation we face. We have no power because we, most of us, are increasingly unnecessary.
There was a theory espoused many decades ago that the need for work and jobs would be eliminated via automation and robotics.
This theory was advanced under the assumption that the created wealth and products would be equitably distributed . Obviously this did not happen as one small group decided it "deserved" everything.
It with interest i relate this anecdote of a friend visiting Mexico.
He came to this construction site where a number of Mexican laborers were digging a hole in the ground. Next to the site a couple of backhoes were sitting idle. He asked the supervisor why it was the backhoes were not being used in place of the laborers.
He was told that with the paltry wages paid to the workers it was more profitable to hire dozens of them to do the job then it was to burn the fuel and subject the machinery to wear and tear that would require expensive maintenance.
One of Kurt Vonnegut's earlier novels deal with this theme. I think it was God Bless You, Mr. Rosewater, that asked the question "what are people for?"
The economy/culture say you've got to have a job or a way to earn money in order to survive, but there are fewer and fewer jobs that allow the earning of money. Tough paradox to work through.
Elizabeth H,
Considering the high speed trading algorithms at wall street, the argument that Wall Street bonuses and hedge fund multimillion dollar incomes are increasingly unnecessary can also be applied with even more force. Consequently, if power is based on productivity, the one percenters should not have ANY power, because, unlike Wall Streeters, most people actually DO something.
I disagree that most people don't see through the "job creator" BS. They do. So much so that people are instinctively applying Orwellian translations to anything pushed by the media and politicians (i.e. Job Creators = Job Destroyers, Useless eaters = actually useful people, Wall Street masters of the universe = usless, redundant crooks).
That is what Occupy Wall Street is all about. The peope in charge are stuck on bullshit and consequently their credibility is shot. That's not going to change any time soon.
WHICH MEANS THEY WON'T BE IN CHARGE MUCH LONGER.
"Wisconsin resident proves in court that the defendant company violated his or her rights. But when a corporation, such as a bank or leasing company, sues a citizen and wins, the Wisconsin citizen still has to pay interest at 12% until the bill is paid in full."
If corporations and businesses are now granted all the rights of personhood, why is this distinction necessary? And I am not buying the "job creation" line. We all know the only jobs they are going to create are in third world countries, or title only positions for their in-laws or people they owe a favor. Perhaps a few extra security guards to protect their assets. A few more lobbyists or consultants to show them how to rob the rest of a little longer.
“This ALEC wish list item is a piece of the ALEC corporations' so-called "tort reform" agenda, an unabashed effort to tilt the scales of justice in favor of corporations in nearly every imaginable way to state leaders".....
ALEC is the activist arm of the Chamber of Commerce, the American Bankers Association and the Federal Reserve that make up the Business Round Table, the center of the Economic Elite’s power structure.
Corporations, like Koch Industries, Phillip Morris, Reynolds, Kraft, Wal-Mart, Bayer, Coca Cola, State Farm and more, sit on ALEC task forces and vote with state legislators to approve "model" bills in secret. ALEC cuts out the middleman and the state legislators themselves become "super lobbyists" for the ALEC agenda. (Source PRWatch.org.)
Indeed we acknowledge the cause for our economic mess where it belongs, in the hands of the people who control our country.
Does it mean that they smarter than we are? In the opinion of one Arthur Silber, it sure seems like it. Because most all of us, for whatever reason,“have not been able to see the big picture unfolding about what is happening to our own country and to our own people”. Through the hard work and policies of the Economic Round Table, the rape and theft of America, has been cleverly packaged, promoted, and sold by ALEC under the guise of “cost-cutting,” “deregulation,” and “free enterprise”as was pointed out in this posting about ALEC in Wisconson.
We need to place some of the blame with ourselves, for not paying attention while this was happening but now that OWS has made sure both parties, the 1% and 99%, are most aware of this fact, knowledge and dissent of their control has become world wide.
"The water won't clear up until we get the hogs out of the creek." Arthur Silber