Whitcomb: Partners Expanding Its Expansionism? Time to Take on New Gilded Age Monopolies

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Whitcomb: Partners Expanding Its Expansionism? Time to Take on New Gilded Age Monopolies

Robert Whitcomb, GoLocal columnist
"It was one of those March days when the sun shines hot and the wind blows cold: when it is summer in the light, and winter in the shade."

 

-- Charles Dickens, Great Expectations

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We’ll have plenty of chilly days to come but we’ve turned the corner into spring. Notice those swelling tree buds dropping their red scales on the sidewalks – okay,  sometimes on the snow.  It’s New England. And then there’s the inspiring light.

 

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It’s very agreeable to see attractive new buildings filling up vacant lots in downtown Providence. I look forward to the day when all the windswept parking lots there are gone, having been replaced by attractive brick-faced parking garages and much denser downtown mass-transit service.

 

 

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Partners HealthCare, Boston's largest private employer
It’s unclear what precisely is going on with the new talks among Partners HealthCare, the giant Boston-based hospital system, and Rhode Island’s Care New England (CNE) and Lifespan. Partners, of course, has been trying to take over CNE, and now it may be trying to take over Lifespan, too. The participants’ statement that they are assessing how “they might work together to strengthen patient care delivered in Rhode Island’’ is smoke that may camouflage what might really be going on: a plan for Partners to take over most of the Ocean State’s hospitals.  (Who knows what might happen with South County Hospital, which is still independent. Westerly Hospital is part of the Yale New Haven Health System.)

 

The effect of a takeover by Partners would be that much (most?) of Rhode Island’s health care would be run from Boston, one of the most important medical centers on Earth. It would mean that, more and more, complex procedures for Rhode Islanders’ very serious illnesses and injuries would be performed in Boston, because of the efficiencies of scale and the density of specialists there, and not in Rhode Island, which would offer mostly primary and behavioral- and mental-health care.

 

It’s unclear what the impact would be on the Brown Medical School. Butler, Bradley, Hasbro Children’s, Miriam, Rhode Island and Women & Infants’ hospitals, as well as the VA Medical Center in Providence, are all teaching institutions for Brown. Partners’ facilities are teaching hospitals for the behemoth Harvard Medical School.  Tough competition.

 

A Partners takeover of CNE and Lifespan, besides providing very lucrative golden parachutes for CNE and Lifespan executives – bosses of enterprises being acquired love mergers because they make a personal killing -- would leave an enterprise with huge pricing power. You can be pretty sure that it would take full advantage of this by jacking up prices, just as Partners has done in Greater Boston. That has drawn much scrutiny from Massachusetts regulators and long investigative pieces from The Boston Globe.

 

Rich and powerful Greater Boston often seems to suck up a lot of oxygen in New England. Still,  overall, Rhode Island benefits from being so close to a world city, with its massive wealth creation and cultural richness. Indeed northern Rhode Island is increasingly part of Greater Boston – a cheaper residential and workplace option for people who need to be close to, especially, downtown Boston/Cambridge. Consider that Rhode Islanders will soon be able to apply for some of the 2,000 jobs that the increasingly monopolistic Amazon has just announced it will add in Boston, which is also still a candidate for the company’s much-hyped “second headquarters.’’ (Will the massive coastal flooding that seems to be an increasing threat to Boston’s Seaport District scare them away?)

 

The improvements in Boston-Providence MBTA commuter rail service promoted by a group called TransitMatters would improve the benefits to Greater Providence of being close to Boston. Few if any projects enrich a metro area like good mass transit.

 

To read the TransitMatters.org on this, please hit this link:

 

Among the organization’s many recommendations is for trains on the Boston-Providence line to run every 15 minutes at peak times and every half hour in off-peak times, as well as free transfers among commuter trains, buses and subways. The aim is also to cut the MBTA train time between Providence and South Station, in Boston, by, say 20 to 25 minutes.

 

This may all seem pie in the sky until you see that Europe and East Asia already have such service – actually, some of it is even better. A major reason is that they see state-of-the-art passenger train service as crucial for the socio-economic health of their metro regions and are willing to levy the taxes needed to provide it, unlike in private-opulence-public-squalor America.

 

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Uber
In other transportation news, such ride-hailing companies as Uber and Lyft are making clogged streets worse by luring riders off subways,  buses and bicycles, not to mention feet. The Associated Press quotes Christo Wilson, a computer-science professor at Northeastern University, who has studied Uber, as saying: “The emerging consensus is that ride-sharing {is} increasing congestion. It also means more air pollution.

 

Uber co-founder and ousted CEO Travis Kalanick said in 2015: “We envision a world where there’s no more traffic in Boston in five years.’’

 

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It reminds me of how social media was supposed to make a happier, friendlier world instead of what happened: the creation of a toxic swamp filled with crooks, domestic and foreign, and the erosion of Western democracy and our civic life in general. For all the cute kids and kittens photos, Facebook has been a disaster for America. It’s far too early to say that about Uber and Lyft.

 

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Social media
Which gets me to the question of what to do reduce the corrosive power of the rapacious and unregulated monopolies of Facebook and Google.

 

One of the worst of their effects is that by gobbling up most of the digital advertising revenue in the United States they are destroying many local news organizations, whose work is essential in providing oversight of public and private institutions. Their demise is a green light for corruption.

 

David Chavern, CEO of the News Media Alliance, which represents about 2,000 newspapers in the U.S. and Canada, in a Feb. 26 Wall Street Journal article (“Protect the News From Google and Facebook’’), touted one way to start rectifying this situation: a bill in Congress sponsored by Rhode Island Congressman David Cicilline. The measure would reform antitrust laws to let newspapers and other news media collectively withhold their products from the monopolists at Facebook and Google to pressure them to give those smaller media an adequate return on their investment so that they can employ enough journalists to adequately cover the news.

 

Why oh why are antitrust laws applied to little publications and not to the gigantic Google and Facebook? Those two empires are in restraint of trade just as much as was the Standard Oil Trust at the end of the last century.

 

I’m mostly talking about local media; the big national ones, such as The Wall Street Journal, The Washington Post and The New York Times, will be okay.

 

 

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L.L. Bean
Trust is eroding in America. Our long-term prosperity and democracy depend upon its renaissance. The latest example of the decline of trust is the increase in fraud forcing L.L. Bean to change its famous 100 percent satisfaction guaranteed/return program. In this long-entrenched feature, the Freeport, Maine-based retailer had promised to repair or replace its products (mostly clothes and footwear) with no questions asked.  Bean customers, like the old company itself, have had a reputation for integrity. But fraudsters have been proliferating in America (our commander in chief is one) and the company has increasingly been ripped off by dishonest consumers.

 

As Shawn Gorman, Bean’s executive chairman, said:

 

“Since 1912 …our commitment to customer service has earned us your trust and respect, as has our guarantee, which ensures that we stand behind everything we sell.

“{But}, a small, but growing number of customers has been interpreting our guarantee well beyond its original intent. Some view it as a lifetime product replacement program, expecting refunds for heavily worn products used over many years. Others seek refunds for products that have been purchased through third parties, such as at yard sales.

“Based on these experiences, we have updated our policy. Customers will have one year after purchasing an item to return it, accompanied by proof of purchase. After one year, we will work with our customers to reach a fair solution if a product is defective in any way.’’

 

The lowering of trust prevents and disrupts business relationships. Over time, it makes it harder to maintain prosperity. One of the most important factors in America’s success has been that it, like northwest European nations and Japan, has generally had a higher level of trust in business and government than in most of the world, with, of course, some famous exceptions. A collapse of trust would hammer the economy. But that’s the direction we seem to be taking.

 

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U.S. Senator Elizabeth Warren (D-MA)
Massachusetts Sen. Elizabeth Warren, who’s apparently thinking about running for the Democratic presidential nomination in 2020, has been bedeviled by criticism from President Trump  (who calls her “Pocahontas’’) and other Republicans about her assertion that she has Native American ancestors, but other than referring to family stories,  she hasn’t come up with  indisputable proof. Well, she could take a DNA test. Such tests aren’t perfect, but if it does show she has Indian blood that would end the debate.


Some families perpetuate myths about their ancestors for many generations.

 

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There’s an amusing example of trendy legislative overreach in a bill sponsored by state Rep. Grace Diaz called “Student’s (sic?} Bill of  Rights’’. It says that no student in a Rhode Island public or private school, from kindergarten through high school, “shall be discriminated against on the basis of race, color, religion, ancestry, national origin, gender, sexual orientation, gender identity or expression, socioeconomic status or mental, physical, developmental, or sensory disability, or by association with an individual or group who has, or is perceived to have one or more of such characteristics.”

 

Idiotic, except for ambulance-chasing lawyers, who would find something in this gibberish with which to sue. Far better to just teach kids the Golden Rule: “Do unto others as you have them do unto you.’’

 

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“But if we fail {to defeat the Nazis}, then the whole world, including the United States, including all that we have known and cared for, will sink into the abyss of a new Dark Age made more sinister, and perhaps more protracted, by the lights of perverted science.’’

 

--  Winston Churchill, on June 18, 1940

 

 

The boldfaced words remind me of what’s happening in China,

where President Xi Jinping has arranged to be dictator for life, doing away with the  limit of two five-year terms for presidents that had been in effect since 1982. The cool and ruthless leader will use his open-ended, virtually unlimited power to accelerate the world’s biggest (in population) nation’s transformation into an Orwellian surveillance/police state enabled by such high technology as face-recognition devices, relentless monitoring of and censorship of the Internet, and artificial intelligence. Xi’s move is the most important sign yet of the world’s move into authoritarianism and totalitarianism, dashing the hopes for global democracy that followed the end of the last Cold War.

 

“I believe that’s a decision for China to make about what’s best for their country,” said  White House Press Secretary Sarah Huckabee Sanders in response to a question about Xi’s power grab. True, but the Chinese people weren’t

asked their opinion by their new emperor.

 

Meanwhile Russian dictator/kleptocrat/murderer/invader Vladimir Putin continues to tighten control, even as he, like his ally Xi, continues to seek to expand his empire’s borders.

 

And even some European Union members are tempted by the siren call of “stability’’ through dictatorship.

 

Other than Angela Merkel, the West currently has no leader with the gravitas, self-confidence and strong principles to push back. The leader, of course, should be Donald Trump. But he is far too corrupt and incompetent to fill that role. And, for that matter, he sucks up to autocrats in general and is heavily compromised by Putin. He’d love to be an autocrat himself.

 

This is a dark time for democracy. We need a Churchill.

 

We can only hope that the natural rigidity of dictatorships will undermine the aggressive new Russian and Chinese empires. With dictatorships suffused with cults of personality, as in Russia and China, governing becomes less informed and adaptable, as sources of expert and disinterested perspective and information shrink because people fear displeasing the tyrant with unpleasant facts. Indeed, fear can have paralyzing effects. But tyrannies’ foreign policy tends to become increasingly aggressive as dictators seek ways to distract their subjects from domestic problems, many of them of the dictator’s own making. And successions can be chaotic and even violent.
 

But for now, anyway the West looks weaker than Xi and Putin.

 

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Researchers writing in the Journal of Applied Ecology Beech write that higher temperatures and increased rainfall are causing an expansion of beech trees and a decline in birches and sugar and red maples in the Northeast. Maples and birches are more useful (to people) than are beeches because their wood can be used to make furniture and flooring and, of course,  sugar maples also provide sap to turn into syrup and candy.

Beech can be used for firewood, of course, but such burning causes air pollution.

To read the study, please hit this link:

 

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MA Governor Charlie Baker
The Wall Street Journal editorial page, generally a mouthpiece for the Republican Party, has rightfully gone after Massachusetts Gov. Charlie Baker for embracing Boston’s Teamsters Local 25  after it endorsed him for re-election, the first time in a couple of decades that the union had endorsed a GOP candidate for governor in the state. (“Charlie Baker and the Boston Teamsters,’’ Feb. 26).

 

Given the local’s history of thuggish behavior in Boston, including extortion, he should have kept his distance rather than effusively saying that “I am proud to have the Teamsters Local 25’s endorsement for re-election and look forward to our ongoing work with their leaders and members.’’ Mr. Baker doesn’t need the support of such a dubious outfit. With an approval rate of 69 percent, he may be the most popular governor in the country.


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