Divide and rule

What is are these "entitlements" I keep reading about? Just today, Rupert's Wall Street Journal had a headline that stated, "White House targeting entitlement limits." This must be a good thing, because, really, feeling entitled is an unattractive trait. If applied to our tax dollars, a sense of entitlement is downright unpatriotic.

Are they the $1.8 trillion given to defense contractors since 2006, including $400-billion-and-counting for the F-35 Joint Strike Fighter, intended as as an "affordable" mass-production jet that is now 70 percent over budget? Are they the huge subsidies that the fossil fuel industries receive from American taxpayers? (Worldwide, burning up the planet is being subsidized at a rate of $2 trillion).

Speaking of entitlements, don't forget the $3.4 trillion in corporate profits that are allowed to be parked elsewhere. This allowed these companies to avoid paying taxes that maintain the commons which allowed them flourish in the first place. Public policy tilted to make the rich richer, rather than encouraging them to create companies and jobs? Don't forget carried interest for hedge-fund financiers. And it's not just the rich — our entire society is tilted to heavily subsidize sprawl and single-occupancy vehicles traveling on roads that do not pay for themselves in basic ciphering, much less their costs in climate change. Surely these and more are what is meant when we hear of "entitlements," "cutting entitlements" and "entitlement reform."

What killed downtown, Part III

What killed downtown, Part III

Coffee_shop01

Central and Van Buren circa 1971. This once-vibrant business block is about to be replaced with Valley Center (now the Chase Tower). The old Trailways bus depot that stood at the far left has already been demolished.

Part I and Part II of "What Killed Downtown Phoenix" were the most popular posts in the history of Rogue Columnist. So much for the notion that Phoenicians don't care about the center city. Now it's time to bring the story to a conclusion.

By the mid-1970s, downtown was in a freefall, despite the construction of the Phoenix Civic Plaza, Hyatt Regency, new Hotel Adams, new Greyhound bus depot and skyscrapers housing the headquarters of the state's three big banks.

Unfortunately, in the process many historic buildings were demolished, including a priceless red sandstone multi-story building at Second Avenue and Washington. Block-long parking garages and assembly of superblocks created long, empty spaces along sidewalks where once there were dozens of shops.

Several valuable territorial-era structures were demolished to create the desolate, sunblasted Patriots Square (workers discovered an "underground city" from frontier Phoenix that had housed opium dens and gambling parlors, protected from the heat in an era before air conditioning). These and others lost were precisely the kind of buildings rehabbed in downtown Denver into Larimer Square.

FoxTheaterOne of the greatest calamities was the demolition of the Fox Theater, the finest movie palace downtown. This happened without a peep of protest. On the land, the city built a "transit center," which was little more than a Maryvale-style ranch house "station" and parking stalls for city buses. The Paramount somehow survived, running Spanish-language films (it would be reclaimed as the Orpheum). Another calamity was the Westward Ho, which closed as a hotel and only avoided the wrecking ball by being turned into Section 8 housing. The smaller San Carlos, thankfully, was saved as a historic hotel.

The debt chimera

By Emil Pulsifer, Guest Rogue

I
recently shared a table with a stranger.  He was mature, educated, and
gets his news from a variety of sources including MSNBC, CNN, C-SPAN, and
others.  We discussed a variety of topics ranging from the need to address
climate change, to the development of alternative energy sources and campaign
finance reform.  Yet, when it came to budget policy he could do no better
than to repeat the common wisdom that in order to address the "$16
trillion debt" a mix of spending cuts and tax increases are
necessary, and that tax increases could not target the wealthy exclusively
because "even if you confiscated all of the income of the rich it wouldn't
be enough to fix the problem."  Medicare would have to bear the brunt
of the spending cuts, he said.  These claims are all
elements of the meme promoted by "responsible" media organizations, but in many respects they happen to be wrong.

There
is certainly room for spending cuts in the current budget, in
particular the bloated Defense Department.  In 2011,
"national defense" spending totaled 4.7 percent of the U.S.
economy. In the late 1990s and early 2000s, when Clinton era "peace
dividends" reached their peak, national defense spending was just 3.0
percent of GDP.  See Table 8.4 of this report.

The
Cold War is over: The Soviet Union no longer exists, and China has irrevocably
converted to gung-ho capitalism. There is simply no excuse for this level
of "defense" spending. In 2011, U.S. GDP was $15 trillion
dollars. If national defense spending had been at Clinton era levels as a
percentage of GDP, the savings in that year alone would have been 1.7 percent
of GDP or roughly $250 billion dollars. Extend this over 10 years and the
savings would total $2.5 trillion, or slightly more than the $2.4 trillion
total savings touted by Republican Alan Simpson and Democrat Erskine Bowles in
their new debt reduction plan. And because we're talking about
defense spending as a percentage of GDP, and GDP is expected to grow, this
actually underestimates the dollar savings by about a third. Sure, there
is already supposed to be some savings in coming years from the military
drawdown in Afghanistan, but Congress may not allow this: Already there is a
bipartisan movement afoot to restore the much smaller $43 billion in military
sequestration cuts due to take effect this year. 

What killed downtown, Part II

What killed downtown, Part II

Washington_2ndSt_PHX_1958

Downtown was still busy in the late 1950s, at Third Street and Washington. Even though this was part of the Deuce, note the variety of businesses and pedestrians.

In the previous post, we left downtown Phoenix in 1940 as the vibrant business and commercial center of a small, relatively dense city, surrounded by pleasant neighborhoods, served by streetcars, and dependent on agriculture. World War II brought massive changes to the Salt River Valley. Thousands of troops were trained here. Phoenix was still a frontier town, wide open to gambling and prostitution, and governed by a shady city commission. At one point, base commanders declared the city off limits to troops. This began a reform movement that eventually led to a council-manager form of government and the decades of "businessmen's government" from the Charter movement.

The Battle of Britain and the threat of strategic bombing made a deep impression on American war planners. So in addition to wanting to move plants away from the vulnerable coasts, they also widely dispersed new war industries and Army Air Forces bases around the valley. One example was the Reynolds Aluminum extrusion plant built at 35th Avenue and Van Buren, far from the city center. Dispersal brought the first Motorola facility, but not to the central business district. This set in place a habit of decentralization that continued after the war when city fathers set out to bring new "clean industries" to the city. They failed to land a Glenn Martin Co. guided missile venture for the vacant Goodyear plant in its namesake town. But Goodyear returned in 1950, eventually building airframe components there. Garrett's AiResearch, which also had a plant outside the city during the war, returned after a vigorous Chamber of Commerce effort, to a site near Sky Harbor. No thought appears to have been given to locating the city's new industries near the core.

After the war, America embarked on a massive economic expansion and migration, both benefiting Phoenix. Demand had been pent up from both the Depression and wartime rationing. By 1950, Phoenix entered the list of the 100 most populous cities, at No. 99, with 106,818 in 17 square miles. Many servicemen who had trained here fell in love with the place and moved back as civilians. Inexpensive evaporative cooling became widely available and was installed in every house built in far-flung subdivisions.

While America slept

I knew a young woman in the early 1980s who was a Trotskyite, or so she said. Even then, at the dawn of the Age of Reagan, a real political spectrum existed in America. The remains of the New Left were there. Both parties had conservatives, centrists and liberals. Compromise and rationality still produced legislation that got the people's business done. The quiet coup of the oligarchy was in its infancy.

Where we stand today? I had finished my regular stint on the local public radio station and heard the NPR program To The Point begin. It was all about the budget deficit and federal debt. And not really about that, but concern over whether President Obama's "charm offensive" to reach out to Republicans would succeed. That the GOP has been captured entirely by extremists was never mentioned, nor that the House members in safe seats would never compromise no matter how much Mr. Obama tried to "meet them halfway," the holy grail of our opinion makers and elites. That the deficit and debt are far from our most pressing issues was never debated. Didn't we just have an election that supposedly settled this matter? And this is the intelligent media.

I can understand most Americans tuning out. The nation is asleep, being date-raped after imbibing a cocktail of plutocratic-engineered ignorance, reactionary dogma, economic hard times, media malpractice and electronic distractions. The "center" is far to the right. "Progressives" are largely trying to conserve the basic social compact from the 20th century, once embraced by the mainstream of both parties. Few of them are seeking real change. The Occupy "movement" — who? Totskyites are all gone, too, but reality is sneaking into our national Arizona Room carrying an ice axe much more potent than the one that did in Leon Davidovich.

What killed downtown, Part I

What killed downtown, Part I

Downtown_1930s

Downtown Phoenix in the 1930s, a view facing south.

When you see downtown Phoenix today, be kind. No other major city suffered the combination of bad luck, poor timing, lack of planning, vision and moneyed stewards, as well as outright civic vandalism. The only thing missing was a race riot, which happened elsewhere in the city during World War II and is not spoken about.

First, definitions. Downtown Phoenix runs from the railroad tracks to Fillmore and between Seventh Street and Seventh Avenue. Any other definition — even though much of the local media are oblivious to this — is ahistorical, inaccurate and, as my sister-in-law would say, just wrong. Twenty-fourth Street and Camelback is not downtown. Central and Clarendon is not downtown.

If one were going to site the center of Phoenix today, one would pick Arcadia, with majestic Camelback Mountain nearby. But that was not the case with the original township in the 1870s. The town was centered in the great, fertile Salt River Valley, soon to be reclaimed by revolutionary waterworks from the Newlands Act and connected by railroads to the nation. It was here that downtown grew and for decades flourished. But Phoenix was small and isolated. It did not grow from 10,000 in 1910 to more than 185,000 in 1930 like Oklahoma City. In 1930, Seattle's population was more than 386,000 and Denver nearly 288,000. Phoenix held 48,118 souls in the same year and was far from any other metropolitan area.

It's a fascinating counterfactual to wonder what might have happened in downtown Phoenix if not for the Great Depression and World War II. The decades before 1940 were the golden age of American city building, including art deco architecture and the City Beautiful movement. One can see it in such buildings as the Luhrs Tower and Luhrs Building, the Professional Building and the Orpheum Lofts (and, north of downtown, in the Portland Parkway). Conventional wisdom holds that the Depression didn't hurt Phoenix much, but this is not true. With deflation and little building happening, it stopped downtown dead. This was continued by the material shortages of World War II. By the time the economy began the long post-war expansion, downtown was facing too many obstacles and didn't have many of the grand bones of the other cities I mentioned.

Because of a rise in spam attacks, I have been forced to make two changes to the comments section: 1) Commenters will have to enter a code to post their…

Filibuster

Whatever his other "out there" political views, Sen. Rand Paul's filibuster was thrilling. It was thrilling merely as a civics lesson: This is how filibusters were done before the 1980s, where a senator had to take and hold the floor, maybe with the help of other senators, maybe alone. Sometimes it was in the service of an immoral cause, as with Strom Thurmond's epic 24 hour and 18 minute stand against the 1957 Civil Rights Act. Others acted in the interests of republican govenment, as with Bernie Sanders' filibuster opposing extension of the Bush tax cuts. Even if you think Paul's was a stunt, it showed how we should insist that senators actually take the floor and defend their position, rather than telling the Majority Leader they will deny him the 60 votes for cloture and calling it a filibuster.

It was thrilling because, if only for a few hours and largely on social media, it broke out national spell of stupid. President Obama, our constitutional-law professor, has taken as casual an approach to civil liberties as his predecessor, perhaps even more so. Paul wrote a letter to Attorney General Eric Holder asking him about the drone program and whether it could be used by the president, without due process, to kill American citizens on American soil. Instead of a simple "no," Holder, who has refused to extend the rule of law to the big banks, implied that the president indeed held this power. This is an outrage. It is fundamentally unconstitutional. Where the hell were the supposed "liberal Democrats"? It was left to the usually kooky Rand Paul to actually act like an American senator in the best tradition of the office.

Finally, it was interesting in the way it scrambled the usual hard partisan lines and momentarily forced open some minds, revealed character. Paul's support and criticism came from across the spectrum. Chief among his critics were wealthy Republican John Sidney McCain III and his cocker spaniel Lindsey Graham. Why do these men have any standing on any topic, especially national security? Both remain unapologetic supporters of the war in Iraq, apparently still believing those "weapons of mass destruction" are still there, somewhere. John McCain is the best the Republican Party has as a senior statesman? It's a sick joke.

Billion-dollar baby

Billion-dollar baby

Forbes reports that the number of the world's billionaires has reached a new high (1,426) representing a record $5.4 trillion in net worth. What slow recovery? If I were one of these mammals, here's what I'd do with my money:

The long empty lot on the northwest corner of Central and McDowell, in the heart of the nation's sixth largest city, would become a sculpture garden for the Phoenix Art Museum. The catch: It would have to be lushly graced with shade trees and other plants so it is an oasis in the city. A hundred grand would go to bribe the Willo Soviet, which is opposed to everything. One piece of sculpture would soar over Central as a walkway connecting the sculpture garden to PAM (or perhaps a glass gallery running under Central). The CVS drug store would go away. Working south on Central, on the east side toward the library, I would commission my friend Will Bruder to design two world-class buildings: A Phoenix Contemporary Art Museum and a (real) symphony hall.

So much for that part of Midtown. My big play would be between Thomas and north of Indian School.

Sequester this

Jon Stewart has so degraded the usefulness of profanity with his unending use of partly bleeped F-words that I am forced to fall back on the oaths of my parents' generation: Let the goddamn sequester happen. I am so sick of the crazy fanatics called Republicans and their willingness to inflict great damage on the country, really do anything, only to hurt a man they see as an illegitimate president, a man who represents everything they loathe: Intellectual, cosmopolitan, urban, open-minded, tolerant, black and doesn't know his place. I am as sick of the president, who is squandering his mandate, doesn't know how to use it. He continues the Bush assault on our civil liberties, extends the drone war, won't tell the American people the truth and won't bring the banksters to justice. He named one to be Treasury Secretary. And is Chuck Hagel the only Republican he can find to be Defense Secretary? Let the goddamn sequester happen.

Speaking of the Defense Department, why don't we call it by its historic name: The War Department (and, yes, dear careful reader, I know there was also a Department of the Navy and where would the Air Force fit…hang with me)? This would at least be straightforward about its purpose, using serious language that might give us pause. Aside from the damage of the Great Recession, one reason we face the dreaded deficit and debt is two unfunded wars. Mr. Obama is prosecuting imperial ass-whippings around the globe even now, creating more new terrorists than we kill. We are "pivoting" to the Pacific, to pick a fight with our Chinese banker. We spend more on war than the next 13 powers combined. The F-35 fighter will cost at least $396 billion — that alone would expand our passenger rail system by 300 times — and the thing is still not airworthy. Our new $13.5-billion-a-pop Gerald R. Ford class carriers will be target practice for some Chinese kid guiding a missile. We have too many flag officers and too many mooching, corrupt contractors. Even if not a single blade of grass on an officers' golf course goes untended, let the goddamn sequester happen.

Let the sequester happen and keep it going. Ever since Ronald Reagan ran for the presidency, politicians have gotten ahead by claiming "government is the problem." And voters accept this as they accept their Social Security checks, Medicare benefits, safe food and drugs, freeways and roads to drive on, in vehicles powered by gasoline kept artificially cheap by federal subsidies, armies and fleets, live in a Sun Belt made habitable by federal initiatives from the TVA to the SRP, survive airplane flights thanks to government air traffic control…and they think government is the problem. A people this stupid and corrupt deserves the real-life experiment of seeing whether they really are rugged individualists who don't need no gub'ment. Bring it on. I especially look forward to letting the net-taker red states actually live the Ayn Rand fantasy they rave about. I can imagine how LBJ, whatever the statues say, would ensure that all the military cuts befell states that voted against him and especially the districts of members of Congress who defied him.

Arizona bio: part II

Arizona bio: part II

UACC

A rendering of the University of Arizona Cancer Center, set to break ground on the Phoenix Biomedical Campus.

A decade after Arizona, and especially Phoenix, embarked on an effort to build a biosciences cluster, this is how things stand. According to a report from the Battelle Institute, "Arizona’s bioscience industry continues to grow at a rapid rate.
Industry firms have increased employment by 30 percent overall since 2001 and have
even added jobs since 2007, a period which includes the deep national recession."

That said, total Arizona bioscience employment in 2010 was 21,084 vs. 62,386 in North Carolina. The state is a pygmy in research dollars and has birthed no significant bio company. Phoenix is nowhere near being one of the nation's top biotech/biosciences centers. [Updated] A 2012 Jones Lang LaSalle report ranks Boston, San Diego, the Bay Area, Raleigh-Durham, Philadelphia, Washington, D.C., New York, Los Angeles and Seattle the top "established" clusters in the Americas. The "emerging" clusters are Westchester/New Haven, Conn., Chicago, Denver, Cleveland-Columbus-Cincinnati, Salt Lake City, Dallas, southern Wisconsin, Florida,  Indianapolis, southern Michigan and Atlanta. The top players are not much changed, aside from relative ranking, from a much-discussed 2004 assessment by the Milken Institute, with one exception. Minneapolis has moved into the "established" ranks. Most of the up-and-comers are new. Arizona and Phoenix are not mentioned.

A glimpse of the competition can be found by the jaw-dropping build-out of the University of California-San Francisco's Mission Bay campus, which is dedicated to bio and went from nothing to a major contender over the same decade. And this was achieved despite California's state budget crisis. It represents one path the Phoenix Biomedical Campus could have taken but didn't. Another is Houston's amazing Texas Medical Center. This is where I center my recollections of the bio effort and what succeeded and failed.

Enough to make you sick

I had grand plans for my recent visit but spent most of my time sicker than I've been in years. Little time was left to catch up, but some observations:

The fabric of the old city continues to be torn away. The block of buildings on the southeast corner of Seventh Street and Roosevelt has been leveled with, of course, nothing to replace it. The last I recall, one building was a llantera (tire) outlet with American and Mexican flags painted on the outer wall. Now only the concrete foundation is left. A little farther south is a 1920s-era gas station, but would even this be preserved?

The demolished structures, which dated from the same era, were part of an actual city commercial streetscape that extended contiguously along Seventh Street. One saw the same on Seventh Avenue, Grand Avenue and Van Buren Street. It's almost all gone now, replaced by dreary new suburban boxes, each surrounded by Holy Surface Parking Lots. Or replaced by blighted empty lots. It is, as Jim Kunstler would say, not a landscape worth caring about and obviously nobody with money and power cared for generations. But the loss of variety, density and urban fabric on these approaches to downtown, along with the absurd widening of these streets, is a piece of astonishing civic malpractice. What a lost opportunity.

In our name

Do you ever wonder about the acts committed in our name and the blowback that will be inevitable? After all, Osama bin Laden didn't spring fully formed as a madman from the head of Jove, nor did the terrorist organizations that continue his work. While their roots are complex, one big cause is that America has spent decades meddling around the world in conflicts it ill understands and whose consequences we rarely think through. Bin Laden was one of "our S.O.B.s" in Afghanistan when we were trying to bleed the Soviets. So were Saddam Hussein, the Shah of Iran, Hosni Mubarak, Noriega of Panama and the House of Saud, the latter's extreme Islam helping radicalize the Middle East. What did we want? "Stability." Cheap oil. Anything Israel wants. No matter the long-term dangers or injustices inflicted on millions. When 9/11 happened, we were shocked, shocked. Aren't we always a force for good?

One feels compelled to quote John Quincy Adams at length about what America's role should be in the world: "Wherever the standard of freedom and independence has been or shall be unfurled, there will her heart, her benedictions and her prayers be. But she goes not abroad in search of
monsters to destroy. She is the well-wisher to the freedom and independence of all. She is the champion and vindicator only of her own…She well knows that by once
enlisting under other banners than her own, were they even the banners of foreign independence, she would involve herself beyond the power of extrication, in all the wars of interest and intrigue, of individual avarice, envy, and ambition, which assume the colors and usurp the standard of freedom. The fundamental maxims of her policy would insensibly change from liberty to force. The frontlet on her brows would no longer beam with the ineffable splendor of freedom and independence; but in its stead would soon be substituted an imperial diadem, flashing in false and tarnished lustre the murky radiance of dominion and power. She might become the dictatress of the world; she would be no longer the ruler of her own spirit…. Her glory is not dominion, but liberty. Her march is the march of the mind."

Now our march is the worldwide drone war of Mr. Obama. We kill whom we want, where we want, without due process, in violation of international law. Maybe we get a terrorist. We certainly kill women and children, too. Just another day as global hegemon. We could be leading the global effort to stop the worst of climate change. Instead, we're just bumbling imperialists. Someday this will come back on us.

The big merger

Here's Arizona's "positive business climate" at work: The combined American Airlines/US Airways will move its headquarters to Dallas-Fort Worth. That pretty much says it all.

Much is wrong with this deal. It continues the extreme consolidation of the airline industry into four giant carriers, limiting customer choice, reducing competition and damaging local economies. Where do you think the $1 billion in promised "savings" will come from? Largely from cutting jobs and eliminating operations. Anyone who thinks the combined carrier will maintain its existing hub at Sky Harbor, so close to DFW, has spent too much time in the sun. When Northwest merged with Delta, the modern and efficient Delta hub at Cincinnati was closed, resulting in thousands of lost jobs. American's takeover of TWA did the same in St. Louis. In these and numerous other cases, the airlines had leaned on local governments to build airport capacity, only to be thrown away to make the latest numbers work for another merger. These mergers almost never deliver as promised, even long-term for shareholders. For cities and workers, they are a cancer. Good full-time jobs have been killed and not replaced. Airline industry employment today is lower than in 1995 even though passenger revenue miles have soared.

The US Airways that Doug Parker has spent years trying to sell traces its roots to Ed Beauvais' post-deregulation startup America West Airlines. It was very much Phoenix's airline, closely tied to growth at Sky Harbor. And through upturns, downturns and bankruptcy reorganizations, America West persevered even as Parker took over as CEO and used it as a vehicle to buy long-suffering US Airways. Even then, the headquarters remained here.