Monday, September 28, 2009

Profiting Under Guise of Philanthropy - Another Entry

I couldn't decide if this qualifies exactly as PUGP, but it seem close enough...for me. Yet another example of how those of wealth create the rules to their liking, while appearing to be doing deeds for the "common good". This example comes from an article written by economist, businessman Gary North.

Mount Desert Island, Maine, is the prototype Establishment enclave in America. There are three of them, all islands: Mt. Desert, Jeckyl (Georgia), and Jupiter (Florida). Mt. Desert Island is where a major aspect of the modern environmental movement was created: the lock-out.

In 1910, John D. Rockefeller, Jr. bought a 104-room granite mansion there, importing tiles from the Great Wall of China. [Peter Collier and David Horowitz, The Rockefellers: An American Dynasty (New York: Holt, Rinehart and Winston, 1976), p. 97.] Rockefeller then used Mount Desert Island as his first great experiment in permanently sequestering property away from the free market, which has an unappreciated tendency to develop properties aimed for sale to middle-class buyers.

Rockefeller and his elite neighbors – Edsel Ford was one of them – were concerned about "overdevelopment." [John Ensor Harr and Peter J. Johnson, The Rockefeller Century (New York: Charles Scribner’s Sons, 1988), p. 199.] This is an elitist code word for "real estate sales to the upper middle class." They created an association and donated 5,000 acres to it; then they gave it to the Federal government. President Wilson used executive authority in 1916 to create a special monument; in 1919, Congress passed a law making it Lafayette National Park. Junior bought more land and donated it to the government; this is now Acadia National Park.

He and his peers repeatedly adopted the lock-out strategy, using tax-deductible money, to remove prime real estate from the market in wilderness areas surrounding elite enclaves. This raises the value of the remaining properties, and it secures an insulated social world for them. The area around Jackson Hole, Wyoming, is one of the prime areas where the Rockefellers own large tracts. This area has long been the focus of a Rockefeller-inspired lock-out, beginning in 1919. [Harr & Johnson, pp. 201-211.] Land values there reflect this: astronomical. But the original model was Mount Desert Island.

The Rockefeller family biographers say of Junior’s role: "Very shortly, he became a towering figure, the greatest ally the National Park Service ever had." [Ibid., p. 198.] The assistance was mutual. The National Park Service provides the authority to keep the rest of us out of these areas on a permanent basis.

This program to seal off prime wilderness areas from economic development had its origins in the special role of wilderness in the coming of age for the sons of the super-rich. It is one of the three ordeals of youth and early manhood: the wilderness summer (wealthy scion Teddy Roosevelt is the most famous exemplar); the academy (Exeter, Groton, etc.), and military service in wartime (again, Roosevelt the "Rough Rider" is most famous). [Nelson Aldrich, Jr., Old Money: The Mythology of Wealth in America (New York: Knopf, 1988), ch. 5: "Three Ordeals."] Mount Desert Island has been a big part of this. [Ibid., pp. 164, 166.] Nelson Aldrich, Jr., as part of the Old Money Establishment, is quite forthright about environmentalism’s social function for the Establishment: "The social religion of Nature, which began with rich kids going outdoors for their health, ends in political action against the condo developers, the shopping-mall impresarios, the army of entrepreneurs whom Old Money (and not Old Money alone) imagines despoiling Arcadia." [Ibid., p. 169.]

Well, they gave "us", the little people, a few National Parks, while they get to keep out "us", the little people, from having elbow room next door to them.

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