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John Galt Kills Texans in Massive Fertilizer Plant Explosion

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West Texas

Google Maps satellite view of West Fertilizer and its proximity to West Middle School, along with many houses and apartments.

Who needs pesky safety regulations or zoning laws when there is money to made running a fertilizer plant? Sadly, the small Texas town of West, which is just north of Waco, is suffering the consequences of unregulated free enterprise today, as a massive explosion at West Fertilizer has leveled much of the town. Perhaps the only remotely fortunate aspect of this tragedy is that it occurred at 8 pm local time and so West Middle School, which burned after the explosion, was not full of children.

A look at the satellite image above shows the folly of putting “free enterprise” ahead of sensible zoning laws. At almost 20 miles north of Waco, Texas, one thing that is in abundance in the region is open space (I’ve driven past this spot several times in the last two or three years–it’s desolate), and yet this fertilizer plant is immediately adjacent to a large apartment building (see the photo at the top of this article for how that building fared in the explosion) and very close to a middle school. There is no reason at all for any other building to be within two or three miles of a facility that produces material that is so explosive.

The Texas tradition of low taxes is also having an impact on this tragedy. Note this passage in the New York Times account of the disaster:

It began with a smaller fire at the plant, West Fertilizer, just off Interstate 35, about 20 miles north of Waco that was attended by local volunteer firefighters, said United States Representative Bill Flores. “The fire spread and hit some of these tanks that contain chemicals to treat the fertilizer,” Mr. Flores said, “and there was an explosion which caused wide damage.”

That’s right. This fertilizer plant and other businesses in West apparently don’t pay enough in local taxes to support a municipal fire department, and so the first responders to a fire at a fertilizer plant were volunteer firefighters. Sadly, several of these volunteers are now missing:

The town’s volunteer firefighters responded to a call at the plant about 6 p.m., said Waco police Sgt. William Patrick Swanton. Muska was among them, and he and his colleagues were working to evacuate the area around the plant when the blast followed about 50 minutes later. Muska said it knocked off his fire helmet and blew out the doors and windows of his nearby home.

Five or six volunteer firefighters were at the plant fire when the explosion happened, Muska said, and not all have been accounted for.

Ammonium nitrate, one of the most commonly used fertilizers is also highly explosive. It was the primary component of Timothy McVeigh’s bomb that destroyed the Murrah Building in Oklahoma City. Texas, especially, should know of the dangers inherent in fertilizer plants, as this disaster occurs very near the anniversary of the Texas City disaster: Read more →

Real Reason For US Deficit: GE Greed-$14.2B Profit, $0 Tax

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For all the caterwauling from the right and, stupifyingly, from the Obama Administration and Blue Dog left as well, here is the real reason the United States has the sizable deficit issues it does (well, in addition to the fact we will not tax even rich individuals appropriately either) – our biggest corporations pay no tax. Even when they make unholy amounts of profit. From a sobering article just up at the New York Times:

General Electric, the nation’s largest corporation, had a very good year in 2010.

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies.

Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bespectacled, bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.

Read the whole article and weep for your and your children’s future. And then take a moment to consider that a competent political class, that was honest about their representation of their constituents and oath to office, would have moved the country away from this reverse Robin Hood dystopia instead of moving ever further down the black hole of elite and corporate greed, robber barons and neo-feudalism.

The New Robber Barons

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image002Previously, Marcy Wheeler noted the unsavory blending of the private interests of health insurance companies with the power and hand of the US government:

It’s one thing to require a citizen to pay taxes–to pay into the commons. It’s another thing to require taxpayers to pay a private corporation, and to have up to 25% of that go to paying for luxuries like private jets and gyms for the company CEOs.

It’s the same kind of deal peasants made under feudalism: some proportion of their labor in exchange for protection (in this case, from bankruptcy from health problems, though the bill doesn’t actually require the private corporations to deliver that much protection).In this case, the federal government becomes an appendage to do collections for the corporations.
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The reason this matters, though, is the power it gives the health care corporations. We can’t ditch Halliburton or Blackwater because they have become the sole primary contractor providing precisely the services they do. And so, like it or not, we’re dependent on them. And if we were to try to exercise oversight over them, we’d ultimately face the reality that we have no leverage over them, so we’d have to accept whatever they chose to provide. This bill gives the health care industry the leverage we’ve already given Halliburton and Blackwater.

Marcy termed this being “On The Road To Neo-feudalism” and then followed up with a subsequent post noting how much the concept was applicable to so much of the American life and economy, especially through the security/military/industial complex so intertwined with the US government.

Marcy Wheeler is not the only one recently noting the striking rise in power of corporate interests via the forceful hand of US governmental decree (usually at the direct behest of the corporate interests). Glenn Greenwald, expanding on previous work by Ed Kilgore, penned a dynamic description of the dirty little secret (only it is not little by any means) afoot in modern American socio-political existence:

But the most significant underlying division identified by Kilgore is the divergent views over the rapidly growing corporatism that defines our political system.

Kilgore doesn’t call it “corporatism” — the virtually complete dominance of government by large corporations, even a merger between the two — but that’s what he’s talking about. He puts it in slightly more palatable terms:

To put it simply, and perhaps over-simply, on a variety of fronts (most notably financial restructuring and health care reform, but arguably on climate change as well), the Obama administration has chosen the strategy of deploying regulated and subsidized private sector entities to achieve progressive policy results. This approach was a hallmark of the so-called Clintonian, “New Democrat” movement, and the broader international movement sometimes referred to as “the Third Way,” which often defended the use of private means for public ends.

As I’ve written for quite some time, I’ve honestly never understood how anyone could think that Obama was going to bring about some sort of “new” political approach or governing method when, as Kilgore notes, what he practices — politically and substantively — is the Third Way, DLC, triangulating corporatism of the Clinton era, just re-packaged with some sleeker and more Read more →