The economic calamity is abating according to Ben Bernanke, Federal Reserve Chief. Could he say anything else? Being optimistic is difficult these days, especially if you are a businessman in Florida. This doesn't feel like a "recovery" at all. "For rent" signs on commercial real estate are multiplying. The force of this Great Recession or Little Depression, as the case may be, is turning the scrubbed faces of Chamber of Commerce 'visionaries' unusual shades of pale.
A first step forward would be for members of the state's Chamber of Commerce to return their membership cards. Why? Because the Chamber and its associated industries represent a status quo that serves their constituents very, very poorly. In brief, the Chamber of Commerce acts as though all we need to do is wait a little while and the good old days will reappear-- poof-- like pigeons from a top hat. In the meantime, their conception is to find distractions appropriate to the measure of their members' anxiety. That is what the huffing and puffing against Florida Hometown Democracy is about. FHD is the proposal for a constitutional amendment in the 2010 state-wide election, to require that changes to local growth plans be voted by the electorate. The Chamber is bellowing-- soon to be followed by ugly, lying mailers to likely voters-- that the current economic catastrophe was caused by too much regulation, by too much interference by citizens, and too much of everything but their own culpability.
There are a few examples how badly things are going for the state's business status quo. The first is reflected by one of the state's largest and most politically influential corporations: Florida Power and Light. FPL-- a proxy for the Chamber-- is seeking a $900 million rate increase from recession weary consumers. A cacophony of bad news trails its corporate ambition like a string of tin cans. Some FPL's employees are charged with conversations with regulators despite law prohibiting private exchanges. These conversations were enabled by turning off certain Blackberry features. FPL refuses to reveal the number of employees receiving gilded compensation. It is stonewalling the public on disclosure of wetlands destruction. It has been bullying all sides of the regulatory world to obtain new nuclear power at sea level adjacent to two national parks, including high voltage transmission lines-- one in Everglades National Park-- that are opposed by every community along the way and rock mining millions of cubic yards in lands needed to help save Biscayne National Park. Embarrassing disclosures by a former, top employee raises the issue of safety in its existing nuclear operation at Turkey Point.
The Chamber of Commerce passively agrees with whatever electric utilities want. But how this helps the Chamber's other members is anyone's guess. The divide was apparent at the national, U.S. Chamber of Commerce last week when a very large utility, Pacific Gas and Electric, walked from its membership because the Chamber continues to maintain a prehistoric antagonism to government intervention in the matter of reversing climate change. In his Sunday column for The New York Times, Tom Freidman wrote of this startling development, "Instead of a strategic response, too many of our politicians are still trapped in their own dumb-as-we-wanna-be bubble, where we’re always No. 1, and where the U.S. Chamber of Commerce, having sold its soul to the old coal and oil industries, uses its influence to prevent Congress from passing legislation to really spur renewables. Hat’s off to the courageous chairman of Pacific Gas and Electric, Peter Darbee, who last week announced that his huge California power company was quitting the chamber because of its “obstructionist tactics.” All shareholders in America should ask their C.E.O.’s why they still belong to the chamber." (The New Sputnik, New York Times, Sept. 26, 2009)
Take a look at our own state Chamber of Commerce, thundering against Florida Hometown Democracy. The Chamber darkly rails that growth would grind to a halt in Florida if the ballot measure passes, as though a citizen's initiative could do more than Florida's business organizations have done to foul their own nest. Just like the US Chamber with global warming, with Florida Hometown Democracy the Chamber is a house divided against the interests of its own members.
The fault lines reflect through recent efforts by Gov. Charlie Crist to scoop up campaign contributions from developers and land speculators who got rich during the development boom and are hoarding cash, waiting for the miracle to come. Through their proxies at the Florida Chamber and in the Florida legislature, the Growth Machinists prevailed on Gov. Crist to sign into law new legislation, "The Growth Anywhere Act". The Chamber-flavored measure was vehemently opposed by every newspaper editorial board in the state. In signing the measure, Gov. Crist planned to box out his primary challenger, former House majority leader Marco Rubio, from support of Miami's Cuban American developers whose contributions propelled another governor, Jeb Bush, to the forefront a decade ago.
The new legislation eviscerates what is left of a central, state authority to supervise and enforce the key provisions of growth management, especially those large scale developments that are now morphed into morbid ghost suburbs throughout Florida, riddled with foreclosures and weeds. Gov. Crist, who is running for US Senate as a moderate Republican, expected that there would be no objection from campaign contributors who are Republican developers, who enforce a unified front at the Chamber of Commerce-- against such radical notions as Florida Hometown Democracy-- and also maintain order in local city and county commissions.
But almost as soon as the Crist law was passed, a posse of local jurisdictions sued. Today, 18 local governments want out. "The suit attacks the new law on a couple of fronts by saying it improperly encompasses multiple issues and amounts to an unfunded mandate prohibited under the Florida Constitution. ... The plan removes transportation concurrency requirements in the state's dense urban land areas -- tracts with an average of at least 1,000 people per square mile or in counties with populations of at least 1 million. The provision would directly affect eight of the state's largest counties and nearly 250 municipalities across the state. The measure exempts from the development of regional impact process those dense urban areas or parcels classified as urban infill, community redevelopment or those that are part of an urban service area. It also creates a two-year extension of projects that are otherwise compliant with local and state permits." ("Locals file suit against growth management bill, News Service of Florida, July 8, 2009)
Let's parse this out: the Chamber of Commerce wields its influence to maintain a Republican, red state legislature that consistently votes to eliminate regulations and barriers to growth-- using the economic calamity to argue against stoplights on the way speeding recklessly back into the same patterns of development that contributed to the crisis in the first place-- is being rejected by local governments that mistrust their own ability to resist corrupting influences of lobbyists absent intervention by the state.
Local legislators punted every major decision to zone new, unneeded development in farmland, wetlands, or near wellfields to the state. They did what the Chamber wanted, what the Farm Bureau wanted, they did what the developers and bankers wanted: they didn't have to make tough decisions, then, playing along side their campaign funders in the reckless miscalculation of risk, and they don't have to make tough decisions now, because they are insulated by a permanent incumbency. The big campaign contributors locally-- the lobbyists who control city and county halls, the builders like US Century and local bankers, often one and the same,-- don't have to shut down like ordinary homeowners under water in their mortgages. Suburbia will rise again. The Growth Machine, from Wall Street bankers to the smallest cogs in the apparatus, is represented by those Chamber values that hold all growth is good, that there were only a few bad apples in the bunch, and that it is time to move forward just like we did in the past. This idiocy is captured by James Howard Kunstler in his powerful blog, ("Clusterfuck Nation"). "It was the worthlessness of the tradable securitized debt associated with all those overpriced (and overvalued) chipboard and vinyl houses, smeared recklessly over the American landscape, that started all the trouble in the first place. And it is our inability to come to grips with that underlying catastrophe that prolongs the resolution of the still-florid banking crisis -- since the federal government is doing everything possible to prop up the failed capital equation of terminal suburbia, and to deny the obsolescence of that version of the American Dream and all the mechanisms for delivering it."
Orlando Sentinel columnist Mike Thomas put it succinctly: "The problem is that we have been addicted to the cheap drug of growth for so long, nobody can think of an alternative. When 20 people a day are moving into Florida, build 30 homes a day. When 20 people a day are moving out of Florida, build 30 homes a day. The Florida Chamber of Commerce and Associated Industries of Florida are complete frauds. They spin yarns about economic diversity, about improving the quality of life, about investing in schools and universities to upgrade our work force. Then come crunch time, it is back to build-build-build. They make this sound perfectly rational, while painting supporters of Hometown Democracy as crazed extremists."
In this "recovery", there has been little penalty for the entitled, no reform of regulations or the institutions whose reckless behavior enriched a few at the expense of many. No mea culpas, no admissions of error; just "dancing with the stars" like the former "Hammer" in the U.S. Congress, Tom Delay, matching vanity to oblivious. Once feared and reviled, the man who created the K Street Project is now a pussycat in cushioned shoes. In Delay's re-emergence from scandal there is a subtle message: let the people take up the fox trot or the tango, too-- all dance while investors scoop failed debt for pennies on the dollar that their bankers sold as assets to the federal government for fifty cents. It is legal, stupid, and comes with a ticket to the next Chamber luncheon at Parrot Jungle. Nails guns will not be denied. They will chatter happily and particle board will fly off the racks in the new, rapturous dawn.
Under these conditions, the change at hand is the one that awakens Chamber of Commerce members to the fact the organization to which they belong does not serve their interests. These days, what the Chamber represents by way of growth-at-any-cost is wrong for Florida and, in the case of climate change, wrong for the nation. The Age of Stupid had better be over. The best Chamber members could do is turn those membership cards in, now.
10 comments:
The Chamber's position against FHD is unacceptable.
Amendment 4 is not needed.
I doubt voters could do any worse job than developers and lobbyists did to harm business in Miami.
The Florida and US chamber are relics but I think the Miami Chamber does some good things (green workshops, ecomonic forms, work with non profits) even though I don't agree with them all the time, there are still a lot of devlopers in there pushing an agenda.
The Miami Chamber did not turn "green" until they were forced on the bandwagon. They are no more green than the LBA. What was their position on HB360 to kill road concurrency? Bet they were for it. Chambers have outlived their usefulness. In the early 1900s, they served a purpose to drag people to Florida when population was needed. They are not needed anymore. Do we really need another WallyWorld?
The Greater Miami Chamber of Commerce recommended the bailout of the foreign owned Marlins Baseball team. That recommendation meant the Miami taxpayers are forced to pay over $3 bil for a baseball stadium.
Monday’s Wall Street Journal article widened the rift between US electric utilities and the Chamber of Commerce by reporting that Exelon Corp. (the largest US electric utility, by market cap) parted ways with the US Chamber of Commerce that very day over the Chamber’s position against federal climate change legislation – ditto for PNM Resources, the large Southwestern electric utility. Exelon, PNM and PG&E made the break because their customers and shareholders demanded the change.
New York Times
September 30, 2009
Editorial
Way Behind the Curve
The United States Chamber of Commerce’s Web site says the group supports “a comprehensive legislative solution” to global warming. Yet no organization in this country has done more to undermine such legislation.
In the last Congress, the chamber attacked the rather modest Lieberman-Warner bill, with a Harry-and-Louise-style commercial. This year, it testified against the House-passed bill limiting greenhouse gases, and it is almost sure to oppose a similar measure that will be introduced this week in the Senate.
The chamber has now declared war on the Environmental Protection Agency’s plan to use regulatory means to control emissions — beginning with one official’s ill-advised (and since apologized-for) demand for a “Scopes monkey trial” questioning the science behind the agency’s preliminary finding that greenhouse gas emissions endanger human health.
Some responsible chamber members are so fed up that they are quitting. First out the door was Pacific Gas & Electric, the big California utility whose chief executive, Peter Darbee, last week lambasted the chamber’s “extreme rhetoric and obstructionist tactics.” Two other big utilities, PNM Resources and Exelon, also announced their intention to leave the organization for similar reasons. While stopping short of quitting, Johnson & Johnson has criticized the chamber’s actions.
Some suggested that this was little more than a marketing strategy. It may indeed be good marketing, but most of all it is smart business.
These companies are members of the United States Climate Action Partnership, a coalition of businesses and environmental groups that early this year came up with a plan for limiting emissions that helped shape the House bill. They see a carbon-constrained world coming and want to get out ahead of the curve — not behind it like the chamber.
The Greater Miami Chamber of Commerce is totally lobbyist driven. Time for them to just die.
Bernanke said we need to get rid of "too big to fail." He's right on that score.
As far as Dade...yup, it's too big and it's failing. Too many houses, not enough jobs. It really isn't that complicated.
Amendment 4 needs to pass. It's a good first measure until we get our s&*t together and figure out how to apply growth principles in an intelligent way.
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