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’AngryRenter.com’ logo.’AngryRenter.com’ logo. [Source: AngryRenter (.com)]The Wall Street Journal learns that a supposedly amateur-based, citizen-driven protest Web site is actually a product of a professional public relations and lobbying organization, FreedomWorks (see April 14, 2009). The site, AngryRenter.com, is designed to look like something an “ordinary citizen” would produce. Michael Phillips of the Journal writes, “AngryRenter.com looks a bit like a digital ransom note, with irregular fonts, exclamation points, and big red arrows—all emphasizing prudent renters’ outrage over a proposed government bailout for irresponsible homeowners.” The site’s home page proclaims, “It seems like America’s renters may NEVER be able to afford a home,” and exhorts visitors to sign an online petition directed at Congressional Democrats. (The petition, with some 44,500 signatures, was delivered to Senate leaders earlier in the week.) “We are millions of renters standing up for our rights!” the site proclaims.
'Astroturf' - However, it is designed and hosted by FreedomWorks, which the Journal describes as “an inside-the-Beltway conservative advocacy organization led by Dick Armey, the former House majority leader, and publishing magnate Steve Forbes, a fellow Republican. [Forbes is an unpaid board member.]… [AngryRenter.com is] a fake grass-roots effort—what politicos call an astroturf campaign—that provides a window into the sleight-of-hand ways of Washington.” FreedomWorks opposes the proposed government bailout of the housing industry, and says it plans to oppose any further bailouts. AngryRenter.com is copyrighted by FreedomWorks, which discloses its ownership of the site on a page deeper into the site. However, Phillips writes, “The site is nonetheless designed to look underdoggy and grass-rootsy, with a heavy dose of aw-shucks innocence.” The site says: “Unfortunately, renters aren’t as good at politics as the small minority of homeowners (and their bankers) who are in trouble. We don’t have lobbyists in Washington, DC. We don’t get a tax deduction for our rent, and we don’t get sweetheart government loans.” Most visitors to the site have no idea that lobbyists for FreedomWorks actually wrote that copy, nor that FreedomWorks garnered $10.5 million in lobbying fees in 2006, most of which came from large donors the organization is not obligated to disclose.
FreedomWorks Operated by Millionaires - FreedomWorks president Matthew Kibbe says the site is an attempt to “reach out” to disgruntled renters who share the free-market views of Armey, Forbes, and others. Kibbe calls himself “an angry homeowner who pays his mortgage.” He lives on Capitol Hill in DC, in a home valued at $1.17 million. Forbes lives in a home in New Jersey worth $2.78 million, and owns, among other properties, a chateau in France. (The Forbes family recently sold its private island in Fiji and its palace in Morocco.) Armey earns over $500,000 a year working for FreedomWorks, and lives in a Texas home valued at $1.7 million. Representative Barney Frank (D-MA) says he finds it amusing that Armey is portraying himself as a champion of ordinary renters. “I worked a long time trying to improve the condition of renters,” he says. “Dick Armey has usually been on the other side.”
Looking Out for the 'Poor Devil' Who Can't Afford to Buy a Home - Armey says he’s looking out for “the poor devil” who can’t afford to buy a house. “From our point of view, we have an industry in which people were very careless, very reckless—both lenders and borrowers. What various policy makers are saying is we need to rush in here with a program to protect people from the consequences of their own bad judgment.”
Deliberately Misleading? - Armey defends AngryRenter.com’s deliberately amateurish appearance, and calls it “voluntary” for civic participation. San Diego financial adviser Rich Toscano, who rents his home, thought the site was an amateur venture similar to his own blog, Professor Piggington’s Econo-Almanac for the Landed Poor, which chronicles foreclosures and other financial misfortunes suffered by real-estate brokers whom Toscano says helped inflate the area’s real-estate bubble. AngryRenter.com appeared to Toscano as genuinely citizen-produced: “It looks like a young person did it,” he says. He still supports the site even after learning that it is a production of a DC lobbying firm, saying the message is more important than the identity of the bailout. Web designer Chris Kinnan, a FreedomWorks employee, actually designed the site. Of himself, he says: “I’m a renter. I’m not an angry renter.” [Wall Street Journal, 5/16/2008]

Entity Tags: Michael Phillips, Chris Kinnan, Barney Frank, AngryRenter (.com), Dick Armey, Matt Kibbe, Wall Street Journal, FreedomWorks, Rich Toscano, Steve Forbes

Timeline Tags: Domestic Propaganda

Megan McArdle.Megan McArdle. [Source: New Economist (.com)]The Atlantic’s business blogger, Megan McArdle, lambasts Playboy for publishing an article that claims the Rick Santelli “tea party” “rant” (see February 19, 2009) may have been a pre-planned incident designed to coincide with the launch of a number of “tea party” Web sites and “grassroots” organizations (see February 27, 2009). McArdle says that the suspicious timing of the chicagoteaparty.com Web site launch, hours after Santelli’s “impromptu” rant on CNBC, was nothing more than an example of someone “leap[ing] in when opportunity arose.” McArdle denies that oil giant Koch Industries, or the Koch family, funds the conservative lobbying firm FreedomWorks (see April 14, 2009), and says, “[A]stroturfing [the practice of forming fake ‘grassroots’ organizations clandestinely organized and funded by lobbying groups or corporate entities] doesn’t really seem like their style.” McArdle may not be aware of a recent Wall Street Journal expose of a FreedomWorks “astroturf” endeavor (see May 16, 2008). She does acknowledge that since FreedomWorks does not publicize its donor list, she cannot be sure Koch is not funding the group. She admits that many “tea party” organizations are funded and operated by large conservative PR and lobbying firms, and writes: “So what? Groups—often funded by God knows who—coordinate protests.” McArdle calls the article’s allegation that Santelli participated in a pre-planned, scripted event “potentially libelous,” and writes, “If I were Santelli, I’d sue.” At the very end of her column, McArdle admits that she lives with a former FreedomWorks official, Peter Suderman. She denies that Suderman influenced her writing in any way except to give her an e-mail address of “the right employee to… make inquiries” of at the firm. “I haven’t asked him about his former employer, and he hasn’t told me anything. I debated whether to write about this, but since I’m not actually defending FreedomWorks, I think it’s kosher.” [Atlantic Monthly, 3/2/2009] Shortly after posting her column online, McArdle posts a follow-up, with details of her conversation with FreedomWorks official Brendan Steinhauser. She identifies Steinhauser as “the chap at FreedomWorks who has helped organize the tea parties.” She calls the firm “completely open about their interest in furthering the tea parties” (see May 16, 2008 and March 13, 2009 and After). She says Steinhauser got the idea for the “tea parties” from Michelle Malkin’s blog, which is at odds with Santelli’s claim of “spontaneously” using the term (see March 2, 2009). [Atlantic Monthly, 3/2/2009]

Entity Tags: Megan McArdle, CNBC, Brendan Steinhauser, Fred Koch, Koch Industries, Peter Suderman, The Atlantic, Michelle Malkin, FreedomWorks, Playboy, Rick Santelli

Timeline Tags: Domestic Propaganda

FreedomWorks logo.FreedomWorks logo. [Source: FreedomWorks]The progressive news and advocacy site Think Progress profiles FreedomWorks, a conservative lobbying firm that uses the practice of “astroturfing” to press its agenda home. FreedomWorks is one of the organizations behind the anti-tax “tea party” movement (see April 8, 2009). The organization denies that it is “astroturfing”—creating fake “citizens groups” that purport to be spontaneously organized grassroots organizations—and compares its work to that of liberal activism group MoveOn.org. However, Think Progress notes that MoveOn is a citizen-organized group, while FreedomWorks is headed by former Republican activists and corporate officials, and is funded by oil, energy, and tobacco companies. Former House Majority Leader Dick Armey and current Washington lobbyist (R-TX) leads FreedomWorks. [Think Progress, 4/14/2009]
'Amateur-Looking' Astroturfing Sites - Last year, the Wall Street Journal exposed FreedomWorks’ use of “amateur-looking” Web sites for its “astroturf” groups to bolster their credibility as purported “citizen groups” pushing for corporate interests (see May 16, 2008). [Think Progress, 4/14/2009]
Represented by PR Firm with GOP Links - FreedomWorks is represented by the Washington public relations firm Shirley & Banister Public Affairs. Shirley & Banister also represents conservative organizations such as the National Rifle Association, Citizens United, news outlet Human Events, and organizer Richard Viguerie’s direct-mail firm. (It also represents the Bradley Foundation, a conservative funding organization that in 2008 gave $25,000 to both FreedomWorks and Americans for Prosperity [AFP], gave FreedomWorks $75,000 in 2009, and is considering a grant request from AFP.) One of Shirley & Banister’s partners is Craig Shirley, a veteran Republican PR operative who helped develop the overtly racist 1988 “Willie Horton” political ad (see September 21 - October 4, 1988). Progressive MSNBC host Rachel Maddow tells her audience: “This is a perfect system for the Republican Party. It’s a constant feedback loop. The Republican Party activists stir up fear and anger on the Internet… Fearful, angry people go to town hall events and then Republican Party officials say they are just responding to that anger and they have no idea where it came from. It’s [a] perfect cycle. Rile them up with made-up stuff and then sympathize with them that are so riled.” [MSNBC, 8/14/2009; MSNBC, 8/17/2009]
Led by Millionaires - Three of FreedomWorks’ most prominent senior officials are millionaires. Armey makes over $500,000 a year working for the organization, and lives in a Texas home valued at $1.7 million. FreedomWorks president Matthew Kibbe lives on Capitol Hill in Washington, DC, in a home valued at $1.17 million. Board member Steve Forbes, the billionaire publisher of Forbes magazine, lives in a New Jersey home valued at $2.78 million, owns a chateau in France, and recently sold a private island in Fiji and a palace in Morocco. [Wall Street Journal, 5/16/2008]
FreedomWorks Supports Armey's Lobbying Efforts - Armey’s lobbying firm, DLA Piper, represents pharmaceutical firms such as Bristol-Myers Squibb, medical device supplier SleepMed, health care provider Metropolitan Health Networks, and another pharmaceutical firm, Medicines Company. One member of FreedomWorks’s board of directors is Richard Stephenson, the founder and chairman of Cancer Treatment Centers of America. He is also the president of International Capital and Management Company, which runs a hospital consulting company. The president of FreedomWorks is Matt Kibbe, the former senior economist for the Republican National Committee and the former chief of staff for Representative Dan Miller (R-FL). FreedomWorks is organizing protests against health care reform that would cut into pharmaceutical firms’ profits. DLA Piper represents a number of life insurance firms; FreedomWorks has organized support for the deregulation of the insurance industry. DLA Piper represents not only several American oil firms, but also Sheikh Mohammed Bin Rashid Al Maktoum, prime minister of the United Arab Emirates (UAE), on energy related issues such as maintaining the close ties between the US and the UAE. US oil firms are deeply involved in the UAE’s oil industry. [Center for Responsive Politics, 2009; Think Progress, 4/14/2009; MSNBC, 8/12/2009] In August 2009, after reporting on FreedomWorks, MSNBC host Rachel Maddow will tell her audience: “Washington lobbyists and health care executives and former Republican Party officials have just as much a right to shout down the policy debate about health care reform as anyone else does. These folks have just as much a right to try to derail this entire process as anyone else does. But we have a right to know who they are and who is paying them for their efforts. These guys are pros. This is an industry. This is beltway politics being organized and played out in town halls across the country.” [MSNBC, 8/12/2009] DLA Piper has also received $830,000 this year, so far, from the pharmaceutical firm Medicines Company; the same firm paid DLA Piper $1.5 million in 2008. [MSNBC, 8/7/2009]
FreedomWorks Lobbying on Behalf of DLA Piper? - In August 2009, Maddow will ask, “[W]hy are DLA Piper’s clients relevant?” She answers herself, “There appears to be some pretty good evidence that when you pay Dick Armey’s lobbying firm, DLA Piper, you get what Dick Armey’s grassroots organization FreedomWorks does.” In the first half of 2007, the American Council of Life Insurers paid DLA Piper $100,000 to lobby on its behalf. During that time span, FreedomWorks began lobbying Congress on a “grassroots” basis to deregulate the life insurance industry. Maddow will sarcastically ask: “And, of course, perhaps it is just mere coincidence that FreedomWorks happened to have a newfound, ideological, purist grassroots commitment to life insurance deregulation at the same time the American Council of Life Insurers hired Dick Armey’s lobbying firm. It could just be a coincidence. Could be, right?” In 2006, DLA Piper began lobbying for the Senado de Republica, the Mexican Senate, for the purpose of “enhancing US-Mexico relations.” At the same time, FreedomWorks began promoting itself as “one of the few organizations willing to aggressively promote meaningful immigration reform.” In 2004, during the Bush administration’s push to privatize Social Security, a single mom from Iowa was introduced at a White House economic conference as a supporter of privatization. That mom was a FreedomWorks employee. Maddow will say: “This is how FreedomWorks does their work. They try to create the impression that their just regular grassroots Americans without any financial or political interests in the outcome of these policy fights.” [MSNBC, 8/12/2009]

Entity Tags: MoveOn (.org), Steve Forbes, Think Progress (.org), Mohammed bin Rashid Al Maktoum, Wall Street Journal, Matt Kibbe, Bristol-Myers Squibb, DLA Piper, Medicines Company, FreedomWorks, Dick Armey

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Liberal New York Times columnist Frank Rich writes an op-ed focusing on the billionaire Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, and October 4, 2011), the oil magnates who are the driving force behind the tea party movement. Rich writes that “even those carrying the Kochs’ banner may not know who these brothers are.” Rich, using information from historian Kim Phillips-Fein’s book Invisible Hands, notes that the Kochs are the latest in a long line of behind-the-scenes corporate manipulators “who have financed the far right (see September 2010 and August 17, 2011) ever since the du Pont brothers spawned the American Liberty League in 1934 to bring down” the Roosevelt administration (see August 23, 1934 and After). “You can draw a straight line from the Liberty League’s crusade against the New Deal ‘socialism’ of Social Security, the Securities and Exchange Commission, and child labor laws to the John Birch Society-Barry Goldwater assault on [the Kennedy administration] and Medicare (see 1962 and November 1963) to the Koch-Murdoch-backed juggernaut against our ‘socialist’ president,” Rich writes. “Only the fat cats change—not their methods and not their pet bugaboos (taxes, corporate regulation, organized labor, and government ‘handouts’ to the poor, unemployed, ill, and elderly). Even the sources of their fortunes remain fairly constant. Koch Industries began with oil in the 1930s and now also spews an array of industrial products, from Dixie cups to Lycra, not unlike DuPont’s portfolio of paint and plastics. Sometimes the biological DNA persists as well. The Koch brothers’ father, Fred (see 1940 and After), was among the select group chosen to serve on the Birch Society’s top governing body. In a recorded 1963 speech that survives in a University of Michigan archive, he can be heard warning of ‘a takeover’ of America in which Communists would ‘infiltrate the highest offices of government in the US until the president is a Communist, unknown to the rest of us.’ That rant could be delivered as is at any tea party rally today.” Rich also focuses on FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011), one of the two “major sponsor[s]” of the tea party movement, along with Americans for Prosperity (AFP—see Late 2004, October 2008, January 2009 and After, February 16, 2009, February 16-17, 2009, February 17, 2009, February 19, 2009 and After, April 2009 and After, April 8, 2009, May 29, 2009, July 23, 2009, July 27, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 10, 2009, August 14, 2009, October 2, 2009, November 2009, February 15, 2010, April 15, 2010, July 3-4, 2010, August 24, 2010, August 30, 2010, September 20, 2010 and August 17, 2011). Both FreedomWorks and AFP are heavily funded by the Koch brothers. Rich writes: “Tea partiers may share the Kochs’ detestation of taxes, big government, and [President] Obama. But there’s a difference between mainstream conservatism and a fringe agenda that tilts completely toward big business, whether on Wall Street or in the Gulf of Mexico, while dismantling fundamental government safety nets designed to protect the unemployed, public health, workplace safety, and the subsistence of the elderly.” Rich writes that the Koch brothers’ agenda is “inexorably… morphing into the GOP agenda,” and points to Republican luminaries such as incoming House Speaker John Boehner (R-MO) and tea party candidates such as Rand Paul (see March 27, 2010, May 17, 2010, October 25, 2010 and After, October 26, 2010 and November 10, 2010), Sharron Angle (see January 2010, Mid-May, 2010, Mid-June 2010, June 16, 2010 and September 18, 2010), and Joe Miller (see July 19, 2010, July 23, 2010, October 17, 2010, October 17, 2010 and October 18, 2010). “The Koch brothers must be laughing all the way to the bank knowing that working Americans are aiding and abetting their selfish interests,” Rich concludes. [New York Times, 8/28/2010]

Entity Tags: Rand Paul, Koch Industries, Sharron Angle, Joseph Wayne (“Joe”) Miller, Kim Phillips-Fein, John Birch Society, Barack Obama, Americans for Prosperity, American Liberty League, Charles Koch, John Boehner, David Koch, Fred Koch, FreedomWorks, Frank Rich

Timeline Tags: Domestic Propaganda

The Guardian reports that American tea party organizations are working with British anti-tax groups, teaching the British to emulate their mass-protest techniques. The Taxpayers’ Alliance (TPA), a British organization that stands for tax cuts and decreased government spending, is being advised by FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010 and September 12, 2010), an American lobbying organization that helped found and organize the tea party movement. Today a group of libertarian tea party leaders take part in a London conference with their British and European counterparts, calling their activities “an insurgent campaign” against the US government’s taxation and spending policies. British groups believe they can import tea party tactics to help expand their influence. “You could say our time has come,” says TPA founder Matthew Elliott, whose group has swelled to some 55,000 members. “Take the strikes on the London underground this week and how much they annoyed and inconvenienced people. Couldn’t we get 1,000 people to protest that? We need to learn from our European colleagues and the tea party movement in the US.… It will be fascinating to see whether it will transfer to the UK. Will there be the same sort of uprising?” FreedomWorks consultant Terry Kibbe says she wants to help mobilize British “grassroots” activists in much the same way her organization did in the US, by working through established right-wing lobbying groups to produce campaign materials, train community organizers, and pay for television advertisements. “We have been working to identify groups in Europe that would be amenable to becoming more activist-based, thinktanks that could start activist wings,” she says. “We have worked with the Taxpayers’ Alliance, in Austria and in Italy, and we want to do more.” Another lobbying group heavily involved in the tea party movement, Americans for Prosperity (AFP—see Late 2004, October 2008, January 2009 and After, February 16, 2009, February 16-17, 2009, February 17, 2009, February 19, 2009 and After, April 2009 and After, April 8, 2009, May 29, 2009, July 23, 2009, July 27, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 10, 2009, August 14, 2009, October 2, 2009, November 2009, February 15, 2010, April 15, 2010, July 3-4, 2010, August 24, 2010, August 30, 2010, September 20, 2010 and August 17, 2011), is also involved in the outreach effort. AFP leader Tim Phillips says: “In the US there is a growing consciousness of the effect of government spending and debt on their own prosperity. It strikes me that many Britons are coming to the same conclusion.” Other right-wing organizations that have funded the London conference include the Ronald Reagan Presidential Foundation, the Cato Institute, and the Heritage Foundation. Representatives from Philip Morris and Imperial Tobacco, along with a British think tank that opposes climate change research, the Global Warming Policy Foundation, take part in the conference. “We need to reach out to a broader audience,” says Barbara Kohn, secretary general of the Hayek Institute in Vienna, one of Europe’s leading low tax campaigners that has also worked with FreedomWorks. “We need to come from various angles. We have all seen what our friends in the tea party movement, and their march, have achieved.” [Guardian, 9/9/2010]

Entity Tags: Heritage Foundation, Cato Institute, Barbara Kohn, Americans for Prosperity, Global Warming Policy Foundation, The Guardian, Tim Phillips, Taxpayers’ Alliance, Imperial Tobacco, Matthew Elliott, Terry Kibbe, FreedomWorks, Philip Morris, Ronald Reagan Presidential Foundation

Timeline Tags: Domestic Propaganda

Former President Bill Clinton warns that the “tea party” movement is led, not by grassroots organizers and ordinary Americans, but by “people backing ultra right-wing corporate interests” who have been pushing the same agenda “for the last 30 years” (see May 16, 2008, August 2008, February 19, 2009, February 27, 2009, March 2, 2009, March 13, 2009 and After, March 23-24, 2009, April 2009 and After, April 6-7, 2009, April 8, 2009, April 14, 2009, April 15, 2009, April 16, 2009, May 13-14, 2009, July 23, 2009, July 24, 2009, August 4, 2009, August 5, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 10, 2009, August 11, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 28, 2009, July 3-4, 2010, and August 30, 2010). Clinton has advised Democrats to “listen to the tea party” because many of its supporters are “people who feel the middle class has been hosed… by big business and government.… There are a lot of real people in this tea party movement that are saying something everyone should hear—which is: ‘Seems like everyone but average Americans are doing all right here. The people that caused the financial crisis are all back in great shape.’” Clinton expresses his “sympathy” for the members, but draws a sharp distinction between the “tea party” rank and file and its leadership. “The problem is that if you look at the financial energy behind the tea party movement, it’s not about restricting abuse of big public and private power,” Clinton says. “It’s about destroying the role of government in our life so that private centers of power will be untrammeled, and I don’t think that’s good for average Americans.” Democrats should listen to “tea party” members, but Clinton warns against letting their rhetoric “cloud their judgment.” If Republicans take back the House of Representatives in November 2010, Clinton warns that that body will spend most of its time launching pointless, politically-driven investigations into the White House. The nation will experience “two years of unrelenting investigations into the White House, staff, and cabinet,” he says. That is how President Obama will be “rewarded” by Republicans for not investigating alleged Bush administration wrongdoing, he adds. [Politico, 9/20/2010; Salon, 9/21/2010]

Entity Tags: William Jefferson (“Bill”) Clinton, Obama administration

Timeline Tags: Domestic Propaganda

In a wide-ranging interview with Rolling Stone magazine, President Obama says that he believes the loose amalgamation of groups and organizations under the “tea party” rubric is “still defining itself.” Obama says: “I think the tea party is an amalgam, a mixed bag of a lot of different strains in American politics that have been there for a long time. There are some strong and sincere libertarians who are in the tea party who generally don’t believe in government intervention in the market or socially. There are some social conservatives in the tea party who are rejecting me the same way they rejected Bill Clinton, the same way they would reject any Democratic president as being too liberal or too progressive. There are strains in the tea party that are troubled by what they saw as a series of instances in which the middle-class and working-class people have been abused or hurt by special interests and Washington, but their anger is misdirected. And then there are probably some aspects of the tea party that are a little darker, that have to do with anti-immigrant sentiment or are troubled by what I represent as the president. So I think it’s hard to characterize the tea party as a whole, and I think it’s still defining itself.” Asked how the tea parties are being financed, Obama says: “There’s no doubt that the infrastructure and the financing of the tea party come from some very traditional, very powerful, special-interest lobbies. I don’t think this is a secret. Dick Armey and FreedomWorks (see May 16, 2008, April 14, 2009, and April 15, 2009), which was one of the first organizational mechanisms to bring tea party folks together, are financed by very conservative industries and forces that are opposed to enforcement of environmental laws, that are opposed to an energy policy that would be different than the fossil-fuel-based approach we’ve been taking, that don’t believe in regulations that protect workers from safety violations in the workplace, that want to make sure that we are not regulating the financial industries in ways that we have. There’s no doubt that there is genuine anger, frustration, and anxiety in the public at large about the worst financial crisis we’ve experienced since the Great Depression. Part of what we have to keep in mind here is this recession is worse than the Ronald Reagan recession of the eighties, the 1990-91 recession, and the 2001 recession combined. The depths of it have been profound. This body politic took a big hit in the gut, and that always roils up our politics, and can make people angry. But because of the ability of a lot of very well-funded groups to point that anger—I think misdirect that anger—it is translating into a relevant political force in this election.” [Rolling Stone, 9/28/2010]

Entity Tags: FreedomWorks, Barack Obama

Timeline Tags: Domestic Propaganda

The Republican presidential primaries are being largely controlled, at least from a financial standpoint, by a very few extraordinarily wealthy individuals, according to research provided by former Treasury Secretary Robert Reich and the news organization ProPublica. In January 2012, the campaign of frontrunner Rick Santorum (R-PA) was almost entirely funded by billionaires William Dore and multi-millionaire Foster Friess (see February 16-17, 2012), who between them supplied over three-quarters of the $2.1 million donated to Santorum’s “super PAC” “Red White and Blue Fund.” Dore is the president of a Louisiana energy corporation and Friess is a fund manager in Wyoming. Of the $11 million raised by the super PAC supporting Newt Gingrich (R-GA), $10 million came from Sheldon Adelson and his wife, Miriam. Adelson runs a casino ownership group in Las Vegas. Most of the rest of Gingrich’s funding came from Texas billionaire Harold Simmons. PayPal co-founder Peter Thiel provided $1.7 million of the $2.4 million raised in January by the super PAC for Ron Paul (R-TX). As for Mitt Romney (R-MA), himself a multi-millionaire, his super PAC “Restore Our Future” raised $6.6 million in January. Almost all of it came from 40 donors, including hedge fund billionaires Bruce Kovner, Julian Robertson (the largest donor at $1.25 million), and David Tepper, hotel owners J.W. Marriott and Richard Marriott, and Hewlett-Packard CEO Meg Whitman. The lobbying firm FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011) has contributed over $1.4 million to various Republican candidates. Reich writes, “Whoever emerges as the GOP standard-bearer will be deeply indebted to a handful of people, each of whom will expect a good return on their investment.” Reich goes on to cite American Crossroads’s “super PAC” Crossroads GPS, founded by Republican political consultant Karl Rove, and its lineup of corporate moguls contributing hundreds of millions of dollars. The lineup of Crossroads supporters includes Charles and David Koch (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011, April 2010 and After and October 4, 2011), and Harold Simmons, owner of Contran Corporation, who has contributed $10 million to the organization. Reich says there is no legal way to know exactly how much the Kochs and their fellows have contributed: “The public will never know who or what corporation gave what because, under IRS regulations, such nonprofit ‘social welfare organizations’ aren’t required to disclose the names of those who contributed to them.” The previous limit of $5,000 per year per individual was erased by the 2010 Supreme Court Citizens United v. Federal Election Commission decision, a decision Reich calls “grotesque.” Reich writes: “In a sense, Santorum, Gingrich, Paul, and Romney are the fronts. Dore et al. are the real investors.… Now, the limits are gone. And this comes precisely at a time when an almost unprecedented share of the nation’s income and wealth is accumulating at the top. Never before in the history of our Republic have so few spent so much to influence the votes of so many.” [The Atlantic, 2/2/2012; Salon, 2/21/2012; ProPublica, 2/21/2012] President Obama’s super PAC, “Priorities USA Action,” has received $2 million from Hollywood mogul Jeffrey Katzenberg and another $1 million from the Service Employees International Union’s Committee on Political Education (SEIU COPE). However, Priorities USA has raised relatively paltry sums in comparison to the monies raised by the Republican super PACs, according to a Reuters report. Obama and his re-election campaign had originally distanced themselves from the super PAC operating in their name, in part because they disapprove of the Citizens United decision and the influence of super PACs in electoral politics. Since the Obama campaign officially endorsed the organization, donations have risen. Obama campaign advisor David Axelrod says that Obama “believes that this is an unhealthy development in our political process, but it is a reality of the rules as they stand. This was not a quick decision, but he also feels a responsibility to win this election. There’s a lot hanging on this beyond him.” By the end of January, Priorities USA had raised $4.2 million. In contrast, Romney’s “Restore Our Future” had raised $36.8 million by the end of last month. [Reuters, 2/2012; ProPublica, 2/21/2012] Partly in response to reports of billionaires’ influence on the 2012 elections, comedian Bill Maher will announce his donation of $1 million to the Obama super PAC. Maher will tell an audience that an Obama victory over any of the Republican contenders is “worth a million dollars” and will describe the donation as “the wisest investment I think I could make.” [Los Angeles Times, 2/24/2012] Friess is often described in the press as a “billionaire,” but both Friess and Forbes magazine say that appellation is inaccurate. [Forbes, 2/8/2012]

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