Money: a Better Explanation for the NJ Bridge Scandal

The biggest mystery about the Fort Lee, New Jersey, bridge scandal isn’t whether our governor, who is well-known as a loudmouthed, hotheaded bully, was behind the whole thing. The biggest mystery is why Christie or his inner circle would bother messing with Fort Lee at all. Why was it “time for some traffic in Fort Lee”? Because the Democratic mayor of Fort Lee (population 35,000, the 23rd largest city in the state) didn’t endorse Christie’s reelection? It doesn’t make any sense.

No, a much better explanation is offered by Steve Kornacki, a journalist who knows New Jersey politics. He suggests that the reason for creating that massive days-long traffic jam may have been to interfere with a billion-dollar real estate development that just happens to sit at the Fort Lee entrance to the George Washington Bridge.

As Kornacki explains, the development is premised on excellent access to the bridge and New York City. With one access lane instead of three, the location would be significantly less valuable. If the closure lasted any length of time, the deal might have collapsed. If the deal collapsed, the lanes could then be reopened, allowing some other real estate developer to jump in.

Or maybe it was merely a way to extort some campaign contributions from the kind of people politicians love – in this case, rich people who develop real estate.

One way or another, those traffic lanes involve serious money!

On top of that, it’s clear from Kornacki’s report that Christie and his minions knew about the development and access to the bridge. They’re on record suggesting the access should be limited. That’s why they keep bringing up the “traffic study” nobody else knows anything about.ย 

But it wasn’t a traffic study at all. It looks more like a traffic demonstration: this is what will happen to your major real estate development if we cut access to the bridge by 67%. This would explain why they kept the traffic jam going for days. They had to show they meant business!

Of course, it isn’t clear yet why Christie or his pals would want to use their power this way. But it shouldn’t be surprising if it’s eventually revealed that the fate of a billion dollar real estate deal – and who will profit from that deal – had much more to do with it than some stupid revenge against a Democratic mayor who didn’t endorse the reelection of our Republican governor (even though our governor is known to be a especially vindictive).

Chalk one up for the freedom of the press, even if money had nothing to do with it.

The video with Steve Kornacki’s quite interesting report is here at the aptly-named Crooks and Liars site.

Update: ย The New York Times reports that the Christie administration became very cooperative with Jersey City’s Democratic mayor, even setting up a whole day of meetings with top state officials, after Christie asked the mayor for his endorsement. When the mayor announced he wasn’t going to endorse Christie’s reelection, the state officials immediately canceled their day of meetings. So maybe Christie and his inner circle were just playing politics in Fort Lee (although playing it very badly).

Meanwhile, the Federal government is looking into Christie’s use of hurricane Sandy relief funds, some of which were used to run TV advertising encouraging tourists to return to the Jersey Shore. Two ad agencies bid on the project. Christie picked the campaign in which he himself would appear, even though it cost a couple million dollars more than the other bid. Christie was running for reelection at the time, so he must have figured it was federal money well-spent.ย 

The Polar Vortex vs. the Noise Vortex

Many of us cold people now know about the polar vortex. Rush Limbaugh, however, doubts its existence, suggesting it’s part of a hoax perpetrated by the all-powerful liberal media. (That’s entertainment, folks!) Weatherman Al Roker responds with a passage from a 1959 textbook published by the American Meteorological Society:

polar vortex – the large-scale cyclonic circulation in the middle and upper troposphere centered generally in the polar regions.

Meanwhile, the White House science and technology advisor takes two minutes to explain the possible relationship between global climate change and the arrival of the polar vortex in places like St. Louis. It turns out that we hadn’t heard of the polar vortex before because it hasn’t visited us very often. Visits are now more likely.ย 

It’s the Austerity and Lack of Trust

The chart below shows government spending after our last four recessions (that’s total federal, state and local spending, corrected for inflation, with the numbers at the bottom representing yearly quarters after the recessions).

After three recessions, government spending went up. After the most recent recession, it’s gone down:

blog_austerity_state_local_federal_spending_0

It makes sense for families to cut spending if they run into economic difficulty, but it makes no sense for the government to do the same. In situations like we’re in now, the government has to counteract the natural tendency of families and businesses to cut back when economic times are hard. Common sense and economic theory tell us the government should spend more after a recession in order to help the economy recover, even if that means increasing government debt until things get better. Yet we’ve been following the opposite policy the past few years. The result has been a relatively weak recovery that has left too many Americans unemployed and underemployed.

Why have we acted so stupidly? The obvious answer is that there were Republicans in the White House after those earlier recessions. Now there’s a Democrat. That’s why Republicans in Congress supported government spending after the earlier recessions,ย but have vigorously opposed it this time.ย (After all, Republicans love certain kinds of government spending, despite what they claim.) Hypocrisy, foolishness, the desire to recapture the White House, combined with the failure of Democrats to make the case for more stimulus. It’s all those things and more.ย 

The chart is from “How Austerity Wrecked the American Economy”ย atย Mother Jones. The author updates the story here.

Meanwhile, Paul Krugman sees a connection between the declining acceptance of evolution among Republicans and their rejection of stimulus spending: in order to be a good Republican these days, you have to deny climate change, evolution and modern economics.

Another economist who has repeatedly pointed out the stupidity of what we’ve been doing is Joseph Stiglitz. In a New York Times article called “In No One We Trust”, he explains how we’re losing trust in each other and our institutions as inequality increases. The article is especially interesting when he shows how a lack of trust and an excess of bad behavior got us into the economic mess we’re still trying to get out of:

Trust is becoming yet another casualty of our countryโ€™s staggering inequality: As the gap between Americans widens, the bonds that hold society together weaken. So, too, as more and more people lose faith in a system that seems inexorably stacked against them, and the 1 percent ascend to ever more distant heights, this vital element of our institutions and our way of life is eroding….

The banking industry is only one example of what amounts to a broad agenda, promoted by some politicians and theoreticians on the right, to undermine the role of trust in our economy. This movement promotes policies based on the view that trust should never be relied on as motivation, for any kind of behavior, in any context. Incentives, in this scheme, are all that matter.

Which Side Are You On?

Journalist Edward McClelland lays it on the line at Salon in “The ‘Middle Class’ Myth: Here’s Why Wages Are Really So Low Today”.

Some key points:

In the relatively recent past, an “unskilled” worker straight out of high school could get a union job and earn enough to buy a car and rent an apartment.

Workers aren’t simply paid according to their skills. They’re paid based on how much they can get from their employers.

The anti-union movement’s biggest victory hasn’t been the elimination of existing union jobs. It’s been preventing the unionization of other jobs.

Companies claim that low-paid jobs were never meant to support a family or lead to a career, but that’s simply a way to justify paying low wages. And they can do that because they don’t have to deal with unions.

Today’s workers have to stop thinking of themselves as middle-class, just because they don’t work in a factory or they went to college: “Unless you own the business, youโ€™re working class”.

โ€œThe smartest people I ever met were guys who ran cranes in the mill…They were smart enough, at least, to get their fair share of the companyโ€™s profits.”

It’s an excellent article and not very long.ย 

While we’re on the subject, Pete Seeger sings “Which Side Are You On?”, written in 1931 by Florence Reece, the wife of a union organizer, during Kentucky’s Harlan County War.

PS –ย Wikipedia saysย Florence Reece took the melody from a Baptist hymn. Pete Seeger was only 12 in 1931.

No Wonder The Foreign Bastards Hate Us

Some foreigners may hate us for “our freedoms”, as Bush the Younger once said. But many surely hate us, justifiably, for our willingness to kill recklessly and with minimal regret.

It hardly made the news here, but a few days ago our government attacked a “wedding convoy” in Yemen, murdering 14 people and maiming 22. At least three more have since died. Meanwhile, our government (including the Democrat in the White House) hasn’t commented.

At the Atlantic, Conor Friedersdorf asks how we would react if something similar happened here:

Can you imagine the wall-to-wall press coverage, the outrage, and the empathy for the victims that would follow if an American wedding were attacked in this fashion? Or how you’d feel about a foreign power that attacked your wedding in this fashion? …ย ย and all for the sake of five peopleย suspectedย of ties to al-Qaeda.

We might as well be broadcasting a message worldwide on Voice of America: “We don’t give a shit about you foreign bastards”.

The whole article, which is brief, is worth reading, especially if you’re still proud to be an American.ย