Pure Water? Pure Profit

When Margaret Thatcher sold off the water industry in 1989, the government wrote off all debts. But according to the analysis by David Hall and Karol Yearwood of the public services international research unit of Greenwich University, the nine privatised companies in England have amassed debts of £48bn over the past three decades – almost as much as the sum paid out to shareholders. The debt cost them £1.3bn in interest last year. In the past 10 years, the companies have paid out £17bn in dividends and directors’ pay has soared. The earnings of the nine water companies’ highest-paid directors rose by 8.8% last year, to a total of £12.9m. The highest paid CEOs were at Severn Trent, with a salary package of £2.4m, and United Utilities, a salary package of £2.3m. In comparison, the highest paid director of publicly owned Scottish Water earned £366,000. Scottish Water, which is publicly owned, has invested nearly 35% more per household in infrastructure since 2002 than the privatised English water companies, according to the analysis. It charges users 14% less and does not pay dividends.



Dieter Helm, a professor of economic policy at Oxford University, said water companies could not be blamed for exploiting the system.

“The water companies behaved exactly how we believe a commercial company does behave,” he said. “The question is, do we expect capitalists to behave like capitalists? What we have seen is a complete regulatory failure to control the companies.”



English water companies have handed more than £2bn a year on average to shareholders since they were privatised three decades ago, according to analysis for the Guardian.
The payouts in dividends to shareholders of parent companies between 1991 and 2019 amount to £57bn – nearly half the sum they spent on maintaining and improving the country’s pipes and treatment plants in that period. Hall concludes the companies have borrowed to pay dividends, rather than to invest in infrastructure projects. The £123bn of capital expenditure spent by the companies has all been financed by customer bills, the analysis states.
“A large amount of debt has been borrowed. But since the revenue from user charges covered capital expenditure, this debt has been used to finance dividends rather than capital expenditure,” Hall said.
Critics say while continuing to pay huge dividends they have failed to carry out significant national infrastructure works to improve the water and sewerage system. Rather than improving, it had deteriorated, with more serious pollution incidents that damaged wildlife, the local environment and in the worst cases public health.
Water companies in England discharged raw sewage into rivers on more than 200,000 occasions last year. The analysis reveals untreated human waste was released into streams and rivers for more than 1.5m hours in 2019. The scale of the sewage releases in 2019 reveals what one industry insider said was the frequent and routine nature of discharging untreated effluent from storm overflows.  According to this insider, the discharges released “a horrible septic mix of nasties into the rivers”. He said the industry had for years ignored warnings about the growing scale of spills from combined sewer overflows (CSOs) – storm pipes that allow rainwater, untreated sewage and runoff to discharge into waterways. A recent study revealed the quantity of E coli coming out of CSOs was between 1,000 and 10,000 times higher than that coming from treated sewage from wastewater treatment plants.
The Environment Agency issues permits to allow water companies to release untreated human waste, which includes excrement, condoms and toilet paper, from CSOs after extreme weather events, such as torrential rain, to stop water backing up and flooding homes. More than 60 discharges a year from a storm overflow should trigger an investigation by the agency but the data reveals some storm overflows have released discharges hundreds of times. The Environment Agency relies on water companies to self-monitor their CSOs. The campaign group Windrush against Sewage Pollution said the system was little more than a “licence to pollute”.
Campaigner Ashley Smith said: “The industry has been given a way to prop up failed infrastructure and it has exploited this enthusiastically. The inability of the Environment Agency to prosecute or even drive improvement has led us to where we are today – in a complete shambles with pollution rife and unchecked.”
Dr Andrew Singer, a senior scientist at the UK Centre for Ecology and Hydrology, said the pollution impact of CSO discharge was a risk to ecological and human health.

“morally bankrupt” and “devoid of humanity.”

 A suit was filed in the U.S. District Court for the District of Minnesota by Pharmaceutical Research and Manufacturers of America (PhRMA) to block Minnesota’s Alec Smith Insulin Affordability Act. The law in question is named for an uninsured 26-year-old diabetic who died in 2017 of complications from rationing his insulin because he couldn’t afford the medicine and related supplies after aging off his mother’s health insurance.



Under the law, people with diabetes who can’t afford the essential medicine will be able to get 30-day supplies with no more than a $35 co-pay. A separate income-based program is established for those with needs that extend beyond that. Drug makers are required to participate. If they don’t, they would face a series of escalating fines.


State Sen. Matt Little, a member of the Minnesota Democratic–Farmer–Labor Party (DFL), decried the move as “morally bankrupt” and “devoid of humanity.” In a tweet, Little also vowed: “I will spend my entire life fighting these soulless companies. No one should get sick or die from an inability to afford life-sustaining insulin.”

Who Judges the Judges?



State and local judges draw little scrutiny even though their courtrooms are the bedrock of the American criminal justice system, touching the lives of millions of people every year. The country’s approximately 1,700 federal judges hear 400,000 cases annually. The nearly 30,000 state, county and municipal court judges handle a far bigger docket: more than 100 million new cases each year, from traffic to divorce to murder. Their titles range from justice of the peace to state supreme court justice. Their powers are vast and varied – from determining whether a defendant should be jailed to deciding who deserves custody of a child. Each U.S. state has an oversight agency that investigates misconduct complaints against judges. The authority of the oversight agencies is distinct from the power held by appellate courts, which can reverse a judge’s legal ruling and order a new trial. Judicial commissions cannot change verdicts. Rather, they can investigate complaints about the behavior of judges and pursue discipline ranging from reprimand to removal. the clout of these commissions is limited, and their authority differs from state to state. To remove a judge, all but a handful of states require approval of a panel that includes other judges. And most states seldom exercise the full extent of those disciplinary powers. As a result, the system tends to err on the side of protecting the rights and reputations of judges while overlooking the impact courtroom wrongdoing has on those most affected by it



State and local judges have repeatedly escaped public accountability for misdeeds that have victimized thousands. Nine of 10 kept their jobs, a Reuters investigation found – including an Alabama judge who unlawfully jailed hundreds of poor people, many of them Black, over traffic fines. He once sentenced a single mother of three to 496 days behind bars for failing to pay traffic tickets. The sentence was so stiff it exceeded the jail time Alabama allows for negligent homicide. Johnson’s three children were cast into foster care while she was incarcerated. One daughter was molested, state records show. Another was physically abused. 

“Judge Hayes took away my life and didn’t care how my children suffered,” said Johnson. “My girls will never be the same.”



In 2016, the state agency that oversees judges charged Judge Les Hayes with violating Alabama’s code of judicial conduct. According to the Judicial Inquiry Commission, Hayes broke state and federal laws by jailing Johnson and hundreds of other Montgomery residents too poor to pay fines. Among those jailed: a plumber struggling to make rent, a mother who skipped meals to cover the medical bills of her disabled son, and a hotel housekeeper working her way through college. Hayes, a judge since 2000, admitted in court documents to violating 10 different parts of the state’s judicial conduct code. One of the counts was a breach of a judge’s most essential duty: failing to “respect and comply with the law.”



Despite the severity of the ruling, Hayes wasn’t barred from serving as a judge. Instead, the judicial commission and Hayes reached a deal. The former Eagle Scout would serve an 11-month unpaid suspension. Then he could return to the bench. Until he was disciplined, Hayes said in an interview with Reuters, “I never thought I was doing something wrong.” 



Hayes is among thousands of state and local judges across America who were allowed to keep positions of extraordinary power and prestige after violating judicial ethics rules or breaking laws they pledged to uphold, a Reuters investigation found. Judges have made racist statements, lied to state officials and forced defendants to languish in jail without a lawyer – and then returned to the bench, sometimes with little more than a rebuke from the state agencies overseeing their conduct. Recent media reports have documented failures in judicial oversight in South Carolina, Louisiana and Illinois. Reuters went further. In the first comprehensive accounting of judicial misconduct nationally, Reuters reviewed 1,509 cases from the last dozen years – 2008 through 2019 – in which judges resigned, retired or were publicly disciplined following accusations of misconduct. In addition, reporters identified another 3,613 cases from 2008 through 2018 in which states disciplined wayward judges but kept hidden from the public key details of their offenses – including the identities of the judges themselves.



All told, 9 of every 10 judges were allowed to return to the bench after they were sanctioned for misconduct. They included a Maryland judge who, after his arrest for driving drunk, was allowed to return to the bench provided he took a Breathalyzer test before each appearance. In Indiana, three judges attending a conference last spring got drunk and sparked a 3 a.m. brawl outside a fast-food restaurant that ended with two of the judges shot. Although the state supreme court found the three judges had “discredited the entire Indiana judiciary,” each returned to the bench after a suspension. In Texas, a judge burst in on jurors deliberating the case of a woman charged with sex trafficking and declared that God told him the defendant was innocent. The offending judge received a warning and returned to the bench. The defendant was convicted after a new judge took over the case.



“When you see cases like that, the public starts to wonder about the integrity and honesty of the system,” said Steve Scheckman, a lawyer who directed Louisiana’s oversight agency and served as deputy director of New York’s. “It looks like a good ol’ boys club.”



Stephen Gillers, a law professor at New York University who writes about judicial ethics said, the public “would be appalled at some of the lenient treatment judges get” for substantial transgressions. 



Judge Cullman Kim Chaney, remained on the bench for three years after being accused of violating the same nepotism rules he was tasked with enforcing on the oversight commission. In at least 200 cases, court records show, Judge Chaney chose his own son to serve as a court-appointed defense lawyer for the indigent, enabling the younger Chaney to earn at least $105,000 in fees over two years.



In Pennsylvania, the state examined the convictions of more than 3,500 teenagers sentenced by two judges. The judges were convicted of taking kickbacks as part of a scheme to fill a private juvenile detention center. In 2009, the Pennsylvania Supreme Court appointed senior judge Arthur Grim to lead a victim review, and the state later expunged criminal records for 2,251 juveniles.  



Most states afford judges accused of misconduct a gentle kind of justice. Perhaps no state better illustrates the shortcomings of America’s system for overseeing judges than Alabama. As in most states, Alabama’s nine-member Judicial Inquiry Commission is a mix of lawyers, judges and laypeople. All are appointed. Their deliberations are secret and they operate under some of the most judge-friendly rules in the nation. Alabama’s rules make even filing a complaint against a judge difficult. The complaint must be notarized, which means that in theory, anyone who makes misstatements about the judge can be prosecuted for perjury. Complaints about wrongdoing must be made in writing; those that arrive by phone, email or without a notary stamp are not investigated, although senders are notified why their complaints have been summarily rejected. Anonymous written complaints are shredded. These rules can leave lawyers and litigants fearing retaliation, commission director Jenny Garrett noted in response to written questions.



“It’s a ridiculous system that protects judges and makes it easy for them to intimidate anyone with a legitimate complaint,” said Sue Bell Cobb, chief justice of the Alabama Supreme Court from 2007 to 2011. In 2009, she unsuccessfully championed changes to the process and commissioned an American Bar Association report that offered a scathing review of Alabama’s rules.   In most other states, commission staff members can start investigating a judge upon receiving a phone call or email, even anonymous ones, or after learning of questionable conduct from a news report or court filing. In Alabama, staff will not begin an investigation without approval from the commission itself, which convenes about every seven weeks. By rule, the commission also must keep a judge who is under scrutiny fully informed throughout an investigation. If a subpoena is issued, the judge receives a simultaneous copy, raising fears about witness intimidation. If a witness gives investigators a statement, the judge receives a transcript. In the U.S. justice system, such deference to individuals under investigation is extremely rare.



 “Why the need for special rules for judges?” said Michael Levy, a Washington lawyer who has represented clients in high-profile criminal, corporate, congressional and securities investigations. “If judges think it’s fair and appropriate to investigate others for crimes or misconduct without providing those subjects or targets with copies of witness statements and subpoenas, why don’t judges think it’s fair to investigate judges in the same way?”



https://www.reuters.com/investigates/special-report/usa-judges-misconduct/

American Despair (book review)



Life expectancy in the United States has recently fallen for three years in a row—a reversal not seen since 1918 or in any other wealthy nation in modern times. 



In the past two decades, deaths of despair from suicide, drug overdose, and alcoholism have risen dramatically, and now claim hundreds of thousands of American lives each year—and they’re still rising.



In their book ‘Deaths of Despair and the Future of Capitalism’  Anne Case and Angus Deaton paints a troubling portrait of the American dream in decline. For the white working class, today’s America has become a land of broken families and few prospects. As the college educated become healthier and wealthier, adults without a degree are literally dying from pain and despair. 



Case and Deaton tie the crisis to the weakening position of labor, the growing power of corporations, and, above all, to a rapacious health-care sector that redistributes working-class wages into the pockets of the wealthy. Capitalism, which over two centuries lifted countless people out of poverty, is now destroying the lives of blue-collar America.



https://press.princeton.edu/books/hardcover/9780691190785/deaths-of-despair-and-the-future-of-capitalism