The Republican-controlled U.S. House of Representatives narrowly passed a
"trickle-down" economic stimulus package on a party-line vote that is now on
the Senate's agenda for consideration. The contentious issues boil down to
a classical haves vs. have-nots conflict as the House-passed bill gives fat
tax cut giveaways totaling $70 billion to big corporate and wealthy elites
rather than helping out unemployed workers by increasing unemployment and
health benefits.
The House-passed stimulus package gave the Enron Corporation a $254 million
dollar tax relief gift. Enron is a Houston-based energy giant headed by
Kenneth Lay, who has been a close friend of George W. Bush and a principal
financier of Bush's political endeavors. When Bush was Governor of Texas,
Lay recommended appointments to state boards and called on Bush to meet with
dignitaries from countries with whom Enron was hoping to do business. The
longstanding corporate/political relationship goes back to the first Bush
Administration when George W. used the family name to promote Enron's
ventures in Argentina. Enron was the major supplier of gas to California
and, in the fourth quarter of last year, their revenues had tripled from a
year earlier as energy prices soared in California's deregulated market.
Enron was the largest contributor from the oil and gas industry in the
1999-2000 election cycle, giving $2.3 million in contributions. In that
election cycle the oil and gas industry gave 78% of their contributions to
Republicans and Bush got $1.8 million, which was more than any federal
candidate received in the last 10 years. There was much speculation that Lay
would become Bush's Secretary of Energy and he has been a key advisor in
shaping the Bush/Cheney energy policy that has come under legal attack by
the Congressional Office of Management and Budget for being designed in
secrecy by big energy executives and the White House. It calls for vastly
increased gas and oil production in the United States, but belittles
conservation and developing renewable energy sources.
In a rapid reversal of fortunes, it appears that Enron, the big energy
insider, is running on empty. There is mounting evidence of indictable
evil-doing by top officials of Enron, causing the N.Y. Times to report on
November 7 that "various off-balance-sheet debts and related-party
transactions..have drawn the attention of the S.E.C.(Securities and Exchange
Commission). On November 5, the Wall Street Journal reported that "the
company in March made a $35 million purchase from an entity run by a company
officer." The Journal said the payment was part of a complex series of
transactions that allowed Enron to keep "hundreds of millions of dollars of
debt off its balance sheets the past three years, during which the
energy-trading giant has grown rapidly." And, "In recent weeks, Enron's
labyrinth of financial transactions, particularly with members of company
management, has come under intense scrutiny from investors and regulators."
Enron admitted the S.E.C. has begun a formal investigation. The Journal also
reported that Enron's auditor, Arthur Andersen, could face legal scrutiny on
the clarity of Enron disclosures.
The Wall Street Journal also reported on the gloomy employment picture on
November 5 in a front page story with headlines reading, "Slow Economy Takes
Unusually Heavy Toll On White-Collar Jobs" and "As Service Sector Weakens,
Once-Hot Labor Market Is Quickly Turning Cold." On November 6, the Journal
again reported on the worsening job market with a story headlined with,
"Small Businesses Do What Big Firms Have Done-Cut Jobs." The N.Y. Times told
about job losses in the Cincinnati area under a headline "The Heartland
Hunkers Down" and U.S.A. Today had a story entitled, "Recession Conditions
Sink Several Sectors."
On November 5, I received an e-mail from a women in Wisconsin who had just
read an essay I wrote about the unfairness of the House version of the
stimulus package. She wrote, "Dear Tom: I was just forwarded your
article-Terrorizing the Poor and Subsidizing the Rich. I found it to be so
true. My husband lost his job on September 19 and still hasn't found
another. He has sent out many, many resumes and has agencies also looking
for him. We live 20 miles north of Milwaukee, WI. and the job market is very
slim. Our unemployment check is $266 a week. The amount doesn't even cover
our mortgage payment. We don't have any health insurance because there is
no way we can afford it. My husband has been looking for agencies that might
help us. He is a Vietnam Vet. So much for giving to your country when they
need you. I can't tell you how stressful this has been. Every single day
it's a worry how we will pay our bills and will we end up losing our house
we have worked our entire lives for. What can we do, who can we write to
and who will listen???"
Write your U.S. Senators and demand they stand up to corruption and
evil-doers like Enron. The Senate should take away Enron's $254 million
gift and most of the $70 billion given to business interests in the
House-passed stimulus bill. Jobless workers deserve the stimulus money to
pay their bills and survive with dignity.
Tom Turnipseed is an attorney, writer and civil rights activist in Columbia,
South Carolina. www.turnipseed.net
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