Identity Theft in the Matrix

Something weird occurred on my TV when I happened to catch a few minutes of the Madrid Tennis Open on Sunday. Whatever technology these stadiums use to provide constantly changing television advertisements along the sides of the court wasn’t working too well. Some of the furniture on the clay itself seemed to be dissociating on an atomic level. A chair looked as if it was disappearing in a shimmering blue cloud. It was like that moment in the movie The Matrix when the reality of the unreality becomes apparent to Neo – a house cat vanishes for a split second, then reappears.

The technical snafu made the match pretty hard to watch, so I reverted to the New York Times, where columnist Thomas Friedman happened to be expressing astonishment at the profound influence of corporate marketing values on American society. Few have written more enthusiastically about the spread of capitalism worldwide than Friedman, so it was surprising to hear him say he “had no idea” that famous authors, revered sports players and even public institutions have all bartered their identities for corporate cash.

Just then, Roger Federer won the match. “Watch this,” my wife said in a moment.  “He’s going to reach into his gym bag and pull out an expensive watch, so he’s wearing it when he gets the award.” Sure enough, with a bemused grin – I took it to be a guilty “ok, I have to do this” sort of look – Federer theatrically slipped his sweaty hand into the bag and slowly pulled out a gleaming Rolex, which he then slid onto his wrist.

I’m no slouch when it comes to tracking the commodification of our culture – a Ralph Nader spin-off, Commercial Alert, has been quietly raising the issue for years – but I’d never witnessed someone of Federer’s stature actually engage in a corporate sponsorship ritual, one which happens to be well known to tennis fans.

The impact of celebrity endorsements and the promotion of products in TV shows and films is more than just an idle curiosity. For many years, Americans were urged to close the gap between the lifestyle they aspired to – as displayed in the entertainment media – and the economic reality of their lives by borrowing on their homes and credit cards. This masked a gaping and painfully growing chasm that is now the topic of conversation only because Wall Street flushed the toilet on our economy a few years back.  Where once you too might have been able to pull a beautiful watch out of your duffel courtesy of a JP Morgan Chase credit card, that’s no longer possible for many.

Even more insidious than dictating our personal dreams and values is the corporate capture of our political identities. In that sense, the United States Supreme Court’s infamous decision in Citizens United symbolically acknowledges what had long ago become the Golden Rule of American democracy: those who have the gold, rule. By bestowing human rights upon corporate entities, and equating spending money to buy elections with freedom of speech, Citizens United locked in a system of legalized bribery that locks most Americans out of the electoral process that is our birthright.

Sure, we still have the right to vote. But the choices we are offered are usually determined by a political establishment mostly dominated by corporate money and a vast apparatus of election consultants, public relations hacks and lobbyists.

Every corporate dollar spent on candidates and elections pays an enormous return on the investment.  The Money Industry gave $5 billion to federal officials in the ten years leading up to the 2008 financial debacle, as we documentedin 2009 (PDF). The result: “bipartisan” decisions by lawmakers and the executive branch stripping away decades of legislation designed to protect America against lunatic speculation. Liberated, Wall Street gambled till it lost everything. Cost to American taxpayers: hundreds of trillions of dollars in bailouts, lost jobs, battered businesses, devastated communities – a Depression. Heads they win, tales you lose.

A recent study by academics at the University of Kansas examined how a particular federal tax break for multinational corporations became law, and what happened after that. They calculated that for every $1 spent on lobbying in favor of the tax break, the companies were spared $220 in taxes – a return of 22,000%.

Last week’s revelation that JP Morgan Chase had lost $2 billion through trading practices that are supposed to be illegal under the financial reform law passed by Congress in 2010 begged the question: how did they get away with it? Answer: JP Morgan Chase spent millions on lobbyists whose job was to weaken the law, and delay its implementation. The current draft of the federal regulations required to enforce a key provision of the law is a 298-page monstrosity; thanks to JP Morgan’s lawyers, it’s loaded with political booby traps and sabotaging IEDs that will utterly neuter the law, if it ever takes effect.

Mission accomplished.

With staggering results like these, it’s no wonder that the corruption of American politics is now an industry itself. The Times estimates its size at $6 billion a year, and reports that a series of mergers and acquisitions is creating a corporate lobbying conglomerate where the best and brightest – including retiring members of Congress – alight.

This is the Invisible Government that used to be the topic of novelists and conspiracy theorists. In the celebrity-driven entertainment Matrix, it’s easy to miss if you aren’t looking around and wondering what’s going on.

 

Want a Job? Go to Prison

American workers find themselves in an increasingly uncomfortable squeeze.

On one hand, public officials demonize organized labor, as seen in Wisconsin and several other midwestern states.

On the other hand, the growing trend in outsourcing keeps jobs closer to home, but with equally disastrous results, paying prisoners an average of less than a dollar an hour for work once done by decently paid workers on the outside.

Prisoners aren’t just making license plates anymore. They do everything from manufacturing plastic cups and furniture to operating call centers.

In the most recent example of this disturbing trend, prisoners are apparently building electronic parts for Patriot missiles.

The story was laid out by Jason Rorhlich on Minyanville, where he displays all of the promotional material by the firm, which obtained the contract to have the prisoners do the work. The firm, called Unicor, is a giant, wholly-owned subsidiary of the federal government originally formed during the Depression. It operates more than 100 factories in federal prisons and employs about 17,000 inmates, or about 11 percent of the federal prison population.

Unicor even received nearly $1 million in stimulus money, earning the ire of some on the outside who said they could have used the work.

After Rohrlich’s piece appeared, and it was picked up by Wired, Lockheed’s PR machine spun into action, denying that prisoner labor was used in building the Patriot, acknowledging for Wired that prisoners only worked on Raytheon’s ignition system for the missile. Which left Rohrlich and readers scratching their heads, given how hard Unicor has been bragging about its work on the missiles themselves. Does Unicor, an arm of the federal government, not know what its employees/prisoners are up to? Or is Lockheed working on some pretty lame damage control? I hope the missiles work better than the public relations does.

As Wired points out, the Patriot is just one in a long string of weapons work that Unicor has done, including work on F-15 and F-16 fighter jets and Cobra helicopters.
This week, Unicor scored a $20 million, no-bid contract to build bulletproof vests. All I can is say is they must have connections, since the last time they built body armor for the Army, it didn’t work so well. Last year the Army had to recall 44,000 Unicor-built helmets because they failed ballistics testing.

This is not about trashing prison training and rehabilitation efforts, which should be continued because the evidence shows that they work in reducing recidivism. But can’t our public officials find a way to do it without undermining the middle class, which they all claim to be so devoted to?