FacebookTwitterGoogle+RedditEmail

Capitalists Say the Darndest Things

by

Profits must be the only true human right if as basic a necessity as water is not. But although the modern public-relations industry has succeeded in rebranding robber barons as “captains of industry,” not even the most able army of flacks can always stop corporate executives from accidentally telling the world what they really think.

It’s no secret that some of the world’s biggest corporations are draining aquifers and reselling tap water at enormous profit. But they want to go further and make paying for water mandatory. Water is simply another “market commodity” in this view — most notoriously propagated by Nestlé S.A. Chairman Peter Brabeck-Letmathe in a six-minute video issued by his company. It’s fair to say that the apparent attempt by Nestlé to project an image of a company soberly grappling with the world’s problems through a stern rationality backfired spectacularly.

Mr. Brabeck-Letmathe’s body language renders as nonsense Nestlé’s post-video contention that he didn’t mean what he said. Beginning at the 2:07 mark, he is shown as saying:

“It’s a question of whether we should privatize the normal water supply for the population. And there are two different opinions on the matter. The one opinion, which I think is extreme, is represented by the NGOs [non-government organizations], who bang on declaring water a public right.”

The chairman grimaces at the very thought of water being considered a right, then lets loose a smirk, signaling unmistakable contempt for what immediately follows:

“That means that as a human being you should have a right to water. That’s an extreme solution. And the other view says that water is a foodstuff like any other and like any other foodstuff it should have a market value. Personally I believe it’s better to give foodstuff a value so that we’re all aware that is has a price and that one should take specific measures for the part of the population that has no access to this water and there are many different possibilities there.”

A right to water is “extreme”! Such an opinion may well be considered “extreme” in many corporate boardrooms, but such opinions are not free of corporate interests. If the route to increasing profits is dependent on privatizing the commons and public services, such is the belief system that will arise. Thanks to their tireless work in combating such “extreme” beliefs, the one percent are doing just fine, thank you. That the perspective of industrialists and financiers are different from the rest of us is exemplified by Mr. Brabeck-Letmathe at the video’s 5:34 mark:

“We’ve never had it so good. We’ve never had so much money. We’ve never been so healthy. … We have everything we want and still we go around as if we were still in mourning for something.”

Well, Maybe Things Aren’t Quite So Rosy

Yes, stop whining just because wages are declining around the world, unemployment remains high, inequality is reaching levels not seen since the 1920s, the environment is dangerously polluted, global warming is poised to spiral out of control, the power of the biggest capitalists and their multi-national corporations has rendered democratic participation a joke, older workers are thrown out of their jobs and their pensions unilaterally cut, there are few jobs for young workers who are mired in debt, housing and education costs rise far faster than inflation, and the world’s governments join hands with capitalists in a global race to the bottom with no accountability to their electorates.

If your idea of democracy is nothing more than having more flavors of cola to choose from, then indeed you have everything you want.

In an effort to ameliorate the damage, Nestlé subsequently issued a press release claiming its chairman “thinks water is a human right.” It turns out, if we were to believe Nestlé’s spin, that he was merely “trying to raise awareness about the issue of water scarcity. … He is not in favour of privatization, but is advocating more efficient water management by individuals, industry, agriculture and governments.”

That doesn’t square with what the Nestlé chairman plainly said in his video. Nor does it acknowledge the role of Nestlé in making water more scarce. Water, in fact, is big business. Bottled water is dominated by three of the world’s biggest companies: The Coca-Cola Company (Dasani), PepsiCo Inc. (Aquafina) and Nestlé (Poland Springs, Deer Park, Arrowhead and others). The world’s two largest private managers of water systems, Veolia Environment and Suez Environment, have combined revenue of US$51 billion. Much to grab, indeed.

Paying for the Same Thing That Comes Out of Your Tap

Companies that sell bottled water are not necessarily sending teams to remote mountain ranges. A report on AlterNet by Michael Blanding notes:

“[M]any times bottled water is tap water. Contrary to the image of water flowing from pristine mountain springs, more than a quarter of bottled water actually comes from municipal water supplies. … Both Coke and Pepsi exclusively use tap water for their source, while Nestlé uses tap water in some brands.

Of course, Coke and Pepsi tout the elaborate additional steps they take that purify the water after it comes out of the tap, with both companies filtering it multiple times to remove particulates before subjecting it to additional techniques such as ‘reverse osmosis’ and ozone treatment. Reverse osmosis, however, is hardly state of the art — essentially consisting of the same treatment applied through commercially available home tap water filters, while ozonation [a water-treatment process] can introduce additional problems such as the formation of the chemical bromate, a suspected carcinogen.”

Natural Resources Defense Council study of more than 1,000 bottles representing 103 brands of bottled water found one-third contained levels of contamination exceeding allowable limits. Among these contaminants were synthetic chemicals, bacteria and arsenic.

It is not only bottling and repackaging tap water that is lucrative — supplying the tap water is as well if privatized. A study by Food & Watch Watch found that:

  • Investor-owned utilities typically charge 33 percent more for water and 63 percent more for sewer service than local government utilities.
  • After privatization, water rates increase at about three times the rate of inflation, with an average increase of 18 percent every other year.
  • Corporate profits, dividends and income taxes can add 20 to 30 percent to operation and maintenance costs.

Dozens of municipalities in France, Germany and the United States are taking back their water and sewer systems, reversing earlier privatizations. Local governments consistently discovered that privatization led to higher prices, reduced services and deteriorating working conditions for holdover employees. Corporations operating these systems were simply putting into practice what the Nestlé chairman said in his video: Water is a commodity to be bought by those willing to pay a higher price.

In one notorious case, the World Bank forced the privatization of the water system in the Bolivian city of Cochabamba in 1999. Bechtel, the company that was handed the water system as the sole bidder in a secret process, charged a sum equal to one-quarter of city residents’ average household income and imposed a contract provision banning the collection of rainwater. After massive local protests backed by a global campaign forced it to leave the city, Bechtel sued Bolivia for US$50 million in damages and lost profits although its investment is believed to have been less than $1 million and Bechtel’s revenues are six times the size of Bolivia’s gross domestic product.

Even the Weather is Expected to Earn a Profit

Other government services taken for granted, like weather forecasting, are not exceptions. Bizarre as it sounds, executives at private weather-forecasting services like AccuWeather for years have advocated that the U.S. government’s National Weather Service be barred from issuing forecasts. The Weather Service is the most reliable forecaster in the country and taxpayers spend hundreds of millions of dollars on it. Yet we are supposed to eliminate this public benefit, converting it in its entirety into a corporate subsidy, so one capitalist can make a profit!

The concept that knowledge of a coming storm should be reserved for those willing to pay was pushed by AccuWeather and a lobbying group then calling itself the Commercial Weather Services Association, with one of the U.S. Senate’s dimmest bulbs, fundamentalist Rick Santorum, promoting a bill in 2005 that would bar the National Weather Service from issuing forecasts except during unspecified emergencies.

Under the bill, the agency would continue to collect data and then give all of them to private companies. AccuWeather would issue forecasts without the burden of collecting its own data, instead getting it for free at taxpayers’ expense. As a report in Slate noted, the bill’s language said:

“Data, information, guidance, forecasts, and warnings shall be issued … through a set of data portals designed for volume access by commercial providers of products or services.”

The disingenuousness of this bill was stated bluntly at the time by Jeff Masters on his Weather Underground blog:

“Private weather industry forecasters do their own forecasting, but will usually check their forecast against what the [National Weather Service] says before sending it out. If the NWS forecast differs considerably, there will frequently be an adjustment made towards the NWS forecast, resulting in a better ‘consensus’ forecast. So, with the proposed legislation, not only would we lose the best forecasts available, but the forecasts from the private weather companies would also worsen.”

But a couple of capitalists would make a bigger profit — so what if more people would die in floods or other natural disasters? That’s the magic of the market at work.

Pete Dolack writes the Systemic Disorder blog. He has been an activist with several groups.

Pete Dolack writes the Systemic Disorder blog and has been an activist with several groups. His book, It’s Not Over: Learning From the Socialist Experiment, is available from Zero Books.

More articles by:
June 28, 2016
Jonathan Cook
The Neoliberal Prison: Brexit Hysteria and the Liberal Mind
Paul Street
Bernie, Bakken, and Electoral Delusion: Letting Rich Guys Ruin Iowa and the World
Anthony DiMaggio
Fatally Flawed: the Bi-Partisan Travesty of American Health Care Reform
Mike King
The “Free State of Jones” in Trump’s America: Freedom Beyond White Imagination
Antonis Vradis
Stop Shedding Tears for the EU Monster: Brexit, the View From the Peloponnese
Omar Kassem
The End of the Atlantic Project: Slamming the Brakes on the Neoliberal Order
Binoy Kampmark
Brexit and the Neoliberal Revolt Against Jeremy Corbyn
Doug Johnson Hatlem
Alabama Democratic Primary Proves New York Times’ Nate Cohn Wrong about Exit Polling
Ruth Hopkins
Save Bear Butte: Mecca of the Lakota
Celestino Gusmao
Time to End Impunity for Suharto’’s Crimes in Indonesia and Timor-Leste
Thomas Knapp
SCOTUS: Amply Serving Law Enforcement’s Interests versus Society’s
Manuel E. Yepe
Capitalism is the Opposite of Democracy
Winslow Myers
Up Against the Wall
Chris Ernesto
Bernie’s “Political Revolution” = Vote for Clinton and the Neocons
Stephanie Van Hook
The Time for Silence is Over
Ajamu Nangwaya
Toronto’s Bathhouse Raids: Racialized, Queer Solidarity and Police Violence
June 27, 2016
Robin Hahnel
Brexit: Establishment Freak Out
James Bradley
Omar’s Motive
Gregory Wilpert – Michael Hudson
How Western Military Interventions Shaped the Brexit Vote
Leonard Peltier
41 Years Since Jumping Bull (But 500 Years of Trauma)
Rev. William Alberts
Orlando: the Latest Victim of Radicalizing American Imperialism
Patrick Cockburn
Brexiteers Have Much in Common With Arab Spring Protesters
Franklin Lamb
How 100 Syrians, 200 Russians and 11 Dogs Out-Witted ISIS and Saved Palmyra
John Grant
Omar Mateen: The Answers are All Around Us
Dean Baker
In the Wake of Brexit Will the EU Finally Turn Away From Austerity?
Ralph Nader
The IRS and the Self-Minimization of Congressman Jason Chaffetz
Johan Galtung
Goodbye UK, Goodbye Great Britain: What Next?
Martha Pskowski
Detained in Dilley: Deportation and Asylum in Texas
Binoy Kampmark
Headaches of Empire: Brexit’s Effect on the United States
Dave Lindorff
Honest Election System Needed to Defeat Ruling Elite
Louisa Willcox
Delisting Grizzly Bears to Save the Endangered Species Act?
Jason Holland
The Tragedy of Nothing
Jeffrey St. Clair
Revolution Reconsidered: a Fragment (Guest Starring Bernard Sanders in the Role of Robespierre)
Weekend Edition
June 24, 2016
Friday - Sunday
John Pilger
A Blow for Peace and Democracy: Why the British Said No to Europe
Pepe Escobar
Goodbye to All That: Why the UK Left the EU
Michael Hudson
Revolts of the Debtors: From Socrates to Ibn Khaldun
Andrew Levine
Summer Spectaculars: Prelude to a Tea Party?
Kshama Sawant
Beyond Bernie: Still Not With Her
Mike Whitney
¡Basta Ya, Brussels! British Voters Reject EU Corporate Slavestate
Tariq Ali
Panic in the House: Brexit as Revolt Against the Political Establishment
Paul Street
Miranda, Obama, and Hamilton: an Orwellian Ménage à Trois for the Neoliberal Age
Ellen Brown
The War on Weed is Winding Down, But Will Monsanto Emerge the Winner?
Gary Leupp
Why God Created the Two-Party System
Conn Hallinan
Brexit Vote: a Very British Affair (But Spain May Rock the Continent)
Ruth Fowler
England, My England
FacebookTwitterGoogle+RedditEmail