The smart money don’t go to the suburbs. You and your family will stick out like a sore thumb and the Feds will always know exactly where you are. Corporations are legal entities that have no human brain but do have responsible officials and agents who can intentionally acts as being done by the corporation, although everyone knows that the act is done by human agents acting in the name of the corporation. A corporation can be convicted for actions committed by its agents, so long as the agents were acting within the scope of their actual or apparent authority, and this is so even if it had expressly instructed the agents not to engage in criminal conduct. The study of occupational and corporate crimes has become widely accepted within criminology, but the study of state crime had remained on the periphery of the discipline. Recently, however, a number of scholars have attempted to articulate the mature, form, extent, and varieties of state crime. While the labels differ, working in this area agree that governmental, political, or state crimes are illegal or socially injurious acts committed by political actors is consistent with the classic distinction between occupational and corporate crime, and points to the importance of viewing governmental/state/political crime as a form of organizational crime. The threat to use and use of nuclear weapons, that state’s permission of institutionalized racism and sexism, state suppression of civil, political, and human rights, and genocide are examples of state crime. Such crimes can occur internationally or domestically, can be committed by any number of state or state-related agencies, and may or may not be a violation of codified law. #RandolphHarris 1 of 19

While the study of state crime is still in its infancy, a promising and important development has recently been made. Traditionally, the crimes of the state and the crimes of corporations have been viewed as unique and distinct manifestations of organizational behaviour. Thus, a separate body of research and theorizing developed for each of these phenomena. There are linkages between state and corporate goals, be they proximal or distal, and some forms of organizational deviance result from the interaction between governmental agencies and private business. A revised definition of state-corporate crime expanded the concept to include harmful actions that are not directly manifested through active state involvement: “State-corporate crimes are illegal or socially injurious actions that result from a mutually reenforcing interaction between policies and/or practices in pursuit of goals of one or more institutions of political governance and policies and/or practices in pursuit of the goals of one or more institutions of economic production and distribution. The ValuJet crash is a published case study of state-corporate crime that exists in criminological literature. The present examination of the ValuJet crash, then, can increase understanding of state-corporate crime in two ways: through exposing the varied nature and form of the relationships between the policy and corporations that may lead to injurious outcomes that violate laws, and exploring the usefulness of the core theoretical concepts in the organizational crime literature by applying them to an instance of state-corporate crime. #RandolphHarris 2 of 19

State-corporate crime, is a distinct form of organizational deviance because it involves both vertical and horizontal relationships between business and government, which may have generally been viewed as separate, discrete entities. We have identified two forms of state-corporations, employed by the government, engage in organizational deviance at the direction of, or with the tacit approval of, the government. State-initiated state-corporate crime includes cases such as the space shuttle Challenger explosion and the environmental and human injury caused by nuclear weapons production. In both of these instances, a government agency (NASA  in the Challenger case and the Department of Energy in the nuclear weapons case) actively pursued a shared goal with a private corporation (Morton Thiokol and Rockwell International, respectively). The day-to-day manufacture of various parts for the space shuttle and nuclear weapons rests in the hands of private corporations. Both the state and the contracted corporation must produce a commodity in a timely and efficient way to achieve mutually held organizational goals. The illegal corporate practices (environmental contamination and the manufacture of defective products) that resulted from such contractual relationships were either strongly encouraged or otherwise explicitly supported by a state agency. State-facilitate crime occurs when governmental regulatory institutions businesses and government, or because they adhere to shared goals whose attainment would be hampered by aggressive regulation. #RandolphHarris 3 of 19

Viewing state-corporate crime in this manner sensitizes us to the variety of ways in which the state may encourage organizational deviance, or in some other way act as a criminogenic force. Since state-facilitated crime usually involves acts of omission rather than commission, it is one of the least recognizable forms of state involvement in crime. The utility of the concept, however, is not just in its identification of the broader structural state support of the U.S.A. economy and how this can be organizationally criminogenic. There are a variety of identifiable and specific actions or inactions by governmental agencies that may lead to identifiable social harms. In the case study to follow, we will highlight not only the broader structural policies which contributed to the crash, but also the very specific items marginalized or overlooked by the FAA which can be directly linked to deaths of those ValuJet flight 592. These include ignoring two clear recommendations by the National Transportation Safety Broad (NTSB) to: place some detectors in cargo holds exactly like the area in which the fire started on flight 592, and reclassify D cargo holds so that they would contain a fire and not allow it to spread to the rest of the plane. Had the FAA followed these recommendations, flight 592 could have landed safely and more than a hundred lives would have been saved. Furthermore, officials in the FAA also ignored several damning reports about the low quality and maintenance of ValuJet plans, not only from other agencies such as the U.S. Department of Defense, but also by FAA field inspectors. #RandolphHarris 4 of 19

In the case study to follow it will become clear that the crash of ValuJet flight 592 resulted from the “mutually reinforcing interaction” between private corporations (ValuJet and SabreTech) and a governmental agency (the Federal Aviation Administration). As such, the crash represents an example of state-facilitated state-corporate crime in which the pursuit of profit by corporations along with the failure of state agency to effectively monitor them resulted in the violent deaths of 110 people. The ValuJet corporation, founded by Robert Priddy, a former baggage handler, had overcome many obstacles and quickly developed its own niche in the airline industry. ValuJet grew from 2 to 50 aircraft (including the acquisition of 48 aircraft in 31 months), and within four years had a profit of $6.8 million dollars. Based in Atlanta, Georgia, ValuJet was approaching its fourth year of existence when flight 592 crashed. The early years of ValuJet were characterized by rapid growth and the development of a reputation for providing exceptionally low-priced airfares (as low as $39.00) and staying, in the words of Mr. Priddy “lean and mean.” The lean and mean aspect of ValuJet meant, among other things, a non-unionized labour force, paying pilots about half of the industry average, having pilots pay for their own training, and outsourcing maintenance. Like many late-20^th-century corporations, ValuJet was acquiring planes as fast as they could get their hands on them, most of which were older and in need of repairs. At the time of the crash of flight 592 the average age of ValuJet aircraft was 26.4 years old. Since one of the cost cutting measures employed by ValuJet was contracting out maintenance duties, the older planes they purchased were sent to out-of-house contractions. Indeed, the only maintenance ValuJet did itself was routine inspections, and I was not equipped to do heavy maintenance. In all, ValuJet had contracts with 21 different certified maintenance facilities, including Sabre Tech. #RandolphHarris 5 of 19

One of the maintenance tasks requested of SabreTech by ValuJet was the inspection of oxygen generators on all three planes to determine if they had exceeded their allowable service life of 12 years. One of the planes had generators that were to expire in 1998 or later. However, the other two planes had generators that had already expired or were going to expire shortly. Thus, ValuJet contracted with SabreTech to remove the generations from these planes and replace them. Oxygen generators are cylindrical tubes that provide oxygen in emergency situations, when cabin pressure is lost. The generators, along with the oxygen masks, are mounted behind panels above or adjacent to passenger seats in the plane. The generator cannot be activated until the spring-loaded mechanism strikes a percussion cap containing a small explosive charge at the end of the generator. When struck, this cap provides the necessary energy to create an exothermic chemical reaction, which then cases the generator to expel oxygen and tremendous amounts of heat. When mounted in planes, however, the generators should not cause fires because they are mounted on top of heat shields. The guidelines for removing and disposing of oxygen generators are quite clear. The McDonnell Douglas manual, for instance, explicitly states that “if the generator has not been expended “workers are to “install safety cap over (the) primer” (NTSB, 1997, p.10). Furthermore, this manual states that the generators must be stored in a safe environment (id est, noncombustible surface) where they are not exposed to high temperatures or possible damage until they are expanded. #RandolphHarris 6 of 19

Expenditure of the oxygen generators is done by securing them on a nonflammable surface in an area free of combustible substances. Once the chemical reaction has occurred, and the canister has cooled, it may be disposed of. Of the 144 canisters on the two plane, only six were expended. In March of 1996 SabreTech crews began removing the old oxygen generators from the ValuJet planes and replacing them with new ones. According to the mechanics from SabreTech, almost all the generators that were removed were placed in cardboard boxes and then placed on racks in the hangar near the airplanes themselves. All the work at SabreTech was to have been completed by April 24, 1996, for the first plane, and April 30, 1996, for the second. This time line was established with an agreement between ValuJet and SabreTech, which explicitly stated that ValuJet was to be credited $2,500.00 per calendar day for each day the aircraft was delayed beyond the redelivery date. According to the mechanics at SabreTech, there was considerable pressure to complete work on the aircraft. They reportedly worked 12-hour shifts, 7 days a week to complete the task. The NTSB investigation of the crash of ValuJet flight 592 revealed that the mechanic who signed the work card for ValuJet said that the canisters were placed in the cardboard boxes without packing material between them and without safety caps. He later testified that he assumed that they would not be shipped that way. #RandolphHarris 7 of 19

However, many mechanics asked about acquiring safety caps for the generators. Since this was the first time SabreTech had performed this sort of task, the SabreTech company had no new safety caps from the new generators on the old generators, but their inquiries were not followed up. The supervisor from SabreTech would later claim that no one who had worked with the oxygen generators has asked about safety caps. While ValuJet and other airlines are allowed to outsource maintenance and other critical support functions, they are ultimately responsible for ensuring that any work done for them is done both safely and legally. Federal Aviation Regulations (FARs), under part 121, clearly state that it is the ultimate responsibility of the contracting party to oversee and train any personnel working on responsibility of the contracting party to oversee and train any personnel working on their aircraft. To oversee the tasks and quality of work done by the independent maintenance contractors, ValuJet employed its own technical representatives. Their responsibilities included ensuring the necessary maintenance services provided by contractors like SabreTech had been done satisfactorily and in accordance with FARs. The oxygen generators were eventually packed into five cardboard boxes and brough to SabreTech’s receiving and shipping area for ValuJet. Three of the five boxes were delivered by one of the mechanics who had made earlier inquiries about the lack of safety caps. When asked if he had informed anyone in the receiving and shipping area about the specific contents of these boxes, he said not. #RandolphHarris 8 of 19

Unlike other facilities that do repair maintenance for airlines, SabreTech “had no formal procedure in place that required an individual leaving items in the shipping and receiving area to inform anyone in that area of what the items were, or that they were hazardous” (NTB, 1997, p. 118). To complicate matters, none of the SabreTech mechanics could recall seeing hazardous waste warnings on any of the boxes. After an extensive NTSB investigation, it is still unclear who brought the other two boxes to this area. On May 9 the shipping ticket for the five boxes was prepared by a SabreTech receiving clerk. The receiving clerk was given a piece of paper by the stock clerk and was told to write “Oxygen Canisters—Empty” on the shipping tickets (NTSB, 1997, p.19). When asked later if he knew the contents of the boxes, the receiving clerk said he did not, as the boxes were already sealed. ValuJet’s Atlanta address was then placed on the boxed, and they were brought to the ValuJet loading ramp. The ramp agents for ValuJet loaded the boxes on flight 592 headed for Atlanta, placing them in the forward cargo bin of the plane. None of the boxes were secured, and they were stacked on top of each other and around two spare airplane tires being shipped to Atlanta. One of the ramp agents said the contents of the boxes were “loose” and he heard “clinking” noises when he moved them. The NTSB used recorded radar data, cockpit voice recorder (CVR) comments and sounds, and flight data recorder (FDR) information to reconstruct the flight history of ValuJet flight 592. #RandolphHarris 9 of 19

At 12.03 Flight 592 was cleared for takeoff. By 12.07 the plane was airborne and the pilot was instructed by air traffic controllers to turn left to begin the WINCO transition climb. Within three minutes of takeoff there was an unidentified sound that was recorded on the CVR, and the captain asked “what was that?” (NTB, 1997, p.170). A few seconds later the captain remarked that they were experiencing some electrical problem. Five second later he said “we are losing everything,” and within seconds he stated “we need, we need to go back to Miami” (NTSB, 1997, p. 171). Shortly after, a male voice is heard on the CVR stating “we are on fire, we’re on fire” (NTSB, 1997, p. 171). The plane crashed within 10 minutes of takeoff, about 17 miles northwest of Maimi International Airport (NTSB, 1997). The captain had tuned the plane around but flames had engulfed the plane, causing it to crash nose down into the Florida Everglades. Subsequent tests with oxygen generators indicated that the heat generated by the fire was approximately 2000 degrees Fahrenheit within 10 to 15 minutes of ignition (NTSB, 1997). While ValuJet had a responsibility to oversee and regulate SabreTech’s maintenance of its aircraft, the FAA had the ultimate responsibility of overseeing both ValuJet and SabreTech. However, we suggest that neither the FAA nor ValuJet fulfilled their responsibilities. ValuJet, for example, had outsourced its maintenance to the lowest possible bidder without ensuring that both ValuJet and SabreTech were following Federal Aviation Requirements. #RandolphHarris 10 of 19

To understand why the FAA did not adequately enforce federal regulations that may have prevented this accident, we suggest that their contradictory roles as regulators of airline safety and promoters of the airline industry lie at the core of the problem. The reason why the FAA has such contradictory duties are rooted in its organizational development. However, the organizational development of the FAA is, we will, argue best understood within the broader historical context of laissez-faire economic philosophies. For now, let us turn to an extreme conceptual situation that is the true realm of Lawlessness and Economics, namely an economy lacking any government-provided legal institutions or organizations for protection of property rights and enforcement of contract. Such a society needs to develop its own alternative modes of economic governance. Two general types of such institutions and organizations are observed. They are parallel to the long-term relationships and arbitration, and the private ordering must operate unsheltered, without the shadow of the law. The alternative that has been studied most thoroughly is self-enforcing governance through repeated interaction. If the same parties interact with each other repeatedly, and they value the future sufficiently highly relative to the present, then the prospect of a long-term collapse of the relationship can control the temptation to obtain a short-term gain. This is well understood, both in the theory of repeated games and in practice. However, many economic activities require dealing with different partners at different times. #RandolphHarris 11 of 19

Even bilateral relationships may get severed, requiring one or both parties to find a different partner in the future. Therefore we must consider situations where there is little long-term relationship with the same person, but stable membership of a whole large group. Self-governance in such a group requires that if any one person cheats one’s current partner, the news is conveyed to others in the group who might be the cheater’s future partners. This loss of reputation can lead to ostracization, or other actions by the partners. This loss of reputation can lead to ostracization, or other actions by the group that have the effect of punishing the cheater on behalf of his current victim. In turn, such reputational considerations can deter opportunistic behavior. For this process to work, the society needs good information networks and credible multilateral punishment strategies. Both of these conditions can be fulfilled in stable and cohesive groups or networks, which might be defined by business times, ethnicity, and so on. However, the quality of information and the credibility of punishment both degrade as the size of such a group increases. We need a better understanding of the limits of self-governance. What happens if trading opportunities expand beyond the close group? When does some other mode of governance become better? What happens at the interface between the two systems? #RandolphHarris 12 of 19

Instead of relying on self-governance, the group might attempt to obtain the service for a fee from a private individual or group. One can think of this as a “private government,” established to serve just this one function, as opposed to the broader institution we call the government, which performs a multitude of functions. Credit-rating agencies and similar certification intermediaries can collect and disseminate common arrangement of this kind. In the absence of state law, it cannot rely on the courts’ forbearance to ensure compliance with its verdicts. However, arbitration can use repeated interactions in the group. Thus, if nay member of the group defies the arbitrator’s ruling, the arbitrator can publicize this information to the whole group, and then the group will not deal with the miscreant. In effect, the arbitrator becomes the hub of an information network. The private judges at trade fairs in medieval Europe functioned in this way. Finally, organized crime provides services of information as well as enforcement. In a society without state law, there is no external mechanism to ensure honesty of the arbitrator, the private judge, or the mafioso. That has to be self-enforcing, based on reputation considerations in a long-term relationship. Even though the participants in the economic transactions may not meet the same partner repeatedly, each of them can have a repeated interaction with the persons or organization that provides the governance, so an honest equilibrium of this kind is logically conceivable. Thus far I have concerned with the governance of economic interactions, that is, explicit or implicit contracts between two or more parties, made with mutual consent. #RandolphHarris 13 of 19

The way we make wealth has some different considerations. In 1956, the Society Union’s strongman, Nikita Khrushchev, uttered his famous boast—“We will bury you.” What he meant was that communism would outstrip capitalism economically in the years ahead. The boast carried with it as well the threat of military defeat, and it reverberated around the World. Yet few at the time even dimly suspected just how a revolution in the West’s system for creating wealth would transform the World military balance—and the nature of warfare itself. What Mr. Khrushchev (and most Americans) did not know was that 1956 was also the first year in which white-collar and service employees outnumbered blue- collar factory workers in the United States of America—an early indication that the Second Wave’s smokestack economy was fading and a new, Third Wave economy was being born. To understand the extraordinary changes that have since occurred and to anticipate the even more dramatic changes that lie ahead, we need to look at the main features of the new Third Wave economy. Here, then, at the risk of minor repetition, are the keys not only to business profitability and global competitiveness but to the political economy of the twenty-first century. The West makes its demands: Switch to demand-led domestic growth! Save more and buy American made! Demand-boosting macroeconomic policy of consumerism increases the asset bubble risk. If the risk is not carefully managed, a consecutive bubble burst may bring an economic, social, and political disaster. As far as some economists are concerned, we are living in the Goldilocks years. #RandolphHarris 14 of 19

The safest way for American leadership is not to stimulate private consumption and domestic demand in general, but to cool them down through a tighter monetary policy, again relying on exports as the major growth driver. High savings also remain a very important factor of America’s economic strength, and also of social stability. On the one hand, they strengthen American families’ confidence in their future. On the other, they support large-scale investment and steady production growth needed to create jobs. Through investment is somewhat restrained by a deflationary macroeconomic policy, it is still growing fast, as exports are robust. It is possible that economists are wrong and the West will not fall into a recession soon because of government stimulation of private consumers and corporations. Some fear this could lead to a market collapse in the next 24 months as people are priced out of the market for housing and other goods and services, to the point they stop spending, and are left only to pay their bills. This is why it is so important to consume made in American goods and switch to exporting products, rather than importing. This growth pattern would boost our foreign reserves, enhancing Washington’s role as a major creditor. For the American political establishment, by becoming a creditor nation again would be good news. This would allow capitalism to thrive and make it easier for America to persuade the counterparts to accept America’s rules of the game, not only on economic issues. #RandolphHarris 15 of 19

This is a really big political game. For the country’s rulers it is far more important than giving American families a chance to live better with a stronger dollars and wider access to American made products. Intimately related to the hereditarian conception of familism which has been steadily weakened in past decades is the much less rapidly crumbling restriction of caste inferiority which is imposed upon large sections of the population. Both brands of hereditarianism are based upon the population. Both brands of hereditarianism are based upon a normative, hierarchical conception of the family and society, which has similarity to feudal notions where each person was supposed to be content in the place to which one had been born. Certain family agencies have clearly recognized this connection. Unions, for example, concerned with discrimination in employment of women and ethnic minorities, treat both as facets of the same problem. Some interesting questions for research in this area are suggested by the pregnant hypothesis of Horkheimer and Fromm that the pattern of authority in the family is extended to society at large and vice versa. Some latter-day Freudians of conservative persuasion, on the other hand, find psychological reasons for discouraging women from taking up what are perceived as men’s occupations. A less psychological and more historical approach to equality of opportunity might start with an account of how America was primarily settled by religious dissenters, who eventually were able to establish as official policy the separation of church and states, and a private attitude of live-and-let-live among the multitudinous dissenting groups. #RandolphHarris 16 of 19

The later waves of immigration from Europe had much the same effect as sectarianism, for they perpetuated a multiplicity of subcultures and subcommunities within the larger whole. While both religious and ethic differentiation continue, though in diminished degree, there has been a steady increase in the differentiation of subcultures based upon occupational stratification and on similarities of interest—recreational, educational, avocational, and political. Due to the pioneer necessity of co-operative self-help, voluntary associations of all kinds have always been a conspicuous feature of American life, but vastly improved communications have made the formation of such groups much easier and increased leisure has made more people eager to join them. The decline of sectarianism and the success of “Americanization” thus have not diminished the heterogeneity of American communities. Contrary to those who profess to see, especially in occupational differentiation, a trend toward hierarchical strata, a persuasive case can be made for the thesis that American society is more unified and equalitarian than ever. For the American theory and practice of equality has never set a dead-level homogeneity as an ideal, but rather mutual respect for qualitative differences which constitute neither superiority nor inferiority. No doubt a hierarchy can be observed among those who share a particular value; moreover, some values such as wealth, education, and prestige are often gathered in families longest in a community. #RandolphHarris 17 of 19

Nevertheless, the vital point is that in their pursuit of happiness the American people are committed to no single, central, supreme value. They pursue a multitude of values, which they have in most cases found to be distinctly separable, not to say often inconsistent or contradictory, even at times for a single personality. Equality in the American sense is not a leveling with respect to some fixed category or value; on the contrary, concentration of values into some preferred hierarchy leads almost inevitably so some repressive or even totalitarian scheme of social structure. The best guarantee of equality is a multiplicity of ends pursued, and freedom to elaborate and actualize news ones. Multiple ends lead to multiple forms of organization, multiple organizations means no one organization can expect to gain a permanent majority. The crisscrossing of memberships in these many groups creates bonds of identification not possible in a society where activities cutting across strata and subcultures are discouraged if not forbidden. Psychopathological offenders may push a person to painful public confessions of wrongdoing, which one hopes will result in one’s regaining an “experience” apparently lost; but all in vain. These confessions instigated by deceiving offenders may be recognized by their compulsory character. The human is forced  to “confess” conduct disorder—and ofttimes conduct disorder which have no existence, expect in the accusations of the enemy. As it does not dawn upon one that psychopathological offenders will drive a human to do what looks like a most meritorious thing, and which the Scriptures declare is the one condition for obtaining forgiveness, one yields to the pressure upon one, simply to get relief. #RandolphHarris 18 of 19

Herein lies the danger of widespread “confessions of conduct disorder” during times of revival, when a veritable “wave” of confession passes over a community, and the depths of lives full of conduct disordered are exposed to the gaze of others. This enables the psychopathological offenders to disseminate the very position of the pit into the atmosphere, and into the minds of the listeners. “God” is the name for man’s ultimate concern. However, this is not to say that there is first a supreme being who then obliges man to render the homage of ultimate concern. It means that whatever concerns a man ultimately becomes god for him, and conversely, it means that man can be concerned ultimately only about that which is god for him. Within ultimate concern there is a constant tension between fixation upon the concrete and the drive toward an ultimacy which tends to be universal and hence abstract. This tension between the concrete and abstract elements accounts for the fact that the idea of God has a history, a history that ranges from every type of polytheism to the most stringent type of monotheism. We place great stress upon an experienced phenomenology of the holy, for without an encounter with God in the center and the ground of our personal existence, God is an empty word. God is the creative ground of everything and in everything, who is always present, always creating and destroying, always experienced as nearer to ourselves than we ourselves are, always unapproachable, holy, fascinating, terrifying, the ground and meaning of everything that is. This is the living God, dynamic in Himself, life as the ground of life. The mysterium tremendum et fasinosum. #RandolphHarris 19 of 19

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