Again and again we hear about corporations doing bad things so they can make more money: polluting, selling contaminated food or otherwise harming people's health, selling products that injure people or just don't do what they advertise, tricking and scamming people out of their money, selling banned goods or providing financial services for terrorists or drug cartels, and so many other things that are not good for people or society.
Wouldn't it be great if there were some entity that was more powerful than these corporations, whose purpose is to protect us, reign these corporations in, make and enforce rules, prosecute offenders and put a stop to this stuff?
This Week: VW
This week we are hearing about Volkswagen (VW). For years the company claimed they were selling "clean diesel" engines, but they were tricking their customers, the public and governments around the world. Their cars are really a public health threat, putting out up to 40 times the legal limit of pollutants that cause asthma and other disease.
VW built a "defeat mechanism" into as many as 11 million cars. This mechanism let the cars pass government tests, even though they were polluting like crazy when driven in the real world. The mechanism made the engine run clean during government tests, then when it detected that the tests were finished it set the engine to start polluting again.
For years these cars have been harming people and until now VW was getting away with (and making big profits from) this. They were finally caught, and we will see whether executives are prosecuted, or if this will be one more case of weak (or corrupted) government issuing a fine that lets a company make its shareholders pay the cost instead of holding the executives that did it accountable.
The Fix For The VW Cars
This is huge. Up to 11 million cars have these "defeat" mechanisms in them. These cars have to be fixed because their emissions can cause people to develop asthma and other respiratory diseases. But fixing this is a big problem.
According to Wired, in "VW Owners Aren’t Going to Like the Fixes for Their Diesels," there are two choices for fixing these cars – and either choice means the car owners end up losing a lot of what they thought they had paid for.
The first is to update the software so the cars always run in the "test mode" that defeated the emissions tests. But the changes the software made to the engines to get them to operate within the legal emissions limits while being tested will cause the car to either have poor acceleration or poor gas mileage.
The second is to actually fix the problem that causes the engines to pollute. According to Wired, VW would have to add a "urea" tank and the means to inject this into the catalytic converter:
The standard way of making a diesel run cleanly is to use selective catalytic reduction, a chemical process that breaks NOx [mono-nitrogen oxides] down into nitrogen and water. Part of that process includes adding urea to the mix. The super effective system can eliminate 70 to 90 percent of NOx emissions, and is used by other diesel manufacturers like Mercedes and BMW. The downside is that it adds complication to the system, and cost — $5,000 to $8,000 per car. And you need to periodically add the urea-based solution to your car to keep it working.
... So it seems the logical way to get those cars to perform like their diesel cousins is to add a urea. VW’s unlikely to embrace that option, because adding hardware to half a million cars would be far more expensive than a computer update. It wouldn’t be any fun for the TDI owner, either. Not only do you have to spend an afternoon with your local dealer, you have to make room for the tank. That could mean sacrificing cargo space or giving up the spare tire.
The cost to VW will be huge, and the customers lose either way. Never mind all the people suffering asthma and lung disease resulting from the pollution these cars were emitting.
VW Not An Isolated Case
The New York Times reports, in "Volkswagen Test Rigging Follows a Long Auto Industry Pattern," that,
For decades, car companies found ways to rig mileage and emissions testing data. In Europe, some automakers have taped up test cars’ doors and grilles to bolster their aerodynamics. Others have used “superlubricants” to reduce friction in the car’s engine to a degree that would be impossible in real-world driving conditions.
Automakers have even been known to make test vehicles lighter by removing the back seats.
... [In 1973 the EPA] fined Volkswagen $120,000 after finding that the company had installed devices intended specifically to shut down a vehicle’s pollution control systems. In 1974, Chrysler had to recall more than 800,000 cars because similar devices were found in the radiators of its cars.
[. . .] Beyond emissions, the industry has long been contemptuous of regulation. Henry Ford II called airbags “a lot of baloney,” and executives have bristled at rules requiring higher mileage per gallon.
VW might not even be the only company that is scamming government testing labs with "defeat mechanisms' right now. From the report,
“We call it the tip of the iceberg,” said Jos Dings, the director of Transport and Environment. “We don’t think this will be limited to Volkswagen. If you look at the testing numbers for the other manufacturers, they are just as bad.”
The Times report lists several examples of the auto industry engaging in profit-making by endangering their customers. There was the "unexploded Pinto" problem of gas tanks blowing up. There were 271 deaths from the Ford-Firestone tire scandal. There were the Takata airbags that either don't work or injure people. There was Chrysler selling as new cars that had been driven for 60,000 miles with the odometers disconnected. Click through, there's plenty... But no one has been put in jail.
So what VW was caught doing is "not an isolated incident" and, in fact, VW had already been caught doing the same thing in the 1970s.
Not Just Auto Industry
VW is hardly the only company in the auto industry engaged in these practices, and the auto industry is hardly the only industry engaging in this kind of activity.
● Of course, tobacco still kills over 480,000 Americans each year and no one even talks about doing anything about it. Everyone understands this is because of the great wealth and power of the tobacco companies as well as their influence over a certain political party. More than 480,000 terrible, painful deaths each year!
● The "Obamacare" health reform was written the way it was because it was understood from the start that the insurance and pharmaceutical companies had enough power to block anything they didn't like. So we didn't get Medicare for All or even a "public option." These industries had already blocked the administration of President Bill Clinton from reforming the health care system, leading to more decades of deaths, untreated illness and bankruptcies.
● In 2000, The Nation reported, in "The Secret History of Lead," that the lead industry knew and kept secret for decades that they were poisoning people with lead in gasoline, paint and other products, and instead of doing something about it they protected their profits by covering this up and attacking government efforts to do something.
The leaded gas adventurers have profitably polluted the world on a grand scale and, in the process, have provided a model for the asbestos, tobacco, pesticide and nuclear power industries, and other twentieth-century corporate bad actors, for evading clear evidence that their products are harmful by hiding behind the mantle of scientific uncertainty.
Mother Jones' Kevin Drum reported on just one of the societal consequences of this decades-long crime, in "America's Real Criminal Element: Lead." His investigative report concluded that lead may be "the hidden villain behind violent crime, lower IQs, and even the ADHD epidemic." That whole put-millions-in-prison thing that has ruined so many lives? Oops, it might have been the lead industry's doing. Are any lead industry executives in jail for that?
● The fossil-fuel industry is notorious for polluting and for causing climate change. The industry has captured an entire political party and has them fight the development of alternative energy sources, taxes on carbon, fuel-saving public transportation initiatives, other energy-saving efforts, etc. The industry funds a climate denial cult that threatens the entire planet.
These are just a few of so many examples.
Big Government Prosecutions Can Make A Difference
Corporations save money by cutting corners. Dumping carbon into the air. Putting lead in gasoline. You name it. They price the potential fines into the product as a cost of doing business. And company shareholders pay those fines. The executives who commit the actual wrongdoing are rarely if ever held accountable themselves.
Many companies can safely assume that the government isn't even going to catch them or do anything if they do. Government cowed by intense anti-government propaganda. We hear that "government can't do anything as well as business can," that "big government threatens us," and "government takes money out of the economy." We hear about "burdensome government regulations" that "kill jobs" on a 24/7/365 basis. Government and democracy do not have an advertising budget to counter this relentless propaganda.
Government is underfunded because the propaganda elects corporate-backed anti-government politicians who convince people to allow tax cuts (on the corporations and their owners) paid for by cutting back on government. And especially cutting back on government regulation and enforcement. The result is government enforcement is backing down all the time.
Industry executives revolve through the door into government and then back into plush corporate offices where they collect rewards for protecting their industries. Our "captured" government notoriously refuses to bring corporate criminals to justice. Not one banker, for example, was prosecuted for obvious crimes leading to the 2008 financial crash.
However last week we saw one rare instance of a prosecution of individuals for corporate crime. The people running Peanut Corporation of America, a Georgia peanut company, were prosecuted after a salmonella outbreak that sickened and hospitalized hundreds of people and killed 9 of them. Company executives knew for years their product was made in unsafe ways that were causing contamination -- but instead of spending what was needed to fix the problem they covered this up. So the owner was sentenced to 28 years in prison and other executives were sentenced to 20 years.
Thanks to an actual prosecution resulting in prison terms for company executives it is likely that the public will suffer fewer food-safety problems, at least for a while.
Our government supposedly exists to protect We the People from wealthy and powerful interests, including other countries. Our revolution against the wealthy British aristocracy and the King's corporations testify to this. A government that is "of the people, by the people and for the people" should be big enough, strong enough and funded enough to reign in companies and billionaires, and protect We the People from the kind of corporate misbehavior we saw from Volkswagen -- long, long, long before it involves 11 million cars all spewing out serious threats to public health.