Showing posts with label The Master Switch. Show all posts
Showing posts with label The Master Switch. Show all posts

Saturday, October 22, 2011

Occupy Wall Street and the Banks- Messages From Bonnie & Clyde, “They’ve Got Too Much Money”: Ownership of the Public Forum by the Wealthy?

(Top dogs belonging to Mayor Bloomberg- above. And, beneath the dogs, anti-monopoly Occupy Wall Street protesters.)

WHAT was he thinking? . . .

Hold one minute. . . . For those of you wanting to keep a few steps ahead connecting the dots as they read this, we are heading somewhere important: The skewing of wealth in this country, complained about in the placards hoisted by the Occupy Wall Street crowd is also very much a threat to the ability of the rest of us to meaningfully exercise our rights to free speech.

Now, we'll start here . .
.

For the Mayor Life Is Ruff

WHAT
was he thinking? The very same morning that the New York police were going to be brought in to remove the Occupy Wall Street protesters from Zucotti Park we open the New York Times and there is an article about Mayor Bloomberg’s (and his live-in girlfriend. Diana Taylor’s) dogs, “Bonnie and Clyde.” (See: The Mayor Stands Firm Against the Lobbying of Puppy-Dog Eyes, by Matt Flegenheimer, October 13, 2011.) Bonnie and Clyde?- We’ll get to that in a moment.

Why do I say what was “he” thinking? When I say “he” I mean the mayor and my question as to what Bloomberg was thinking is because at first blush, the story about the Mayor and his girlfriend’s canine Bonnie and Clyde has the hallmarks of a placed, likely intentionally-timed story. If nothing else, the mayor ought to have known the story was imminent in that we know his spokesman Stu Loeser was contacted. Mr. Loeser contributed an innocuous quote for the story via e-mail.

The story includes intimate details about the dogs’ life in the mayor’s home, that the mayor tolerates the dogs “in his kitchen” and “at his campaign functions” and that he makes it a sour point to correct people mistaken about his ownership of the dogs by saying that they are “Diana’s dogs” although she gave them to him four years ago. It explains how, inside the mayor’s town house, the dogs have been “chewing hand towels, a bench in the breakfast nook and the hood of Ms. Taylor’s jacket.”

When I spoke to Matt Flegenheimer, the Times reporter who wrote the story, he was unwilling to provide quotes for the record in response to my questions about how and when the story got generated or how cooperative the mayor’s staff had been in its production. That will have to remain a matter of speculation and detective work.

An earlier Times story in the dog days of August, 2008 mentioned the pups. Some of the article is discernibly from other sources like the 2010 Bloomberg quote about how late Ms. Taylor walks the dogs and conceivably the new Times article was prompted by a mention of the dogs’ purchase in a September 30th interview Diana Taylor gave to a reporter that appeared in the Observer.

It is impossible to say how much of the inside-the-mayor's-residence tell-all was provided by Robert Haussmann, the dogs’ former trainer who is quoted spilling the beans on some of the dogs’ naughtier escapades and on whose web site a Taylor/Bloomberg testimonial appears together with a picture of Bonnie and Clyde (also at beginning of this post). Was Haussman ratting out the woof-woofs without a go-ahead from his illustrious clients? From another picture on line (see below) it is possible to observe that the leashed Labradors traveled to attend the Gracie Mansion wedding of a Bloomberg aide over which the mayor specially officiated in July in recognition of the day marriage equality become law in New York just as Mr. Flegenheimer mentioned in his story, but without knowing what you were looking for that might be hard to ferret out.

As to how long the story was in the works, the reporting specifies that observation of some playfulness of the dogs occurred on “a recent weekday morning.” The caption for a picture accompanying the story specifies that it was taken “this month” which would translate to October or within the previous two weeks, given that the story having appeared on the 13th. The picture of Ms. Taylor, full frontal with both dogs, taken by “Michael Appleton for The New York Times,” though it is not as flattering as the many Nikola Tamindzic photos taken of Taylor for the interview she recently granted the Observer, does not look like a paparazzi ambush (see below).

Getting the Dog Ball Rolling?

So did Bloomberg directly (or perhaps indirectly through the dogs’ former trainer) get the ball rolling on publication of this example of that famous journalism genre of the humanizing `man-owns-dog-story'? The article actually comments: “Mr. Bloomberg stands apart as one of the few public figures who have declined the opportunity, quite literally given to him, to use the animals to burnish his Everyman credentials.”

Whether Bloomberg did or not is perhaps beside the point. What is important is that all it takes is the unveiling of just a few domestic details concerning the illustrious Bloomberg household and, VoilĂ ! You have a full-blown New York Times story that is respectfully favorable to the mayor. Meanwhile, the Occupy Wall Street people are spending nights sleeping in the cold fighting to get the press to pay attention for some really important issues Bloomberg and friends would prefer that you not be hearing about- More on this shortly.

Poor Recollection of a Rich Reference?

Bonnie and Clyde? Why did Mr. Bloomberg and Ms. Taylor decide to name their dogs “Bonnie and Clyde”? A pair of bank robbers? Was the notion that these were cutesy, mildly provocative names with the safe and quaint retro-nostalgia of a bygone era? Clearly the most obvious reference, probably the one intended, was not to the real Bonnie and Clyde but to the Bonnie and Clyde of the Warren Beatty/Faye Dunaway, 1967 Arthur Penn movie. That film broke through establishment-imposed norms to depict nobodies (film critic Roger Ebert) who famously became virtual folk heroes with Clyde (according to a Times summary) “painted in the press as a Depression-era Robin Hood” for their bank robbing style. Roger Ebert commented: “They seemed to consider themselves public servants, bringing a little sparkle to the poverty and despair of the Dust Bowl during the early Depression years.”

Key to the film's vision of misguided criminals verging on the status of near heroes embraced by the public is the idea, similar to themes afoot in the Occupy Wall Street demonstrations, of Depression-era banks as villains, the idea that banks were holding too much of the wealth.

The scene of the film that probably makes this clearest is the scene with Clyde, Bonnie and a family outside that family’s bank-foreclosed farm. “Property of Midlothian Citizens Bank -- Trespassers Will Be Prosecuted,” says the sign in the shot establishing the scene. As they listen with commiseration Clyde and Bonnie are told by the farmer, “Used to be my place. Not any more. Bank took it. . . . Yessir, moved us off. Now it belongs to them.” The family’s nearby car is piled high, “Grape of Wrath” style with their belongings. Clyde, the farmer and his old black farmhand thereupon take turns, and pleasure, in firing well-aimed shots into the windows of the house, destroying the bank’s property. This all sets up the scene’s concluding line, an exchange of introductions, Clyde saying, punctuated by the satisfied affirmation of a smile and a nod,“Miss Bonnie Parker. And I'm Clyde Barrow. . . . We rob banks.”

During the Depression the severe slowing of the economy together with a period of deflation exacerbated by a contraction of the money supply spurred in part by gold-standard promoting capitalists shifted a lot of wealth and property ownership to the banks: It became more expensive to pay off your debt or mortgage than it was when you had taken that debt on, but the travails of the time were due mostly to old-style conventional banking. Nothing compared to what the Occupy Wall Street people are have to complain about.

Did Michael Bloomberg and Diana Taylor name their dogs Bonnie and Clyde because they think like the Occupy Wall Street crowd or is this a scoffing reference to how they obviously don’t? Conversely, would it be a stretch to think they were attracted to thinking of themselves as modern day robbers with a freedom to pillage financially? It ought to be remembered that when they named their dogs Bloomberg was not only the mayor of New York but also, far and away, it’s wealthiest citizen with a slew of conflicts of interest concerning his role as mayor and the fashion in which his wealth was rapidly escalating.

Courting An Iconic Bloodbath?

But WHAT was Bloomberg thinking when he thought that the Bonnie and Clyde mayor-has-dogs story was going to run the same Friday morning his police troops were going to move in to evict the Occupy Wall Street crowd? The protesters’ nonviolence notwithstanding it could have been a bloody scene. Arthur Penn’s “Bonnie and Clyde” film ends with an iconic bloodbath. Would people have been making comparisons that morning? Where would the public’s sympathies have been?

Strong and Growing Support for the Protesters a Problem for Bloomberg

Bloomberg is in a tough position. The situation is clearly getting away from him as a Wall Street supporter. As the Wall Street occupancy continues, more and more people are paying attention and the reaction the protesters are getting is overwhelmingly favorable in New York, the city in which Bloomberg is mayor. A Quinnipiac poll released Monday (released just three days after Bloomberg’s contemplated Friday eviction) says that New York voters support the occupancy by the Wall Street protestors three to one, agreeing with their views by a 67 – 23 percent margin and saying 87 – 10 percent that it is “okay that they are protesting.” Further:
Agreeing with the protesters views are Democrats 81 – 11 percent and independent voters 58 – 30 percent, while Republicans disagree 58 – 35 percent, the independent Quinnipiac (KWIN-uh-pe-ack) University poll finds. Even Republicans, however, agree 73 – 23 percent with the protesters right to be there.

New York City voters say 72 – 24 percent, including 52 – 41 percent among Republicans, that if the protesters obey the law, they can stay as long as they wish.
(See, Poll: Two-thirds of New Yorkers support Occupy Wall Street protests, by Staff Report, Herald-Tribune, Monday, October 17, 2011.)

Bloomberg's National Ambitions

With all this support from New York voters how is it that Bloomberg, an `elected’ official, wants to dispossess the protesters? Bloomberg probably doesn’t think that permitting the demonstrations aligns with his national political ambitions, which at this point could likely involve a hoped-for Republican vice-presidential (or presidential?) nomination. Or, if he plans to put himself forward as an independent party candidate, an example of a 'laudably' nonpartisan businessman (say backed by the “No-Labels party” the emergence of which was mysteriously funded) it will not help him if an anti-Wall Street movement keeps gaining traction.

(For some of the protesters feelings regarding Bloomberg are mutual, see below.)

Who's Your Daddy?

Bloomberg probably also thinks of Wall Street as his constituency rather than the OWS-supporting voters by reason of the money relationships. This sort of thing was commented upon by Paul Krugman in his last column when he spotted the same interesting quote that intrigued me in a Times story about what Wall Street bankers are not willing to say publicly for attribution but are willing to say to a reporter without attribution. Complaining about the lack of support against the protesters from New York’s senators Charles E. Schumer and Senator Kirsten Gillibrand, one money manager said: “They need to understand who their constituency is.” Krugman fills in the obvious blank:
But he wasn’t really talking about voters, of course. He was talking about the one thing Wall Street still has plenty of thanks to those bailouts, despite its total loss of credibility: money.
(See: [Wall Street] Losing Their Immunity, by Paul Krugman, October 16, 2011.- In flipping this kind of thing around to look at it from the Tea Party activist side, it is interesting how the monied-up Republican establishment seems perpetually fixated on its insistence that the Republican presidential nominee must, in fact, will be Mitt Romney despite the time-to-time fluctuations in the polls favoring other candidates above Romney. The time-to-time aspects of those fluctuations also bear examination.)

By flushing into the open such sentiments about who owns the politicians Occupy Wall Street is doing one hell of job. That Occupy Wall Street has provided the occasion for Krugman, the Nobel Prize-winning economist to, so far, write three columns very supportive of the movement also means it has accomplished a lot (the two other Krugman columns are linked to in the beginning of this earlier coverage. And there is a quick reference in this one as well.)

Don't Sleep on Your Free Speech Rights: Know Your Real Estate Law About Privatized Public Space

In a strange twist the city has found itself legally impeded in removing protesters from Zucotti Park because the park is oxymoronically a “privately owned public space.” See the Times article on this: Privately Owned Park, Open to the Public, May Make Its Own Rules, by Lisa W. Fodero, October 13, 2011. That article explaining how Zucotti Park is required to stay open to the public 24 hours a day in exchange for permitted variances received respecting the shape (not size, per se) of the tower the owner built immediately to the north states, inaccurately, that, “By contrast, the city’s parks all have curfews: the latest is 1 a.m.; a number close much earlier.”

Not all city parks close at 1:00 AM or earlier. Although there are some contrary indications on the web, if you call the Parks Department as I did you will discover that Central Park doesn’t close at night although certain sections like the zoo and playgrounds do. If Central Park did close at 1:00 AM then Mr. Bloomberg’s quote in Mr. Flegenheimer’s article that Ms. Taylor walks Bonnie and Clyde in Central Park at 1:00 AM would mean she was breaking the rules.

Maybe the park by the mayor’s residence is open 24 hours a day, but nighttime closings of Union Square and Washington Square have been a factor in preventing Occupy Wall Street from setting up new occupancy outposts.

On the one hand there is a delicious and exquisite complexity to the tangled laws respecting private ownership of Zuccotti Park (particularly to an attorney versed in government and NY real estate such as myself) that ironically has made it legally more difficult for the Bloomberg administration to remove the protesters from this quasi-public space than from the city’s actual public parks such as Union and Washington Squares. But on the other hand the obscuring veil attributable to the complexity that stems from the increasing use of private-public partnership arrangements to `privately' provide public space and public benefit is dangerous, perhaps even grotesquely so.

Just try to explain to the average citizen the technicalities of the ways in which these arrangements modify their rights to free speech and their eyes will be sure to glaze over. That could be exactly the way the lawyered-up Bloomberg elite may want things. And already Bloomberg’s real estate pals at the Real Estate Board of New York are looking to make retroactive changes to the laws so that the protesters may be evicted.

With the Growth of What Is Privately Owned Comes the Shrinking of the Public Realm

There is a serious problem when what were typically public spaces are replaced with privately owned spaces because there is no law against private citizens depriving other private citizens of their right to free speech. By contrast, under the Bill of Rights the government is prohibited from depriving the public of free speech. That is why problems arise and the high courts have had to visit constitutional questions of free speech when public town centers around the country are replaced by privately owned shopping malls. There is, of course, an argument that the so-called “privately owned public spaces” are really public or quasi-public spaces when government actions confer significant benefits (including at public expense or its equivalent) like zoning or variance negotiations to create them. Therefore constitutional free speech protections should perhaps apply. But with privatization public rights get more complicated.

It is perhaps no small irony that the private space (bordered by Liberty Street), now the subject of these vexing free speech riddles, although always privately owned, was once named “Liberty Plaza Park.” Upon completion of a post-9/11 renovation it was, renamed “Zucotti Park” in 2006 in honor of John Zucotti, a public servant as Deputy Mayor in Mayor Beame’s administration but at the time of the renaming one of the city’s most powerful zoning lawyers with the law firm of Weil, Gotshal and Manges LLP.

Magadevelopment Miniature

How large does this problem of private ownership of the public realm loom in New York City? Consider what is happening to traditional Brooklyn with the 50+ concentrated acres (above) supposed to be owned by Forest City Ratner in the key central, dense areas atop the main public subway lines (see below). Those fifty acres include the 30 contiguous acres of the proposed Atlantic Yards where, at significant financial loss to the public, the Ratner/Prokhorov (“Barclays”) basketball arena is now being built. This 50+ acre mega-monopoly was brought about with government subsidies and the intervention of eminent domain abuse to concentrate this land ownership in the politically connected Ratner organization. In a significant government-assisted privatization of public space it incorporates streets, avenues and sidewalks previously belonging to the public, together with park, plaza and "public square" space that would otherwise likely have been publicly owned as well.

To understand in foreboding miniature what this mega-monopoly’s privatization of public space might portend for free speech it is worth remembering back to the public protest of the arena’s groundbreaking ceremonies (not attended by local politicians except for Borough President Marty Markowitz). The police hemmed in the demonstrating crowds with orange netting and reflexively told us to return “to the sidewalks.” In other words the sidewalks were our permitted space to publicly demonstrate and express our opposition to the shameless boondoggle. The problem was that there were no longer any sidewalks to return to. They had been privatized by Ratner. My chant, as the police hemmed us in and told us to return to the sidewalk was, “Give us back our sidewalks!”

Political Power, Speech and Physical Places

The simple equation is this: Privatization eliminates the opportunity for speech; without space to publicly assemble the possibility of public speech retreats.

Michael Kimmelman, the new architecture critic of The New York Times, addressed this in an article appearing the Times new “SundayReview” section: In Protest, the Power of Place, October 19, 2011. Writing about Zucotti Park and Occupy Wall Street while referencing such places as Tahrir Square, Kent State, Tiananmen Square, the Berlin Wall, and the meadow in Central Park where protests were held against the Vietnam War, Mr. Kimmelman astutely reminds us that “we tend to underestimate the political power of physical places” and that the power of various media aside, “nothing replaces people taking to the streets.”

If that's so, and I agree that it is, what does it mean when more and more swaths of the city are being privatized: Rater's 50+ acres, Columbia's new 17 contiguous acres being taken from the community in West Harlem (giving Columbia 35 acres of privately-owned monoculture altogether), the 26 private acres that will belong to the Related Companies at Hudson Yards (in addition to other Related holdings elsewhere), the 75 acres taken over the Willets Point development to be owned by one developer.

Park Ownership Taylored to Bloomberg's Taste?

These government-assisted aggregations of the city’s property are all the more troubling when one considers how, with the continuing concentration of wealth in this country, such aggregations are controlled by a smaller and smaller sliver of the population. Emblematic of this is the fact that Diana Taylor, the mayor’s live-in companion and girlfriend, is on the board of the private owner of Zucotti Park. This information, pointed out by the Occupy Wall Street protestors was in a Times article about the pending “clean-up” eviction of the protestors (and how the protestors preemptively initiated their own clean-up):
Some protesters have pointed out that the mayor’s longtime girlfriend, Diana L. Taylor, is on the board of directors of Brookfield.
(See: October 13, 2011, Facing Eviction, Protesters Begin Park Cleanup, by Anemona Hartocollis.)

Incredibly, the very next day, the Times reported (apparently quoting a carefully crafted statement from mayoral aides) that Bloomberg staff had been prevented from lobbying Brookfield, and the Times did so without any mention anywhere in that article of how Ms. Taylor was on Brookfield’s board (as if the mayor wanting to get a message through to Brookfield would have to go through his staff!):
The mayor’s staff, under strict orders from Mr. Bloomberg, did not lobby the owner of the park, Brookfield Office Properties, about whether to push ahead, leaving the decision up to the company’s management, according to several people involved in the discussions.
This was in an a story about how the clean-up/eviction of the protesters had been called off due in large part to support expressed for the protesters and their rights by local politicians, see: Calls Flood In, City Backs Off and Protesters Stay, by Michael Barbaro and Kate Taylor, October 14, 2011.

Would the mayor more likely send his message to Brookfield through Ms. Taylor rather than risk sending such a politically charged message through his staff? That question has now been directly addressed by the Times. The mayor says, `nope.’ Matt Flegenheimer, the Times reporter who wrote the Bonnie and Clyde dog story, has written about Occupy Wall Street twice. One story was about how there is a flood of tourists going to visit Occupy Wall Street who are confused when they go to Wall Street itself without realizing that they, instead need to go to nearby Zucotti Park. His more recent story (one version of it with a shared byline) covers a news conference where the issue of teamwork with Ms. Taylor was raised:
At the news conference in Queens, the mayor was asked if he had spoken about the protests with his girlfriend, Diana L. Taylor, who is on the board of directors of Brookfield Office Properties, which owns Zuccotti Park.

“I can tell you that pillow talk in our house is not about Brookfield or Occupy Wall Street," he said.
(See: Bloomberg Says ‘Tent City’ Goes Beyond Free Speech, by Matt Flegenheimer and John Eligon, October 17, 2011 and see also October 17, 2011, Bloomberg Says He Seeks Balance Between Right to Protest and ‘Right to Be Silent’, by Matt Flegenheimer.)

Imagine you are a protestor looking to get attention and the mayor with his control over city parks won’t let you stay in Union Square, Washington Square or the other city parks, the mayor’s girlfriend has helped kick you out of Zucotti Park, you don’t want to wander over to Forest City Ratner’s 50+ acres because the mayor is handing them all their subsidies (and the other subsidized developers are unfriendly as well?) so you strategize to go instead to the 550-Acre Hudson River Park run by a state-sponsored public authority? Sorry, the mayor’s girlfriend Diana Taylor is Chair of that authority’s board and Michael Bloomberg is on that board too. But don’t worry, their pillow talk never extends to how they want to see the parks used.

Mayor Changes Stance: Doesn't Now Think the Protesters Have These Constitutional Rights

The Matt Flegenheimer article above containing the mayor's assurance that there is no park pillow talk also represents a shift about in Bloomberg's public statements about whether he concedes that the protesters have these rights to express themselves. Bloomberg has gone through all sorts of contortions to find new ways to malign the protesters and emphasize that he (thinking with business acumen clarity?) of course disagrees with them. Nevertheless, as of few days ago the Times was still reporting that Bloomberg was “repeatedly defending the right of people to demonstrate” quoting Bloomberg that “The bottom line is, people want to express themselves, and as long as they obey the laws, we’ll allow them to” and on an earlier occasion, “We have to make sure that while you have a right to say what you want to say, people who want to say something very different have a right to say that, as well. That’s what’s great about this country.”

Mayor Will Give the Public the `Right to Remain Silent'

In the Flegenheimer pillow talk denial article Bloomberg was now saying instead, “The Constitution doesn’t protect tents . . . . It protects speech and assembly.” And Bloomberg was also beginning to test out a new theory reminiscent of President Richard Nixon’s 1969 plea for support from what he dubbed a “silent majority”: Specifically, Bloomberg posits that he might have to evict the protestors because others might have a different point of view (“We can’t have a place where only one point of view is allowed”*) and he might give priority to those interested in their “right to be silent.”

(* "One point of view"?: How does this square with the criticism that the protesters don't have a single coordinated message?)

The mayor's latest caustically dismissive gripe about the protestors (being quoted on WNYC 10/20-21), takes aim at their lack of corporateness: “I don't think there’s anybody to negotiate with and if there is we haven't been able to find them.” While that makes Bloomberg out to be somewhat the victim it is not 100% necessarily so. It also overlooks the beauty of how the protesters have been meticulously respectful of the pluralism of the many voices joining together in this protest. (e.g. The popular “Occupy Wall Street Journal” paper being circulated by the protesters is we are told “just one voice among many at Occupy Wall Street.”)

Anyone wonder whether Bloomberg has made contact with the person in charge of the group wanting to express their “right to be silent”?

What is significant about the Occupy Wall Street movement, which obviously stresses the physical taking of space as its most central symbol, is that this physical occupancy is breaking through to deliver a message that wasn’t getting through by other means. More about that coming up.

A Tradition: Control of Communication to Control Politics

(Historian Daniel Walker Howe on WJTN's Jim Roselle program just before his lecture- available- at the Chautauqua Institution where he spoke about the history below.)

In politics there is unfortunately an age-old tradition for those in political power try to seize the channels of communication to squelch the messages they don’t like. In his 2007 book, “What Hath God Wrought: The Transformation of America, 1815-1848,” Pulitzer Prize-winning historian Daniel Walker Howe recounts how one significant threat the South saw in Lincoln’s 1860 election was Lincoln’s reversal of a policy established by President Andrew Jackson in 1835 that had for years blocked the U.S. Postal Service’s delivery of abolitionist tracts opposing slavery. The Postal Service could not legally refuse to deliver mail to addresses but Jackson directed local Southern postmasters that they could under their own authority (technically not his) implement a system where abolitionist mail would be held in post offices undelivered. Instead, a notice would be sent to the addressees (abolitionists were targeting moderates in order to swing their opinions) saying that the office presumed that they would not want these mailings but that if the addressees did they could notify the Post Office to that effect. As a further intimidation, if such moderates did ask for delivery of their mail their names might be publicly posted.

Two Books About Aggregating Control of Communication

I have recently been writing about a two truly excellent books, “The Master Switch: The Rise and Fall of Information Empires” by Columbia Law Professor Tim Wu and “Common as Air: Revolution, Art, and Ownership” by Kenyon College and Harvard University Professor Lewis Hyde. (See: Friday, September 30, 2011, Could the Atlantic Yards Monopoly Be Even Less Regulated Than It Is? Why A Mega-Monopoly Continuation Isn’t Workable, Tuesday, September 20, 2011, A Parable: Some Words Concerning the Future of Communication, Wednesday, September 7, 2011, The New York Times Takes an Editorial Position on the Subject of Encouraging Competition and It’s Inconsistent With Its Position on Atlantic Yards.) Each is about aspects of aggregating power over communication.

Those two authors each express significant worries about the control of speech by reason if privatization and monopolizing ownership of the channels of communication available to us. Each also observes that when government is involved in abetting the formation monopolies the channels of communication get commandeered to control political speech and select those who will be in power. Professor Wu’s focus is more on the private ownership of the technological means and distribution of communication. Professor Hyde’s focus is primarily on how communication and thinking is being impeded by virtue of the privatization of our cultural commons and reference points occurring through an incredible extension of copyright rules.

Enter a Political Hayes

Professor Wu begins his chronicles of the patterned cycle of the rise of information and communication empires trending toward monopolies with the advent of the telegraph. His earliest cautionary tales about such private control of communication channels therefore concerns the way Western Union used its exclusive monopoly control over the telegraph to influence and likely determine the outcome of the Hayes/Tilden 1876 presidential election, a disputed election very much like the Bush/Gore election of 2000. Like Gore Tilden won the popular vote (by 247,448) in the general election. (Gore won by 543,895 and had the U.S. Supreme Court not interfered with the state court-ordered recount of all the Florida ballots would have won the electoral college vote as well.)

Wu points out relationships and reasons the Western Union people wanted Hayes, the Republican, to attain office, including that “much of what were eventually Western Union’s lines were built by the Union Army.” Western Union carried (Hayes-favorable) Associated Press stories to the exclusion of others, “working with the Republican Party and avowedly Republican papers . .” doing “what they could to throw the election to Hayes.” More important, according to Wu, Managing New York Times editor John Reid, an ardent* Republican, worked with Western Union telegrams to manipulate available information about who had actually likely won the election so as to swing the electoral votes of Southern states to Hayes. Among other things, this complicated bit of history is widely viewed as having been what ended Reconstruction in the South.

(* “Rabid,” says Hayes Biographer Ari Hoogenboom in “The Disputed Election” a chapter in his “Rutherford B. Hayes: Warrior and President”)

Exiling Subversive Views

Professor Wu’s book provides some marvelously subtle and intricate analysis of how control and ownership influences the nature of the content of communication that ultimately gets through to the public and informs our culture. In one section of the book he talks about how Hollywood’s Production Code, the moralistic Hays Code from 1930, was able to come into effect (without government assistance) because of the monopolistic structure of the film industry and he theorizes convincingly that the “New Hollywood era,” with films that were “edgy and defiant affairs” and challenging to values of society like “Easy Rider,” “Midnight Cowboy” and “Bonnie and Clyde” might not have come along had industry’s ownership structure remained unchanged.

Wu points out that while the code was in effect, “There was no place for the expression of remotely subversive views or anything that questioned the status quo.”

Talking about the Hays code Wu states that it “goes to a central contention of this book: it is industrial structure that determines the limits of free speech.” He also says:
If making yourself heard cannot be practically accomplished in an actual public square but rather depends upon some medium, and upon that medium is built an industry restricting access to it, there is no market for free speech.
Wu also talks about copyright, for instance the way that control over copyright (because of the ownership options involved) has helped generate the culture we see today where so many films are based on comic book characters.

Copyright, Ownership and Public Forums

Professor Hyde focuses more on copyright issues but is similarly concerned in that regard with the need to maintain open forums for the public to communicate and exchange ideas. Hyde suggests that forums and opportunity for communication ought to remain inalienably public, considering them to be by tradition the equivalent of “public natural resources” and the “common property of all the people.” He says:
A similar trusteeship [by the government on behalf of its citizenry] exists in regard to public meeting places. As described in a 1939 Supreme Court decision, “traditional public forums” such a sidewalks, streets, and parks “have immemorially been held in trust for use of the public, and time out of mind, have been used for purposes of assembly, communicating thoughts between citizens, and discussing public questions”
Like Professor Wu he notes the importance of freedom of expression on the Internet and makes the point the Internet is able to function successfully as it does because the “network protocols, the set of communication rules that made the web possible” were released to and made part of the public domain rather than restricted by copyright.

"Predominancy" of Sects

In parable fashion Hyde tells the story of George Whitefield, a Methodist minster who arrived in Philadelphia to preach Protestantism in 1739. Initially, local clergy shared their pulpits with him but then turned against him. Thereupon, Benjamin Franklin (who is very much a character in Hyde’s book helping him to make innumerable interesting points about intellectual freedom and the necessity for ideas to be shared) got together with a group of friends to fund and build a large lecture hall. Although he did not usually agree with Whitefield, Franklin enjoyed his oratory and “was somewhat moved despite himself.” He further objected to the way Whitefield had been denied a public forum. In appointing trustees to manage the hall Franklin says that care was taken “to avoid giving a Predominancy to any sect.”

Hyde uses his description of the establishment of the public hall to make the point that (emphasis added):
For democracy to flourish after the America Revolution meant discarding both the tools by which oppositional voices were silenced and the consequent aristocratic norm of pretended consensus.
He contrasts this with the time before the revolution when newspapers were printed only “by authority” of the government and dissenters could be jailed, exiled or executed.

We certainly don’t execute our dissenters these days but if the elements of speech are privatized through ownership, particularly concentrated ownership, as both Wu and Hyde argue is often happening in so many ways then money and speech become interchangeable, but in one direction only. When money is speech, then to have a 1% sliver controlling most of the nation’s wealth (as objected to by Occupy Wall Street) means that dissent does suffer exile. In America with money equating with speech more and more (and many of the wealthy would have it be even more so) we have given Predominancy to that sect the creed of which is plutocracy.

Restoring A Healthy Recognizable Capitalism

It is important to observe that neither Wu nor Hyde are arguing against capitalism. What they are alerting us to is the problem of an out-of-balance monopolistic concentration of rights with respect to speech that is facilitated by government alliances, when instead the government should be limiting such monopolies so as to achieve a more recognizably Adam Smith kind of capitalism. Each makes convincing arguments as to why limits on such concentrations of rights is the healthier, more workable way to organize capitalism, society, public discourse and the exchange of ideas.

Objection to the teaming up of government and monopoly should be common ground for both the Tea Party and Occupy Wall Street activists although I suspect that the proportion of Occupy Wall Street protesters astute enough to realize this may be greater. Also, neither Wu nor Hyde take on the subject of the general skewing of wealth in the country but they do each criticize the concentrated piling on of additional rights for those who are already ahead in the game.

The Tug of Wealth on Messages and Communication

How does the skewed wealth of the nation affect the drift, content, and overall perspective of public discourse and debate in this country? Technically don’t we have, after all, protected free speech? Technically, we do but when lucre is speech the exercise of that constitutional right must compete for meaningfulness with the cacophony of the speech-on-steroids that is influenced or paid for by money in ways almost too numerous to catalog.

I have already written about how, when Atlantic Yards, New York City’s biggest boondoggle and political scam was launched, the New York Times, which would like to think of itself as earning a reputation for protecting the public and insisting on good government, fell down on that job. For all intents and purposes it colluded in the mega-development’s promotion while having entered into a business partnership with the developer to build its new headquarters. (See: Sunday, June 26, 2011, “Page One: Inside the New York Times” Reviewed; Plus The “New York Times Effect” on New York’s Biggest Real Estate Development Swindle.) That’s the influence of money.

An Unhappy Halloween's Tricky "Treats": Money Purveys Its Chosen Messages

The arena that is now being built at Atlantic Yards is being publicly subsidized at great cost, resulting in a substantial loss to the public of hundreds of millions of dollars. The arena has been accurately described by Tom Ziller (at SBNation.com) as “simply Vaseline for a real estate project [and- I add- accompanying land grab] in Brooklyn that will make his company billions more than an NBA team could ever be worth.” Nevertheless the public is being told to like it.

On the first Halloween weekend (October 2010) after its publicly-protested groundbreaking Brooklyn residents found two promotional packages for the Ratner/Prokhorov arena landing on their doorsteps: One was a “CNG” (“Community Newspaper Group”) “Brooklyn Tomorrow” magazine with a “Barclays Bounce” cover; the other was the New York Times Sunday Magazine with the Russian Oligarch and basketball team owner, Mikhail Prokhorov, on the cover conspicuously palming two basketballs in his enormous hands.

Oligarchy's Velvet Glove Holding the Press

The first was clearly in the spirit and tradition of a paid advertorial although the Community Newspaper Group’s editor denied that this was its character. The second was ostensibly critical coverage (8,298 words) as ought to be expected of the Times regarding issues of serious interest to New Yorkers. The story, however, about the Russian oligarch, “the second-richest man in Russia,” was unabashedly adulatory, suggesting that “for Nets fans” Proklhorov and his Kalashnikov “seemed too good to be true” and working in references to “how hot his secretary is.” It involved the reporter trailing along with Prokhorov to the V.I.P. area of a trendy disco with the reporter sounding as if he was doing one of Garrison Keilor’s Raymond Chandler parodies while describing the women from “several Russian modeling agencies” who were there because `Proky’s' social secretary had called ahead “to stock the pond”:
two dozen high-cheekboned knockouts in lethal heels and dresses that were more like plot summaries. The blue and gray plastic V.I.P. bracelets on their wrists made them look like a flock of banded herons.
The article, may have focused of on the way these women were proverbially stripped down to their assets, but it touched only lightly and with delicacy on the questions of “asset stripping” and how Prokhorov built up his wealth, “asset stripping” described in this article as the way “valuable parts of a company are transferred to a new institution (in this case, Rosbank) and sheltered from creditors.”

This is not to say that reading the story you would necessarily come away devoid of insights. Reading between the lines you might find yourself suspecting there was something funny about the taxes Prokhorov pays and that he maintains an “official residence” in Siberia different from his actual large home in Moscow as some sort of dodge:
Although Prokhorov’s official residence is a village in the Krasnoyarsk region of Siberia, where he pays upward of $500 million a year in taxes, he lives in Skolkovo, 45 minutes north of Moscow, in a sprawling 21,500-square-foot house he finished building six years ago.
More important to the theme of this Noticing New York essay is a subtext in the Times article about Prokhorov’s ability to control the press. Twice the article has Prohorov demonstrating to reporter Chip Brown how the reporter would himself get bested if he attempted to put a gun to Prokhorov’s back. That's the way the article begins. The second time it is coupled with the reporter’s quip about how only part of the afternoon he spent with Prokhorov in his mansion was devoted “to disabling journalists.” Tying all this together are associated references to Prokhorov's attaining supremacy “in a very soft manner” (he could have broken the reporter’s leg “in a very soft manner”) and the last book-ending line of the article which concludes with the word “softly” as a reference, not only to a spoken of victory, but the opening use of the word respecting Prokhorov's power over the visiting reporter.

The article also refers to how Prokhorov manages his PR, or his “legends.”

At another point in the article there is an exchange at a promotional party between Prokhorov and Masha Gessen, the deputy editor of “Snob, a lavish magazine for Russian cosmopolites that is one of a group of media properties in which he is investing $150 million.” He tells her, “I don’t read.” She parries, “Then I guess we can write whatever we want!” And at one point the article does associate Prokhorov with changes constituting: “a creepy usurpation of dissent — a replacement of the control of the old Soviet state with the control of a for-profit corporation.”

The overall point here is that even if Russia is was ranked as the 8th most dangerous country in the world for journalists (it is now ranked 9th just after Mexico) and the most dangerous in Europe by the Committee to Protect Journalists, even though the Times decries how journalists are with impunity murdered and maimed to control coverage, Prokhorov understands the value of “soft” control of the press and knows how to use it. Soft control, that’s the influence of money.

The article contains a now infamous picture of Prokhorov, Bloomberg and Jay-Z dining at Gracie Mansion. That's the influence of money.

Press Ownership Structure: One Giant Advertorial

As noted above, the editor of the Community Newspaper Group, (CNG) denied that the “Barclays Bounce” “Brooklyn Tomorrow” magazine was an advertorial. But that denial is probably rather academic. “Community Newspaper Group” is something of euphemistic misnomer. It’s a large group of local newspapers, formerly feisty, now acquired by Rupert Murdoch. Rupert Murdoch doesn’t need to be paid to publish blandishment-style exaltations of the exploits of the supremely affluent. Murdoch courts power and the brokering of it which is why his agglomeration of press outlets (written about here), including the New York Post, Wall Street Journal and Fox outlets, is so distressing. What’s more, Forest City Ratner is the Community Newspaper Group’s landlord. That’s the influence of money.

Talking in Public: Who Has Permission

The question is raised whether the Occupy Wall Street protestors should permitted to utilize the space of Zucotti Park to express themselves but we are surrounded everywhere, throughout the public realm, by purchased corporate speech for which no permission ever seems necessary. We drown in it. Once upon a time New York’s subways were covered with painted-on graffiti. I was never a fan of having to live with it though I can appreciate the exuberance and artistic nature of some of the designs. I even recognize that it was a form of speech. I was glad when it was eradicated. But now subways are again being covered by designs, this time advertising, corporate graffiti, part of the barrage of corporate speech to which we are constantly subject. This speech is permitted without question.

Just as I was not in favor of the subway graffiti of old I am not in favor of the corporate graffiti appearing on those same trains and I am not in favor of the cooperate graffiti of replacing the names of Brooklyn subway stops with the name “Barclays” (a bank) for the Ratner/Prokhorov basketball arena. In typical tilt-things-in-favor-of-the-rich fashion the public's MTA gave the naming rights to those stations to Ratner virtually for free, allowing Ratner to then privately profit by selling the right to graffitize the stations for a truer value. (See: Sunday, June 28, 2009, Naming a Problem: The MTA Gives Ratner the Right to Name Brooklyn Subway Stations “Barclays”) That's the influence of money.

(Above, subway ad for the New York Times featuring Atlantic Yards mega-monopoly promoting front man Jay-Z.)

Press Release Circuses

The barrage of all of this paid-for corporate speech to which we are continually witness should serve as a subliminal reminder to the wise and perspicacious of the pervasive behind-the-scenes flow of press releases (and resulting press release journalism) in which corporations invest. Sites like Atlantic Yards Report can repeatedly point out the resulting inanities of a fawning press. (See: Friday, October 21, 2011, Department of Diverted Attention: Daily News devotes long op-ed to question of Nets' name change.)

(Advertising seen from New York's City Hall Park featuring Jay-Z's wife Beyoncé.)

Does it serve us when the public’s attention is so distracted by press releases about circuses and sporting events? This may seem sour, but the enormous amount that is spent on such speech and the fact that so much private speech materializes precisely because is paid for might be less of a concern were it not for the skewing of the wealth in this country that is able to pay for such speech.

Politicians Who Don't Come to the Rescue

Politicians command headlines. Can they break through the din of this corporate speech? Yes, they can, but for that to be meaningful they have to be on your side and if you are not careful they can mangle the message. Do you remember the story of the Wall Street money manager at the beginning of this article who scolded senators Schumer and Gillibrand for not coming to Wall Street’s defense saying, “They need to understand who their constituency is”?

As soon as it was likely that Andrew Cuomo would be governor of the state Forest City Ratner made contributions to his campaign. That contribution was never returned despite identified conflict of interest. In New York City we have an office called the Public Advocate, the theory being that its holder advocates for. . yes, the public. Forest City Ratner also contributed to Bill de Blasio, the holder of that office and de Blasio has never advocated for anything that is likely to give New York’s plutocrats agita. The New York Attorney General is responsible for doing investigations in this state. Atlantic Yards needs to be investigated. Will Eric Schneiderman, the current holder of that office, investigate? He too has received campaign contributions from Ratner. (See:Wednesday, October 19, 2011, Catching up on Bruce Ratner's campaign contributions: to de Blasio and New York Uprising (and would past gift to Schneiderman stave off Downtown Brooklyn Partnership investigation?).

Once again, that’s the influence of money.

The Audacity of Wanting Change Rather Than "Hope"

Oh, and politicians, when they do speak up on your behalf, may, as just noted, mangle it. New York City Council President Christine Quinn, a regular Bloomberg ally, spoke up for the Occupy Wall Street crowd the other day. She suggested that the occupancy meant that there needed to a restoration of “hope.” (See: October 18, 2011, Quinn: We have to respond to loss of hope felt by protesters, by Colby Hamilton.)

A quieting restoration of “hope” is something that actual Wall Streeters might be happy with. I think that what the Occupy Wall Street crowd is instead interested in is actual an actual change in the way things work.

Dog Gone It: They Have Too Much

I think the message the Occupy Wall Street crowd is delivering about Wall Street and the Wall Street crowd is the same message that was delivered about the banks in the movie “Bonnie and Clyde”: compared to the rest of us, they have too much. . . It’s not fair.

I would go one step further: the fact that they have to much presents serious questions about the adequacy of our free speech, the ability of the rest of us to make ourselves heard.

That brings us back to where we began. Who can say whether Bloomberg just snapped his fingers and summoned up a mayor-loves-dogs story? Maybe he didn’t. But what was he thinking if he knew that this story was going to run in the Times, alongside what could have been the perhaps very bloody spectacle of an eviction of the protesters from Zucotti Park? With all the media and paid-for speech that the mayor and friends can so readily summon to the political fray there may be one lucky protection for the 99%: that Mr. Bloomberg, the mayor and second richest New Yorker, would be so tone deaf, so incredibly tone deaf that he even named his dogs after those famous bank antagonists, Bonnie and Clyde.

Friday, September 30, 2011

Could the Atlantic Yards Monopoly Be Even Less Regulated Than It Is? Why A Mega-Monopoly Continuation Isn’t Workable

Just how unregulated can the Forest City Ratner Atlantic Yards mega-monopoly be? Probably more unregulated than anyone can possibly imagine. Anyone, except perhaps the developer/subsidy collector himself, Bruce Ratner, who seems always to be able to envision the next steps to which his firm’s lack of accountability can be taken, and then implement it.

The signals being sent by Governor Andrew Cuomo indicate that Ratner’s fondest wishes for no effective regulation will be accommodated. One such signal is the appointment of mega-project booster Joe Chan for a top-ranking job at the Empire State Development (Corp.), the agency that theoretically supervises and regulates the megadevelopment. (See: Wednesday, September 14, 2011, Post: Atlantic Yards booster Joe Chan to leave Downtown Brooklyn Partnership for ESDC and Downtown Brooklyn economic development czar stepping down for state job, September 14, 2011, by Rich Calder)

The fact Atlantic Yards will be so blatantly unregulated should make clear to those considering the matter that seeking to regulate a continuing Ratner monopoly of vast size is not a solution. What is really needed is for the unjust and unjustifiable Ratner mega-monopoly to be broken up.

The Vice of of a Versa: A Monopoly That Turns The Tables to Regulate the Government

Earlier this month Noticing New York commented that rather than being a regulated monopoly the Atlantic Yards mega-development has turned the tables and, instead, regulates the government that we might suppose existed to regulate it:
The Forest City Ratner monopoly hasn’t consented to be regulated by the government in exchange for its special [monopoly] status. For all intents and purposes it is the reverse. The government doesn’t regulate Forest City Ratner; instead Forest City Ratner has been regulating the government. To the extent that Forest City Ratner’s real estate industry development activities ought to have been subject to time-tested and carefully evolved regulations normally applicable to other participants in the industry, like zoning and review processes such as the City Charter’s ULURP (“Uniform Land Use Review Procedure”) or SEQRA (the “State Environmental Review Act”), Forest City Ratner used its political capturing of the state’s Urban Development Corporation (aka and dba: “The Empire State Development Corporation”) in order regulate government and effectively avoid any meaningful application of these or similar restraints as well as the public protection that was thereby intended.

Similarly, when IRS regulations said that interest on bonds issued for the Forest City Ratner arena (now the Ratner/Prokhorov “Barclays” arena) would be subject to income tax, New York officials swooped into action to lobby for a special loophole exempting interest on Forest City Ratner’s bonds from the taxes that regulations would have required anyone else to pay. When in 2007 the state legislature planned to enact across-the-board reform of the city's 421a property tax incentive program applicable to the building of new apartment buildings, a special treatment loophole was created to excuse the Atlantic Yards mega-project from supplying affordable housing on the same terms required for any other project.

The list of accommodations to specially excuse the mega-monopoly from all sorts of regulatory and procedural requirements is too extensive to attempt to list them all here. Another escape from regulatory safeguards worth mentioning is how the MTA in connection with the land it was furnishing the developer managed to confer extra benefit and a lowered cost on the project by not complying with provisions of relatively new public authority reform legislation intended to prevent abusive favoritism.

Even the rerouting and redesign of the surface traffic all around the busiest, most populous areas of the Borough of Brooklyn have been turned over and put in the hands of the private sector monopoly, being done by a consultant hired by and working for the private developer. (See: Thursday, June 16, 2011, Sovereign Immunity, Reconfiguration of Brooklyn’s Traffic And The Peculiar Verisimilitude of Government Functions When Forest City Ratner Takes Over.)
(See: Wednesday, September 7, 2011, The New York Times Takes an Editorial Position on the Subject of Encouraging Competition and It’s Inconsistent With Its Position on Atlantic Yards. Note added 10/03/'11: Atlantic Yards Report pointed out that, as originally written, this critique didn't include, “the state's unwillingness to crack down on blatant and continuing violations by trucks drivers of of site and city regulations.” Here is another link in that respect.)

Sense and Tradition When It Comes To Monopoly Regulation

It makes sense that this Forest City Ratner mega-monopoly ought to be meaningfully regulated, because the government is paying with subsidy for so much of what is being developed, a proposed $2 to $3 billion, probably coming in at a figure at the higher end of that spectrum. It also makes sense to regulate because it is a vast monopoly and there is an American tradition of constraining monopolies that includes regulating them if those monopolies are permitted at all.
How vast is the Ratner monopoly? If you look at the maps above you will see that Ratner has more than 50 acres of some of the highest density real estate in Brooklyn sitting astride an important series of stops on the Borough's key subway lines. The Atlantic Yards plan, while nominally involving only 22 acres, actually serves to give Ratner ownership of 30 contiguous acres. For more details you can read: Saturday, November 21, 2009, Mapping Out Forest City Ratner’s Monopolistic Strategy of Subsidy Collection and Thursday, January 7, 2010, An Updated Map of Forest City Ratner’s 50+ Acre Prime Brooklyn Real Estate Mega-Monopoly. The community is having to figure out how to refer to a landscape where everything is Ratner owned: Ratnerville? Ratner Heights?

Photobucket

(For more on the story that goes along with the above Ratnerville image click here.)

The supremely odd thing is how the Ratner monopoly attained its vastness. When the government doesn’t regulate monopolies it normally steps in to break them up. In the case of the Ratner mega-monopoly it was the reverse: The government stepped in to create it. Were it not for the assistance the state ESD provided, conferring upon Ratner the power to abuse eminent domain, the Ratner mega-monopoly could never have come into existence. A second odd reversal is manifest: The U.S. Supreme Court had never ruled that the creation of a monopoly is an acceptable purpose for which eminent domain may be used; it has ruled, however, that eminent domain may be used to break up real estate monopolies. The case was Hawaii Housing Authority v. Midkiff, 467 U.S. 229 (1984)*.

(* “Regulating oligopoly and the evils associated with it is a classic exercise of a State's [eminent domain] police powers. . . . The Hawaii Legislature enacted its Land Reform Act not to benefit a particular class of identifiable individuals but to attack certain perceived evils of concentrated property ownership in Hawaii - a legitimate public purpose.” And in footnote 5: “After the American Revolution, the colonists in several States took steps to eradicate the feudal incidents with which large proprietors had encumbered land in the Colonies.”- emphasis supplied)

So in theory while government could use eminent domain to break up Ratner's real estate monopoly, there is nothing in terms of United States precedent that says eminent domain can be used the way it was to create such a monopoly.

As pointed out in the above Noticing New York article earlier this month, once upon a time the price in America for being allowed to exist as a monopoly was to consent to be regulated. I used as an example the permission that was given to the Bell telephone company, the incipient AT&T, via the Kingsbury Commitment of 1913, which was appropriate because I was pointing out the philosophical inconsistency in the anti-monopoly stance that the New York Times editorial page was taking in opposing “AT&T’s $39 billion attempt to buy the nation’s fourth-largest carrier, T-Mobile” while at the same time the Times has supported the Atlantic Yards monopoly.

The Times, mind you, was not saying that an expanding AT&T monopoly should be allowed and then regulated; it was flat out opposing the monopolistic “anticompetitive threat” that would result from AT&T acquisition and absorption of T-Mobile.

No More Mr. Nice Monopoly?

In explaining what happened with AT&T and the 1913 Kingsbury Commitment I quoted extensively from Columbia Law professor Tim Wu’s excellent book “The Master Switch: The Rise and Fall of Information Empires” that beginning with the telegraph and telephone companies and then bringing us up through the advent of the Internet, is about the cycle and repeated pattern of information and communication empires and how they tend toward monopoly. I did this to compare and contrast the initial good intentions and public service commitment of the newly regulated early phone company with the Forest City Ratner monopoly empire in Brooklyn.

Because Forest City is so consistently and so preeminently focused on its own self-interest over that of the community,* it is very far away from being either a benign or benevolent entity. Hence the need for regulation. But the way that Wu gives credit to the early phone company for its good and public spirited intentions, particularly as embodied in the personage of key founder Theodore N. Vail, the regulation consented to by the early phone company to protect the public seems almost superfluously unnecessary. (Right: Image of Vail in 1913 from Wikipedia)

(* Even to the extent that Ratner felt it necessary to create a fictitious set of AstroTurf community groups on its payroll to “represent” - i.e. misrepresent- the community interest rather than engage in real dialogue with the community about its interests. Malcolm Gladwell, a staff writer at the New Yorker, provided some of the most recent thoughts available on Ratner’s self-interested behavior.)

An Out-of-Bounds Monopoly: Republic Sacrifice

The Forest City Ratner mega-monopoly is all the more pernicious in that it involves real estate, an industry for which it was not previously thought there was a reason to create monopolies, and also for the fact that the very extensive Atlantic Yards monopoly involves granting Ratner (with free and below-cost donations of property from New York city and the MTA) a monopoly over what is property that properly should be an inalienable part of the public realm, part of the “res publicae” or “res publica” (from which derives our word “republic”) that under Roman Law were inalienably public property, held in common, that no person could privately own.

Kenyon College and Harvard University Professor Lewis Hyde in his book “Common as Air: Revolution, Art, and Ownership” describes “res publicae” this way:
Things such as roads and harbors, bridges and ports, that belong to the public and are open to them by operation of law

* * * *

. . . in a commercial culture, city streets are republic property . . .
Notwithstanding that “res publicae” is supposed to include public parks and all the roads and streets the public needs to travel for purposes of public commerce, Atlantic Yards involves giving over all of the park space, plus the private roads, avenues and sidewalks that were previously owned by the public to the dominion or Ratner’s private monopoly ownership.

(For a discussion of the subject of “res publicae” a footnote in Hyde’s book recommends reading: Romans, Roads, and Romantic Creators: Traditions of Public Property in the Information Age, by Carol M. Rose, in Duke Law’s Law and Contemporary Problems. In his acknowledgments Hyde notes that in the course of writing his book he was invited to become a fellow at the Berkman Center for Internet and Society at the Harvard Law School where he learned his law and was given research assistance.)

Monopolies Bestowed By Government & Revolt

That is about as far as we took the subject of the relationship between monopolies and government in the last Noticing New York post to which we have been referring, but it is not altogether that simple. Yes, there has been an American tradition of government constraining monopolies. That tradition involves the constraints of not permitting them at all, examples being the Sherman Antitrust Act of 1890, and the Clayton Antitrust Act of 1914, or constraining them through regulation as was done with the phone company pursuant to the Kingsbury Commitment. The tradition of government constraint of monopoly power in America even goes back to the framing of the Constitution as we shall see in a moment. But there have also been traditions of other sorts between governments and monopolies.

During the reign of Queen Elizabeth I (November 17, 1558 to March 24, 1603- image above) the Queen regularly granted lucrative monopolies to those she favored. The Earl of Essex was granted the monopoly on sweet wines throughout the realm. When he fell out of favor, he lost his monopoly. She granted monopolies for iron, coal, oil, vinegar, saltpeter, lead, starch, yarn, skins, leather, and glass, the result being that these, according to historian Lord Thomas Babington Macaulay, “could only be bought at exorbitant prices.” (This quote from Macaulay appears in Hyde's “Common as Air: Revolution, Art, and Ownership”)

According to Macaulay:
At length in the reign of Queen Elizabeth the power of creating monopolies began to be grossly abused ; and, as soon as it began to be grossly abused, it began to be questioned. The Queen wisely declined a confrontation with the House fo Commons backed by the whole nation. She frankly acknowledged the reason for the complaint: She cancelled the patents [monopolies] which had excited the public clamours; and her people delighted by this concession, and the gracious manner in which it had ben made, did not require from her an express renunciation of the disputed prerogative [to grant monopolies].
This is not to say that disputation of the prerogative didn’t unfold with more history involving her successor monarchs.

Monopoly and Revolt in Colonial India

Lest one think that the British practice of government granting and enforcing monopolies is all part of the far distant past it ought to be remembered that the Mahatma Gandhi-led salt march (Salt Satyagraha) that was an important part of the Indian independence movement was a march in opposition to the British salt monopoly in colonial India. Did you see director Richard Attenborough’s 1982 film “Gandhi”? The monopoly was used to prevent the Indian people from gathering the salt they could otherwise cheaply produce for themselves.

Monopoly in Colonial America When Revolution Arrived

In the colonial times of our own American Revolution of 1776 monopolies, though they may not have been banished before the revolution, were not well regarded. Adam Smith’s “Wealth of Nations” first published on the 9th of March, 1776, uses the words “monopoly” or “monopolies” over 200 times. As favorably disposed as he was to the benefits of a free market (his famous “invisible hand” being regarded as virtually sacrosanct in the U.S.) none of Smith’s references to monopolies are complimentary. There are those who say that Smith’s furious opposition to the monopolies helped fuel his writing of the book. And given that he was opposed to monopolies it is not surprising to observe that Smith abhorred their being assisted or brought into effect through government.

I am indebted to the Lewis Hyde “Common as Air” book (referred to above) for pointing out that when adoption of the U. S. Constitution was being negotiated and Thomas Jefferson famously wanted, as an essential safety measure, to include a bill of rights he wanted that bill of rights to include a provision restraining monopolies. Noticing New York previously covered the topic of what the Founding Fathers would think of Atlantic Yards: They wouldn’t like it. (See: Tuesday, November 10, 2009, Judicial Review of Atlantic Yards Corruption: Laws Should Not Be A "Dead Letter").

In that 2009 Noticing New York piece examining such sources as the “Federalist Papers” we reviewed the debate about including a bill of rights and whether the enumeration of things it might include (protections against the abuse of eminent domain being amount them) needed to be express or could just be assumed to be protected. From modern day experience we know that those unwilling to make assumptions about protections were almost certainly right given that, even with the Bill of Rights (and also the new York State Constitution) containing protection against eminent domain abuse the courts deferring to legislatures have not enforced the protections. Thus we witnessed the eminent domain abuse used to produce the Ratner Atlantic Yards monopoly on the premise that legislation, or even legislatively authorized agencies, could override these constitutional provisions. And in this regard, we noted that the Founding Fathers, believing in separation of powers and judicial independence, would have been appalled by this kind of blank-check judicial deference because, in the words of Alexander Hamilton: “Laws are a dead letter without courts to expound and define their true meaning and operation.”

(Alexander Hamilton above)

The article did address the subject of Founding Father antipathy to monopoly, including the John Adams quote:
Property monopolized or in the possession of a few is a curse to mankind
(John Adams above)

Restriction Against Monopolies As A Fundamental Entitlement

But that article did not note that in correspondence between Thomas Jefferson and James Madison about the need to add a bill of rights to the Constitution, apparently both were of a mind that it would be good if the enumerated protections included “restrictions on monopolies.”

(Jefferson above)

According to Jefferson, in some of this correspondence (emphasis added):
A bill of rights is what is what the people are entitled to against every government on earth, general or particular, and what no government should refuse, or rest on inference. . . .

. . . . [it should provide] clearly and without aid of sophisms for freedom of religion, freedom of the press, protections against standing armies, restriction against monopolies, the eternal and unremitting force fo habeas corpus laws, and trial by jury in all matters of fact triable by the laws of the land and not by the law of nations.
Madison (side) had similar thoughts (though he did go on to consider the benefit of the monopolies of patent and copyright, presumably for limited periods of time):
With regard to Monopolies they are justly classed among the greatest nuisances in Government.
Judicial Override of Principles Vis-Ă -vis Atlantic Yards

If the Constitution had actually eventually included “restrictions on monopolies” would the government-assisted Ratner monopoly have been permitted? Madison expressed to Jefferson his suspicion that an enumeration of rights “however strongly marked on paper” would simply be overridden if there wasn’t sentiment on the part of the public majority* to continue honoring them. It is conceivable that one more Bill of Rights provision saying that Atlantic Yards constitutes an unprincipled wrong would have prevented it, but perhaps that provision would have been just as easily ignored by the courts as they ignored the state agency override of federal and state constitutional provisions against eminent domain abuse.

(* Notwithstanding the state agency override of the constitutional provisions against eminent domain abuse acquiesced to by the courts, Atlantic Yards does not have the support of any public majority, as evidenced by the non-attendance at the Nets naming event by any elected officials other than Brooklyn Borough President Marty Markowitz.)

Effective Regulation of Monopolies vs. Collusion With Government Regulators

So there is the government tradition of government awarding monopolies to favored individuals like the numerous monopolies awarded by Queen Elizabeth I when she was `grossly abusing’ her royal prerogatives . . . or the Bloomberg and ESDC’s handout to Ratner of his mega-monopoly. There is also the opposing tradition of restricting monopolies as was envisioned by Jefferson and as underlies the idea of breaking up monopolies and the Sherman and Clayton antitrust laws. “Restrictions on monopolies” may also be said to include effective regulation of monopolies when it it is thought to be necessary to consent to their existence at all. And then there is one more tradition of relationship between government and monopolies: Of all of the traditions it is the most insidious.

The most insidious relationship between government and monopolies is the relationship that looks like regulation to constrain the monopolies but is really the reverse. It is when government regulators are “captured” by the industries they regulate and under cover of “regulation” help the regulated monopoly maintain or enhance that monopoly.

Lessons From “The Master Switch”

Tim Wu in “The Master Switch” credited Theodore Vail for his earnest consent to be regulated for the public good. He also has stories in the book about the effective use of antitrust law to break up monopolies such as the early Edison Trust and later the Hollywood studio system monopoly. The Edison Trust that monopolized the early movie industry dictated that all movies had to be of a short (Nickelodeon) length and that none of them should have stars. Pursuant to a 1948 U.S. Supreme Court decision the vertically integrated studio system (production+distribution+exhibition) was broken up, which Wu argues made possible such films as "The Godfather."

Nevertheless, much of Professor Wu’s book is about how regulators often colluded with (or were bamboozled by) the monopolies they were regulating to help them maintain or strengthen their monopolies. Wu describes the various ways in which this was to the public’s detriment.

Wu describes how a regulated radio industry held back the technological development of both television and FM radio because those new technologies threatened to displace the existing AM radio monopolies and their business model. Despite being a regulated “common carrier” that was supposed to provide equal access to all, the phone company used the pre-existing monopoly it had on the use of high-quality long distance phone lines to get a piece of the action in controlling of the radio waves. Wu describes how the culture of these emerging industries might have developed differently and in a more natural and organic fashion had these controls not been so tightly exerted. At one point Wu's thinking and analogies even take him to some mentions of Jane Jacobs urban development parallels (pages 200 and 297).

Monopolies and the Critique of Central Planning: Paging Jane Jacobs

The advantages of “central planning” are often proffered as a rationale for endorsing the existence of monopolies but Wu, invoking other well-known thinkers, critiques the disadvantages of monopolistic “central planning” : “no such planner could ever hope to have all the relevant facts. . to arrive at an adequately informed or right decision.” Wu notes that Jane Jacobs was one of a new era of both conservative and liberal thinkers (Friedrich Hayek, “The Road to Serfdom” and Leopold Kohr who inspired the small-is-beautiful movement are similarly mentioned) who were “rediscovering a love for organic, disorganized systems.” He quotes Kohr: “Whenever something is wrong, something is too big.” Wu notes that Jacob’s work revealed how:
Olympian planners like Robert Moses [upon whose development paradigms Ratner’s Atlantic Yards design is closely modeled] were going wrong. There was no understanding, let alone regard, for the organic logic of the city’s neighborhoods,* a logic discernible only on foot.

(* a few lines later: “neighborhoods like New York’s Soho and West Village, which had developed organically for centuries” and like Prospect Heights vis-Ă -vis Ratner, were threatened with destruction by Moses plans.)
In a later summing-up on these points Wu writes:
The twenty-first century begins with no such predilection for central order. In our times Jane Jacobs is the starting point for urban design, Hayek’s critique of central planning is broadly accepted, and even governments with a notable affinity for socialist values tout the benefits if competition, rejecting those of monopoly.
He then goes on to describe how with competition in today's technological world “inventive spirit” is translated into commerce “virtually overnight, creating major players with astonishing speed, where once it took years of patient chess moves to become one. .”

The Atlantic Yards megadevelopment exemplifies virtually every complaint Jacobs had about central planners like Moses. (See: Tuesday, November 11, 2008, Jane Jacobs Atlantic Yards Report Card.) Among other things Jacobs didn’t like were monopolies.

Jane Jacobs: Regulation of Monopolies vs. Dealing With the Real Harm From Monopolies

(Jane Jacobs image from Wikipedia)

Here is Jane Jacobs in her 1984 book “Cities and the Wealth of Nations” (note the reference back to Adam Smith) sounding like she is completing the thoughts of Professor Wu in his 2010 book, telling us that the real harm monopolies inflict is not something that can be regulated away (p.227):
Monopolies gratuitously harm cities and suppress what their economies are capable of achieving. The usual objection to monopolies is that they charge extortionate prices and make unconscionable profits by cornering a market, From this it follows that monopolies can be rendered harmless if their prices or profits are regulated. If, at the same time , a case can be made for economies of scale by protecting monopolies from competition, they can be thought of as beneficial. But extortionate prices, harmful though they certainly are, are the least of the disadvantages of monopolies, for monopolies forestall alternative methods, products, services. This often becomes most obvious when monopolies are broken.
For more of this kind of thinking you can read what Jacobs says about how company towns are not conducive to the promotion of urban economic growth in her 1969 book The Economies of Cities (pages 37, 89, 97-98, 102, 127, 143-144, 231).

How The Phone Company Got To Be Big in Texas: Using Regulation To Quash Competition


In one of his most chilling descriptions of how “regulators” can team up with the regulated to further the unfair advantages of those building monopolies. Wu describes how in Rick Perry’s Texas (in 2003 George W. Bush had already moved on to the White House) “with a hundred registered lobbyists working in Austin- - as opposed to the 181 members of the [Texas] legislature” Southwestern Bell Company and the legislature came up with a scheme of laws and regulations to freeze out SBC’s competitors. This aided in the reintegration and reestablishment of the once broken up phone company as a monopoly that is much the equivalent of what it had been before (except that in the interregnum there had been a revolution where everyone in America got more sophisticated phones, modems and the Internet).

The Secrets of Out-of-Control Monopolies Un-revealed

One frightening thing mentioned in Professor’s Wu’s book (and I am not sure mention of it can be found anywhere else) is that at the same time that phone company was assisting President Bush to violate federal law pursuant to a secret executive order by assisting the National Security Administration in the warrantless monitoring of telephone and Internet communications on a vast scale even now not full disclosed, the phone company's pending plans to reintegrate its monopoly were under review by the very same Bush administration. The full extent of exactly what may have happened has not been investigated and may never get adequate attention because in July of 2008 Congress passed a law granting AT&T and Verizon full retroactive immunity for any violation of the laws against spying on Americans.

Wu’s book is full of more interesting things to know about the phone company and what monopoly behavior may get you (or not get you), including:
• How the phone company had invented an answering machine that used magnetic recording tape in 1934 but kept the discovery secret out of paranoia that the invention would disrupt its business model. (Conventional wisdom is that America was introduced to magnetic tape recording machines after capturing and analyzing “magnetophon” machines the Germans were using to support their propaganda promulgation with multiple broadcasts from different time zones), and

• How extension of the Manhattan Project into “more sophisticated weapons” and other national security assignments was subcontracted out to the AT&T company because all the nation’s technological eggs were in that one monopoly’s basket. (Like the premise the government itself can't develop the platforms and infrastructure for the Hudson or Vanderbilt railyard sites?)
If only the telephone company had told the Defense Department about magnetic recording tape before they discovered the secret by capturing the German machines! Jame Coburn starred in a 1967 satire “The President’s Analyst” involving all sorts of secret CIA type activity. I thought the film was impossibly over the top when it reveled that behind all the double-crosses going on the (pre-breakup) phone company was the real villain implementing a secret plot. Now, reading Professor Wu’s book I have been forced to wonder whether the screenwriter knew a lot more about Washington and the phone company than I ever could have imagined back then.

Message From Governor Cuomo: Full Speed Ahead on Regulatory Agency Capture

If we have gone a little far afield at this point it has mainly been to stress the point that monopolies that are supposed to be “regulated” are frequently not that at all. Frequently, as can be seen with Atlantic Yards, the monopolies are the ones in charge, the ones running the show.

Were the Ratner Atlantic Yards mega-monopoly to continue there would be a desperate need for it to be regulated. But that seems hopeless. To be effectively regulated Governor Cuomo would have to appoint to the “regulating” Empire State Development agency (once “Corp.”) public officials with a true regulatory mind set. It is fair to bet that the appointment of Joe Chan to ESD does not represent such an approach. Instead, Chan has always been an unquestioning, reflexive supporter of Ratner’s vision of a full-blown unregulated what-Ratner-wants-is-what-Ratner-gets venture. The community, particularly the entity Brooklyn Speaks, has been crying out for greater regulatory control and accountability. Chan’s appointment seems like a clear signal from Cuomo that it is not going to be delivered. It appears to be a clear signal from Cuomo that he condones Ratner’s capture of the “regulating” ESD agency.

How much more unregulated could the Atlantic Yards mega-monopoly be? It seems that we are headed in a direction that will show us.

What does this permissive Cuomo attitude toward regulatory agency capture bode for the future of hydrofracking in New York State?

The Message of “I’m Sorry I Can’t let You See The Boss Right Now” While A Monopoly Runs the Show

Monday night’s tightly-controlled, invitation-only appearance of Empire State Development CEO Kenneth Adams before a selected group of Brooklynites is also an example of what to expect. (See: Tuesday, September 27, 2011, Genial ESD CEO Adams meets with community members, gets praised for showing up, says state solidly supports Forest City, opposes governance entity, admits he has much to learn.) It is an example of how the principal role of State Officials is to run interference and provide a insulating layer of separation between the entity actually responsible and in charge (Forest City Rather) and the community itself. In essence, ESD and its state officials are like the high-priced secretary who, with impeccable manners, brushes you off by telling you that her boss is not in but she will be sure to communicate to him everything you want him to know and she is sure it will be “looked into.”

On Monday night Adams (as Atlantic Yards Report noted) may have “deflected” questions with anecdotes including one about how when Adams phoned his parents about his appointment to ESD his father screamed “ESDC, that’s the agency that doesn’t listen to the people.” It’s a cute anecdote and the father’s statement conveys the sense of frustration one gets when the high-priced and polite secretary keeps you distanced from her boss, but a better description of ESD would be “the agency that politely PRETENDS to listen to you so that Forest City Ratner doesn’t have to show up, perhaps get yelled at and faced with questions they prefer not to answer.”

The fact that Mr. Adams got kudos for simply showing up demonstrates the extremely low bar to be met when state officials are performing this secretarial keep-away-the-riff-raff function. (Remember that at the root of the word “secretary” is “secret.”) We refer you to the Atlantic Yards Report post for a full dissection of what transpired during the evening, but showing up uninformed about the project (and alternatives to it), saying that you will check out available information, not letting your attending staff supply available information is all part of a running interference game. Once in a while, if you are lucky in this game, a senior state official will in a public appearance let slip out accurate information of substantial importance, such as when former ESD CEO Marisa Lago said that the megadevelopment would be taking “decades” to build (like the 40+ year Roosevelt Island development) rather than the advertised timetable, and which remark was later hanging out bizarrely while Forest City Ratner and ESD lawyers jointly tried to convince a state judge that the projected 10-year time frame of the environmental impact was nevertheless accurate.

If the game begins to wear thin after a little while it doesn’t really matter because in all likelihood there will, soon enough, be a new set of state officials running interference, while behind the door, still in charge, Forest City Ratner will still be Forest City Ratner.

Time to Take the Mega-Monopoly Away

It doesn’t really matter that Adams took the position that there was no need for the creation of a new state entity to oversee the monopoly. The fight for a new governance entity is almost certainly the wrong fight. Brooklynites could win the battle for the creation of such a new entity and still lose the war when, inevitably, the huge Forest City Ratner monopoly captures the new entity just as surely as ESD has been subjugated. Those who want to struggle to refine the megadevelopment’s regulation have their eye on the wrong ball.

Better to ask the question City Council Member Tish James asked Adams Monday night: “Isn’t it time to take the project away?” (Adams, of course, responded that it wasn’t. Some answers he knows without having to consult the retinue of expert staff accompanying him.)

This Noticing New York essay has spent a great deal of time to drive home two critical points. Maybe you think that in doing so we have hammered the nail well below the surface of the wood.

The first point is that monopolies are not good things. Having been generally disliked since at least the 1600s that point seems simple enough and it is one that has long been generally agreed upon even if these days people do not routinely keep in the forefront of their minds all the reasons why monopolies are bad.

The second point is more elusive and one that the general populace, thinking things to be different, may be less mindful of: That attempting to mitigate the harm of monopolies by government regulation is a treacherous proposition inclined to backfire. One negative result to be prepared for when you attempt to regulate monopolies is discovering that your government representatives no longer work for the public, that they are working instead on behalf of the very monopoly they were supposed to regulate.

Together these two things suggest one common sense approach when you confront a monopoly: Dismantle it whenever you can, whenever you have the opportunity.

That is what should be called for in the case of Atlantic Yards.

A Press Release From BrooklynSpeaks and Develop Don't Destroy Brooklyn Calling For What?

The joint press release from BrooklynSpeaks and Develop Don't Destroy Brooklyn (the first ever joint press release from the two organizations) concludes focusing on four bullet points. Cryptic and timidly expressed they fall short of the eloquence of a clarion call to action. Of the four, the third (see below) is the most important in terms of what should be done with the project and exactly what we have been talking about here. The second, with some translation, could also embody some key precepts:
• Build first on currently developable parcels, deferring the costly Vanderbilt Yards platform.

• Develop affordable housing in the manner and context of recent successes nearby.

• Open the development to additional teams in order to distribute the investment, the risk and the total work effort.

• Bring the community and its elected representatives to the table so we can all work together and win.
Does the third of those points, “open the development to additional teams,” with its ensuing etc eteras mean anything other than dismantle the Ratner mega-monopoly? Wouldn’t it be more courageous, frank and evocative of principle to simply say “dismantle the Ratner mega-monopoly and bid it out properly to multiple developers”?

(Above left: The recently built 10-story Atlantic Terrace project. Above right: The 50 to 60 story density at which Ratner wants his mega-monopoly acres across the street built.)

As for the second point, “Develop affordable housing in the manner and context of recent successes nearby,” that is possible code for a number of requests: Give us back our Ratner-seized streets and sidewalks (our res publicae) and build at a more natural and more neighborly contextual density like the successful affordable housing in the10-story Atlantic Terrace project recently built across the street by the Fifth Avenue Committee. Further, what ought also to be implicit in this, and probably is intended to be, is that the subsidies granted to the project should be no more lavish for the acres owned by any Atlantic Yards owner than for the acres just across the street. Lastly, isn’t this a call for preservation of the existing buildings within the footprint that can be preserved and adaptively reused?

All of the above translation with respect to the second point may also be thought of as a response to monopoly because it requests the undoing of the Ratner monopoly override of standard laws, regulations and conventions. Here is a suggestion: Address a number of these matters simultaneously by saying that public funds should not be used to subsidize the mega-project’s excessive density and call for a per-acre limitation on subsidies (that excludes seized streets and sidewalks from the acreage calculation) that should not exceed what developers of normal density projects ordinarily get. This would help take the profit and the wind out of the sails of the Ratner’s eminent domain abuse monopoly.

The fourth point about working with “the community and its elected representatives” would be ho-hum in the nondebatability of its sentiment except for the exceptional shut-out that has, with ESD’s assistance, prevailed to date.

That leaves the mysterious and perhaps questionable strategy behind the bullet point oddly chosen as the lead-off to all the points. What strategy is behind calling for the deferral of building on the Vanderbilt Yards until after other construction? A hope that, given time, Ratner will default and lose the sweetheart deal where the MTA gave this land away to him for less than its value? That deferral afford the possibility that the MTA would get the new rebuilt railyards it originally wanted and probably needs rather than the diminished yards Ratner wants to furnish? That deferral of building on the “costly” platform would deprive Ratner of his arguments for absurd density? That Ratner should have to replace, last-out-first-in style, the buildings like the Ward Bakery building that he destroyed to pressure and deprive the community of alternative to his monopoly project? Build first that which can be built most quickly especially if it is at a normal density?

Noticing New York concurs with Atlantic Yards Report that the open railyards might be considered, on a relative scale, the most “blighting” of the mega-projects acres. Certainly, if there was any blight at all before Ratner’s blighting demolitions it would only have been the railyards.

Whatever the reason and thinking behind this particular bullet point it is too confusing for it to be the lead demand.

A More Clarion Call?

Here are suggested bullet points that would have served better:
• Dismantle the Ratner mega-monopoly and bid the land out properly to multiple developers (and don’t use eminent domain except to reclaim land from Ratner).

• Do not publicly subsidize extreme density or the seizure public streets and sidewalks: Instead, give the public back its streets and sidewalks (and add more to make connections over the railyards) and place a fair per acre limit on subsidies (that excludes the acreage of Ratner-seized streets and sidewalks) that will not exceed per acre what developers of normal density projects ordinarily get.

• Listen to the community and its elected representatives who have already offered you their U.N.I.T.Y. to let you know what they want.

• Build first on vacant acres preserving to the extent practicable the existing buildings within the footprint for adaptive reuse.
A Crippling Offer to Don Ratner’s `Spiritual' Robes

The bullet points of the press release are crippled by another serious flaw, the sentence that introduces them. In the style of a meek Obama pre-shrunk offer of compromise it begins: “Without altering the intent or spirit of the Atlantic Yards project” and then goes on to say, “ESDC should now consider pragmatic changes that will foster success and accelerate its benefits.”

Pragmatism is one thing, but: “Without altering the intent or spirit of the Atlantic Yards project”? That is what this article has been about from start to finish: The “intent or spirit of the Atlantic Yards project” has from its very get-go been that of a monopoly, a MEGA-monopoly. It’s in its DNA and that is precisely what needs to be altered. To ignore that point is to undermine important points made elsewhere in the press release: “The project’s present path won’t lead us there [to a “healthy development”] . . . . it is the project plan itself that is the constraint.”

Escaping Constraint

The `project plan' is indeed the `constraint' that stands in the way of healthy development in the neighborhood precisely because it is entirely designed as a Ratner blueprint for monopoly.

If it was agreed that BrooklynSpeaks and Develop Don't Destroy Brooklyn were to get absolutely everything on their mildly expressed bullet-pointed wish list except for a breakup of Ratner's monopoly, the booby prize would be that it could only be delivered by some form of regulation . . . and the regulating state official might be Joe Chan unless the community managed to win another resultant fight.

The answer, the only answer, is to break up Ratner’s mega-monopoly. Those who think the answer is to more effectively and meaningfully “regulate” Ratner’s monopoly are wrong. This is not 1913 when phone company president Vail was amenable to constraints to provide public benefit. Times have changed. The regulated have changed and the regulators have changed. You cannot expect to regulate a mega-monopoly like Ratner’s with politicians like Bloomberg and Cuomo in office. And you would still need an independent judiciary to enforce the law. Whereas once Professor Wu might have surmised that regulation of the 1913 phone company was tantamount to being ineffectual because it was superfluous to the good intentions of phone company president Theodore Vail, regulation of the Ratner mega-monopoly is, per se, going to be ineffectual for another reason: Because Ratner, running the show, will simply shrug off any meaningful restraints that the misguided struggle to impose.