MRGO, or Mr. Go to cool people like me, is an industrial canal built in 1963 as a short-cut between New Orleans and the Gulf of Mexico. It has been responsible for the destruction of thousands of acres of wetlands since it was constructed. But, that’s not really important is it? The important issue is that experts agree that Mr. Go was a contributing factor in the flooding of St. Bernard parish during Katrina.
Two options are being debated. One would be to install a floodgate on Mr. Go to keep the floodwaters out. St. Bernard Parish President Henry “Junior” Rodriguez supports this approach. St. Bernard Parish Council President Joey Difatta (Yes, St. Bernard parish meetings sound a lot like the Sopranos!) wants to close off the canal. Junior doesn’t want to hurt the businesses in east New Orleans that would be impacted by the closing of the canal. (Yeah, right!) Junior’s plan is to build larger locks on another waterway so that the east New Orleans businesses wouldn’t suffer and (Hmm, I think I see the real reason coming!) an industrial district will be built on the canal in….(you guessed it!) St. Bernard Parish. What happens if the floodgate doesn’t hold?
Anyway. This argument reflects the argument used by conservatives all the time that protecting business interests is of vital importance. It’s an argument that makes sense, kind of, but is it truly valid? My friend Toddie writes about this approach in her book In Search of the Good Life: The Ethics of Globalization. According to Toddie, this approach has three underlying values—individualism, prosperity, and freedom (more on this later). You really should get this book. My undergrad degree is in economics and Toddie does an exceptional job describing the American economic mindset. The picture that we as Americans have of “the good life” is impacted by this economic mindset of unrestrained capitalism. Often, we believe that persons should be (or are) autonomous and independent and by seeking the good of myself, I will also advance the good of all. I’m really not explaining it to well here, but here’s how it relates to the above debate about Mr. Go. Since Ronald Reagan’s promotion of the “trickle-down” theory of economics, many have believed that restricting businesses will hurt all people. Giving money to the rich is more beneficial than spending government dollars on the poor because rich folks will invest in the economy and make things better for the poor (after all, they just spend money on food). Thus, if you hurt business, all will suffer. In fact, the Bush administration and Congress are planning to cut as much as $50 billion in government relief funding to ensure $70 billion in tax cuts for the wealthiest Americans continue.
The only problem with this assumption that putting business first helps all people is that it isn’t true. “In 2004, the average CEO of a major company received $9.84 million in total compensation, according to a study by compensation consultant Pearl Meyer & Partners for The New York Times. This represents a 12 percent increase in CEO pay over 2003. In contrast, the average nonsupervisory worker’s pay increased just 2.2 percent to $27,485 in 2004. (source)”
According to the Center on Budget and Policy Priorities, during the recent economic recovery, corporate profits rose 47% while wages and salaries only rose 15%. This is especially troubling due to the fact that the average increase in corporate profits under other post-WW II recover periods was 21% while wages and salaries rose a whopping 49%!
Secondly, wouldn’t taking away a contributing factor in the flooding of St. Bernard during Katrina make good business sense too? Forget about the cost of human lives for a moment. Oh, yes. You weren’t thinking about that anyway! Wouldn’t another destruction of St. Bernard parish be bad for business too? SHEEEESH!
If the knuckleheads in St. Bernard don’t get this, how will the knuckleheads in Washington get it?
Not wanting to hinder business and hurt the economy is one heck of an excuse for not doing the right things to help our environment and the poor but it just doesn’t wash!
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