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Corporations and Public Health: Profits Before People Martin Donohoe
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Am I Stoned? A 1999 Utah anti-drug pamphlet warns: “Danger signs that your child may be smoking marijuana include excessive preoccupation with social causes, race relations, and environmental issues”
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Corporations Dominate the Global Economy Almost 6 million corporations 90% of transnational corporations headquartered in Northern Hemisphere 500 companies control 70% of world trade
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Corporations Dominate the Global Economy 53 of the world’s 100 largest economies are private corporations; 47 are countries – Wal-Mart is larger than Israel and Greece
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The Stock Market The top 1% of Americans owns 51% of all stocks, bonds, and mutual fund assets Consequences of Differential Stock Ownership – Corporations are answerable to their shareholders – Governments are answerable (at least in theory) to their citizens (either through elections or revolutions)
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Corporations Internalize profits Externalize health and environmental costs
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Corporate Taxation Corporations shouldered over 30% of the nation’s tax burden in 1950 vs. 8% today Nearly 1/3 of all large U.S. corporations pay no annual tax
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Corporate Taxation Big business claims that U.S. corporations pay the highest corporate taxes in the world (35%) FALSE: The rate actually paid, after foreign governments get their cuts, money sent to foreign subsidiaries, loopholes, etc. = 2.3% (U.S. Treasury Department)
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Reasons for Inadequate Corporate Taxation Corporate tax breaks/loopholes Corporate welfare Cheating and under-payment common Offshore tax havens shelter capital
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Ugland House, Cayman Islands 18,000 Corporations Registered Here
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Job Creators?
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Corporate Taxation 2004: Bush administration offered temporary tax holiday on foreign earnings – $300 billion in profit repatriated 92% went to dividend payouts, stock buybacks, and corporate coffers Only 8% went to R and D, new factories, and hiring
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Exorbitant CEO Pay CEO salaries up 759% since 1978 – Average worker pay up 6% The average CEO makes 350-400X the salary of the average U.S. worker (1960 - 41X) – Mexico 45:1 – Britain 25:1 – Japan 10:1 – US Military: 15-20:1 (top rank : lowest rank)
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Corporate PR Tactics Advertising Astroturf - artificially-created grassroots coalitions Corporate front groups Invoke poor people as beneficiaries
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Corporate PR tactics Characterize opposition as “technophobic,” anti-science,” and “against progress” Portray their products as environmentally beneficial despite evidence to the contrary Corporate espionage: spying, bribes
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Greenwash Public relations / ad campaigns – BP invests $100 million annually in clean energy = amt. it spends annually to market itself as moving “Beyond Petroleum”
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Sponsored Environmental Education Materials (Examples) International Paper -“Clearcutting promotes growth of trees that require full sunlight and allows efficient site preparation for the next crop” Exxon’s “Energy Cube” -“Gasoline is simply solar power hidden in decayed matter” -“Offshore drilling creates reefs for fish”
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Academics/Professional Organizations Affected Increasing corporatization of academia – ↑Private commercial funding of university research – Secrecy/Gag Clauses For-profit colleges growing, marked by corruption, high interest rates on loans to the un- and under-qualified
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Academics/Professional Organizations Affected Dramatic decrease in tenured faculty, rise in administrators Gagging of researchers at federal agencies demoralizing, can affect recruitment of quality scientists
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The Media 5 corporations control majority of US media (down from 50 in 1983) Extensive corporate-media links American Council on Science and Health
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Global Warming: Controversial? Of 928 articles in peer-reviewed scientific journals, none were in doubt as to the existence or cause of global warming Of 636 articles in the popular press (NY Times, Washington Post, LA Times, WSJ), 53% expressed doubt as to the existence (and primary cause) of global warming Science 2004;306:1686-7 (Study covers 1993-2003)
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Lobbying Approximately 40,000 lobbyists (12,600 full-time) Estimates of return on lobbying range from $28 to $100 for every $1 spent
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Lobbying Federal lobbying groups spent 3.5 billion in 2010 (3.3 billion in 2011) All single issue ideological groups combined (e.g., pro-choice, anti- abortion, feminist and consumer organizations, senior citizens, etc.) = $76 million (2010)
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Top-Spending Industries, 2011 (Low Estimates) Pharmaceutical industry - $236 million Insurance industry - $158 million Oil and gas industry - $146 million Electric utilities - $144 million
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Campaign Cash and Lobbying Citizens United Lobbying promotes international non- cooperation/isolationism
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The alliance between GE Medical Systems and NY-Presbyterian Hospital
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General Electric Ranked by Forbes as world’s largest company (based on equal weighting of sales, profits, assets, and market value) 2011 revenues of $148 billion – Close to the GDP of more than 2/3 of U.N. member states 2011 net after-tax profits of $14 billion
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General Electric Makes household appliances, lighting, and medical equipment Has built 91 nuclear power plants in 11 countries (including Japan’s Fukushima Daishii reactors) Produces jet engines and military hardware
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General Electric Charles Wilson (CEO of GE pre- and post-WW II; helped oversee U.S. military production during WW II): – “The revulsion against war…will be an almost insuperable obstacle for us to overcome. For that reason, I am convinced that we must begin now to set the machinery in motion for a permanent wartime economy.”
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General Electric Operates coal-burning power plants – Major releasers of toxic mercury Produces nearly 40 technologies used in fracking
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General Electric Operates a large financial services group – Responsible for over 50% of company’s profits in recent years Owns a multi-billion dollar media empire – Including NBC (49%, Comcast – 51%), Telemundo, and Universal Studios
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GE’s History Conducted unethical human subject experiments on prisoners, involving testicular irradiation, from 1940s to 1960s Intentionally-released excessive radiation from its Hanford, WA nuclear reactor in the 1980s, to determine how far it would travel
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GE’s Record Sued radiologist who brought to light dangers of GE’s contrast agent, Omniscan – Causes nephrogenic systemic fibrosis (FDA black box warning) Ordered to pay $11.4 million to Bracco Diagnositcs for falsely/misleadingly claiming that its x-ray contrast agent Visipaque was superior to BD’s Isovue
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GE’s Record America’s largest corporate polluter 116 Superfund sites nationwide Approximately 13 in NY
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GE’s Record Between 1947 and 1977, two of its capacitor manufacturing plants dumped 1.3 million pounds of PCBs into the Hudson River – Probable human carcinogens with adverse effects on liver, kidney, nervous system, and reproductive organs (EPA) – 200 mi of Hudson = Superfund site
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GE’s Record Eliminated 34,000 US jobs between 2000 and 2010 Added 25,000 overseas jobs over same period – One of nation’s top out-sourcers of jobs
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GE’s Record Cited by Human Rights Watch for “systematic workers’ rights violations” in the U.S. and abroad Extensive record of tax violations, military procurement fraud
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GE CEO Jeffrey Immelt 2011 total compensation = $21.6 million Named “World’s Best CEO” in 3 separate Barron’s polls 2006 - 2011 - On Board of NY Federal Reserve Bank
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GE CEO Jeffrey Immelt 2008 – Named one of the “100 Most Influential People in the World” by TIME Magazine 2009 - Appointed by President Obama to his Economic Recovery Board – GE then became eligible, via a loophole, for ¼ of the $340 billion Temporary Liquidity Guarantee Program (debt support)
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GE CEO Jeffrey Immelt 2011 - Appointed by Obama as Chair of his outside panel of Economic Advisors and of his Council on Jobs and Competitiveness On the board of directors of “The Robin Hood Foundation”!
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GE’s Record Named “America’s Most Admired Company” by Forbes Named one of the “World’s Most Respected Companies” in polls conducted by Barron’s and The Financial Times
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Concerns About the Agreement between GE Medical Systems and NY-Presbyterian Hospital (2003) Provides GE with financial incentives to promote high technology purchases Hospital prohibited from purchasing more effective equipment from other companies
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Concerns About the Agreement Augments trend in academic medical centers to promote the use of expensive, high- technology care at expense of preventive care and public health measures – Highly reimbursable – Services may be redundant in certain locations
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Concerns About the Agreement Patients with developmental anomalies and cancers caused by GE’s pollution diagnosed with GE scanners and treated with GE-manufactured therapeutic devices, increasing GE’s profit
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A macabre twist on “cradle to grave care”
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Solutions NY-P should cancel agreement Health care providers and organizations should condemn this alliance Medical and ethical organizations should develop standards regarding future agreements
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Health Insurance Industry Dubious practices: – Delisting – Cherry picking – Pre-existing conditions Often lower quality of care High administrative costs – 15-30% (vs. 2-3% for Medicare and Medicaid)
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Health Insurance Industry Large profit margins Loyalty: shareholders (not patients) Corruption
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Pharmaceutical Industry Influence over physicians through control of CME, gifts, research funding Conduct seeding trials to alter prescribing patterns Secrecy, statistical torturing of data sets, selective publication Data mining of prescribing practices
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Drug Company Malfeasance The pharmaceutical industry is the biggest defrauder of the federal government, as determined by payments made for violations of the federal False Claims Act (FCA) – Accounted for 25% of all FCA payouts between 2000 and 2010 – Defense industry – 11%
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Pharmaceutical Industry $240 million dollars spent on lobbying in 2011 – 1,228 lobbyists (2.3 for every member of Congress) – Revolving door between legislators, lobbyists, executives and government officials
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Pharmaceutical Industry Effectively lobbied and threatened trade sanctions against developing countries in order to prevent production and importation of much cheaper, generic versions of life-saving anti-AIDS drugs Sneaky patent extensions / carve-outs
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Solutions Restructure tax system Punish corporate scofflaws with large fines and jail time Increase enforcement budgets to combat corporate crime Eliminate confidential legal settlements relevant to public health and safety
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Solutions Living wage laws Work with corporations – Healthy PR – Shareholder activism – Risks/benefits
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Solutions: Fair, Representative Elections Publicly financed campaigns and campaign finance reform Overturn Citizens United Proportional representation Instant runoff voting Halt disenfranchisement, overturn voter restriction laws Vote
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Solutions Activism / Letter writing / Protesting / Whistleblowing Work in groups Lobby legislators Run for office
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Solutions Increase funding of public education Independent scientific review of school curricula Prohibit use of sponsored curricula
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Solutions Establish safeguards re corporate involvement in academic research Higher standards of journalism Support alternative media
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Solutions Augment and improve international aid package – 0.9% of the total federal budget, 1.6% of the discretionary budget – Charitable giving approximately $250 billion/year (2.5% of income vs. 2.9% at height of Great Depression) Sign, ratify, and adhere to major international treaties
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Solutions Based on Precautionary Principle Recognize nature’s net worth Measure prosperity based on Genuine Progress Index or Global Happiness Index, rather than Gross Domestic Product
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“All men are created equal” – Declaration of Independence “Some people are more equal than others” – George Orwell
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Voltaire “The comfort of the rich rests upon an abundance of the poor”
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Hudson River, 2009
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Primo Levi “A country is considered the more civilized the more the wisdom and efficiency of its laws hinder a weak man from becoming too weak or a powerful one too powerful.”
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Günter Grass “The first job of a citizen is to keep your mouth open.”
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African Proverb If you think you are too small to have an impact, try going to bed with a mosquito in your tent
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Contact Information and References Public Health and Social Justice Website http://www.publichealthandsocialjustice.org http://www.phsj.org martindonohoe@phsj.org
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