He writes,
That is, the capitalists will try to purchase respectability and pay off potential critics that could create real trouble for their businesses by buying ‘indulgences’ in the form of funding donations for certain prominent anti-capitalists, conspicuously and prominently towing the party line in public on the most important ideological commitments, and hiring the right number of the right people for cushy sinecures. If they show they are reliable allies instead of potential threats or rivals, and put enough money where their mouths are, and use their platforms, technological savvy, and expertise to help progressives win elections (e.g. Eric Schmidt wearing his “Staff” badge at Clinton campaign HQ), then in exchange, they will be left alone, and maybe even get some special treatment, favorable coverage, and promotion instead of demonization.
This strikes me as a very plausible scenario. Universities have pacified radicals in this way.
In the mid-1980’s, Freddie Mac made a number of bad loans on multifamily properties in poor neighborhoods. Some of them were cash-out refinances (someone from another company later confided in me that no other multifamily lender did cash-out refis), where the property owners took the money to spend on themselves, did zero maintenance on the properties, and then defaulted on the loans.
The agitation group ACORN saw this as an opportunity to go after Freddie. They organized demonstrations on the theme that Freddie was ruining the dwelling places of poor people. That was indeed one of the unintended consequences of the misguided lending practices, but what ACORN was really after was a big grant from Freddie that amounted to hush many paid to ACORN.
The thing about this shakedown tactic is that it is like paying ransom in a kidnapping. It relieves your problem, but it increases the chances that there will be other victims. In the case of a shakedown by activists, giving them hush money relieves our problem but it hands the group more resources to go and shake down the next corporate victim.