Yves here. Black reminds us how deeply embedded the narrative is that white-collar criminals do not commit crime. At most, they make “mistakes”.
A class action lawyer spoke to me about his work on mesothelioma cases. Not surprisingly, the opposition would drag out the cases, in the hope that the debilitated victims, who would make for sympathetic witnesses, would die before they got a court case. One of his clients was deposed for 10 hours a day in his hospital bed, when the cancer had grown so large that it was cracking his ribs, an incredibly painful process. He was certain the intensity of the depositions (which quickly became repetitive) was to speed his client’s demise. He managed to live long enough to testify. The attorney spoke with anger of the executives in this and other industries he had pursued, who went up in elevators and knowingly made decisions that would kill people in the name of profit. How is this any different from the history of the staffs who ran the Nazi concentration camps that disconcertingly found them to be stereotypically “good” people with happy families? True, the executives who are responsible for white-collar crimes are distant from their victims and legitimate what they are doing via depersonalization and rationalization, such as their supposed duty to shareholders. But these make for differences of degree, not kind.
By Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the University of Missouri-Kansas City. Originally published at New Economic Perspectives
The New York Times published a book review entitled “Thin Blue Lines.” The two books reviewed were about street crimes. Based solely on reading the NYT book review, and wearing my criminology hat, neither book adds materially to the useful literature. The two books, and the book review, however, share a common characteristic that is worth analysis. All three conflate “street crime” with “crime” and “police” with “law enforcement.” The “blue lines,” of course, refer to police, rather than the FBI white-collar crime section that is supposed to investigate elite white-collar crime. If the American police represent “thin blue lines,” then in comparison the pittance of law enforcement personnel charged with investigating elite white-collar crime represent the sheerest tissue paper – so insubstantial that they must be described as diaphanous or gossamer.
We are living with the consequences of the three most devastating epidemics of elite financial frauds (liar’s loans, appraisal fraud, and the fraudulent resale of these fraudulently originated mortgages through fraudulent “reps and warranties”) in U.S. history. Not a single executive who led, and became exceptionally wealthy, by leading those epidemics has been imprisoned or even required to pay back the fraud proceeds. But none of this shows up in reported “crime rates” for a reason so basic and so outrageous that it reveals how little our political cronies care about crimes by their elite supporters. The FBI and the Department of Justice refuse to keep statistics on the most damaging white-collar crimes committed by elites.
The reviewer, Barry Friedman, is an academic whose principal areas of expertise are street crimes and policing. The authors of the two books that Friedman reviews are distinct. Malcolm Sparrow is a former police official in the UK and a U.S. academic. He is best known for his disastrous aid to Bill Clinton and Al Gore’s “reinventing government” (ReGo) movement. ReGo, exacerbated by George W. Bush’s “Wrecking Crew” (see Tom Frank’s devastating book by that title), created the intensely criminogenic environment that was critical to generating the three fraud epidemics that drove the financial crisis and the world’s largest cartels (Libor and FX).
The other book that Friedman reviewed is a travesty by someone who lacks expertise even in blue-collar crime. It is sad that the NYT would review it and that Friedman’s review draws a false equivalency between Sparrow (supposedly representing “the Left” though he is center-right on white-collar crime and regulation) and a wacko who supposedly represents “the Right.” Friedman spends most of his review on the wacko’s claims. (The wacko, in other diatribes, is also hostile to effective regulation and prosecution of elite white-collar criminals.) While he is critical of her assertions, which are not supported by the data, Friedman leaves the following assertion unrebutted.
Second, there is a “false narrative” of racial discrimination in policing. In truth, she asserts, blacks commit far more crime, and policing simply follows the crime.
If anything, Friedman seems to endorse her claim, for he also leaves the following claim unchallenged.
Take stop-and-frisk in New York. Those who challenged it proved that members of minorities were stopped with a frequency far in excess of their percentage of the city’s population. The Police Department responded that if you compared the frequency of stops with the rates at which minorities were reported to have committed crimes, they actually were not stopping people of color often enough.
Rather than taking the NYPD claim on, Friedman remarks that even if people of color commit far more crimes than whites, it still did not justify stopping millions of innocent people of color.
Notice that the wacko, like the NYPD, conflates “crime” with “reported crime.” The victims of elite white-collar crime, however, typically do not know that they are the victims of fraud. Elite white-collar frauds occurred in the three fraud epidemics millions of times annually. VW committed 11 million fraudulent sales. Takata sold tens of millions of airbags with defective designs, components, storage, and assembly. The people who committed those crimes were overwhelmingly and disproportionately not blacks and Latinos. None of these elite white-collar crimes, however, is “reported.” Any competent criminologist knows not to conflate “crime” and “reported crime” and not to conflate “crime” with “street crimes.” The VW and Takata examples also show that elite white-collar crimes can maim and kill. Had Friedman taken elite white-collar crime seriously he would never have allowed the racist memes of the wacko or the NYPD to go unrebutted.
Friedman’s discussion of reforms is also degraded by his failure to consider elite-white collar crime.
The sort of reform that Sparrow seeks won’t happen until we are candid about, and tackle, the politics of policing and crime.
***
But mostly what is needed is popular involvement in decision-making, what Sparrow calls “a two-sided deal: the police and public working together not only to achieve results, but also to set the agenda.” That’s exactly right. When the people are collaborating with the police on policy and practice, when there is joint ownership of what the police do, then — and very likely only then — will the debates about the legitimacy of policing evaporate.
Yes, we need to be “candid” about the politics of “law enforcement” and “crime.” Note that Sparrow and Friedman use “policing” rather than “law enforcement” (reflecting their exclusive consideration of street crime). Why is it that our police forces, which are massive, not “thin,” rarely investigate elite white-collar crime and refuse to even collect data on it? Why do Sparrow and Friedman conflate “street crime” with “crime” – implicitly excluding elite white-collar crime? A candid discussion would demonstrate two uncomfortable truths documented by criminologists. The criminal “justice” system is rigged in favor of elite white-collar criminals because of their political, economic, and cultural/class power. The same system is often rigged against disfavored minorities and poorer Americans.
Similarly, Friedman’s discussion of his own policy views would be far stronger if he broadened them to include elite white-collar crime and “law enforcement” rather than “policing.” Friedman says that “what is needed” is “joint ownership of what the police do” with the people.
Consider how our system of near absolute impunity for elite white-collar financial criminals would be transformed if the American people – instead of the industry – were allowed to take “joint ownership” with the regulators (the regulatory “cops on the beat”) and the law enforcement community to restore the rule of law to Wall Street. That is one of the central changes that Bernie Sanders has been fighting to bring to America. Hillary Clinton could, and should, embrace that restoration of the rule of law.
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The last line is pretty funny, I have to admit.
Could and should? She can’t and won’t.
One could go further to analyze the crimes against all life by the likes of Exxon-Mobil (fossil fuel exploitation knowing its impact on global warming) and General Electric (faulty nuclear power plant design) and so many other giant corporations that have become the mainstays of the world’s economies. Inevitably, one must come to the conclusion that Industrial Civilization is inherently corrupt, destructive, and will bring about the end of human life, possibly all life, on earth. And all the evidence points to the likelihood this will happen soon due to abrupt climate change.
This is exactly why Monsanto et al. need to be beaten back on GMO labeling. Regardless of whether or not it is safe, the public doesn’t even know what this company or tech does or has done. There is zero transparency, because the public are ‘unlearned dummies’ and they are the credentialed scientists. They know better! We have seen enough the ramifications of high status professionals making “mistakes”. Whoops, we took all your money and ran, whoops we poisoned the entire city’s water supply; Science isn’t exact you know. And when something does go wrong the stink of “yes men” sycophancy prevents accountability.
People have the right to know what they are putting into their bodies. These companies should have never been allowed to start dictating how we made food simply because they were part of the elite meritocracy who knew better. People want and deserve to be part of the decision making process. Maybe Monsanto could (instead of doubling down on the “we know better) take the millions it is funneling into dirty politics to create an (honest) education program about GMOs. Put information online and in pamphlets at grocery stores. If the general population had been included from the start, this might not be an issue (basic, honest P.R.– is there such a thing?).
But mostly what is needed is popular involvement in decision-making, what Sparrow calls “a two-sided deal: the police and public working together not only to achieve results, but also to set the agenda.” That’s exactly right. When the people are collaborating with the police on policy and practice, when there is joint ownership of what the police do, then — and very likely only then — will the debates about the legitimacy of policing evaporate.
Sounds very much like the reasoning Washington, Homeland Security and police departments across the country used for targeting Muslim communities, because “terrorist, terrorist, terrorist!”
“people collaborating with the police”, Support the troops! Or in this case support your militarized police. Patriots.
Collaborating with the police to achieve results:
A frightened Sadek swore not to tell a soul about the undercover ops. He never spoke to his parents or a lawyer. He was encouraged to ferret out dealers and heavier drugs on his own, footage of the interview shows. The video was released to local media last year under open-records requests.
Six months later, Sadek turned up dead. Authorities pulled his body, bound to a backpack full of rocks, from the Red River. There was a bullet hole in his head. Police tried to tell his parents, John and Tammy Sadek, he committed suicide, Tammy Sadek told The Daily Beast.
http://www.thedailybeast.com/articles/2016/07/05/student-drug-informant-found-with-a-bullet-in-his-head-and-rocks-in-his-backpack.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+thedailybeast%2Farticles+%28The+Daily+Beast+-+Latest+Articles%29&yptr=yahoo
As a student with no criminal record, Sadek likely never would have served prison time over such a small amount of marijuana, said family attorney Tim O’Keeffe.
“We’re talking about college students and marijuana, which is probably an age-old topic of controversy and debate,” O’Keeffe told The Daily Beast. “I have a hard time believing that these are the hardened criminals [police] should be spending their time and money investigating.”
Air and water pollution are the two greatest crimes against humanity committed by corporate capitalism, both domestically in the USA and globally. Millions are KILLED MURDERED as a direct result of contamination as well sickened short term and left with debilitated lungs and immune systems. If you have grown older and have any breathing problems, you can trace them to this as well as the smoking from yourself or others around you even if you never smoked.
You wouldn’t think of the American Lung Association as criminology analysis, but you will not find more accurate scientific proof of how you and your communities are being systematically murdered by air pollution. You can easily find similar information about water pollution, but then, we are reliving the ’60s in so many ways, Flint MI is just a reminder of the direct role of allowing the absolute necessities of life, such as water or air be poisoned to increase profits.
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Health Effects of Ozone and Particle Pollution
Two types of air pollution dominate in the U.S.: ozone and particle pollution.1 These two pollutants threaten the health and the lives of millions of Americans. Thanks to the Clean Air Act, the U.S. has far less of both pollutants now than in the past. Still, more than 166 million people live in counties where monitors show unhealthy levels of one or both—meaning the air a family breathes could shorten life or cause lung cancer.
So what are ozone and particle pollution?”
Find out just what right here:
http://www.lung.org/our-initiatives/healthy-air/sota/health-risks/
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Of course, Mr Black is correct in pointing out that all crime is not street crime, and thankfully, the vast majority of us will never be touched by it directly or even indirectly in our day to day lives. But that is not the case in bank fraud which lost the homes of millions and lost the jobs of 10s of millions, resulting in domestic violence, divorce, broken and traumatized families. And it is even worse when it comes to air pollution which in addition to the health disaster and deaths is now serving up dramatic climate change which is causing further human suffering and misery, death and destruction and dislocation of populations resulting in nation state political destabilization and open warfare.
Earth Day in 1970, like so many forgotten or trivialized and dismissed with glib waves of the hand from petty bourgeoisie knowing sophisticates, was a call to action to clean up the air, the water and the land from industrial pollution. The progress in that arena has been slow but meaningful. Today however, with the technology in our hands, there is no excuse to let the crime of pollution continue unabated. We can call the police to stop this greatest crime in history but they will not answer because there is no world police to stop the corporations who firmly established their political dominance with court ordered rights to manage their business as their property any way they see fit without any interference by the government or other organized political opposition.
We could complain that we all being hurt, not just a small percentage of the citizenry, but all of us, all together. Turning the entire planet into a disease ridden, death dealing haze of pollution resulting in a habitat not fit for human occupation, literally a condemned unfit for humanity environment is not seen as a crime or promoted as a fearful source of emotional distress as the small chance a terrorist might board a jet, walk into a large gathering or accost you in a public street. The Brain Police make you fear almost non existent chances of harm, while calling the large scale crimes just a part of modern living brought to you by capitalism.
True, but corporate capitalism isn’t the only culprit. Pollution in the Soviet bloc was shockingly bad, and the same was true of Communist China. China is now a weird hybrid of communism and capitalism, and their pollution is horrendous.
Heather Mac Donald is the wacko, right? Yeah, I passed right over that. Don’t know why I haven’t yet cancelled my Sunday NYT. Laziness, I reckon.
Yves.
You are right to a certain extent on the meso issue.
But you fail to mention the number of illegitimate diagnosis and lawsuits in the asbestos cases.
Lawyers, doctors and xrays readers were jailed for creating many false reports.
If those lawyers, doctors and xrays readers would not have created these thousands and thousands of illegitimate sicknesses, the process may have been smoother for the truly ill and they and their families may have received a greater share of the compensation on a more timely basis.
Agreed, however you cannot help a victim after they are dead. You can punish fraud after the fact however. Precedence should always be given to the afflicted.
I am confused by what you write.
The dead and injured could not be properly compensated because of the scandalous number of fraudulent claims.
http://cardozolawreview.com/Joomla1.5/content/29-2/29.2_brickman.pdf
In Canada and most likely in US:
“CRA has double standard for tax cheat: The CRA [equivalent to IRS] won’t divulge the identities of people convicted for stashing millions offshore, but it names and shames those caught owing small amounts of tax.”
https://www.thestar.com/news/world/2016/06/25/cra-has-double-standard-for-tax-cheats.html
“Different tax rules for wealthy and powerful”
https://www.thestar.com/opinion/commentary/2016/06/09/different-tax-rules-for-wealthy-and-powerful-mcquaig.html
“Tax loopholes cost Canada billions in lost revenue: Canada used agreements meant to crack down on tax evasion to open up corporate tax loopholes”
https://www.thestar.com/news/world/2016/06/17/offshore-tax-avoidance-fixing-it-made-it-worse.html
“But mostly what is needed is popular involvement in decision-making, what Sparrow calls “a two-sided deal: the police and public working together not only to achieve results, but also to set the agenda.” That’s exactly right. When the people are collaborating with the police on policy and practice, when there is joint ownership of what the police do, then — and very likely only then — will the debates about the legitimacy of policing evaporate”
This sounds like code for privatizing the police force. “Joint ownership”, “people collaborating on policy & practice”.
“The police & public working together….” Don’t we do this already? How is the system of law enforcement not this way?
Unfortunately it’s not. Take the military surplus program where police departments apply for and are given military hardware. In my town the police just ask for what they’d like from the military and generally get it. I asked our city council to provide some oversight so citizens could have elected officials deciding whether we really needed a tank or not. They declined to do so and a few months later police with armored vehicles and automatic weapons showed up in my back yard to combat an unarmed person threatening suicide.
Maybe I missed the data, but…
Just how can Black claim that “The people who committed those crimes were overwhelmingly and disproportionately not blacks and Latinos.” I mean, I’ll give him the point about blacks. But with regard to Latinos, they have been counted as “White” in FBI crime stats until just last year. So just what is this “overwhelmingly and disproportionately” claim based on?
Excellent post.
A relevant classic (from 1940) is: “White-Collar Criminality,” by Edwin H. Sutherland, at .
Excellent post.
A relevant classic (from 1940) is: “White-Collar Criminality,” by Edwin H. Sutherland, here.
This essay is just in time for Clinton’s exoneration by the FBI.
When is a crime not a crime? When you’re Hillary Clinton.
Great post.
Election fraud is also a serious crime. It is also under-reported. This class of crime makes possible many of the other crimes mentioned above.
And like these other genres of crime, even when perpetrators are known, and evidence is plentiful, there are no convictions or punishments. (And usually no trials, since often the officials in charge of elections also have authority regarding whether or not to investigate or take action.)
Thanks, Yves, for highlighting Bill Black (and Michael Hudson too). Black always delivers the straight poop on these free-flying villains. Makes me wonder if there is anything in this country (or this world) anymore that is not a criminal enterprise or part of one??? Alas, I can’t think of any.