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Immunity and Impunity in Elite America

Posted: 10/26/11 03:39 PM ET

How the Legal System Was Deep-Sixed and Occupy Wall Street Swept the Land

Cross-posted with TomDispatch.com

As intense protests spawned by Occupy Wall Street continue to grow, it is worth asking: Why now? The answer is not obvious. After all, severe income and wealth inequality have long plagued the United States. In fact, it could reasonably be claimed that this form of inequality is part of the design of the American founding -- indeed, an integral part of it.


Income inequality has worsened over the past several years and is at its highest level since the Great Depression.  This is not, however, a new trend. Income inequality has been growing at rapid rates for three decades.  As journalist Tim Noah described the process:


“During the late 1980s and the late 1990s, the United States experienced two unprecedentedly long periods of sustained economic growth -- the ‘seven fat years’ and the ‘long boom.’ Yet from 1980 to 2005, more than 80% of total increase in Americans' income went to the top 1%. Economic growth was more sluggish in the aughts, but the decade saw productivity increase by about 20%. Yet virtually none of the increase translated into wage growth at middle and lower incomes, an outcome that left many economists scratching their heads.”

The 2008 financial crisis exacerbated the trend, but not radically: the top 1% of earners in America have been feeding ever more greedily at the trough for decades.

In addition, substantial wealth inequality is so embedded in American political culture that, standing alone, it would not be sufficient to trigger citizen rage of the type we are finally witnessing. The American Founders were clear that they viewed inequality in wealth, power, and prestige as not merely inevitable, but desirable and, for some, even divinely ordained. Jefferson praised “the natural aristocracy” as “the most precious gift of nature” for the “government of society.” John Adams concurred: “It already appears, that there must be in every society of men superiors and inferiors, because God has laid in the… course of nature the foundation of the distinction.”

Not only have the overwhelming majority of Americans long acquiesced to vast income and wealth disparities, but some of those most oppressed by these outcomes have cheered it loudly. Americans have been inculcated not only to accept, but to revere those who are the greatest beneficiaries of this inequality.

In the 1980s, this paradox -- whereby even those most trampled upon come to cheer those responsible for their state -- became more firmly entrenched. That’s because it found a folksy, friendly face, Ronald Reagan, adept at feeding the populace a slew of Orwellian clichés that induced them to defend the interests of the wealthiest. “A rising tide,” as President Reagan put it, “lifts all boats.” The sum of his wisdom being: it is in your interest when the rich get richer.

Implicit in this framework was the claim that inequality was justified and legitimate. The core propagandistic premise was that the rich were rich because they deserved to be. They innovated in industry, invented technologies, discovered cures, created jobs, took risks, and boldly found ways to improve our lives. In other words, they deserved to be enriched. Indeed, it was in our common interest to allow them to fly as high as possible because that would increase their motivation to produce more, bestowing on us ever greater life-improving gifts.

We should not, so the thinking went, begrudge the multimillionaire living behind his 15-foot walls for his success; we should admire him. Corporate bosses deserved not our resentment but our gratitude. It was in our own interest not to demand more in taxes from the wealthiest but less, as their enhanced wealth -- their pocket change -- would trickle down in various ways to all of us. 

This is the mentality that enabled massive growth in income and wealth inequality over the past several decades without much at all in the way of citizen protest. And yet something has indeed changed.  It’s not that Americans suddenly woke up one day and decided that substantial income and wealth inequality are themselves unfair or intolerable. What changed was the perception of how that wealth was gotten and so of the ensuing inequality as legitimate.

Many Americans who once accepted or even cheered such inequality now see the gains of the richest as ill-gotten, as undeserved, as cheating.  Most of all, the legal system that once served as the legitimizing anchor for outcome inequality, the rule of law -- that most basic of American ideals, that a common set of rules are equally applied to all -- has now become irrevocably corrupted and is seen as such.

While the Founders accepted outcome inequality, they emphasized -- over and over -- that its legitimacy hinged on subjecting everyone to the law’s mandates on an equal basis. Jefferson wrote that the essence of America would be that “the poorest laborer stood on equal ground with the wealthiest millionaire, and generally on a more favored one whenever their rights seem to jar.” Benjamin Franklin warned that creating a privileged legal class would produce “total separation of affections, interests, political obligations, and all manner of connections” between rulers and those they ruled. Tom Paine repeatedly railed against “counterfeit nobles,” those whose superior status was grounded not in merit but in unearned legal privilege.

After all, one of their principal grievances against the British King was his power to exempt his cronies from legal obligations. Almost every Founder repeatedly warned that a failure to apply the law equally to the politically powerful and the rich would ensure a warped and unjust society.  In many ways, that was their definition of tyranny.

Americans understand this implicitly. If you watch a competition among sprinters, you can accept that whoever crosses the finish line first is the superior runner. But only if all the competitors are bound by the same rules: everyone begins at the same starting line, is penalized for invading the lane of another runner, is barred from making physical contact or using performance-enhancing substances, and so on.

If some of the runners start ahead of others and have relationships with the judges that enable them to receive dispensation for violating the rules as they wish, then viewers understand that the outcome can no longer be considered legitimate. Once the process is seen as not only unfair but utterly corrupted, once it’s obvious that a common set of rules no longer binds all the competitors, the winner will be resented, not heralded.

That catches the mood of America in 2011.  It may not explain the Occupy Wall Street movement, but it helps explain why it has spread like wildfire and why so many Americans seem instantly to accept and support it.  As was not true in recent decades, the American relationship with wealth inequality is in a state of rapid transformation.

It is now clearly understood that, rather than apply the law equally to all, Wall Street tycoons have engaged in egregious criminality -- acts which destroyed the economic security of millions of people around the world -- without experiencing the slightest legal repercussions. Giant financial institutions were caught red-handed engaging in massive, systematic fraud to foreclose on people’s homes and the reaction of the political class, led by the Obama administration, was to shield them from meaningful consequences. Rather than submit on an equal basis to the rules, through an oligarchical, democracy-subverting control of the political process, they now control the process of writing those rules and how they are applied.

Today, it is glaringly obvious to a wide range of Americans that the wealth of the top 1% is the byproduct not of risk-taking entrepreneurship, but of corrupted control of our legal and political systems. Thanks to this control, they can write laws that have no purpose than to abolish the few limits that still constrain them, as happened during the Wall Street deregulation orgy of the 1990s.  They can retroactively immunize themselves for crimes they deliberately committed for profit, as happened when the 2008 Congress shielded the nation’s telecom giants for their role in Bush’s domestic warrantless eavesdropping program.  

It is equally obvious that they are using that power not to lift the boats of ordinary Americans but to sink them. In short, Americans are now well aware of what the second-highest-ranking Democrat in the Senate, Illinois’s Dick Durbin, blurted out in 2009 about the body in which he serves: the banks “frankly own the place.” 

If you were to assess the state of the union in 2011, you might sum it up this way: rather than being subjected to the rule of law, the nation’s most powerful oligarchs control the law and are so exempt from it; and increasing numbers of Americans understand that and are outraged.  At exactly the same time that the nation’s elites enjoy legal immunity even for egregious crimes, ordinary Americans are being subjected to the world's largest and one of its harshest penal states, under which they are unable to secure competent legal counsel and are harshly punished with lengthy prison terms for even trivial infractions. 

In lieu of the rule of law -- the equal application of rules to everyone -- what we have now is a two-tiered justice system in which the powerful are immunized while the powerless are punished with increasing mercilessness. As a guarantor of outcomes, the law has, by now, been so completely perverted that it is an incomparably potent weapon for entrenching inequality further, controlling the powerless, and ensuring corrupted outcomes.

The tide that was supposed to lift all ships has, in fact, left startling numbers of Americans underwater. In the process, we lost any sense that a common set of rules applies to everyone, and so there is no longer a legitimizing anchor for the vast income and wealth inequalities that plague the nation.

That is what has changed, and a growing recognition of what it means is fueling rising citizen anger and protest. The inequality under which so many suffer is not only vast, but illegitimate, rooted as it is in lawlessness and corruption. Obscuring that fact has long been the linchpin for inducing Americans to accept vast and growing inequalities.  That fact is now too glaring to obscure any longer.

Glenn Greenwald is a former constitutional and civil rights litigator and a current contributing writer at Salon.com. He is the author of two New York Times bestselling books on the Bush administration's executive power and foreign policy abuses. His just-released book, With Liberty and Justice for Some: How the Law Is Used to Destroy Equality and Protect the Powerful (Metropolitan Books), is a scathing indictment of America's two-tiered system of justice.  He is the recipient of the first annual I.F. Stone Award for Independent Journalism.


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How the Legal System Was Deep-Sixed and Occupy Wall Street Swept the Land Cross-posted with TomDispatch.com As intense protests spawned by Occupy Wall Street continue to grow, it is worth asking: ...
How the Legal System Was Deep-Sixed and Occupy Wall Street Swept the Land Cross-posted with TomDispatch.com As intense protests spawned by Occupy Wall Street continue to grow, it is worth asking: ...
 
 
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10:48 AM on 11/14/2011
"By tyranny, as we now fight it, we mean control of the law, of legislation and adjudication, by organizations which do not represent the people, by means which are private and selfish. We mean, specifically, the conduct of our affairs and the shaping of our legislation in the interest of special bodies of capital and those who organize their use. We mean the alliance, for this purpose, of political machines with selfish business. We mean the exploitation of the people by legal and political means. We have seen many of our governments under these influences cease to be representative governments, cease to be governments representative of the people, and become governments representative of special interests, controlled by machines, which in their turn are not controlled by the people."

That's from Woodrow Wilson, 1912. The left has been kvetching about the same thing for the past 100+ years and despite multiple solutions, it has yet to actually solve the problem. Why? The solutions are paradoxically self-defeating. They all involve greater government regulation and control of businesses and of the economy. The more control the government has, though, the more incentive businesses have to affect government. If a single law or regulation can mean millions of dollars to just one firm and billions to an industry, it would be foolish for that business and industry not to attempt to affect the outcome. What do you expect? A bigger government invites more corruption and collusion between business and the state.
08:42 PM on 11/06/2011
Editorial/Opinion articles are just that, opinions. While this article touches upon some very poignant ideas, I have a major problem with it. When a journalist bases a major part of his foundation premise on a misquote/misinterpretation of a fact, I find it hard to swallow anything he states, especially when the author has misquoted Jefferson so blatantly. Statements by Jefferson and Adams are used to build his argument, his foundation that America and American Government were based on our founding fathers' ideas of an inherent and deliberate income disparity within our society. In The Natural Aristocracy, October 28, 1813, Jefferson writes: “I agree with you that there is a natural aristocracy among men. The grounds of this are virtue and talents… There is also an artificial aristocracy, founded on wealth and birth, without either virtue or talents..." Jefferson also writes: The natural aristocracy I consider as the most precious gift of nature, for the instruction, the trusts, and government of society. And indeed, it would have been inconsistent in creation to have formed man for the social state, and not to have provided virtue and wisdom enough to manage the concerns of the society… The artificial aristocracy is a mischievous ingredient in government, and provision should be made to prevent its ascendancy.”

Prevent its ascendancy, not promote it. Get your quotes straight, and take them IN context of the rest of the text. Adams' quote, while accurately written, is taken out of context.
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HUFFPOST SUPER USER
OleProfessor
"Ours is not a system based upon trust"
10:06 PM on 10/30/2011
Obama and Holder put to rest any doubt that we have a Ruling Class that is above the Law, just as there was before Our Founders fought The American Revolution...
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kamachanda
Mr. President, Tear this Wall Street down!
07:21 PM on 10/30/2011
Spot on.
After this, go over to the Pat Buchanan story and check out the thinly veiled threats from the corporate conservatives.
07:01 PM on 10/30/2011
oh oh glenn has arrived
06:50 PM on 10/30/2011
Let's get real. Reagan was never able to get more than 25% of the voting-age population to support him.
As in most elections, the majority stayed home on election day rather than vote for either one of the two corporatist parties. Most Americans were never on board with America's class system, but we don't control the media.
05:50 PM on 10/30/2011
This addresses the core issues of the problem posed by the US legal, political, and business systems.
03:26 PM on 10/30/2011
Good Article
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LMPE
I connect the most dissimilar things
03:04 PM on 10/30/2011
Although I didn't bring a sign to the protest that I attended, I then realized that I should have made one saying:

RIGHT WING=ANTI-PROGRESS
01:23 PM on 10/30/2011
As bad as our current situation is it is going to get a lot worse. Obviously our country was not founded upon Christian thinking and therein lies the Achilles heel of our system. Greed is hardly the basis of of a just system of government and trumps the rule of law every time. A selfish people will respect no other law than might makes right as can be seen by the imperial expansion of the original 13 colonies across the continent and now around the world. We have never had the rule of law or the equality before the law that the writer implies was the standard before Reagan. All that we had was an expanding economic base fueled by cheap energy and a consensus that the "good life" was defined by having ever greater amounts of disposable income. Now that the cheap energy is behind us and real wealth is shrinking the middle class is being plundered. Just as they colluded in plundering the third world for energy and resources over the past several hundred years we are seeing the collusion of the upper classes in plundering their fellow citizens. We are reaping just what we have sown.
05:54 PM on 10/30/2011
Many of those who presently claim most ardently the "Christian" status are among the biggest exponents of a strictly greed-based system. The rule of law was less than complete before, but was not so openly violated as it is during the present era, so one could believe it was the basis of society. The standard was high enough to lend credibility to the Nuremberg trials. This is not the case now when death squads are openly sanctioned by the regime.
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HUFFPOST SUPER USER
Carmen Slade
5150 Or Fight!
12:43 PM on 10/30/2011
Why now? Let me tell you a story.

In January, 2008, the hive mind from the intertubes spontaneously burst into real life with a series of global, monthly pickets of Scientology, Inc.

The mainstream was befuddled. Leaderless, apparently rudderless, concepts either rejected or embraced by those participating. The target was Scientology, altho other options were discussed.

For three years, we have waged an information war against this cult and its fraudulent front groups, with measured success. This did not go unnoticed. #Occupy is using the same tactics as Anonymous.

So, why now? Because of the one thing that has never existed before, the ability of people to contact and discuss issues with others, either locally or globally.

That's why. Because finally, we aren't dependent upon centralized media sources to keep us informed, and people are starting to see through the lies and distractions used as tactics by networks like Fox. People don't like being exploited and lied to. And when population A can talk to population B and find out we all have the same problems with rich bastids owning everything and throwing our children at useless wars, a bond is formed.

The funny thing is, the people running this country are old and really don't understand this Series of Tubes at all, and that will be to their disadvantage until they figure out all this will go away if somebody just pulls the plug on the internets.

Ironically, this would destroy their beloved commerce. Quite the conundrum.
3RawBob
venti latte w/3 raw sugars
10:59 AM on 10/30/2011
The young people that formed the Occupy Movement are brilliant. Many have masters and some are working on doctorates. They picked the right organizational structure, and the right governance method to accomplish their aims. What caused the movement to take off is they educated the middle income earners as to their plight. The rich and near rich will always get by. The poor will always be poor and have little influence. This is a movement of the middle class, and those that want to join it and see America strengthened.
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HUFFPOST SUPER USER
chris2fer
Voting is like driving R for backward D is forward
09:34 AM on 10/30/2011
Just watched you on Chris Hayes, good job and Miss Kumar would make it very hard to concentrate on anything but her.
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HUFFPOST SUPER USER
wallyone
09:15 AM on 10/30/2011
In the Reagan years, middle and lower class whites were angry about abortion, gun rights, perceived governmental social engineering, forced integration, affirmative action, ACLU suits on religious grounds, partiality to African Americans (read War on Poverty), perceived loss of military superiority, etc. The GOP successfully tapped into this.

In truth, most voters never even see the really rich people, and have no idea of how different is their experience of the world. They think a rich person is the guy who owns the Toyota dealership in their town, or their classmate who became a surgeon.
This user has chosen to opt out of the Badges program
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zogimperator
is this microbiology?
07:26 PM on 10/30/2011
That right there is spot-on. Exactly. F&F, the whole bit. One of the goals we have got to put our backs into is to explain to the so-called '53%ers' that they're not the rich. They don't understand rich. They think rich is owning a jet ski. They think not dying of exposure in the winter makes them middle class. Their entire scale of experience is too narrow for them to understand just how mind-blowingly wealthy the bad guys are.

And the fact that they think they're affluent and the [minorities of your choice] down the street are poor and coming to get them ought to be a sign they're not, in fact, doing very well. The elites don't ever see [minorities of your choice, poor people, middle class people, blue collar workers, homeless, jobless, sick, etc.]. Because they sure aren't down the street.
03:21 AM on 10/31/2011
I disagree. Wealthy people don't live on another planet. Case in point, I live in the third richest county in America in Howard County, Maryland, yet more than 50% of the housing within one mile radius of our home is Section 8 public housing. How could this be? Well, most of that wealth that makes Howard County the "third richest county in the country" is concentrated into the hands of a few to a sizable percentage of the population. There are very wealthy people out here living within less than a mile of very poor people who need government assistance for a place to live and food to eat.

Also, by the very fact that the vast majority of people living in metropolitan areas proves that wealthy people live rather close to poor people. For instance, Capitol Hill in DC is located in the infamous Southeast section of the city. Southeast DC, as a whole, has the highest unemployment rate of anywhere in the country and was the epicenter of the drug trade and scary homicide boom when DC was the murder capital of the United States in the early 90's. The extremely wealthy lobbyists and congressmen that live on Capitol Hill live only a few blocks from one of the most impoverished and violent ghettos in America.

My point is wealthy people sure as hell see how bad the average joe is doing with their own eyes. Wealthy people in DC and NYC literally step over homeless people everyday.
01:10 AM on 10/30/2011
"Not only have the overwhelming majority of Americans long acquiesced to vast income and wealth disparities, but some of those most oppressed by these outcomes have cheered it loudly. Americans have been inculcated not only to accept, but to revere those who are the greatest beneficiaries of this inequality."

The saddest aspect of all. I'm sorry, but this is evidence of mental illness.
01:12 AM on 10/30/2011
Also? PUBLIC FINANCING OF CAMPAIGNS.

It is the ONLY way to begin to reinstitute our democracy.
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HUFFPOST SUPER USER
Carmen Slade
5150 Or Fight!
12:45 PM on 10/30/2011
In 'Watership Down,' there was a colony of rabbits who lived by a farmer's largess. In exchange, he set snares to trap one for the table. The bunnies had learned to accept this arrangement; one member now and then in exchange for free food. As the author put it, they had learned to love the shining wire.

A lot of Americans seem to love the shining wire, as they have hopes of graduating from bunnies to farmers.