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How the Legal System Was Deep-Sixed to Serve Elite America and Occupy Wall Street Became Inevitable

-By Glenn Greenwald

As intense protests spawned by Occupy Wall Street continue to grow, it is worth asking: Why now? The answer is not obvious. After all, severe income and wealth inequality have long plagued the United States. In fact, it could reasonably be claimed that this form of inequality is part of the design of the American founding -- indeed, an integral part of it.

Income inequality has worsened over the past several years and is at its highest level since the Great Depression. This is not, however, a new trend. Income inequality has been growing at rapid rates for three decades. As journalist Tim Noah described the process:

"During the late 1980s and the late 1990s, the United States experienced two unprecedentedly long periods of sustained economic growth -- the 'seven fat years' and the 'long boom.' Yet from 1980 to 2005, more than 80% of total increase in Americans' income went to the top 1%. Economic growth was more sluggish in the aughts, but the decade saw productivity increase by about 20%. Yet virtually none of the increase translated into wage growth at middle and lower incomes, an outcome that left many economists scratching their heads."

The 2008 financial crisis exacerbated the trend, but not radically: the top 1% of earners in America have been feeding ever more greedily at the trough for decades.

In addition, substantial wealth inequality is so embedded in American political culture that, standing alone, it would not be sufficient to trigger citizen rage of the type we are finally witnessing. The American Founders were clear that they viewed inequality in wealth, power, and prestige as not merely inevitable, but desirable and, for some, even divinely ordained. Jefferson praised "the natural aristocracy" as "the most precious gift of nature" for the "government of society." John Adams concurred: "It already appears, that there must be in every society of men superiors and inferiors, because God has laid in the... course of nature the foundation of the distinction."

Not only have the overwhelming majority of Americans long acquiesced to vast income and wealth disparities, but some of those most oppressed by these outcomes have cheered it loudly. Americans have been inculcated not only to accept, but to revere those who are the greatest beneficiaries of this inequality.

In the 1980s, this paradox -- whereby even those most trampled upon come to cheer those responsible for their state -- became more firmly entrenched. That's because it found a folksy, friendly face, Ronald Reagan, adept at feeding the populace a slew of Orwellian clichés that induced them to defend the interests of the wealthiest. "A rising tide," as President Reagan put it, "lifts all boats." The sum of his wisdom being: it is in your interest when the rich get richer.

Implicit in this framework was the claim that inequality was justified and legitimate. The core propagandistic premise was that the rich were rich because they deserved to be. They innovated in industry, invented technologies, discovered cures, created jobs, took risks, and boldly found ways to improve our lives. In other words, they deserved to be enriched. Indeed, it was in our common interest to allow them to fly as high as possible because that would increase their motivation to produce more, bestowing on us ever greater life-improving gifts.

We should not, so the thinking went, begrudge the multimillionaire living behind his 15-foot walls for his success; we should admire him. Corporate bosses deserved not our resentment but our gratitude. It was in our own interest not to demand more in taxes from the wealthiest but less, as their enhanced wealth -- their pocket change -- would trickle down in various ways to all of us.

This is the mentality that enabled massive growth in income and wealth inequality over the past several decades without much at all in the way of citizen protest. And yet something has indeed changed. It's not that Americans suddenly woke up one day and decided that substantial income and wealth inequality are themselves unfair or intolerable. What changed was the perception of how that wealth was gotten and so of the ensuing inequality as legitimate.

Many Americans who once accepted or even cheered such inequality now see the gains of the richest as ill-gotten, as undeserved, as cheating. Most of all, the legal system that once served as the legitimizing anchor for outcome inequality, the rule of law -- that most basic of American ideals, that a common set of rules are equally applied to all -- has now become irrevocably corrupted and is seen as such.

While the Founders accepted outcome inequality, they emphasized -- over and over -- that its legitimacy hinged on subjecting everyone to the law's mandates on an equal basis. Jefferson wrote that the essence of America would be that "the poorest laborer stood on equal ground with the wealthiest millionaire, and generally on a more favored one whenever their rights seem to jar." Benjamin Franklin warned that creating a privileged legal class would produce "total separation of affections, interests, political obligations, and all manner of connections" between rulers and those they ruled. Tom Paine repeatedly railed against "counterfeit nobles," those whose superior status was grounded not in merit but in unearned legal privilege.

After all, one of their principal grievances against the British King was his power to exempt his cronies from legal obligations. Almost every Founder repeatedly warned that a failure to apply the law equally to the politically powerful and the rich would ensure a warped and unjust society. In many ways, that was their definition of tyranny.

Americans understand this implicitly. If you watch a competition among sprinters, you can accept that whoever crosses the finish line first is the superior runner. But only if all the competitors are bound by the same rules: everyone begins at the same starting line, is penalized for invading the lane of another runner, is barred from making physical contact or using performance-enhancing substances, and so on.

If some of the runners start ahead of others and have relationships with the judges that enable them to receive dispensation for violating the rules as they wish, then viewers understand that the outcome can no longer be considered legitimate. Once the process is seen as not only unfair but utterly corrupted, once it's obvious that a common set of rules no longer binds all the competitors, the winner will be resented, not heralded.

That catches the mood of America in 2011. It may not explain the Occupy Wall Street movement, but it helps explain why it has spread like wildfire and why so many Americans seem instantly to accept and support it. As was not true in recent decades, the American relationship with wealth inequality is in a state of rapid transformation.

It is now clearly understood that, rather than apply the law equally to all, Wall Street tycoons have engaged in egregious criminality -- acts which destroyed the economic security of millions of people around the world -- without experiencing the slightest legal repercussions. Giant financial institutions were caught red-handed engaging in massive, systematic fraud to foreclose on people's homes and the reaction of the political class, led by the Obama administration, was to shield them from meaningful consequences. Rather than submit on an equal basis to the rules, through an oligarchical, democracy-subverting control of the political process, they now control the process of writing those rules and how they are applied.

Today, it is glaringly obvious to a wide range of Americans that the wealth of the top 1% is the byproduct not of risk-taking entrepreneurship, but of corrupted control of our legal and political systems. Thanks to this control, they can write laws that have no purpose than to abolish the few limits that still constrain them, as happened during the Wall Street deregulation orgy of the 1990s. They can retroactively immunize themselves for crimes they deliberately committed for profit, as happened when the 2008 Congress shielded the nation's telecom giants for their role in Bush's domestic warrantless eavesdropping program.

It is equally obvious that they are using that power not to lift the boats of ordinary Americans but to sink them. In short, Americans are now well aware of what the second-highest-ranking Democrat in the Senate, Illinois's Dick Durbin, blurted out in 2009 about the body in which he serves: the banks "frankly own the place."

If you were to assess the state of the union in 2011, you might sum it up this way: rather than being subjected to the rule of law, the nation's most powerful oligarchs control the law and are so exempt from it; and increasing numbers of Americans understand that and are outraged. At exactly the same time that the nation's elites enjoy legal immunity even for egregious crimes, ordinary Americans are being subjected to the world's largest and one of its harshest penal states, under which they are unable to secure competent legal counsel and are harshly punished with lengthy prison terms for even trivial infractions.

In lieu of the rule of law -- the equal application of rules to everyone -- what we have now is a two-tiered justice system in which the powerful are immunized while the powerless are punished with increasing mercilessness. As a guarantor of outcomes, the law has, by now, been so completely perverted that it is an incomparably potent weapon for entrenching inequality further, controlling the powerless, and ensuring corrupted outcomes.

The tide that was supposed to lift all ships has, in fact, left startling numbers of Americans underwater. In the process, we lost any sense that a common set of rules applies to everyone, and so there is no longer a legitimizing anchor for the vast income and wealth inequalities that plague the nation.

That is what has changed, and a growing recognition of what it means is fueling rising citizen anger and protest. The inequality under which so many suffer is not only vast, but illegitimate, rooted as it is in lawlessness and corruption. Obscuring that fact has long been the linchpin for inducing Americans to accept vast and growing inequalities. That fact is now too glaring to obscure any longer.

Glenn Greenwald is a former constitutional and civil rights litigator and a current contributing writer at Salon.com. He is the author of two New York Times bestselling books on the Bush administration's executive power and foreign policy abuses. His just-released book, With Liberty and Justice for Some: How the Law Is Used to Destroy E... (Metropolitan Books), is a scathing indictment of America's two-tiered system of justice. He is the recipient of the first annual I.F. Stone Award for Independent Journalism.

How the Legal System Was Deep-Sixed to Serve Elite America and Occupy Wall Street Became Inevitable

By Glenn Greenwald, Tomdispatch.com - Posted on October 25, 2011, Printed on October 28, 2011 View this story online at: http://www.alternet.org/story/152861/

With Liberty and Justice for Some

I’m genuinely excited today to announce the release of my new book, With Liberty and Justice for Some: How the Law is Used to Destroy E.... As of this morning, it is available in bookstores as well as for shipping online.

The book focuses on what I began realizing several years ago is the crucial theme tying together most of the topics I write about: America’s two-tiered justice system – specifically, the way political and financial elites are now vested with virtually absolute immunity from the rule of law even when they are caught committing egregious crimes, while ordinary Americans are subjected to the world’s largest and one of its harshest and most merciless penal states even for trivial offenses. As a result, law has been completely perverted from what it was intended to be – the guarantor of an equal playing field which would legitimize outcome inequalities – into its precise antithesis: a weapon used by the most powerful to protect their ill-gotten gains, strengthen their unearned prerogatives, and ensure ever-expanding opportunity inequality. This is how I described that development in the book:

The law itself wields tremendous power. The legal system’s reach is unparalleled: it can deprive a person of property, liberty, even life. It may compel people to transfer their material goods to others, block them from engaging in planned actions, destroy their reputations, consign them to cages, or even inject lethal chemicals into their veins. Unequal application of the law is thus not merely unjust in theory but devastating in practice. When the law is wielded only against the powerless, it ceases to be a safeguard against injustice and becomes the primary tool of oppression.

The past decade has witnessed the most severe crimes imaginable by political and financial elites: the construction of a worldwide torture regime, domestic spying perpetrated jointly by the government and the telecom industry without the warrants required by the criminal law, an aggressive war waged on another country that killed hundreds of thousands of people, massive financial fraud that came close to collapsing the world economy and which destroyed the economic security of tens of millions, and systematic foreclosure fraud that, by design, bombarded courts with fraudulent documents in order to seize homes without legal entitlement. These are not bad policies or mere immoral acts. They are plainly criminal, and yet – due to the precepts of elite immunity which were first explicitly embraced during Ford’s pardon of Nixon — none of those crimes has produced legal punishments.

By very stark contrast, ordinary Americans are imprisoned more easily, for longer periods of time, and in greater numbers than any nation on earth. New legal classes of non-persons with no rights have been created over the last decade as well. Thus, over the same four decades that elite immunity has taken hold, the nation — namely,the same elite class that has aggressively vested itself with the right to act with impunity — has resorted to ever more merciless punishment schemes for ordinary Americans and others who are marginalized who, for multiple reasons, have very few defenses when the state targets them for punishment. While being rich and powerful has always been an advantage in the judicial system (and in all other aspects of American life), our political culture has now explicitly renounced the concept of equality of law, and it is thus now unabashedly clear that who you are is far more important than what you do.

This development isn’t just central to most of what I write. It is, I believe, driving the growing (and accurate) perception that our political institutions are wholly illegitimate. It is, as I wrote this morning at Tom Dispatch, this sense that outcome inequalities are now wholly illegitimate – as a result of this fundamental perversion of the rule of law – that is fueling the citizen anger inspirationally on display at the Occupy protests around the nation.

In the first three years after I began writing about politics, (2006-2008), I wrote one book per year, largely because significant time constraints were imposed on those books. This new book is substantially different than those for many reasons, the most important of which is that I had the luxury of really taking my time with this book. I’ve basically been writing it for the last two-and-a-half years, and was able to step back from day-to-day writing and reflect on broader themes and underlying causes that explain these developments and what really lies at their rotted roots. The greater amount of time, and a much more active editor, also meant that I was able (and at times compelled) to struggle with and then perfect literally each sentence. This was a much different, and much more gratifying, book-writing process, and I really believe that this is reflected in the book itself.

For me, there is only one reason to spend the enormous amount of time and energy required to write a book: because you really believe that the arguments you’re making should be heard but are not being heard, and the book, if it’s successful, can forcibly inject these ideas into mainstream discourse. I think there’s a growing perception, even if inchoate, that law does not serve as a legitimizing anchor to justify wealth, income and opportunity inequalities, and therefore nothing legitimizes those inequalities. They are illegitimate. The resulting anger – and rejection of the legitimacy of mainstream political institutions – is a positive force, a necessary antidote, and it’s my sincere hope that this book will accelerate that by crystallizing just how corrupted American law and justice have become.

* * * * *

The book is available at Amazon, Powell’s, Barnes & Noble and most bookstores. There will be short excerpts posted in various places today and I will post the links to those here. The current event schedule for my book tour is here. For the first television interview, I’ll be on the Rachel Maddow Show tonight at roughly 9:15 p.m. to discuss the book, and will post other media appearances as they happen.

UPDATE: An excerpt from the book is now published in Salon, which examines how the Ford pardon of Nixon entrenched the modern template for corrupt elite immunity. A separate excerpt in The Huffington Post concerns the mentality leading to the extension of immunity to the nation’s most financially powerful.

UPDATE II: Truthout has posted an interview with me today that covers several of the book’s key themes; it can be read here.

In addition to the Maddow show tonight (my segment will be at 9:30 p.m.), I’ll be on for the full hour on Democracy Now tomorrow morning beginning at 8:00 a.m. (local listings and live stream here), and then on NPR’s On Point, beginning at 11:00 a.m.

UPDATE III: Here is the segment I did with Rachel Maddow this evening discussing the new book: