Following the Plan

Here's a good idea: Consumer groups and progressive congress-folks have joined in an effort to stop hundreds of thousands of victims of Hurricane Katrina from being further harmed by the new bankruptcy law, scheduled to take effect Oct. 17. This law was written of, by and for the consumer credit industry and is particularly onerous for the poor.

The bill was passed with massive support from the Republican leadership in Congress and from a disgusting number of sellout Democrats. While it was being considered in committee earlier this year, Rep. Sheila Jackson Lee (D-Texas) offered an amendment to protect victims of natural disasters. It was defeated, without debate, on a party-line vote.

Now, Congress has a chance to rethink some of the most punitive parts of the bill. Katrina victims who were planning to file before the new law goes into effect are out of luck - where are they gonna find a lawyer, let alone an open courthouse?

Under the new law, anyone whose income is above the state median must file under Chapter 13, a more restrictive category that requires some repayment of debt. The new law grants no exemption for natural disaster, even though it's going to be a little tough for some citizen sitting in the Houston Astrodome who no longer has a home to come up with tax statements, pay stubs and six months of income and expense data.

Meanwhile, it's an ill wind that blows no one good, so we should not be surprised to learn the first winner out of the gate on Katrina is Halliburton Co., whose deserving subsidiary Kellogg, Brown and Root already has been granted a $29.8 million contract for cleanup work in the wake of Katrina.

Of course, no one would suggest Halliburton and its subsidiaries get government contracts (it already has billions of dollars of Iraq rehab work) just because Vice President Dick Cheney is still on the payroll. Heavens no. The veep continues to get deferred pay from the company he once headed - $194,852 last year.

But Cheney has nothing to do with the Halliburton contracts - that, friends, goes through none other than the noted lobbyist and former head of - of all things - the Federal Emergency Management Agency. Since Joe Allbaugh, who was Bush's campaign manager in 2000, announced that he was leaving FEMA in December 2002, it appears he has been busy making sure reconstruction contracts in Iraq go to companies that give generously to the Republican Party.

...Allbaugh is now with a big-time Washington lobbying firm, where he also represents Shaw Group Inc., and - voila - Shaw Group, too, already has a $100 million emergency contract from FEMA for housing management and construction and a $100 million order from the US Army Corps of Engineers for Katrina repair...

Michael ("You're doing a heckuva job") Brown liked to spread federal money around. In fact, Rep. Robert Wexler (D-Fla.) was so annoyed by Brownie's distribution of largesse in Miami after Hurricane Frances that he urged President Bush to fire Ol' Brownie last January. What upset Wexler about the $30 million in FEMA checks to cover new wardrobes, cars, lawnmowers, vacuum cleaners, furniture and appliances was that the hurricane did not affect Miami. It landed 100 miles away...

Molly was a little slow on this one, releasing this column yesterday in response to John Conyer's initiative to give the broken a break.

Sensenbrenner canned it on Tuesday, alas.

The chairman of the U.S. House Judiciary Committee said on Tuesday he had no intention of reopening a sweeping bankruptcy law passed by Congress earlier this year, despite proposals to exempt Hurricane Katrina victims from some of its provisions.

The new, more stringent bankruptcy law will not harm people left "down and out" by the storm, Wisconsin Republican Rep. James Sensenbrenner said.


He said he would not hold a hearing in his committee on a bill by the panel's ranking Democrat, Michigan Rep. John Conyers, and 31 other Democrats who want to exempt Hurricane Katrina victims from parts of the new bankruptcy law. A chairman's decision not to hold a hearing usually prevents a House bill form advancing...

Ah, yes, James Sensenbrenner, from the same state that gave us Joe McCarthy, James Sensenbrenner, the leader of the Crusade to repeal the 22nd Amendment to the Constitution. The guy who wants Dear Leader to have a lifetime job.

James Sensenbrenner, the one promoting a National ID- and allowing the government to sell everything about you to the highest bidder.

James Sensenbrenner, the Representative advocating repealing the Bill of Rights and making the PATRIOT act a permanent part of the American government.

The same man who introduced legislation that would essentially draft every American into the war on drugs. H.R. 1528, cynically named "Safe Access to Drug Treatment and Child Protection Act," would compel people to spy on their family members and neighbors, and even go undercover and wear a wire if needed. If a person resisted, he or she would face mandatory incarceration.

Here's how the "spy" section of the legislation works: If you "witness" certain drug offenses taking place or "learn" about them, you must report the offenses to law enforcement within 24 hours and provide "full assistance in the investigation, apprehension and prosecution" of the people involved. Failure to do so would be a crime punishable by a mandatory minimum two-year prison sentence, and a maximum sentence of 10 years...

So if you saw some kids smoking marijuana, and didn't turn them in, you would become an immediate felon, too.

You know, James Sensenbrenner. The psychopath. A fine example of everything one expects from a supporter of the Bush administration.

Jesse Jackson calls men like this "barracudas".

But while the victims are simply trying to get their bearings, the barracudas are circling. Naomi Klein, who witnessed this in Iraq, calls it "disaster capitalism." Congress has appropriated $62 billion already. Hundreds of billions more will be spent on reclaiming the Gulf Coast, rebuilding and relocation. The feeding frenzy has begun.

Already Halliburton is on hand with a no-bid contract for reconstruction. Fluor, Bechtel, the Shaw Group - Republican-linked firms - are lining up for contracts. Lobbyists like Joe Allbaugh, close friend of George Bush, and James Lee Witt, close friend of Bill Clinton - both former heads of the Federal Emergency Management Agency - are advising their corporate clients to get teams on the scene. Normal rules of contracting and competition are being waived in the emergency. Big bucks are on the table. It is a time to be wired politically.

The ideologues are in the hunt, too. Newt Gingrich is circulating memos calling for turning the region into a massive enterprise zone, slashing corporate taxes, reducing regulations. The oil lobby is pushing for drilling in Alaska and off the shores of the United States. Right wing activist Grover Norquist calls for cutting taxes on the wealthy even more to stimulate the economy. Arizona Republican Rep. Jeff Flak suggests conservatives use the crisis to try out their favorite ideas - vouchers for education and health care.

President Bush characteristically issued an executive order effectively lowering the wages of reconstruction workers - and hiking the profits of their companies. He wiped out the requirement to pay prevailing wages in the disaster region, apparently thinking that $9 an hour for construction workers was too high a price to pay. The government can save money, no doubt, by exploiting illegal immigrant labor.

The New Orleans business establishment has already created a headquarters in Baton Rouge. They want to reopen the French Quarter, which didn't suffer much flooding in 90 days. They are planning to lobby for one of the 2008 presidential nominating conventions - although it is hard to imagine that Republicans would want to remind folks of the administration's monumental failure. They're talking about capturing the next available Super Bowl.

Business optimism and energy are vital for rebuilding New Orleans. Big dreams and big schemes are essential to the human spirit that will bring the Gulf Coast back. But those who were abandoned in the Superdome are looking at another manmade catastrophe. Dispersed in 40 states, Katrina's victims are struggling to get by, as companies pick up contracts and others get the jobs. If New Orleans is rebuilt as an enterprise zone, private investors will wait for the government to clean up the mess and then build luxury condos to replace affordable housing. They'll turn New Orleans into a theme park, with its former residents unable to afford to come back.

We shouldn't let disaster capitalists make a killing while those who suffered the greatest devastation are left out of the mix. We need a serious plan to rebuild vital infrastructure, to make New Orleans sustainable, to develop affordable housing and mass transit, to rebuild schools. Tax breaks and enterprise zones will end up building floating casinos and luxury condos. We need public investment, linked to a Civilian Construction and Conservation Corps that gives priority to housing, hiring, training and putting to work the poor people who lost.

The Bush administration's inaction and indifference after Katrina hit abandoned the poor and added to their suffering. It would be tragic now if action by the Republican Congress and the Bush administration added to the misery. These people already have had their past swept away by Katrina's furies. We should ensure that their future is not erased by right wing ideologues rewarding disaster capitalists and excluding those who suffered the most from the deal.

You know I agree with him.

Thanks to Truthout for the links.