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The US Department of Energy launches the Solar Energy Research Institute (SERI)‘s National Renewable Energy Laboratory (NREL), a facility dedicated to harnessing power from the sun. [US Department of Energy, 2002 pdf file]

Entity Tags: National Renewable Energy Laboratory, US Department of Energy, Solar Energy Research Institute

Timeline Tags: US Solar Industry

Oil billionaire David Koch runs for vice president on the Libertarian Party ticket. David and his brother Charles are the primary backers of hard-right libertarian politics in the US (see August 30, 2010); Charles, the dominant brother, is determined to tear government “out at the root,” as he will later be characterized by libertarian Brian Doherty. The brothers have thrown their support behind Libertarian presidential candidate Ed Clark, who is running against Republican Ronald Reagan from the right of the political spectrum. The brothers are frustrated by the legal limits on campaign financing, and they persuade the party to place David on the ticket as vice president, thereby enabling him to spend as much of his personal fortune as he likes. The Libertarian’s presidential campaign slogan is, “The Libertarian Party has only one source of funds: You.” In reality, the Koch brothers’ expenditures of over $2 million is the campaign’s primary source of funding. Clark tells a reporter that the Libertarians are preparing to stage “a very big tea party” because people are “sick to death” of taxes. The Libertarian Party platform calls for the abolition of the FBI and the CIA, as well as of federal regulatory agencies, such as the Securities and Exchange Commission and the Department of Energy. The platform proposes the abolition of Social Security, minimum-wage laws, gun control, and all personal and corporate income taxes; in return, it proposes the legalization of prostitution, recreational drugs, and suicide. Government should be reduced to only one function, the party proclaims: the protection of individual rights. Conservative eminence William F. Buckley Jr. calls the movement “Anarcho-Totalitarianism.” The Clark-Koch ticket receives only one percent of the vote in the November 1980 elections, forcing the Koch brothers to realize that their brand of politics isn’t popular. In response, Charles Koch becomes openly scornful of conventional politics. “It tends to be a nasty, corrupting business,” he says. “I’m interested in advancing libertarian ideas.” Doherty will later write that both Kochs come to view elected politicians as merely “actors playing out a script.” Doherty will quote a longtime confidant of the Kochs as saying that after the 1980 elections, the brothers decide they will “supply the themes and words for the scripts.” In order to alter the direction of America, they had to “influence the areas where policy ideas percolate from: academia and think tanks.” [New Yorker, 8/30/2010]

Entity Tags: Libertarian Party, Brian Doherty, Charles Koch, Ronald Reagan, David Koch, William F. Buckley, Ed Clark

Timeline Tags: Domestic Propaganda

KochPAC logo.KochPAC logo. [Source: KochPAC (.com)]After their stinging loss during the November 1980 presidential campaign, the billionaire Koch brothers, Charles and David, decide that they need to work to inculcate their brand of hard-right libertarianism into the electorate through indirect means (see 1979-1980). Therefore, they begin spending vast amounts of their personal fortunes on what purport to be independent think tanks and other political or ideological organizations. At the same time, the brothers become political recluses, rarely speaking in public and rarely acknowledging the breadth or the direction of their donations. It is hard to know exactly how much the Kochs spend and where they spend it, though public records give some of the picture. Between 1998 and 2008, Charles Koch’s foundation spends over $48 million on political funding. The Claude R. Lambe Charitable Foundation, controlled by Charles and his wife, spends over $28 million. David Koch’s foundation spends over $120 million. Koch Industries, controlled primarily by Charles, spends over $50 million on lobbying efforts. Their political action committee, KochPAC, donates around $8 million, almost all of it going to Republicans. In 2010, as in other years, Koch Industries leads all other energy companies in political donations. The brothers spend over $2 million of their personal fortunes on political donations, almost all of it going to Republicans. Ari Rabin-Havt of the progressive media watchdog organization Media Matters will say that the Kochs’ effort is unusual in its marshalling of corporate and personal funds: “Their role, in terms of financial commitments, is staggering.” Lee Fang, writing for the liberal blog ThinkProgress (an arm of the Center for American Progress), calls the Kochs “the billionaires behind the hate.” Some believe that the Kochs have either skirted, or outright broken, laws controlling tax-exempt giving. Charitable foundations must conduct exclusively nonpartisan activities that promote the public welfare. But in 2004, a report by the National Committee for Responsive Philanthropy, a watchdog group, describes the Kochs’ foundations as being self-serving, and concludes, “These foundations give money to nonprofit organizations that do research and advocacy on issues that impact the profit margin of Koch Industries.” The Kochs also use their charitable foundations to fund hard-right political organizations that, according to reporter Jane Mayer, “aim to push the country in a libertarian direction,” including: the Institute for Justice, which files lawsuits opposing state and federal regulations; the Institute for Humane Studies, which underwrites libertarian academics; and the Bill of Rights Institute, which promotes a conservative interpretation of the Constitution. David Koch acknowledges that the family exerts tight ideological control. “If we’re going to give a lot of money, we’ll make darn sure they spend it in a way that goes along with our intent,” he tells a reporter. “And if they make a wrong turn and start doing things we don’t agree with, we withdraw funding.” [New Yorker, 8/30/2010]

Entity Tags: Institute for Justice, Charles Koch, Bill of Rights Institute, Ari Rabin-Havt, Claude R. Lambe Charitable Foundation, Institute for Humane Studies, Koch Industries, National Committee for Responsive Philanthropy, Jane Mayer, David Koch, Lee Fang, KochPAC

Timeline Tags: Domestic Propaganda

The Wall Street Journal’s Stephen Moore interviews reclusive billionaire Charles Koch, the head of the Koch Brothers oil empire. Among the items of interest in the interview is Koch’s admission that he, along with his brother David (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, and Late 2004), coordinates the funding of the conservative infrastructure of some of the most influential front groups, political campaigns, think tanks, media outlets, and other such efforts through a semiannual meeting with wealthy conservative donors. (Moore himself receives Koch funding for his work, according to a Think Progress report published four years later. In return, Moore is quite laudatory in the interview, writing that Koch is a “creative forward-thinking… professorial CEO” who “is immersed in the ideas of liberty and free markets.”) Koch tells Moore that his basic goal is to strengthen what he calls the “culture of prosperity” by eliminating “90 percent” of all laws and government regulations. Moore writes of the twice-yearly conference: “Mr. Koch’s latest crusade to spread the ideas of liberty has been his sponsorship of a twice-yearly conference that gathers together many of the most successful American entrepreneurs, from T. Boone Pickens to former Circuit City CEO Rick Sharp. The objective is to encourage these captains of industry to help fund free-market groups devoted to protecting the fragile infrastructure of liberty. That task seems especially critical given that so many of the global superrich, like George Soros and Warren Buffett, finance institutions that undermine the very system of capitalism that made their success possible (see January - November 2004). Isn’t this just the usual rich liberal guilt, I ask. ‘No,’ he says, ‘I think they simply haven’t been sufficiently exposed to the ideas of liberty.’” [Wall Street Journal, 5/6/2006; Think Progress, 10/20/2010]

Entity Tags: Think Progress (.org), Charles Koch, Wall Street Journal, David Koch, Stephen Moore

Timeline Tags: Civil Liberties

At least one supporter of far-right libertarian Representative Ron Paul (R-TX) argues that a recently published article in the New Republic that exposed the overtly racist and conspiratorial content in Paul’s newsletters (see 1978-1996) was the result of a conspiracy by “beltway libertarians” from the Cato Institute to discredit Paul. According to Thomas DiLorenzo, the Koch family (see 1979-1980), who provide much of the funding for the Cato Institute (see 1977-Present and 1981-2010), is behind the conspiracy. “Proof” of this conspiracy, according to DiLorenzo, is that James Kirchick, the author of the article, has said he found many of the newsletters in the University of Kansas library; Charles Koch “is a major patron” of that university. DiLorenzo asks, “How on earth would a kid just out of college know to go to a library in Kansas, of all places, to dig up such stuff?” DiLorenzo goes on to say that he “recognized a paragraph [in Kirchick’s article] that was identical to one written on several occassions by one of the especially hate-filled Beltway losers who works at a DC ‘think tank’ on his spleen-venting personal blog. Either he wrote it or coached the author.” Author David Bernstein, who notes that the Cato Institute is preparing to publish a book of his, speculates that Kirchick may have used an Internet database called Wordcat to find the Paul newsletters, and writes, “Even ‘kids just out of college’ often know how to use the Internet, I believe.” And Kirchick calls DiLorenzo’s conspiracy theorizing “comically credulous.” [New Republic, 1/8/2008; Thomas DiLorenzo, 1/12/2008; David Bernstein, 1/12/2008; New Republic, 1/15/2008] DiLorenzo publishes his theory on the blog of former Paul chief of staff Lew Rockwell, who runs the Ludwig von Mises Institute, a libertarian think tank in Alabama closely allied with Paul. [Thomas DiLorenzo, 1/12/2008] A week after the publication of the first New Republic article, Paul will deny having virtually any involvement with his newsletters (see January 16, 2008).

Entity Tags: Ron Paul, James Kirchick, David Bernstein, Charles Koch, Cato Institute, Lew Rockwell, Ludwig von Mises Institute, Thomas DiLorenzo, The New Republic

Timeline Tags: Domestic Propaganda, 2008 Elections

The conservative Washington Times, a staunch opponent of President-elect Barack Obama, publishes an editorial predicting that the incoming Obama administration will, in some form or fashion, move to “exterminate” babies with disabilities and other “useless” Americans through its promised reform of the US health care system, similar to actions taken by the Nazis before World War II. The Times provides a brief synopsis of Adolf Hitler’s “T4 Aktion” program designed, in the words of the Times, “to exterminate ‘useless eaters,’ babies born with disabilities. When any baby was born in Germany, the attending nurse had to note any indication of disability and immediately notify T4 officials—a team of physicians, politicians, and military leaders. In October 1939 Hitler issued a directive allowing physicians to grant a ‘mercy death’ to ‘patients considered incurable according to the best available human judgment of their state of health.’ Thereafter, the program expanded to include older children and adults with disabilities, and anyone anywhere in the Third Reich was subject to execution who was blind, deaf, senile, retarded, or had any significant neurological condition, encephalitis, epilepsy, muscular spasticity, or paralysis. Six killing centers were eventually established, and an estimated quarter-million people with disabilities were executed.” The Times draws a parallel between the Nazis and the Obama administration’s support for legal abortion and for physician-assisted suicide, which it equates with “euthanasia.” The incoming administration will, the Times fears, begin “selecting” babies with disabilities for what apparently will be “selective abortions.” It quotes the Reverend Briane K. Turley as saying: “Were God’s design for us left unhindered, we could naturally expect to welcome 40,000 or more newborn infants with Down syndrome each year in the US. And yet we have reduced that number to just under 5,500. These data strongly indicate that, in North America, we have already discovered a new, ‘final solution’ for these unusual children and need only to adapt our public policies to, as it were, ‘cure’ all Down syndrome cases.” Turley, the Times notes, claims that “there is growing evidence suggesting that, among health care practitioners and systems, the central motivation behind legally enforced or high pressure screenings is economics.” The Times then adds: “[A]nd the results seem to bear him out. America’s T4 program—trivialization of abortion, acceptance of euthanasia, and the normalization of physician assisted suicide—is highly unlikely to be stopped at the judicial, administrative, or legislative levels anytime soon, given the Supreme Court’s current and probable future makeup during the Obama administration, the administrative predilections that are likely from that incoming administration, and the makeup of the new Congress.” The Times predicts a new “final solution” of “extermination” that will start with disabled infants and will progress “from prenatal to postnatal to child to adult.” [Washington Times, 11/23/2008] The editorial anticipates the “deather” claims that many conservatives will make in the summer of 2009 (see January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 12, 2009, and August 13, 2009).

Entity Tags: Washington Times, Barack Obama, Obama administration, Briane K. Turley, T4 Aktion

Timeline Tags: Domestic Propaganda, 2010 Elections

Media critic and columnist George Neumayr writes that the Democrats’ economic stimulus plan will include enforced abortions and euthanasia for less productive citizens. Neumayr calls this claim a once “astonishingly chilly and incomprehensible stretch [that] is now blandly stated liberal policy,” basing it on the Democrats’ plan to provide money to the states for “family planning.” Neumayr equates the funding, which would go for such initiatives as teaching teenagers about the use of condoms and measures to avoid sexually transmitted diseases, to the famous Jonathan Swift essay of 1729, “A Modest Proposal,” which satirically suggested that impoverished Irish families might sell their children to rich Englishmen for food. “Change a few of the words and it could be a Democratic Party policy paper,” Neumayr writes. “Swift suggested that 18th-century Ireland stimulate its economy by turning children into food for the wealthy. [House Speaker Nancy] Pelosi [D-CA] proposes stimulating the US economy by eliminating them. Other slumping countries, such as Russia and France, pay parents to have children; it looks like Obama’s America will pay parents to contracept or kill them. Perhaps the Freedom of Choice Act can also fall under the Pelosi ‘stimulus’ rationale. Why not? An America of shovels and scalpels will barrel into the future. Euthanasia is another shovel-ready job for Pelosi to assign to the states. Reducing health care costs under Obama’s plan, after all, counts as economic stimulus too. Controlling life, controlling death, controlling costs. It’s all stimulus in the Brave New World utopia to come.” Like a Washington Times editorial from months earlier (see November 23, 2008), Neumayr uses the term “final solution” for the Democrats’ economic proposal, the term for the Nazis’ World War II-era extermination of millions of Jews and other “undesirables.” He writes: “‘Unwanted’ children are immediately seen as an unspeakable burden. Pregnancy is a punishment, and fertility is little more than a disease. Pelosi’s gaffe illustrates the extent to which eugenics and economics merge in the liberal utilitarian mind.” “Malthus lives,” he says, referring to the 19th century scholar Thomas Robert Malthus, whose theories of ruthless natural selection predated Charles Darwin’s theories of evolution. Neumayr goes on to accuse “Hillary Clinton’s State Department” of preparing to set up programs of “people-elimination,” predicated on what he calls “UN-style population control ideology” and “third-world abortions.” [American Spectator, 1/27/2009]

Entity Tags: US Department of State, George Neumayr, Barack Obama, Hillary Clinton, Nancy Pelosi, Charles Darwin

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

Betsy McCaughey (R-NY), the former lieutenant governor of New York and a fellow at the conservative Hudson Institute, writes that health care provisions in the Obama administration’s economic stimulus plan will affect “every individual in the United States.” McCaughey writes: “Your medical treatments will be tracked electronically by a federal system. Having electronic medical records at your fingertips, easily transferred to a hospital, is beneficial. It will help avoid duplicate tests and errors. But the bill goes further. One new bureaucracy, the National Coordinator of Health Information Technology, will monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective. The goal is to reduce costs and ‘guide’ your doctor’s decisions.” McCaughey says the provisions are similar to suggestions in the book Critical: What We Can Do About the Health Care Crisis, by former Senate Majority Leader Tom Daschle (D-SD), until recently Obama’s pick to head the Department of Health and Human Services. McCaughey writes that hospitals and doctors who do not use the system will be punished, by a federal oversight board to be called the Federal Coordinating Council for Comparative Effectiveness Research. Perhaps most worrisome is McCaughey’s claim that elderly Americans will be given reduced health care based on their age and expected productivity. “Medicare now pays for treatments deemed safe and effective. The stimulus bill would change that and apply a cost-effectiveness standard set by the Federal Council,” she writes. “The Federal Council is modeled after a UK board discussed in Daschle’s book. This board approves or rejects treatments using a formula that divides the cost of the treatment by the number of years the patient is likely to benefit. Treatments for younger patients are more often approved than treatments for diseases that affect the elderly, such as osteoporosis. In 2006, a UK health board decreed that elderly patients with macular degeneration had to wait until they went blind in one eye before they could get a costly new drug to save the other eye. It took almost three years of public protests before the board reversed its decision.… If the Obama administration’s economic stimulus bill passes the Senate in its current form, seniors in the US will face similar rationing. Defenders of the system say that individuals benefit in younger years and sacrifice later. The stimulus bill will affect every part of health care, from medical and nursing education, to how patients are treated and how much hospitals get paid. The bill allocates more funding for this bureaucracy than for the Army, Navy, Marines, and Air Force combined.” [Bloomberg News, 2/9/2009] McCaughey’s claims are very similar to the ones she made against the Clinton administration’s attempt to reform health care in 1994 (see Mid-January - February 4, 1994). They will be proven false (see July 23, 2009).

Entity Tags: Hudson Institute, Elizabeth (“Betsy”) McCaughey, US Department of Health and Human Services, Tom Daschle, Obama administration

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

The Washington Times spins off a recent op-ed by health industry lobbyist Betsy McCaughey (see February 9, 2009) to claim that the Obama administration will attempt to save money by euthanizing old people, disabled people, and sickly infants. The editorial begins with the “chilling” idea of a national medical information database that will allow the government to “track… your every visit to a health care provider—where you went, who you saw, what was diagnosed, and what care was provided.” The Obama administration, the Times claims, will use that information to decide which people deserve the more expensive lifesaving treatments and which ones must be denied in the interest of cost efficiency. “If it costs too much to treat you, and you are nearing the end of your life anyway, you may have to do with less, or with nothing,” the Times writes. “You just aren’t worth the cost.… What nondescript GS-11 will be cutting care from Aunt Sophie after her sudden relapse before he or she heads to the food court for some stir fry?” The elderly, the physically and mentally disabled, all “whose health costs are great and whose ability to work productively in the future” will, the Times writes, be allowed to die or even exterminated. So will premature babies, badly wounded soldiers, and others as yet to be determined. The Times again cites Nazi Germany’s “T4 Aktion” program of forcibly euthanizing less productive citizens (see November 23, 2008) as a likely template for the Obama program. [Washington Times, 2/11/2009]

Entity Tags: Washington Times, Obama administration, T4 Aktion, Elizabeth (“Betsy”) McCaughey

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

Conservative syndicated columnist Cal Thomas uses a recent editorial by health care industry lobbyist Betsy McCaughey (see February 9, 2009) to accuse the Obama administration of planning a “euthanasia” program to exterminate hapless Americans. President Obama’s economic stimulus plan, Thomas writes, “means the government will decide who gets life-saving treatment and who doesn’t. It is survival of the fittest in practice.” Thomas then writes that the Obama administration’s support of legal abortions will inevitably lead to “euthanasia” of older and less productive citizens. He quotes a 1979 book by theologian Francis Schaeffer and future Surgeon General C. Everett Koop, Whatever Happened to the Human Race? as saying, “Will a society which has assumed the right to kill infants in the womb—because they are unwanted, imperfect, or merely inconvenient—have difficulty in assuming the right to kill other human beings, especially older adults who are judged unwanted, deemed imperfect physically or mentally, or considered a possible social nuisance?” Thomas then writes, “No one should be surprised at the coming embrace of euthanasia.” Schaeffer and Koop’s prediction that “the next candidates for arbitrary reclassification as nonpersons are the elderly” now “seems to be coming true,” Thomas writes. He also repeats a claim from the 92-year-old Koop that in 1988, he had suffered from an ailment that temporarily paralyzed him. Under Britain’s government-run health care, Koop claims, “I would have been nine years too old to have the surgery that saved my life and gave me another 21 years.” Soon, Thomas writes, “dying will become a patriotic duty when the patient’s balance sheet shows a deficit.” [Tribune Media Services, 2/18/2009]

Entity Tags: Obama administration, Elizabeth (“Betsy”) McCaughey, Francis Schaeffer, C. Everett Koop, Cal Thomas

Timeline Tags: US Health Care, Global Economic Crises, Domestic Propaganda, 2010 Elections

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

The Center for American Progress (CAP), a progressive think tank and lobbying organization, releases a report that says the “tea party” movement protesting the various policies of the Obama administration (see April 8, 2009) is not, as purported, entirely a grassroots movement of ordinary citizens, but an “astroturf” movement created, organized, and funded by powerful conservative and industry firms and organizations. (CAP notes that the anti-tax “tea parties,” with “tea” standing for “Taxed Enough Already,” fail to note that President Obama’s recent legislation actually has cut taxes for 95 percent of Americans.) Two of the most prominent organizations behind the “tea parties” are FreedomWorks and Americans for Progress (AFP). FreedomWorks (see April 14, 2009) is a corporate lobbying firm run by former House Majority Leader Dick Armey (R-TX), and organized the first “tea party,” held in Tampa, Florida, on February 27. It then began planning and organizing “tea parties” on a national scale; officials coordinated logistics, called conservative activists, and provided activists with sign ideas and slogans and talking points to use during protests. AFP has coordinated with FreedomWorks. AFP is a corporate lobbying firm run by Tim Phillips, a former lobbying partner of conservative activist Ralph Reed, and funded in part by Koch Industries, the largest private oil corporation in America (see May 29, 2009). Former House Speaker Newt Gingrich (R-GA) is also involved, through his lobbying form American Solutions for Winning the Future, which is supported by oil companies.
Support, Promotion from Fox News - On cable news channels, Fox News and Fox Business have run promotions for the “tea parties” in conjunction with enthusiastic reports promoting the affairs (see April 13-15, 2009, April 15, 2009, April 15, 2009, and April 6-13, 2009); in return, the organizers use the Fox broadcasts to promote the events. Fox hosts Glenn Beck, Neil Cavuto, and Sean Hannity all plan to broadcast live reports from the events. Fox also warns its viewers that the Obama administration may send “spies” to the events. (Fox justifies its depth of coverage by saying that it provided similar coverage for the 1995 Million Man March. However, Fox did not begin broadcasting until 1996—see October 7, 1996.)
Republican Support - Congressional Republicans have embraced the “tea parties” as ways to oppose the Obama administration. Many leading Republicans, such as Minority Leader John Boehner (R-OH), Paul Ryan (R-WI), and some 35 others, will speak at AFP-funded “tea parties.” Republican National Committee Chairman Michael Steele has moved the RNC to officially support the protests. And Senator David Vitter (R-LA) has introduced legislation formally honoring April 15 as “National Tea Party Day.” “It’s going to be more directed at Obama,” says reporter and commentator Ana Marie Cox. “This is very much, I think, part of the midterm strategy” to win elections in 2010.
Fringe Elements - According to CAP, many “fringe” elements of the conservative movement—including “gun rights militias, secessionists, radical anti-immigrant organizations, and neo-Nazi groups”—are involved in the “tea parties.” [Think Progress, 4/15/2009; Think Progress, 5/29/2009]

Entity Tags: Ralph Reed, Republican National Committee, Paul Ryan, Tim Phillips, Obama administration, Sean Hannity, Newt Gingrich, John Boehner, Michael Steele, Barack Obama, Neil Cavuto, Center for American Progress, Ana Marie Cox, Americans for Progress, Fox Business Channel, Fox News, Koch Industries, David Vitter, American Solutions for Winning the Future, FreedomWorks, Glenn Beck, Dick Armey

Timeline Tags: Domestic Propaganda, 2010 Elections

On his radio show, conservative host Glenn Beck warns that the Democrats’ “socialistic” health care reform proposal will lead to “eugenics” as envisioned by leaders of the Nazi Third Reich. Beck tells his listeners that the reform package will not only result in senior citizens being forced to die before their time in order to save on medical costs (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, and February 18, 2009), but also says: “This is Nazi Germany stuff. This is the kind of stuff that is progressive in its nature. It is eugenics. It is survival of the fittest. It is the reason why the abortion argument makes so much difference. You can’t devalue life at either end because these people are waiting to swoop in and say it’s just not worth doing these things. Don’t waste the money on old people. They’re not going to live long anyway. Spend it on someone who meets the requirements of our cost-benefit analysis. So old people, thanks for all the contributions you made to society during your better years but now we’re sorry to say it’s time to send you to a better place, heaven.” [Glenn Beck, 5/13/2009]

Entity Tags: Glenn Beck

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

Progressive news and advocacy Web site Think Progress profiles Tim Phillips, the president of Americans for Prosperity (AFP), the conservative Washington lobbying organization that is planning to coordinate anti-tax “tea party” protests (see April 8, 2009 and April 15, 2009) with a summer push against the White House’s health care reform proposals. AFP is largely funded by Koch Industries, the largest private oil corporation in the US; AFP has long advocated positions favorable to the energy and health care industries. AFP also uses the technique of “astroturfing,” the creation of ostensibly citizen-driven “grassroots” advocacy groups that are actually funded and driven by corporate and lobbying interests. AFP’s most recent creation is a “front group” called “Patients United Now” (PUN), a group explicitly designed to thwart health care reform. PUN’s Web site declares, “We are people just like you,” and actively solicits participation and donations from ordinary Americans without revealing its corporate roots. AFP employs close to 70 Republican operatives and former oil industry officials.
Other 'Astroturf' Campaigns - Think Progress notes that other AFP “Astroturf” groups have organized events such as the “Hot Air Tour” attacking environmental regulation, the “Free Our Energy” movement to promote domestic oil drilling, the “Save My Ballot Tour” which sent conservative activist “Joe the Plumber” (see October 10, 2008) around the country attacking the Employee Free Choice Act, the “No Climate Tax” group aimed at defeating the Clean Energy Economy legislation, and the “No Stimulus” organization, which opposes the Obama administration’s economic policies.
Headed by Former Abramoff Colleague - AFP’s president is Tim Phillips, a veteran conservative lobbyist and “astroturfer.” In 1997, Phillips, then a Republican campaign strategist, joined Christian conservative activists in a new lobbying firm, Century Strategies. The firm promised to mount “grassroots lobbying drives” and explained its strategy as “it matters less who has the best arguments and more who gets heard—and by whom.” Century Strategies was given a boost by Texas GOP political operative Karl Rove, and began its career representing the Texas oil giant Enron. The firm was paid $380,000 to mobilize “religious leaders and pro-family groups” to push energy deregulation on the federal and state level, an effort which helped lead, says Think Progress, “to the energy crisis and economic meltdown of 2001.” As part of their efforts, Phillips and his partner, former Christian Coalition official Ralph Reed, used their congressional connections and “placed” purported “news” articles in the New York Times and other prominent newspapers. Phillips managed the firm’s direct mail subsidiary, Millennium Marketing, which was hired by then-GOP lobbyist Jack Abramoff to pressure members of Congress to oppose federal wage and worker safety legislation. Phillips and Reed also worked with Abramoff in the lobbyists’ efforts to fraudulently charge Native American tribes millions of dollars in lobbying fees over their efforts to build casinos on tribal lands. And they helped Abramoff launder gambling money. Phillips and Reed are responsible for the ads that helped Republicans win election victories by comparing Democratic candidates to Osama bin Laden, and helped George W. Bush (R-TX) defeat Senator John McCain (R-AZ) in 2000 by accusing McCain of fathering an illegitimate black child. They were unsuccessful in preventing the 2000 election of Republican Eric Cantor (R-VA) to the House by attacking his Jewish heritage. [Think Progress, 5/29/2009]
Headed by Oil Billionaire, Republican Party Funder - MSNBC’s Rachel Maddow will later note that AFP’s director is Art Pope, a multi-millionaire who has given so much money to the North Carolina Republican Party that it named its headquarters after him. The national chairman of AFP is David Koch, who with his brother runs Koch Industries, the largest privately held oil company in the US and a longtime supporter of right-wing causes. Koch is the 19th richest man in the world. [MSNBC, 8/6/2009]

Entity Tags: Tim Phillips, Think Progress (.org), Ralph Reed, Patients United Now, Millennium Marketing, Century Strategies, David Koch, Art Pope, Koch Industries, Americans for Prosperity, Jack Abramoff

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

President Obama, in a televised “town hall” event held in the White House to discuss health care reform, suggests that one way to trim medical costs might be to cease performing expensive and futile treatments—“extraordinary measures”—on terminally ill patients who do not want such interventions and would not benefit from them. Currently, doctors who have no particular instructions will perform “extraordinary measures” to stave off a terminally ill patient’s death, even for a matter of hours, no matter how intrusive or expensive the procedure. Obama tells his listeners that families need better information so they don’t unthinkingly approve “additional tests or additional drugs that the evidence shows is not necessarily going to improve care.” In some instances, he says, “Maybe you’re better off not having the surgery, but taking the painkiller.” He notes the experience of his recently deceased grandmother, Madelyn Dunham, was diagnosed with terminal cancer and given less than nine months to live. When she broke her hip, she and her family had to decide whether to put her through a long, expensive, and painful hip-replacement procedure. “[A]nd the question was, does she get hip replacement surgery, even though she was fragile enough they were not sure how long she would last?” he says. [Los Angeles Times, 6/25/2009] Obama is not advocating that life-extending treatments be forcibly denied to terminally ill or elderly patients (see July 23, 2009 and July 23, 2009), but his remarks will be misconstrued as advocating just such a position (see June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23-24, 2009, and July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 7, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, and August 12, 2009).

Entity Tags: Madelyn Dunham, Barack Obama

Timeline Tags: US Health Care, Domestic Propaganda

Capital Research Center senior editor Matthew Vadum writes an op-ed for the conservative American Spectator magazine claiming that President Obama is sending a message to America’s elderly in his health care reform proposals: “Screw you.” Referring to a statement made by Obama at a “town hall” forum on health care reform, where the president noted that money could be saved by trimming unwanted and unneeded “extraordinary measures” carried out on terminally ill patients (see June 24, 2009), Vadum writes: “So, old people: screw you. In the future Uncle Sam will put you on an ice floe and let you float away to your heavenly reward. It gives new meaning to the Latin phrase ‘Dulce et decorum est pro patria mori.’ (In English, How sweet and glorious it is to die for one’s country.) Medical decisions should be made by patients, their families, and their doctors, not by government bureaucrats, but that’s ObamaCare for you.” [American Spectator, 6/25/2009]

Entity Tags: Capital Research Center, Matthew Vadum, Barack Obama

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

House Representative Paul Broun (R-GA—see November 11, 2008) says that the Obama health care reform proposals will kill Americans. On the floor of the House, Broun attacks the idea of a “public option,” described by Congressional Democrats as a government-funded alternative to private health care. Broun says, “[T]his program of ‘government option’ is being touted as being the panacea, the savior of allowing people to have quality health care at an affordable price is gonna kill people.” Broun says that Canada and the United Kingdom, both countries that rely on public health care, “don’t have the appreciation of life as we do in our society.” Progressive news and advocacy site Think Progress notes that both Canada and the UK have both a lower infant mortality rate and longer life expectancy than the US. [Think Progress, 7/10/2009] Liberal media watchdog site Media Matters notes that neither the Canadian nor British health care systems serve as models for President Obama’s health care reform proposals. [Media Matters, 7/10/2009] Broun’s claims are based in part on health insurance advocate Betsy McCaughey’s warnings that the health care reform proposal will encourage senior citizens to die sooner (see February 9, 2009 and July 23-24, 2009), warnings that are debunked by the St. Petersburg Times (see July 23, 2009).

Entity Tags: Paul Broun, Elizabeth (“Betsy”) McCaughey, Think Progress (.org), Media Matters, Obama administration, St. Petersburg Times

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

Betsy McCaughey, the chairman of the Committee to Reduce Infection Deaths, a former Republican lieutenant governor of New York, and a conservative opponent of health care reform, says that under the Obama administration’s reform proposal, elderly Americans would be encouraged to die earlier to save money (see February 9, 2009 and July 23-24, 2009). On conservative radio host Fred Thompson’s show, she says, “Congress would make it mandatory—absolutely require—that every five years people in Medicare have a required counseling session that will tell them how to end their life sooner.” These sessions will help elderly patients learn how to “decline nutrition, how to decline being hydrated, how to go in to hospice care… all to do what’s in society’s best interest or in your family’s best interest and cut your life short.” [St. Petersburg Times, 7/23/2009] “These are such sacred issues of life and death. Government should have nothing to do with it.” Thompson calls McCaughey’s claim the “dirty little secret” of the health care reform proposal. [St. Petersburg Times, 7/23/2009; Politico, 7/28/2009] In August, progressive MSNBC host Rachel Maddow will tell her listeners: “That is not true at all, not a word of it. Not mandatory, not require, not every five years, not counseling, not tell them, not how to, not end their life. None of the words in that claim are true except maybe the two ‘that’s’ and the word ‘in.’ It’s not true, but it is convenient, and so it survives. And it is in fact being promoted more than ever. It’s convenient for the interests [that oppose] health care reform to scare old people about reform.” [MSNBC, 8/12/2009] The next day, McCaughey publishes an op-ed in the New York Post advancing the same arguments. “One troubling provision” of the bill, she writes, “compels seniors to submit to a counseling session every five years… about alternatives for end-of-life care.… [The] mandate invites abuse, and seniors could easily be pushed to refuse care.” [New York Post, 7/17/2009]
Availability of Discussions Mandated Since 1990 - The provision in question states that as part of an advanced care consultation, an individual and practitioner will have a consultation that includes “an explanation by the practitioner of the continuum of end-of-life services and supports available, including palliative care and hospice, and benefits for such services and supports that are available under this title.” Such explanations and consultations have been part of government-provided senior care since 1990; in 2003, the Bush administration issued guidelines for physicians’ discussion of end-of-life care with seniors.
Claims Contradicted - John Rother of the American Association of Retired Persons (AARP) counters with a statement: “This measure would not only help people make the best decisions for themselves but also better ensure that their wishes are followed. To suggest otherwise is a gross, and even cruel, distortion—especially for any family that has been forced to make the difficult decisions on care for loved ones approaching the end of their lives.” Jon Keyserling of the National Hospice and Palliative Care Organization adds: “I was surprised that any responsible legislative analyst would indicate this is a mandatory provision. That is just a misreading of the language and, certainly, of the intent.” McCaughey later responds to those statements by repeating her assertions, saying that doctors would “pressure” seniors to accept less costly services that would lead to quicker deaths. [St. Petersburg Times, 7/23/2009; Politico, 7/28/2009]
Debunked - McCaughey’s claims will soon be disproven (see July 23, 2009).

Entity Tags: Bush administration (43), Committee to Reduce Infection Deaths, Fred Thompson, Elizabeth (“Betsy”) McCaughey, American Association of Retired Persons, John Rother, Medicare, National Hospice and Palliative Care Organization, New York Post, Obama administration, Rachel Maddow, Jon Keyserling

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

Laura Ingraham.Laura Ingraham. [Source: Pat Dollard]Fox News and radio talk show host Sean Hannity tells his radio audience of the op-ed published in the morning’s New York Post by health industry lobbyist Betsy McCaughey, claiming that the Democrats’ health care reform proposal would result in senior citizens being advised to end their lives prematurely (see July 16, 2009). Hannity says: “[I]t sounds to me like they’re actually encouraging seniors in the end, ‘Well, you may just want to consider packing it all in here, this is—’ what other way is there to describe this?… So that they don’t become a financial burden on the Obamacare system? I mean that’s how they intend to cut cost, by cutting down on the health care we can give and get at the end of our lives and dramatically cutting it down for senior citizens? You know, welcome to the brave new world of Obamacare. We’re going to encourage, you know, inconvenient people to consider ‘alternatives to living.’” The same day, conservative radio host Laura Ingraham tells her listeners: “Can you imagine—if I were doing Saturday Night Live, like, if I were producing it this weekend, and I was going to be fair about political humor, I would have a hospice chute—like a door, a trap door that goes into a chute where the elderly would just walk up—‘Oh, my hip hurts.’ And all of a sudden you see this leg kicking granny down the chute, and that’s Obamacare.” She continues by making a veiled reference to Nazi concentration camps: “[S]ome will call them death camps, but this is the way Obamacare is gonna go for America.” And on the same day, conservative radio hosts Jim Quinn and Rose Tennent echo Hannity and Ingraham’s claims. Quinn says, “[T]here’s a drop dead date, you should pardon the expression but a lot of us are going to—” Tennent interjects, “Are going to drop dead, yeah.” Quinn then adds, “For heaven’s sakes, this is the death-to-old-people plan.” [Media Matters, 7/17/2009]

Entity Tags: Laura Ingraham, Elizabeth (“Betsy”) McCaughey, Fox News, Jim Quinn, Sean Hannity, New York Post, Rose Tennent

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

Conservative radio host Rush Limbaugh, following up on claims that the Obama health care reform proposal would encourage elderly Americans to die sooner (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, and July 17, 2009), tells his listeners that the reform proposal includes “[m]andatory counseling for all seniors at a minimum of every five years, more often if the seasoned citizen is sick or in a nursing home.… That’s an invasion of the right to privacy. We can’t have counseling for mothers who are thinking of terminating their pregnancy, but we can go in there and counsel people about to die.” The claim will soon be debunked (see July 23, 2009). [St. Petersburg Times, 7/23/2009]

Entity Tags: Rush Limbaugh, Obama administration

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

House Minority Leader John Boehner (R-OH) and Representative Thaddeus McCotter (R-MI) issue a statement that warns the Obama administration’s health care reform proposal would provide for “government-encouraged euthanasia” of senior citizens. Boehner and McCotter’s statement reads: “Section 1233 of the House-drafted legislation [HR 3200, the most recent version of the reform proposal] encourages health care providers to provide their Medicare patients with counseling on ‘the use of artificially administered nutrition and hydration’ and other end of life treatments, and may place seniors in situations where they feel pressured to sign end of life directives they would not otherwise sign. This provision may start us down a treacherous path toward government-encouraged euthanasia if enacted into law. At a minimum this legislative language deserves a full and open public debate—the sort of debate that is impossible to have under the politically-driven deadlines Democratic leaders have arbitrarily set for enactment of a health care bill.” Boehner and McCotter also state that the reform bill would encourage state-assisted suicide: “With three states having legalized physician-assisted suicide, this provision could create a slippery slope for a more permissive environment for euthanasia, mercy-killing, and physician-assisted suicide because it does not clearly exclude counseling about the supposed benefits of killing oneself. Health care reform that fails to protect the sanctity and dignity of all human life is not reform at all.” [House Republican Leader, 7/23/2009] The next day, McCotter will add: “This is very dangerous. We, in Michigan, have already fought back in attempted assisted suicide several years ago. And yet you see that the people who support this are trying to use this bill to advance this agenda.” [MSNBC, 7/29/2009] The statement is quickly challenged by Representative Earl Blumenauer (D-OR), who with Representative Charles Boustany (R-LA) introduced a separate bill that would provide for end-of-life consultations for senior citizens. Both bills propose nothing more than having Medicare pay for such consultations, if the patients or the patients’ families desire them. “I cannot tell you how disappointed I was to see this type of reaction to a carefully crafted piece of legislation we have been working on for more than six months that is bipartisan and that speaks to the needs of American families,” Blumenauer says. “The American public, especially our senior citizens, deserve our best efforts to meet their needs—not treat them like political footballs.” A Boustany spokesman says the congressman stands behind the measure he co-authored, but says it should include language stating that taxpayer money would not be used to counsel patients on physician-assisted suicide. Two states—Oregon and Washington—allow physician-assisted suicide in certain situations, and the Montana Supreme Court is considering a lower-court ruling that found physician-assisted suicide to be a right under Montana’s Constitution. [Politico, 7/28/2009] Liberal media watchdog organization Media Matters calls the statement’s analysis “repulsive.” [Media Matters, 7/24/2009] The characterization of the bill by Boehner and McCotter will be disproven by a St. Petersburg Times analysis (see July 23, 2009).

Entity Tags: St. Petersburg Times, Obama administration, John Boehner, Charles Boustany, Thaddeus McCotter, Media Matters, Earl Blumenauer

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

Rep. Louis Gohmert.Rep. Louis Gohmert. [Source: Associated Press / Washington Blade]Representative Louis Gohmert (R-TX) lays out a skein of theories on radical radio host Alex Jones’s broadcast. During his interview with Jones, Gohmert accuses the Obama administration and Congressional Democrats of trying to implement socialism and kill senior citizens; Jones and Gohmert compare Obama to a number of foreign despots. Gohmert tells Jones and his listeners: “We’ve been battling this socialist health care, the nationalization of health care, that is going to absolutely kill senior citizens. They’ll put them on lists and force them to die early because they won’t get the treatment as early as they need.… I would rather stop this socialization of health care because once the government pays for your health care, they have every right to tell you what you eat, what you drink, how you exercise, where you live.… But if we’re going to pay 700 million dollars like we voted last Friday to put condoms on wild horses, and I know it just says an un-permanent enhanced contraception whatever the heck that is. I guess it follows that they’re eventually get around to doing it to us.” Gohmert is echoing claims by Republican lawmakers and industry lobbyists that the Democrats’ health care reform proposal will kill senior citizens (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, and July 23-24, 2009). Jones ups the ante by accusing the White House “science czar” of planning to “put… stuff in the water to sterilize us,” and then goes on to accuse the White House of, among other things, implementing a “eugenics control grid over us” and implementing “youth brigades, national service compulsory in a group outside the military under the Democratic Party control in the city year in the red and black uniforms.” Gohmert agrees with Jones, and says these kinds of policies were “done in the 1930s,” a plain reference to Nazi Germany, “and it’s not the only place its been done. It has been done throughout history.” Jones says, “Mao did it,” referring to Communist China’s Mao Zedong. Gohmert agrees: “Well, that’s exactly what I was thinking of. This is the kind of the thing we got to stop. We got to get back to the roots, the basics.” Gohmert praises Jones for his rhetoric and accusations: “That shows how on top of things you are, Alex.” For his part, Jones effusively thanks Gohmert and reminds him that “you’re there fighting and we’re supporting you.” [Think Progress, 7/27/2009] Progressive MSNBC host Rachel Maddow says of Gohmert and Jones: “You know, the Democrats may be fighting it out about whether they’re going to be beholden to the insurance companies and whether there’s going to be a public option in health care reform. But when it comes to the Republicans, this is the kind of thing they are bringing to the table: Hitler, Mao, and secret plots to kill old people.” [MSNBC, 7/29/2009]

Entity Tags: William Jefferson (“Bill”) Clinton, Richard Poplawski, Obama administration, Alex Jones, Louis Gohmert, Mao Zedong, Think Progress (.org), Rachel Maddow

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

Lewin Group logo.Lewin Group logo. [Source: WNY Media]The Republican National Committee plans to spend a million dollars in August on television ads opposing health care reform. One of the key elements of the ad campaign is a study released today by the Lewin Group that finds 119 million Americans would lose the coverage they currently have under the Obama administration’s health care reform proposal. MSNBC’s progressive talk show host Rachel Maddow airs video clips of Senators John Barrasso (R-WY) and Chuck Grassley (R-IA), Representatives John Boehner (R-OH), Tom Price (R-GA), Paul Ryan (R-WI), and former House Speaker Newt Gingrich (R-GA) all citing the Lewin study as evidence that health care reform is bad for Americans. The Lewin Group is a subsidiary of UnitedHealth Group, a health insurance provider. United Health operates a subsidiary called Ingenix, which in turn operates a consulting firm, the Lewin Group. Maddow notes that Republicans call the Lewin Group “nonpartisan and independent” when in fact it is a branch of a health care insurer. In January 2009, United Health agreed to pay $400 million to the State of New York after being charged with defrauding customers—manipulating data in order to shift medical expenses onto consumers. Former Vermont governor and Democratic National Committee chairman Howard Dean, himself a doctor, says the issue is “not… about Democrats versus Republicans. This is about the health insurance agency versus the American people.” [Ingenix, 7/27/2009; MSNBC, 7/28/2009]

Entity Tags: Republican National Committee, Tom Price, UnitedHealth Group, Rachel Maddow, Lewin Group, Obama administration, Paul Ryan, Ingenix, John Boehner, Howard Dean, MSNBC, Newt Gingrich, Charles Grassley, John Barrasso

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

Following up on arguments that Congressional Democrats’ health care reform proposal would encourage senior citizens to die sooner (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, and July 24, 2009), conservative radio host Rush Limbaugh tells his listeners, “People at a certain age with certain diseases will be deemed not worth the investment, and they will just—as Obama said—they’ll give them some pain pills and let them loop out until they die and they don’t even know what’s happened.” During a phone-in town hall on health care the same day as Limbaugh’s broadcast, President Obama will say something quite different from Limbaugh’s characterization (see July 28, 2009). MSNBC host Rachel Maddow says of Limbaugh’s allegations later that evening: “‘Democrats want to reform health care because it’s a secret plan to kill people.’ This is the kind of thing that when it shows up on the floor of the House or in a town hall with the president, you get a little glimpse of crazy. But the nest for this kind of crazy, where this stuff is hatched, it’s among the conservative base and in the conservative media. Conservative talk radio is really where they let it all hang out.” [MSNBC, 7/29/2009]

Entity Tags: Rush Limbaugh, Barack Obama, Rachel Maddow

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

Professor Stephen Hawking.Professor Stephen Hawking. [Source: Quarkscrew (.com)]The conservative publication Investors Business Daily (IBD) writes an editorial harshly criticizing the Democrats’ health care reform package. The editorial repeats the debunked canard that the reform proposal will mandate allowing elderly, less “productive” citizens to die rather than pay to keep them alive (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, and July 28, 2009). IBD compares the US health care system to Britain’s government-run National Health Service (NHS), claiming that in Britain health care is strictly rationed and routinely allows people to die if they don’t meet up with the criteria for paying for their care. “The British have succeeded in putting a price tag on human life, as we are about to,” the editorial claims. In the original version of the editorial, the editors write, “People such as scientist Stephen Hawking wouldn’t have a chance in the UK, where the National Health Service would say the life of this brilliant man, because of his physical handicaps, is essentially worthless.” The IBD editors are apparently unaware that Hawking was born in Oxford, England, lives in Britain, teaches at the University of Cambridge, and has been supported by Britain’s health care system for his entire life. The Washington Post’s Ezra Klein writes: “You could write some long response to the rest of the lies and distortions in that IBD editorial, but the more appropriate reply is to just warn people against ever reading the editorial page in Investor’s Business Daily. It’s not just that they didn’t know that Stephen Hawking was born in England. It’s that the underlying point was wrong, as you’ll note from the continued existence of Stephen Hawking. They didn’t choose an unfortunate example for an accurate point. They simply lied.” Hawking himself tells Guardian columnist Hugh Muir: “I wouldn’t be here today if it were not for the NHS. I have received a large amount of high-quality treatment without which I would not have survived.” After the corrections, IBD alters the editorial to omit the Hawking reference, but does not acknowledge that Hawking has remained alive due to NHS medical interventions. [Investor's Business Daily, 7/31/2009; Washington Post, 8/10/2009; Guardian, 8/11/2009; Huffington Post, 8/13/2009]

Entity Tags: Ezra Klein, Investors Business Daily, Stephen Hawking

Timeline Tags: US Health Care, Domestic Propaganda

Conservatives for Patients’ Rights logo.Conservatives for Patients’ Rights logo. [Source: Conservatives for Patients? Rights]An organization called Conservatives for Patients’ Rights (CPR) publicly takes credit for orchestrating the disruptive and sometimes-violent protests against the White House’s health care reform proposals (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, and August 4, 2009). Washington Post reporter Greg Sargent says the admission “rais[es] questions about [the protests’] spontaneity.” CPR is headed by Rick Scott, a former health industry CEO who once ran Columbia/HCA before being ousted for malfeasance in 1997. (Columbia/HCA subsequently paid the US government $1.7 billion dollars in fines due to fraud that occured during Scott’s tenure.) Scott, who was once a part owner of the Texas Rangers with George W. Bush, now owns an investment firm that primarily traffics in health care, and owns a chain of Florida urgent care clinics called Solantic. [Washington Post, 5/10/2009; Plum Line, 8/4/2009] (Solantic also boasts former Bush administration official Thomas Scully as a member of its board. In 2004, Scully deliberately withheld information from Congress that the Bush administration’s Medicare reforms would cost $200 billion more than acknowledged.) [MSNBC, 8/7/2009]
Contracting with 'Swift Boat' PR Firm - Scott is spending millions on CPR’s public relations effort, and has contracted with CRC Public Relations, the group that masterminded the “swift boat” attacks against 2004 Democratic presidential candidate John Kerry. He is also coordinating his efforts with Grover Norquist, the conservative advocate and influential Washington insider. CPR spokesman Brian Burgess confirms that CPR is e-mailing “town hall alert” flyers and schedules of town hall meetings to its mailing list. CPR is also actively recruiting members for the “tea party,” a loosely organized group of conservative protesters (see April 8, 2009). Scott says, “We have invested a lot of time, energy, and resources into educating Americans over the past several months about the dangers of government-run health care and I think we’re seeing some of the fruits of that campaign.” Doug Thornell, a House Democratic staff member, says: “The more you dig the more you learn that this is a carefully orchestrated effort by special interest lobbyists and the Republican Party, who are using fringe elements on the right to protect insurance company profits and defeat health care reform. The anger at these events looks very similar to what we saw at McCain/Palin rallies in the fall.” [Washington Post, 5/10/2009; Plum Line, 8/4/2009]
Group Interested in Protecting Industry Profits, Critics Say - Richard Kirsch of Health Care for America Now, a pro-reform group, says of Scott: “Those attacking reform are really looking to protect their own profits, and he’s a perfect messenger for that. His history of making a fortune by destroying quality in the health care system and ripping off the government is a great example of what’s really going on.” CPR plans on spending over $1 million a month in anti-reform television and radio ads. [Washington Post, 5/10/2009] White House press secretary Robert Gibbs, learning of CPR’s admission, says the organization is led by a “CEO that used to run a health care company that was fined by the federal government $1.7 billion for fraud. I think that’s a lot of what you need to know about the motives of that group.” Scott retorts, “It is a shame that Mr. Gibbs chooses to dismiss these Americans and their very real concerns, instead opting to level personal attacks.” [San Francisco Chronicle, 8/4/2009]

Entity Tags: Greg Sargent, Doug Thornell, Columbia/HCA, CRC Public Relations, Brian Burgess, Conservatives for Patients’ Rights, Solantic, Thomas A. Scully, Rick Scott, Richard Kirsch, Obama administration, Robert Gibbs, Grover Norquist, Republican Party, Medicare

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

Grover Norquist, the highly influential leader of the conservative activist group Americans for Tax Reform, acknowledges that his group, along with Americans for Prosperity and the National Conservative Union among others, has encouraged its members to attend town hall meetings to protest health care reform proposals (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, August 4, 2009, and August 5, 2009). Norquist also admits that his organization provides talking points, suggested questions to ask, and slogans to chant at the meetings. However, he says his group does not endorse the raucous, sometimes riotous discussions that are taking place. “The more civilly you ask the question, the more powerful it is,” he says. “Nobody says go and scream. That’s the least effective thing you can do.” But a former Republican aide notes, “If you are going to town-hall, you understand the potential pitfalls.” [Roll Call, 8/5/2009]

Entity Tags: National Conservative Union, Americans for Tax Reform, Grover Norquist, Americans for Prosperity

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

Tim Phillips (r) being interviewed by Rachel Maddow (l).Tim Phillips (r) being interviewed by Rachel Maddow (l). [Source: YouTube]Tim Phillips, the president of the corporate lobbying firm Americans for Prosperity (AFP), is interviewed by progressive MSNBC host Rachel Maddow. AFP, like FreedomWorks, Conservatives for Patients Rights (CPR), and other organizations, is responsible for what Maddow calls “astroturfing” the health care reform debate—creating “fake grassroots organizations” such as Patients First and Patients United Now that purport to represent ordinary citizens, but are in fact entities created and controlled by corporate and/or political interests (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, and August 6-7, 2009).
Representing 'Real Folks' - Phillips is jovial with Maddow, insisting that AFP merely represents the interests of “real folks.” When asked who funds AFP’s “grassroots” offshoot, Patients First, instead of answering, Phillips tells Maddow that the organization is made up of patients “just like us. I’m a patient. Rachel, you’re a parent. So I think we’re all patients in this issue. And we all have something at stake here.” Phillips even denies being a Washington lobbyist, but instead calls himself “a community organizer” similar to the position once held by President Obama. “What do you think about that?” he asks. “Maybe I’m qualified to be president.” He finally claims that AFP is funded by citizen donors, though he admits that the bulk of its money comes from foundations such as the Koch Industries Foundations, the grant-giving arm of Koch Industries, the largest privately held oil company in the US. Maddow says, “[I]t seems odd to just call yourself patients like us when you’re a huge recipient of funding from a big company, and you’re trying to distinguish yourself from lobbyists and big companies.” Phillips in turn says that to label groups like AFP anything but citizen organizations is “demeaning” to the ordinary citizens who turn out at the rallies and forums. Maddow responds: “I’m not calling anybody, any individual American, a front group. I’m calling Americans for Prosperity’s subgroups a front group for the corporate interest that funds you, guys. Honestly, I mean, that’s the allegation that we’re making here.”
'We Would Love to Have More Corporate Funding' - Phillips says: “[C]orporate interests are a minuscule part of our funding.… And by the way, we would love to have more corporate funding. So if there’s more corporations watching us, feel free to give to us. We’ll be happy to have their support as well. We will get the message out on this health care issue.” He denies ever taking money from Exxon, but says AFP would be more than happy to accept Exxon and other such funding. Maddow notes that Exxon has listed AFP as a recipient of large amounts of money, and Phillips qualifies his statement: “This year, we haven’t had any Exxon money.… But again, though, we’re happy to take corporate money.” Maddow says that she isn’t sure the protesters showing up at the town halls at the behest of AFP know that the organization is funded by oil and health care corporations.
'Gotcha Politics' - After Maddow notes Phillips’s involvement with several Republican political and lobbying campaigns, Phillips accuses her of playing “gotcha politics.” Maddow retorts that Americans “want to know who the players are in this fight and who’s organizing what are being maintained as if they’re just spontaneous efforts happening organically by Americans who are angry and they’re aren’t being coordinated by industry and by lobbyists and by political campaign groups associated with the Republican Party. And that’s why I want to talk about who you are, because you have such an important role in coordinating these events and I think the American people are curious.” In his turn, Phillips says that it is “gotcha politics” that is helping the anti-reform movement win the issue. Before Maddow ends the interview, Phillips invites her to join AFP on the bus tour “as my guest to see these real Americans. Would you do that?” Maddow replies, “I can’t bear the conflict of interest with your corporate funders.” [MSNBC, 8/7/2009]

Entity Tags: Koch Industries Foundations, Conservatives for Patients Rights, Americans for Prosperity, ExxonMobil, Koch Industries, Republican Party, FreedomWorks, Patients United Now, Patients First, Tim Phillips, Rachel Maddow

Timeline Tags: US Health Care, Domestic Propaganda

Sarah Palin holds her youngest child, Trig, for the cameras.Sarah Palin holds her youngest child, Trig, for the cameras. [Source: Hollywood Gossip]Former Governor Sarah Palin (R-AK), the Republican vice presidential candidate in 2008, writes on her Facebook page that the Democrats’ health care reform package would result in a government “death panel” that would kill her baby, Trig. Her child was born with Down Syndrome. Palin writes: “Americans delve into the disturbing details of the nationalized health care plan that the current administration is rushing through Congress, our collective jaw is dropping, and we’re saying not just no, but hell no!… And who will suffer the most when they ration care? The sick, the elderly, and the disabled, of course. The America I know and love is not one in which my parents or my baby with Down Syndrome will have to stand in front of Obama’s ‘death panel’ so his bureaucrats can decide, based on a subjective judgment of their ‘level of productivity in society,’ whether they are worthy of health care. Such a system is downright evil.” Palin also commends Representative Michele Bachmann (R-MN) for warning the nation about President Obama’s “Orwellian” health care adviser: “Rep. Michele Bachmann highlighted the Orwellian thinking of the president’s health care advisor, Dr. Ezekiel Emanuel, the brother of the White House chief of staff [Rahm Emanuel], in a floor speech to the House of Representatives. I commend her for being a voice for the most precious members of our society, our children and our seniors.” [TPMDC, 8/7/2009; Time, 8/8/2009]
Inspired by Debunked Claims from Industry Lobbyist - Palin’s warning about government “death panels” is inspired by debunked warnings from industry lobbyist Betsy McCaughey and a variety of Republican lawmakers and conservative talk show hosts about the reform proposals’ implicit agenda to kill older Americans faster (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, and July 31, 2009 - August 12, 2009). Politico’s Ben Smith writes: “As nonpartisan sources note, the [proposal] deals with medical practitioners helping individuals prepare living wills, powers of attorney, and the like. It’s a long ways from there to a ‘death panel’ where bureaucrats decide who lives or dies.” [Politico, 8/7/2009]
Countering Palin's Assertions - Progressive MSNBC host Rachel Maddow says of Palin’s assertions: “There is no Obama death panel. There’s no plan to kill old people. There’s no plan to kill off any people who aren’t productive enough. There’s no plan to kill off any of Sarah Palin’s children. And if we were actually talking about health care instead of waddling through this free-floating morass of factless partisan rage and corporate opportunism, it would occur to someone to notice that the provision being considered by Congress that has Sarah Palin ranting about Obama death panels and the death of her own children was introduced by Republican Senator Johnny Isakson of Georgia (see August 10, 2009). And it’s not about killing old people. It’s about making it easier for old people to create living wills. A similar provision was introduced by another Republican senator, Susan Collins of Maine. This is a Republican idea.” [MSNBC, 8/10/2009] Days later, Senator Lisa Murkowski (R-AK) tells an audience: “It does us no good to incite fear in people by saying that there’s these end-of-life provisions, these death panels. Quite honestly, I’m so offended at that terminology because it absolutely isn’t [in the bill]. There is no reason to gin up fear in the American public by saying things that are not included in the bill.… There are things that are in this bill that are bad enough that we don’t need to be making things up.” [Anchorage Daily News, 8/11/2009]

Entity Tags: Ben Smith, Sarah Palin, Obama administration, Lisa Murkowski, Rachel Maddow

Timeline Tags: US Health Care, Domestic Propaganda, 2012 Elections, 2010 Elections

60+ logo.60+ logo. [Source: 60 Plus Association]An anti-health care reform television ad designed to frighten seniors into believing that so-called “death panels” will have government officials choosing to terminate them (see August 7, 2009, August 10, 2009, and August 10, 2009) is produced by a supposedly “non-partisan seniors advocacy group.” However, in fact the group is led, organized, and funded by senior Republican operatives. The ad says in part that health care reform will, for seniors, “mean long waits for care, cuts to MRIs, CAT Scans, and other vital tests. Seniors may lose their own doctors. The government, not doctors, will decide if older patients are worth the cost.” The organization that produced and released the ad is called the “60 Plus Association,” or “60+,” a registered non-profit organization that claims to be non-partisan. The president of 60+ is Jim Martin, a former official for the National Conservative Action Committee and another group, Americans Against Union Control of Government. The honorary chairman of 60+ is Roger Zion, a former Illinois Republican congressman whom the group’s site calls “one of Washington’s leading spokesman for the conservative cause.” When 60+ began running ads against prescription drug reform a few years ago, the American Association of Retired Persons (AARP) discovered that, in the organization’s words, “virtually all of their largest contributions in recent years have come from the same source—the nation’s pharmaceutical industry.” John Rother of AARP will confirm that 60+ is “funded primarily by corporate interests, especially pharmaceuticals.” Speaking to MSNBC’s Rachel Maddow, he says that 60+ and other anti-reform groups are specifically targeting seniors. “I don’t think you can look at those commercials and not conclude that seniors are the target of a very intentional scare campaign,” he says. “And many seniors, of course, are worried about change because they depend on Medicare. They are perhaps not in the greatest of health, and they definitely want to know that Medicare will be there, their doctor will be there when they need it. So, change can be a little scary.… It certainly makes me angry because, you know, there are real issues and people should be engaged in this debate. But to scare people, to raise these bogus issues, to intentionally mislead a big part of the population is—you know, it’s a subversion of democracy.” Rother adds: “[W]e’ve looked at this bill and we read every page, we’ve concluded that the bills proposed in the Congress would be good for seniors, would actually help them afford their medications better, make sure that doctors are there when they need them. So, we feel there’s nothing to be scared about in the actual legislation.” In 2003, the pharmaceutical giant Pfizer paid 60+ to organize opposition against prescription drug reform in Minnesota and New Mexico. 60+ in turn hired a PR firm, Bonner & Associates, which according to the AARP “specializes in ‘Astroturf lobbying’” (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, August 6, 2009, and August 6-7, 2009). Bonner paid employees to call residents of those states and, identifying themselves as volunteers for 60+, urge them to oppose the legislation. 60+ also has ties to former Republican lobbyist Jack Abramoff, who directed Native American tribes to donate to 60+ in return for Republican support in Congress. 60+ has also lobbied in favor of approving the storage of nuclear waste at the infamous Yucca Mountain, Nevada, storage site. Maddow says: “[T]he campaign against health care reform in this country is being brought to you by professional, corporate-funded, Republican-staffed political PR operations. In this case, an organization that promotes itself as non-partisan but appears to be anything but. These are professional PR operatives that are scaring real Americans with increasingly paranoid and kooky lies about health care. And they’re getting rich in the process, thanks to the largess of extremely interested parties who are more than willing to pay for their services.” [MSNBC, 8/11/2009; MSNBC, 8/12/2009]

Entity Tags: John Rother, 60 Plus Association, American Association of Retired Persons, Jim Martin, Roger Zion, Rachel Maddow

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

A protester displays a handmade sign advocating “Death to Obama” and to his family.A protester displays a handmade sign advocating “Death to Obama” and to his family. [Source: WHAG-TV]At a “town hall” meeting to discuss health care reform, Senator Ben Cardin (D-MD) is plagued with “almost non-stop” hecklers who “hoot and holler” at his every statement, according to the Baltimore Sun. Outside the town hall, an opponent of health care reform holds a small, handwritten sign that says: “Death to Obama. Death to Obama—Michelle and 2 stupid kids.” (The man is detained by Secret Service agents.) The event, held at Towson University, is packed with anti-reform protesters, who regularly outshout those who have come to support Cardin and health care reform. Cardin is a proponent of the Democrats’ health care reform efforts. “I know some of you don’t want me to mention the facts, but listen to the facts,” he says towards the beginning of the event, drawing screams and catcalls from the protesters. Cardin’s every statement is greeted with jeers and shouts, and protesters break “into raucous cheers” when their fellows yell dismissive or abusive remarks towards him. According to the Sun reporters in attendance, Cardin keeps calm throughout the event. His statements that illegal immigrants would not be given coverage under the plan receives some of the heaviest levels of profane jeering and booing; in contrast, one of the longest and loudest ovations comes when an audience member asks why tort reform is not part of the reform plan. When one audience member asks if Cardin will put himself under a public plan, he retorts: “I’m in a public plan. It’s called Medicare.” Cardin is protected throughout the event by a large number of uniformed university security officers. About 500 people make their way inside; hundreds more are turned away and conduct their own protests, arguments, disputes, and screaming matches outside the venue. One supporter tells a reporter: “I guess we’re going to rally and scream at each other. It’s ridiculous, but you can’t just have one side control the whole discussion.” One protester, carrying a sign reading “Obama Lies, Seniors Die” (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, and August 11, 2009), tells reporters, “I’m not a mob.” Cardin addresses the “euthanasia” issue in the venue, assuring the audience, “There would be nothing in a health overhaul plan about terminating people’s care at the end of life.” He then adds, “And by the way, President Obama is also a citizen of the United States.” [Baltimore Sun, 8/11/2009; MSNBC, 8/13/2009; Associated Press, 8/13/2009]

Entity Tags: US Secret Service, Baltimore Sun, Barack Obama, Michelle Obama, Ben Cardin, Medicare

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

Header from the mailer sent out by 60+, depicting four senior citizens apparently suffering from lack of health care.Header from the mailer sent out by 60+, depicting four senior citizens apparently suffering from lack of health care. [Source: 60+ / Plum Line]The “60 Plus Association” (60+), a conservative anti-health care reform organization, sends out what Washington Post commentator Greg Sargent calls a “brutal” mailer to Nebraska residents, depicting photos of senior citizens apparently suffering from various untreated ailments and making the questionable claim that health care reform would be funded by $500 million in Medicare cuts. 60+ is leading a media push against the Democrats’ reform package by claiming that the government would institute so-called “death panels” (see Shortly Before August 10, 2009). Sargent writes: “This is kind of a new frontier in the scare campaign targeting old folks: It links the prediction of drastic Medicare cuts to the widely-debunked claim that health care reform will lead to mass government euthanasia of the elderly” (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, and August 11, 2009). The mailer repeats the widely discredited claim that the government could deny you treatment even if “you and your doctor insist on them,” and quotes President Obama as saying during one “town hall” forum, “Maybe you’re better off not having the surgery, but taking the painkiller.” Sargent notes: “Taken out of context, the comment sounds like a callous declaration to a patient that he or she should suck it up and forget about getting needed care. In fact, Obama was actually discussing the difficulties inherent in helping the elderly make good medical decisions.” [Plum Line, 8/11/2009]

Entity Tags: Medicare, Barack Obama, Greg Sargent, 60 Plus Association

Timeline Tags: US Health Care, Domestic Propaganda

Progressive MSNBC host Rachel Maddow worries on the air about the possibility of physical violence, and perhaps even political assassinations, being perpetrated as a result of the escalating violent rhetoric surrounding the health care reform debate. In recent days, at least one Democratic lawmaker has been threatened with death (see August 11, 2009), an African-American congressman has been vilified with swastikas and racial slurs (see August 11, 2009 and August 12, 2009), and guns have been brought both openly and surreptitiously to town halls (see August 5, 2009), some with President Obama in attendance (see August 11, 2009). Maddow tells her listeners: “[O]pponents of health care reform have chosen to fight at this time with force and with threats of force. Not just fringe talk show hosts, but members of Congress telling their constituents that Barack Obama is like Hitler; members of the United States senate telling their constituents that they are right to be afraid, that health care reform really is a plot to kill the elderly (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, and August 11, 2009). Corporate funded conservative PR operations promoting those lines of attack and then telling their activists to go put the fear of God into members of Congress (see August 6, 2009). Are we now operating in a political environment which is not just politics as usual, which is not just a rowdy debate? Has enough kerosene been poured on the flames that the possibility of violence—even assassination—is being posited as a real political tactic in the United States? It’s not a rhetorical question. It’s not even a question about rhetoric. Because there are people in this country—people in the health care field, in fact—who have faced the actual threat of assassination as a political tactic (see May 31, 2009).… As the anti-health reform protestors flirt with the same exultation of violence, that same excuses and purported justifications of violence, that echo in the extreme anti-abortion movement in this country, it is worth remembering that the possibility of American politics turning to violence and terrorism—at the fringe—is not all theoretical.” Maddow’s guest, abortion provider Dr. Warren Hern, himself a target of political assassins, tells her: “They have—the anti-abortion movement decided, more than 15 years ago, to use political assassination as a tactic, as a method of not only political expression but a way of organizing their followers and getting support and that’s what they’ve been doing. They’ve been assassinating doctors. And the question I have pointed out when they get through assassinating abortion doctors: who’s next?… [I]t’s very clear that there’s been a progression of violence increasingly toward individuals. And this is one of the frightening trends. And so, we have to be very concerned because the violent and the aggressive rhetoric and action or statements lead to more violent action and to assassination.” [MSNBC, 8/13/2009]

Entity Tags: Barack Obama, Warren Hern, Rachel Maddow, MSNBC

Timeline Tags: US Health Care, Domestic Propaganda, US Domestic Terrorism

Former New York Mayor Rudy Giuliani tells a group of Republican state legislators in Illinois that “it is natural” to assume that the Democratic health care reform plan will lead to “death panels” making end-of-life decisions for seniors. “This is a real concern not made up by radio talk show hosts,” Giuliani claims. In recent weeks, the claim of so-called “death panels” has energized the conservative anti-reform movement even as it has been roundly debunked (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 12, 2009, August 12, 2009, August 13, 2009, and August 12-13, 2009). Giuliani admits that there are no provisions for “death panels” in the Democratic legislation pending in Congress, but says that “simple economics” tells him the panels will happen. “President Obama says he will cover 30 to 40 to 50 million people who are not covered now—without it costing any money,” he says. “This is absurd. Health care—in case the Obama administration hasn’t noticed, is very expensive. They will have to cut other services, cut programs. They will have to be making decisions about people who are elderly.” He goes on to blame Obama and Congressional Democrats for creating the worry about “death panels” because of “the ambiguity of the legislation.” [Chicago Sun-Times, 8/13/2009]

Entity Tags: Rudolph (“Rudy”) Giuliani, Barack Obama

Timeline Tags: US Health Care, Domestic Propaganda

The press releases a confidential, “sensitive” memo from the American Petroleum Institute (API) detailing a plan to create “Astroturf” rallies at which industry employees posing as ordinary citizens will urge Congress to fight climate change legislation. The memo was obtained by the environmental group Greenpeace and sent to several reporters. It urges oil companies to recruit their employees for events that will “put a human face on the impacts of unsound energy policy,” and will urge senators to “avoid the mistakes embodied in the House climate bill.” The campaign is funded by a coalition of corporate and conservative groups called the “Energy Citizens” alliance, which includes the anti-health care reform group 60 Plus, the industry “grassroots” organization FreedomWorks (see April 14, 2009), Grover Norquist’s Americans For Tax Reform, the American Conservative Union, and the National Taxpayers Union. API president Jack Gerard, who signed the memo, asks recipients to give API “the name of one central coordinator for your company’s involvement in the rallies.” And it warns, “Please treat this information as sensitive… we don’t want critics to know our game plan.” At least two major oil corporations, BP and Shell, are members of API and also belong to the US Climate Action Partnership, which supports the House legislation sponsored by Henry Waxman (D-CA) and Edward Markey (D-MA). API has spent over $3 million lobbying against that bill this year. API spokesman Bill Bush says his organization is not trying to deceive anyone. “I don’t think anyone’s hiding the ball about this,” he says. “I don’t think anyone’s trying to suggest that this doesn’t have anything to do with the oil and gas industry.” Greenpeace has asked API to reveal the member companies funding the Astroturf efforts. Shell Oil Company later informs reporters that it will not take part in the rallies. In a statement, the corporation says, “Shell’s position is not aligned with the consensus opinion of the API on Waxman-Markey, therefore Shell will not participate in the rallies.” [Gerard, 8/2009; TPM Muckraker, 8/14/2009]

Entity Tags: British Petroleum, American Conservative Union, 60 Plus Association, American Petroleum Institute, Bill Bush, Greenpeace, National Taxpayers Union, Energy Citizens, FreedomWorks, Royal Dutch/Shell, Americans for Tax Reform, Jack N. Gerard

Timeline Tags: Global Warming, Domestic Propaganda

Two Democratic House members say that the media should not “glorify” the contentious, sometimes-riotous anti-reform protests that have recently occurred at health care debates (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, August 4, 2009, August 5, 2009, August 5, 2009, August 6, 2009, August 6-8, 2009, August 8, 2009, August 10, 2009, August 10, 2009, August 11, 2009, and August 11, 2009). Alan Grayson (D-FL) cites the violence that occurred at a debate featuring Representative Kathy Castor (D-FL—see August 6, 2009), saying that the “disrepect” shown at the debate reflects badly not on Castor, but “on the people who show the disrespect for the democratic process.” He adds: “I think in any society, you’re always going to have a certain percentage of people who are nuts. But these are not people who deserve any special recognition, much less glorification. You don’t treat people the way those people treated Kathy Castor. It’s wrong.… I look for intelligent, well-founded criticism of any bill because that’s how you make the bill better. But if you have people running around saying this bill is going to kill every old person in the country (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 12, 2009, August 12, 2009, August 13, 2009, August 12-13, 2009, and August 13, 2009), how could you possibly show any respect for that silly point of view? It makes no sense to me.” Patrick Murphy (D-PA) says that the contention that the reform proposal threatens Americans’ freedoms is simply wrong: “I had a guy yesterday try to say to me, ‘You know, I’m worried about my freedoms.’ I say, ‘Sir, I fought for your freedoms [Murphy is a veteran of the Iraq war]. I’m going to protect those freedoms. I took an oath to support and defend those freedoms. And I take that responsibility very seriously. But, you know, we need to understand that the current path for small business, for everday families, for seniors, is unsustainable.” [US House of Representatives, 2009; Think Progress, 8/15/2009]

Entity Tags: Kathy Castor, Patrick Murphy, Alan Grayson

Timeline Tags: US Health Care, Domestic Propaganda

An NBC/Wall Street Journal poll shows that the misinformation permeating the debate over health care reform is having an effect. Forty-five percent believe that the reform legislation pending in Congress includes “death panels” (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 12, 2009, August 12, 2009, August 13, 2009, August 12-13, 2009, August 13, 2009, and August 15, 2009), and 55 percent believe that illegal immigrants will receive government-funded coverage. These numbers are disproportionately higher among Fox News viewers: 72 percent believe the government will fund coverage of illegal immigrants, 75 percent believe in “death panels,” and 79 percent believe the reform bill will lead to a government takeover of the US health care system. Large minorities of other network viewers believe these same examples of misinformation. MSNBC’s Domenico Montanaro writes: “This is about credible messengers using the media to get some of this misinformation out there, not as much about the filter itself. These numbers should worry Democratic operatives, as well as the news media that have been covering this story.” [MSNBC, 8/19/2009; Think Progress, 8/19/2009] Another poll, from Public Policy Polling, shows that 39 percent of Americans want the government to “stay out of Medicare,” apparently unaware that the government funds, administers, and operates Medicare. The same poll shows that 38 percent of respondents do not believe President Obama is a natural-born American citizen; six percent don’t believe that Hawaii, Obama’s birth state, is part of the United States. The poll does not differentiate between Fox viewers and others. [Think Progress, 8/19/2009]

Entity Tags: Domenico Montanaro, Barack Obama, Public Policy Polling, Medicare, Wall Street Journal, NBC, Fox News

Timeline Tags: US Health Care, Domestic Propaganda

Newsweek publishes an extensive article detailing what it calls “the five biggest lies in the health care debate.” Despite the title, the article actually debunks seven.
bullet The government will have electronic access to your bank accounts and steal citizens’ money (see (July 30, 2009) and After). The bill passed by the House Ways and Means Committee indeed calls for electronic fund transfers, but only from insurers to doctors and other providers. Patients are not involved in such transactions.
bullet You’ll have no choice in what health benefits you receive. This story seems to originate from a blog, Flecks of Life, which features a picture of President Obama made up as the Joker from the Batman films. The House bill provides for a “health care exchange,” including a list of private insurers and a single government plan, allowing people without health insurance to choose from the list. The government will prevent insurers from refusing clients with “preexisting conditions,” and require them to offer at least minimum coverage. However, Newsweek observes, “The requirements will be floors, not ceilings, however, in that the feds will have no say in how generous private insurance can be.”
bullet No chemo for older Medicare patients. Newsweek calls this a “vicious” rumor coming from the so-called “deather” camp (see November 23, 2008, January 27, 2009, February 9, 2009, February 11, 2009, February 18, 2009, May 13, 2009, June 24, 2009, June 25, 2009, July 10, 2009, July 16, 2009, July 17, 2009, July 21, 2009, July 23, 2009, July 23, 2009, July 23, 2009, July 23-24, 2009, July 24, 2009, July 28, 2009, July 28, 2009, July 28, 2009, July 31, 2009 - August 12, 2009, August 6, 2009, August 7, 2009, August 10, 2009, August 10, 2009, Shortly Before August 10, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 12, 2009, August 12, 2009, August 13, 2009, August 12-13, 2009, August 13, 2009, August 15, 2009, August 18, 2009, and August 23-24, 2009). The claim is that Medicare will refuse cancer patients over 70 years of age anything other than end-of-life counseling, including chemotherapy and other life-extending treatments. The claim, Newsweek says, “has zero basis in fact. It’s just a vicious form of the rationing scare.”
bullet [H]ealth-care reform will be financed through $500 billion in Medicare cuts. Again, nothing in the House bill or anything being considered in the Senate exists to back this claim. There are proposed decreases to increases in future Medicare funding, essentially reducing Medicare expenditures from the forecast of $803 billion by 2019. $560 billion would be removed from future Medicare increases over the next 10 years, and would not come from funds slated to provide actual care to seniors. And the House bill proposes increasing Medicare funding by $340 billion over the next 10 years. According to Medicare expert Tricia Newman of the Kaiser Family Foundation, the money would pay for office visits, eliminate copays and deductibles, and close the so-called “donut hole” in Medicare drug benefits.
bullet Illegal immigrants will get free health insurance. While a 1986 law allows illegal immigrants to receive free emergency care through emergency room clinics like everyone else in America, the House bill does not give anyone free health care. Illegal immigrants will not be eligible for subsidies to buy health insurance. In July, the House defeated a Republican-sponsored amendment to require anyone enrolling in a public plan or seeking subsidies to purchase health insurance to provide proof of citizenship. After the amemdment was defeated, Representative Steve King (R-IA) began spreading the false claims that since proof of citizenship would not be mandated, illegal immigrants would indeed be able to obtain government-funded health insurance. Newsweek writes: “Can we say that none of the estimated 11.9 million illegal immigrants will ever wangle insurance subsidies through identity fraud, pretending to be a citizen? You can’t prove a negative, but experts say that Medicare—the closest thing to the proposals in the House bill—has no such problem.”
bullet Death panels will decide who lives. So-called “death panels” form the heart of the “deather” claims that the government would mandate “end of life counseling sessions” that would encourage elderly and seriously ill patients to allow themselves to die. Newsweek calls the claim a “lie” that “springs from a provision in the House bill to have Medicare cover optional counseling on end-of-life care for any senior who requests it. This means that any patient, terminally ill or not, can request a special consultation with his or her physician about ventilators, feeding tubes, and other measures. Thus the House bill expands Medicare coverage, but without forcing anyone into end-of-life counseling.”
bullet The government will set doctors’ wages. This is another claim that seems to have originated on the Flecks of Life blog. Like the earlier claim, it is false. The House bill, according to Newsweek, “says that physicians who choose to accept patients in the public insurance plan would receive five percent more than Medicare pays for a given service, [but] doctors can refuse to accept such patients, and, even if they participate in a public plan, they are not salaried employees of it any more than your doctor today is an employee of, say, Aetna.” Amitabh Chandra of Harvard University says, “Nobody is saying we want the doctors working for the government; that’s completely false.” [Newsweek, 8/29/2009]

Entity Tags: Obama administration, Barack Obama, House Ways and Means Committee, Amitabh Chandra, Medicare, Tricia Newman, Steve King, Newsweek

Timeline Tags: US Health Care, Domestic Propaganda

Reporter Lee Fang of the liberal Center for American Progress writes an op-ed for the Boston Globe comparing the current political attacks against Democratic efforts to reform health care being coordinated by the Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, and November 2009) with the efforts of their father, Fred Koch (see 1940 and After), to label former President John F. Kennedy a traitor and a Communist tool. David Koch recently helped coordinate, from behind the scenes, a protest that compared health care reform to the Holocaust, and other protests that have turned violent. More systematically, he and his reclusive brother Charles have funded such conservative organizations as Americans for Prosperity (AFP—see Late 2004) and other front groups, none of which bear the Koch name. Fang writes: “Americans for Prosperity’s tactics are not new. Just as Koch inherited his oil business from his father, Americans for Prosperity borrows from the ultra-right group also founded in part by his dad, the John Birch Society” (see 1945 and After, March 10, 1961, 1963, August 4, 2008, and April 26, 2010). Fred Koch helped conceive the far-right, anti-Communist John Birch Society (JBS), which, Fang writes, “cloaked its pro-business, anti-civil rights agenda in the rhetoric of the Cold War.” The JBS labeled Kennedy a Communist-inspired traitor and advocated his impeachment (see November 1963), stood against taxation as another aspect of “creeping Communism” inside the federal government, and claimed that the civil rights movement was being directed by the Soviet Union (see April 13, 2009 and December 11, 2009). The JBS helped promote the 1964 presidential candidacy of Senator Barry Goldwater (R-AZ) and helped Republicans win key Congressional seats in 1966. AFP and the JBS are alike, Fang notes, in that they rarely acknowledge their funding from wealthy corporate magnates. Both portray themselves as grassroots organizations that are dedicated to promoting freedom. For a time, the JBS succeeded in aligning the interests of the very rich with the idea of anti-Communist patriotism. Similarly, AFP promotes the interests of the extremely wealthy, including the Koch brothers, as synonymous with patriotic opposition to health care reform, financial regulation, net neutrality, and the estate tax. All are labeled as “socialist,” a favorite JBS epithet. Fang concludes that “[w]ith his millions,” David Koch will have “contributed greatly to the obstruction of universal health care, the denial of climate change, and the derailment of much of President Obama’s domestic agenda. His dad would be pleased.” [Boston Globe, 12/6/2009]

Entity Tags: Barry Goldwater, Americans for Prosperity, Barack Obama, Charles Koch, David Koch, John Birch Society, John F. Kennedy, Lee Fang, Fred Koch

Timeline Tags: Domestic Propaganda

Attorney Karl Crow, one of the leaders of the Themis project.Attorney Karl Crow, one of the leaders of the Themis project. [Source: Little Sis (.org)]Charles and David Koch, the oil billionaires who are behind the conservative tea party movement (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 and October 4, 2011), begin to build a huge, nationwide database of conservative voters that they intend to use to drive conservative votes in elections, beginning with the 2012 Republican primaries and on to the November 2012 general presidential election. The database is nicknamed “Themis,” after the Greek goddess of divine law and order who imposes order on human affairs. According to The Guardian’s Ed Pilkington, “the Koch brothers are close to launching a nationwide database connecting millions of Americans who share their anti-government and libertarian views, a move that will further enhance the tycoons’ political influence and that could prove significant in next year’s presidential election.” Pilkington writes that Themis will bring together “the vast network of alliances” the brothers have formed over the last 20 years. [Politico, 10/10/2011; Guardian, 11/7/2011] Patrick Glennon of In These Times writes: “Email lists, phone numbers, and other contact information from disperse sources will merge into a comprehensive and streamlined political weapon. Purportedly, the database will also include extensive information relating to occupation and income levels, useful details for targeted fundraising initiatives.” [Politico, 10/10/2011] The database begins in April 2010, and is expected to be completed and functional by the end of 2011. Few details of the project are known; development leader Karl Crow, a Washington lawyer and longtime Koch advisor, refuses to speak about it, as do media representatives of Koch Industries. A member of a Koch affiliate organization who specializes in the political uses of new technology says in November 2011 that the project is almost ready to go live: “They are doing a lot of analysis and testing. Finally they’re getting Themis off the ground.” The project is intended to, Pilkington writes, “bring together information from a plethora of right-wing groups, tea party organizations, and conservative-leaning thinktanks. Each one has valuable data on their membership—including personal email addresses and phone numbers, as well as more general information useful to political campaign strategists such as occupation, income bracket, and so on. By pooling the information, the hope is to create a data resource that is far more potent than the sum of its parts. Themis will in effect become an electoral roll of right-wing America, allowing the Koch brothers to further enhance their power base in a way that is sympathetic to, but wholly independent of, the Republican Party.” The specialist tells Pilkington, “This will take time to fully realize, but it has the potential to become a very powerful tool in 2012 and beyond.” Themis is modeled in part on a project called Catalyst, a voter list that compiled and shared data about progressive groups and campaigns (see Late 2004 and After) and helped Democrats regain momentum after the 2004 defeat of presidential candidate John Kerry (D-MA). [Politico, 10/10/2011; Guardian, 11/7/2011; In These Times, 11/8/2011] The 2008 Obama campaign used social media outreach techniques to augment Catalyst’s database. Themis apparently incorporates many of those social-media and other interactive features in its construction. [The Kernel, 12/19/2011] Josh Hendler, the former director of technology of the Democratic National Committee (DNC), tells Pilkington that Themis could do for the GOP what Catalyst helped do for the Democrats. “This increases the Koch brothers’ reach,” he says. “It will allow them to become even greater coordinators than they are already—with this resource they become a natural center of gravity for conservatives.” Mary Boyle of the political watchdog group Common Cause says of the reclusive brothers, “What makes them unique is that they are not just campaign contributors; they are a vast political network in their own right.” Themis will only deepen the Koch brothers’ control of American right-wing politics, Pilkington observes. Politico’s Kenneth Vogel writes that the Kochs intend to spend at least $200 million in 2012 on the Republican presidential campaign and other related activities. Pilkington writes: “Their potential to sway the electorate through the sheer scale of their spending has been greatly enhanced by Citizens United, last year’s controversial ruling by the US Supreme Court that opened the floodgates to corporate donations in political campaigns. The ruling allows companies to throw unlimited sums to back their chosen candidates, without having to disclose their spending. That makes 2012 the first Citizens United presidential election, and in turn offers rich pickings to the Koch brothers.” Themis will help the Kochs “micro-target” voters and potential fundraisers. Pilkington writes that it is reasonable to assume that Koch-funded lobbying organizations such as Americans for Prosperity and FreedomWorks are part of Themis, as are Koch-funded think tanks such as the Heritage Foundation. “Between them, they have tentacles that extend to millions of voters,” Pilkington writes. Liberal reporter and blogger Lee Fang says the impact of Themis and the Koch funding on the 2012 presidential campaign will be immense: “This will be the first major election where most of the data and the organizing will be done outside the party nexus. The Kochs have the potential to outspend and out-perform the Republican Party and even the successful Republican candidate.” [Politico, 10/10/2011; Guardian, 11/7/2011; In These Times, 11/8/2011]

Entity Tags: Charles Koch, 2008 Obama presidential election campaign, Ed Pilkington, Americans for Prosperity, Catalyst, David Koch, Themis, Republican Party, Karl Crow, Josh Hendler, Patrick Glennon, Kenneth Vogel, Lee Fang, Mary Boyle, John Kerry, FreedomWorks

Timeline Tags: Civil Liberties, 2012 Elections

News Corporation logo.News Corporation logo. [Source: Blogging Stocks (.com)]News Corporation, the parent company of Fox News, the Wall Street Journal, and the New York Post, donates $1 million to the Republican Governors Association (RGA). The News Corp. donation is accompanied by a $500,000 donation to the RGA from WellPoint, the US’s largest health insurer, and a “seven-figure donation” from oil billionaire David Koch (see 1981-2010). Organizations such as the RGA can accept unlimited donations from corporations, unlike political parties and federal candidates. [Business Week, 8/16/2010; Politico, 8/16/2010; TPMDC, 8/17/2010; Huffington Post, 8/17/2010] News Corp. spokesman Jack Horner tells a reporter, “News Corporation believes in the power of free markets, and the RGA’s pro-business agenda supports our priorities at this most critical time for our economy.” [Politico, 8/16/2010] Others are less sanguine about the donation. Hari Sevugan of the Democratic National Committee (DNC) says: “Any pretense that may have existed about the ties between Fox News and the Republican Party has been ripped violently away. Any Republican that appears on Fox should now have a disclaimer that they are financially supported by the network and any coverage of the elections this fall on Fox should be reported with disclaimer for what it is—partisan propaganda.” Nathan Daschle of the Democratic Governors Association (DGA) says: “For a media company—particularly one whose slogan is ‘fair and balanced’ (see 1995)—to be injecting themselves into the outcome of races is stunning. The people owning Fox News have made a decision that they want to see Democratic governors go down to defeat. It’s a jaw-dropping violation of the boundary between the media and corporate realm.” Daschle acknowledges that other media companies such as Disney and CBS have given much smaller donations to both Republicans and Democrats, but says: “The Fox contribution is in a completely different league. Other media firms’ donations are generally small and about equal to the many committees that receive money.” Until this donation, News Corp. had contributed almost equally to both Democrats and Republicans. Horner says, “It’s patently false that a corporate donation would have any bearing on our news-gathering activities at Fox News or any other of our properties.” Fox refuses to allow Daschle to appear on its network to discuss the donation, stating: “We understand Nathan’s desire to get face time on the most watched news network. And when he can offer insight on a legitimate news story instead of concocting a dishonest publicity stunt, we will consider having him on as a guest.” Communications professor Tobe Berkovitz says of the donation: “The way the rules are written, [News Corp. chairman Rupert Murdoch] is playing by the rules. This just reinforces for liberals how evil and manipulative Fox and Rupert Murdoch are. For the civilians out there, I don’t think they’re going to see this as particularly relevant or particularly important.” [Washington Post, 8/18/2010] The progressive news Web site Think Progress determines that News Corp. may have violated its own policies by making the donation. According to the corporation’s “Standards of Business Conduct”: “No payment shall be made to, or for the benefit of, any public official in order to induce or entice such official to: enact, defeat, or violate any law or regulation for the company’s benefit; influence any official act; or obtain any favorable action by a governmental agency or official on behalf of the company.… No gifts in the form of cash, stock, or other similar consideration shall be given, regardless of amount.” [Think Progress, 8/17/2010]

Entity Tags: New York Post, Hari Sevugan, Fox News, David Koch, Nathan Daschle, WellPoint, Wall Street Journal, Republican Party, Rupert Murdoch, Tobe Berkovitz, Jack Horner, Republican Governors Association, News Corporation

Timeline Tags: Domestic Propaganda

The exterior of the St. Regis Resort in Aspen, Colorado.The exterior of the St. Regis Resort in Aspen, Colorado. [Source: Real Aspen (.com)]The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, and July 3-4, 2010), holds a private meeting with some 200 wealthy financial and political figures at the exclusive St. Regis Resort in Aspen, Colorado. The meeting is designed to bring the participants together to combat what Koch calls “the threats posed to American freedom and prosperity” by Democrats and the Obama administration. To that end, many of the sessions in the two-day event target methods and plans to influence and manipulate the upcoming 2010 midterm elections. The meeting is highly secretive, with participants warned not to discuss the proceedings with anyone, especially members of the media, but in August, the liberal news Web site Think Progress will obtain a copy of a September 2010 memo from Koch that contains the June 2010 event program. The various events include:
bullet a seminar on “The Bankrupting of America”;
bullet a seminar on the “regulatory assault” on environmental concerns and how to further business goals by defeating environmental regulations;
bullet a seminar on how to influence universities and colleges to “advance liberty”;
bullet a seminar on how to “micro-target” the electorate in order to win elections for conservative Republican candidates;
bullet a seminar on “The Threats to American Freedom and Prosperity” conducted by Koch himself;
bullet “Understanding the Threats We Face,” a seminar moderated by Wall Street Journal reporter Stephen Moore (see May 6, 2006), Ramesh Ponnuru of the National Review, Phil Kerpen of Americans for Prosperity (AFP—see Late 2004), and Peter Wallinson of the far-right American Enterprise Institute (AEI);
bullet a seminar on “An Integrated Strategy to Face These Threats,” moderated by Koch’s senior assistant Richard Fink;
bullet an evening address, “Is America On the Road to Serfdom?” by former Fox News talk show host Glenn Beck;
bullet a seminar, “We’re Spending Too Much,” on how to lower government spending, conducted by Russ Roberts of the far-right libertarian Mercatus Center;
bullet a seminar, “Understanding This Year’s Electorate,” by journalist and AEI fellow Michael Barone;
bullet a follow-up seminar on how to “Fram[e] the Debate on Spending” for the elections, moderated by members of AEI and the Mercatus Center;
bullet a seminar, “Mobilizing Citizens for November,” featuring Tim Phillips, the head of AFP (see August 6, 2009) and Karl Crow, the head of Themis, the Koch-funded computer database being used in “micro-targeting” voters (see April 2010 and After);
bullet a seminar hosted by Arthur Brooks of AEI on how to frame the “fight” as one between “free enterprise and Big Government”;
bullet a seminar on how best to target participants’ philanthropic gifting;
bullet a seminar on “reforming” K-12 public and charter schools;
bullet a seminar on impacting judicial elections in several key states;
bullet a seminar on transitioning from the 2010 elections to the 2012 presidential elections and how “supporters of economic freedom” can “start planning today” for that election;
bullet a final evening address, “What’s Ahead for America?” by noted neoconservative columnist and Fox News pundit Charles Krauthammer.
The event features David Chavern, a senior official at the US Chamber of Commerce, one of the entities contributing the most funding to conservative political organizations (see August 2, 2010, September 13-16, 2010, and October 2010). Think Progress’s Lee Fang will write: “In an election season with the most undisclosed secret corporate giving since the Watergate-era, the memo sheds light on the symbiotic relationship between extremely profitable, multi-billion dollar corporations and much of the conservative infrastructure. The memo describes the prospective corporate donors as ‘investors,’ and it makes clear that many of the Republican operatives managing shadowy, undisclosed fronts running attack ads against Democrats were involved in the Koch’s election-planning event.” Many of the “investors” listed as attending or participating in the events include executives from health care corporations; executives from fast-food and other food-industry executives who have fought against providing health insurance to their employees; an array of banking and financial executives; and a number of energy industry executives. Fred Malek, who serves as the top fundraiser for a $56 million attack ad campaign against Democrats (see Mid-October 2010), attends, as does Heather Higgins of the Independent Women’s Forum, another organization that has spent millions opposing health-care reform. Many of the election-focused seminars address how to take advantage of the Citizens United ruling that lifted restrictions on corporate election spending (see January 21, 2010). The Aspen meeting, as with earlier meetings, is managed by Kevin Gentry, a Koch Industries executive and Washington lobbyist. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: David Chavern, Tim Phillips, Stephen Moore, St. Regis Resort, Glenn Beck, Charles Koch, Arthur Brooks, Fred Malek, Charles Krauthammer, Russ Roberts, Think Progress (.org), Ramesh Ponnuru, Kevin Gentry, Richard Fink, Heather Higgins, Lee Fang, Karl Crow, Obama administration, Phil Kerpen, Michael Barone, Peter Wallinson

Timeline Tags: Civil Liberties

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

Charles and David Koch.Charles and David Koch. [Source: PRWatch (.org)]The New Yorker publishes a lengthy analysis of the Koch (pronounced “coke”) financial empire, and its long-time financial support for right-wing causes (see 1981-2010). The article, written by investigative reporter Jane Mayer, shows that Koch Industries, led by brothers David and Charles Koch, has donated over $250 million to Republican and conservative politicians and organizations since the mid-1990s. The Koch brothers are also well-known philanthropists, having given millions to New York City’s Metropolitan Opera, $100 million to the Lincoln Center’s New York State Theatre building, $40 million to the Sloan-Kettering Cancer Center, $20 million to the American Museum of Natural History, and $10 million to the Metropolitan Museum of Art.
Second-Largest Private Industry in US - Koch Industries, a $100 billion conglomerate, garners most of its profits from oil refineries and associated interests; it owns the firms that manufacture Brawny paper towels, Dixie cups, Georgia-Pacific lumber and paper products, Stainmaster carpet, and Lycra fabric. Koch Industries is the second largest private company in the US after Cargill, and taken together, the Koch brothers’ fortune of some $35 billion places them just behind Microsoft’s Bill Gates and Wall Street financier Warren Buffett as the nation’s richest people.
Longtime Libertarians - Personally, the Koch brothers espouse a libertarian philosophy—drastic reductions in corporate and personal taxes, huge cuts in government expenditures on social services, and widespread deregulation of industry, particularly environmental. Koch Industries was recently listed in the top 10 of US air polluters, and has for years funded organizations that oppose climate change, giving even more than ExxonMobil to organizations, foundations, and think tanks that work to derail or overturn climate change legislation. Koch funds so many different organizations that oppose various initiatives of the Obama administration that Washington insiders call the Koch ideological network the “Kochtopus.” While the Koch brothers have protested being characterized as major supporters of the right-wing agenda—David Koch has complained that the “radical press” is intent on making him and his brother into “whipping boys”—Charles Lewis, the founder of the Center for Public Integrity, says: “The Kochs are on a whole different level. There’s no one else who has spent this much money. The sheer dimension of it is what sets them apart. They have a pattern of lawbreaking, political manipulation, and obfuscation. I’ve been in Washington since Watergate, and I’ve never seen anything like it. They are the Standard Oil of our times.” The Kochs have embraced the pure free-market ideology of economist Friedrich von Hayek, who argued that any form of centralized government would lead to totalitarianism and that only complete, unregulated capitalism could ensure freedom. Many “tea party” supporters, such as Fox News host Glenn Beck, have openly embraced von Hayek’s ideals.
Inculcated Ideals of Anti-Communist Father - Both brothers are steeped in the anti-Communist, anti-government, minority-disparaging views of their father, Koch Industries co-founder Fred Koch (see 1940 and After).
Using the 'Tea Parties' - Conservative economist Bruce Bartlett, who has worked at a Koch-funded think tank, says that the Kochs are playing on the anti-government fervor of the “tea parties” to further their pro-business, libertarian agenda. “The problem with the whole libertarian movement is that it’s been all chiefs and no Indians,” Bartlett says. “There haven’t been any actual people, like voters, who give a crap about it. So the problem for the Kochs has been trying to create a movement.” With the emergence of the “tea parties,” Bartlett says, “everyone suddenly sees that for the first time there are Indians out there—people who can provide real ideological power. [The Kochs are] trying to shape and control and channel the populist uprising into their own policies.” A Republican campaign consultant who has worked for the Kochs says of the tea party movement: “The Koch brothers gave the money that founded it. It’s like they put the seeds in the ground. Then the rainstorm comes, and the frogs come out of the mud—and they’re our candidates!” The consultant says that the Kochs keep an extremely low profile, in part to avoid accusations that they are funding an “astroturf” movement (see April 15, 2009). A former Koch adviser says: “They’re smart. This right-wing, redneck stuff works for them. They see this as a way to get things done without getting dirty themselves.” Democratic political strategist Rob Stein, who has studied the conservative movement’s finances, says the Kochs are “at the epicenter of the anti-Obama movement. But it’s not just about Obama. They would have done the same to Hillary Clinton. They did the same with Bill Clinton. They are out to destroy progressivism.” Since a 2009 rally attended by David Koch (see November 2009), the brothers have all but explicitly endorsed the tea party movement, with David Koch praising it for demonstrating the “powerful visceral hostility in the body politic against the massive increase in government power, the massive efforts to socialize this country.” Echoing the sentiments of many tea party leaders, Charles Koch said in a newsletter sent out to Koch Industry employees that President Obama is comparable to Venezuelan strongman Hugo Chavez.
Strategy - Charles Koch told a reporter that “[t]o bring about social change” requires “a strategy” that is “vertically and horizontally integrated,” spanning “from idea creation to policy development to education to grassroots organizations to lobbying to litigation to political action.… We have a radical philosophy.” The Kochs launched their first “think tank,” the libertarian Cato Institute, in 1977 (see 1977-Present), which has been effective in promoting corporate tax cuts, deregulation, cuts in social spending, and in opposing governmental initiatives to combat climate change. Other Koch-funded institutes such as the Heritage Foundation and the Independent Women’s Forum have also publicly opposed efforts to combat climate change. History professor Naomi Oreskes, the author of a book, Merchants of Doubt, that chronicles attempts by American industries to manipulate public opinion on science, says that the Kochs have a vested interest in keeping the government from addressing climate change. “If the answer is to phase out fossil fuels,” she says, “a different group of people are going to be making money, so we shouldn’t be surprised that they’re fighting tooth and nail.” David Koch has said that though he doesn’t believe that any global warming effects have been caused by human activities, if indeed the globe is warming, it will benefit society by lengthening growing seasons in the Northern Hemisphere. Several years after founding Cato, the Kochs provided millions in funding to the Mercatus Center at George Mason University in Arlington, Virginia, which Stein describes as “ground zero for deregulation policy in Washington.” Mercatus is headed by Richard Fink, a Koch Industries lobbyist and president of several Koch-funded foundations. Mayer describes Fink as the chief political lieutenant of the Koch brothers. Mercatus was quite successful at having the Bush administration adopt a number of its deregulatory strategies, particularly environmental deregulation. Like Cato, critics of Mercatus accuse it of serving the brothers’ corporate needs while hiding behind the facade of a nonpartisan academic organization. “Ideas don’t happen on their own,” says Matt Kibbe, the president of FreedomWorks, a tea party advocacy group heavily funded by the Kochs (see April 14, 2009). “Throughout history, ideas need patrons.” FreedomWorks is one of many citizen activism groups founded and/or funded by the Kochs, usually masquerading as “grassroots” organizations started by “ordinary citizens” (see 1984 and After, 1997, and Late 2004).
Disrupting the Obama Administration - Since well before the 2008 presidential election, the Koch brothers have been involved in full-throated efforts to derail any policies or initiatives that would be launched by a Democratic president. In January 2008, Charles Koch wrote in the industry newsletter that America was on the verge of “the greatest loss of liberty and prosperity since the 1930s.” The Kochs have used their “astroturf” advocacy group, Americans for Prosperity (AFP), to great effect against the Obama administration, launching its efforts even before the November 2008 election (see October 2008 and January 2009 and After). Conservative activist Grover Norquist says that AFP’s August 2009 anti-health care rallies were instrumental in undermining Obama’s policy initiatives. Norquist says the rallies “discouraged deal-makers,” Republicans who otherwise might have considered cooperating with Obama and Congressional Democrats, and affected corporate donors to Washington lobbyists, steering millions into the hands of Republican lobbyists. [New Yorker, 8/30/2010]

Entity Tags: Matt Kibbe, Koch Industries, Naomi Oreskes, Richard Fink, Obama administration, New Yorker, Rob Stein, Jane Mayer, Independent Women’s Forum, Mercatus Center, Heritage Foundation, Cato Institute, Center for Public Integrity, Bruce Bartlett, Americans for Prosperity, Barack Obama, Charles Koch, Hillary Clinton, David Koch, FreedomWorks, Friedrich von Hayek, Charles Lewis, Glenn Beck, Grover Norquist, Fred Koch

Timeline Tags: Domestic Propaganda

The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, and August 30, 2010), pens an 18-page memo inviting some 210 wealthy American corporate and political leaders to a meeting with him and his brother David at the exclusive Rancho Las Palmas resort in Rancho Mirage, California, in January 2011. The theme is how to “combat… the multitude of public policies that threaten to destroy America as we know it… it is up to us to combat what is now the greatest assault on American freedom and prosperity in our lifetimes.… We must stop—and reverse—this internal assault on our founding principles.” The meeting will help plan how to use the prospective Republican gains in the November 2010 elections to “foster a renewal of American free enterprise and prosperity.” The memo references a June 2010 meeting in Aspen, Colorado, where strategies to manipulate and influence the 2010 elections were codified (see June 26-28, 2010). “In response, participants committed to an unprecedented level of support,” Koch writes. He includes the program from the June 2010 meeting. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: Rancho Las Palmas, David Koch, Charles Koch

Timeline Tags: Civil Liberties

Protesters in Los Angeles demonstrate against Proposition 23 outside a Tesoro refinery in Wilmington, California.Protesters in Los Angeles demonstrate against Proposition 23 outside a Tesoro refinery in Wilmington, California. [Source: Los Angeles Times]The liberal news Web site AlterNet shows that a very small number of wealthy, influential donors are driving campaign efforts to pass Proposition 23, a California ballot initiative that would suspend state legislation designed to help reduce carbon emissions and hold polluters accountable. The legislation, AB 32, is already in effect, and requires California to decrease global warming emissions to 1990 levels by 2020, beginning in 2012. Prop 23, as it is called, would suspend AB 32 until the state’s unemployment rate drops below 5.5 percent for four consecutive quarters. Currently unemployment in California is around 12 percent. AlterNet provides data showing that AB 32 will actually create jobs developing “clean” technologies and energies, an industry sometimes called “green tech.” Venture capitalist Vinod Khosla recently said: “AB 32 created markets. Prop. 23 will kill the market and the single largest source of job growth in California in the last two years.” The funding for the advertising and other political activities pushing Prop 23 comes from two primary sources: Texas oil giant Valero Energy Corporation and Tesoro Corporation. Both companies have refineries in California that make them two of the state’s biggest polluters. The two oil companies are aided by large donations from the Koch brothers, who own oil conglomerate Koch Industries (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, and September 24, 2010). Valero has spent $5 million to bolster Prop 23 and Tesoro has spent $2 million. Flint Hill Resources, a Koch Industries subsidiary, has spent $1 million. Marathon Petroleum has spent $500,000, as has the conservative Adam Smith Foundation of Missouri. Occidental Petroleum has spent $300,000; Tower Energy Group, $200,000; CVR Energy, $150,000; and about $100,000 each has been spent by the Howard Jarvis Taxpayers Association, the National Petrochemical and Refiners Association, and World Oil Corporation. Of the $10.6 million raised so far to push Proposition 23, only 30 percent of it comes from inside California. In contrast, opponents to Proposition 23 have raised $30.6 million to defeat it, with 70 percent of that money coming from inside California. Jorge Madrid of Climate Progress recently warned: “If we allow Prop 23 to succeed, big oil refineries in the state could continue to spew greenhouse gases without strict regulation. Even worse, a victory for big oil in California could mean certain death for greenhouse gas regulation for the rest of the nation.” [AlterNet, 10/30/2010; Los Angeles Times, 11/2/2010] Prop 23 will lose by a 61-39 margin, with analysts noting that the anti-proposition forces gained ground by pointing out the support for the proposition coming primarily from Texas oil interests. Even many of California’s largest oil companies either stayed neutral or opposed the initiative. The anti-proposition forces were fueled primarily by financiers such as San Francisco hedge fund manager Tom Steyer, the National Wildlife Federation and the ClimateWorks Foundation, and green-tech moguls such as Khosla and John Doerr. Governor Arnold Schwarzenegger (R-CA) stumped in opposition to the initiative, attacking the “self-serving greed” of Valero and Tesoro. The Environmental Defense Fund’s Fred Krupp says of the defeat: “It is the largest public referendum in history on climate and clean energy policy. Almost 10 million Californians got a chance to vote and sent a clear message that they want a clean energy future. And this was in an economic downturn. There has never been anything this big. It is going to send a signal to other parts of the country and beyond.” [Los Angeles Times, 11/2/2010]

Entity Tags: Fred Krupp, David Koch, World Oil Corporation, Charles Koch, CVR Energy, Arnold Schwarzenegger, Valero Energy Corporation, Adam Smith Foundation, AlterNet (.org), Tower Energy Group, Vinod Khosla, Tesoro Corporation, Marathon Petroleum, National Petrochemical and Refiners Association, Koch Industries, Howard Jarvis Taxpayers Association, Jorge Madrid, National Wildlife Federation, Proposition 23 (California), ClimateWorks Foundation, Tom Steyer, Occidental Petroleum

Timeline Tags: Civil Liberties

Tim Phillips (L) and David Koch, together at an Americans for Prosperity event.Tim Phillips (L) and David Koch, together at an Americans for Prosperity event. [Source: Americans for Prosperity]Oil billionaire and conservative activist David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, and September 24, 2010) attends the 112th Congress’s swearing-in ceremony, accompanied by Tim Phillips, the head of the Koch-financed Americans for Prosperity (AFP—see May 29, 2009) and a number of current and former Koch Industries lobbyists, including Nancy Pfotenhauer. The event marks the ascendance of Republicans to the majority of the House, and the selection of John Boehner (R-OH) as speaker of the House. After the ceremony, Koch asks Frank Guinta (R-NH), a freshman Republican and “tea party” member elected in part by lavish AFP spending on his behalf, if he will attend a party that Koch is throwing for Republican Congressional members. Guinta affirms that he will attend. Lee Fang, a reporter for Think Progress who observes the Koch-Guinta conversation, speaks to Koch after the two conclude their discussion. Fang identifies himself as a Think Progress reporter and asks Koch what he expects from the Boehner-led Congress; Koch replies, “Well, cut the hell out of spending, balance the budget, reduce regulations, and, uh, support business.” Phillips immediately intervenes, identifying Fang to Koch as “a good blogger on the left, we’re glad to have him—” but Fang continues interviewing Koch. During the relatively brief interview, Phillips repeatedly attempts to push Fang’s cameraman Scott Keyes away from Koch, and shouts into Keyes’s camera, in an apparent attempt to disrupt the interview. However, Koch is cooperative with being interviewed. Koch is apparently proud of the work being done by AFP and says, “We’re going to do more too in the next couple of years.” Fang asks Koch if he is proud of the tea party movement, and Koch replies: “Yeah. There are some extremists there, but the rank and file are just normal people like us. And I admire them. It’s probably the best grassroots uprising since 1776 in my opinion.” Koch is hesitant to answer questions about “climate change,” agreeing only that “[c]limate does fluctuate,” but refusing to answer questions about the effect of carbon pollution on the climate. Instead, he says that any attempts to regulate carbon emissions will “really damage the economy.” Fang concludes by asking about the Citizens United decision that allows unlimited corporate spending on elections (see January 21, 2010). According to Fang, Koch looks uncomfortable discussing the subject and is quite reticent. Koch refuses to answer when Fang asks him about a recent meeting he sponsored with former Fox News talk show host Glenn Beck “and several other conservatives” (see June 26-28, 2010). While Phillips continues to interrupt and chide Fang for asking about the Citizens United decision, Koch refuses to answer Fang’s question, “Could you tell the public what you discussed at that meeting?” [Think Progress, 1/5/2011; Think Progress, 1/6/2011; Think Progress, 1/7/2011; Think Progress, 1/10/2011]

Entity Tags: Koch Industries, David Koch, Americans for Prosperity, Frank Guinta, John Boehner, Scott Keyes, Glenn Beck, Tim Phillips, Nancy Pfotenhauer, Lee Fang

Timeline Tags: Civil Liberties

The government watchdog and campaign finance advocacy group Common Cause asks the Supreme Court to explain why Justice Clarence Thomas did not completely disclose the nature of his participation in a 2008 retreat hosted by Charles and David Koch, the influential oil billionaires and conservative advocates (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, and October 4, 2011). According to a Court spokesperson, Thomas made a “brief drop-by” at a four-day event in Palm Springs, California, held in January 2008, and gave a talk. But disclosure reports filed by Thomas show that he was reimbursed an undisclosed amount for four days of “transportation, meals, and accommodations” over the weekend of the retreat. The reimbursement came from the Federalist Society, an influential conservative legal group. Today Common Cause sends a letter to the Court asking for “further clarification” as to why the two statements are at odds. Common Cause official Arn Pearson says, “I don’t think the explanation they’ve given is credible.” If Thomas’s visit was a “four-day, all-expenses paid trip in sunny Palm Springs,” Thomas should have reported it as a gift under federal law. The Court, the Federalist Society, and Koch Industries all refuse to comment on the issue. Common Cause has said that because of Thomas’s past appearances at the Koch retreats, and the conservative political work done by his wife Virginia Thomas (see November 2009 - November 2010 and February 4, 2011), he should have recused himself from the 2010 Citizens United decision (see January 21, 2010). Common Cause notes that both Thomas and Justice Antonin Scalia have appeared at Koch-hosted retreats. Both Thomas and Scalia voted as part of the 5-4 majority that decided the case. Political analysts say the Koch brothers have been some of the main beneficiaries of the decision. [New York Times, 2/14/2011]

Entity Tags: David Koch, Antonin Scalia, Arn Pearson, Charles Koch, Federalist Society, US Supreme Court, Virginia (“Ginni”) Thomas, Common Cause, Clarence Thomas

Timeline Tags: Civil Liberties

The US Supreme Court strikes down part of an Arizona law providing public funding for political campaigns. In the case of Arizona Free Enterprise Club’s Freedom PAC v. Bennett, the Court rules 5-4 that a provision in Arizona law providing additional funds to publicly funded candidates whose opponents use private donations to outspend them is illegal. Some opponents of unfettered outside spending feared that the Court would use the case to put an end to most, if not all, programs that provide public money to candidates; Think Progress’s Ian Millhiser explains: “Candidates will only agree to accept public financing if it won’t prevent them from running a competitive race. If a state offers only a few thousand dollars in public funds to a candidate whose opponent is backed by tens of millions of corporate dollars, then the non-corporate candidate will have no choice but to raise money on their own. To defend against this problem, Arizona developed a two-tiered public financing system. Candidates receive additional funds if their opponent or corporate interest groups overwhelm them with attack ads, and thus candidates who are determined not to be tainted by the corrupting influence of major donors are not left defenseless.” The ruling will not have an impact on the presidential race, since the federal public financing system lacks such a provision, and since it seems unlikely that either President Obama or his Republican challenger Mitt Romney (R-MA) will use public financing in 2012. The case was brought by two organizations, the Institute for Justice and the Goldwater Institute, on behalf of Arizona state candidates who rejected public funds. The groups argued that the provision infringed on those candidates’ freedom of speech by compelling them to spend less money to avoid triggering the additional funds.
Majority, Minority Opinions - Writing for the majority, Chief Justice John Roberts agreed: “We hold that Arizona’s matching funds scheme substantially burdens protected political speech without serving a compelling state interest and, therefore, violates the First Amendment.” The matching funds provision “imposes an unprecedented penalty on any candidate who robustly exercises [his] First Amendment right[s],” Roberts adds. If the provision is allowed to stand, “the vigorous exercise of the right to use personal funds to finance campaign speech” leads to “advantages for opponents in the competitive context of electoral politics.” The privately funded candidate, Roberts writes, must “shoulder a special and potentially significant burden” when choosing to exercise his First Amendment right to spend funds on behalf of his candidacy. Justice Elena Kagan dissents, writing that the plaintiffs “are making a novel argument: that Arizona violated their First Amendment rights by disbursing funds to other speakers even though they could have received—but chose to spurn—the same financial assistance. Some people might call that chutzpah.”
Reactions - Attorney Bill Maurer, who represented the Institute for Justice, says the ruling “makes clear that the First Amendment is not an exception to campaign finance laws; it is the rule” (see January 30, 1976 and January 21, 2010). He adds that he hopes the ruling will serve as “a clear reminder to government officials that they may not coerce speakers to limit their own speech.” Millhiser writes: “So public financing laws can technically remain, but Arizona’s attempt to protect publicly financed candidates from a wave of corporate attack ads is absolutely forbidden. Moreover, because few candidates can know in advance whether the will face an onslaught of hostile corporate ads, most candidates will hedge their bets and avoid the risk of public financing.… Without unlimited corporate money in elections, most candidates could afford to take public funds unless their opponent had unusual access to wealth or wealthy donors.” Referring to the 5-4 Citizens United decision (see January 21, 2010), Millhiser continues, “In the post-Citizens United America, however, no one is safe from corporate America’s nearly bottomless pool of potential campaign expenditures.” Nick Nyhart of Public Campaign, an organization opposed to the unrestricted influence of outside donors, says, “The five-vote Big Money majority on the court has spoken again in favor of wealthy special interests.” Fred Wertheimer of the campaign finance group Democracy 21 calls the ruling “another seriously misguided campaign finance decision,” but adds “it does not cast any doubt on the continued viability or constitutionality of a number of other existing public financing systems that do not include ‘trigger funds’ or similar provisions.” Common Cause President Bob Edgar says, “This is not the death knell of public financing.” [Politico, 6/27/2011; Think Progress, 6/27/2011]
Plaintiffs Financed by Wealthy Conservative Interests - The next day, Think Progress’s Lee Fang will reveal that the two groups who filed the lawsuit, the Institute for Justice and the Goldwater Institute, are financed by wealthy conservative interests. The Institute for Justice, a group dedicated to bringing cases to court in order to deregulate private corporations and to increase the participation of wealthy corporate interests in elections, was created with “seed money” from oil billionaire Charles Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, and September 24, 2010). The Walton Family Foundation, a foundation run by the billionaire family of Arkansas retailer Sam Walton (the founder of Wal-Mart), has donated $1.64 million to the group. The Foundation has written that the Citizens United decision and the Arizona case are two top priorities for the Institute. The Goldwater Institute, one of Arizona’s most prominent conservative think tanks, is focused on rolling back health care reform. The Institute is funded by several foundations, including the Walton and the Charles Koch Foundations. Fang notes that much of the funding for both groups remains undisclosed. [Think Progress, 6/28/2011]

Entity Tags: Fred Wertheimer, Elena Kagan, Bob Edgar, Bill Maurer, Barack Obama, Willard Mitt Romney, Walton Family Foundation, US Supreme Court, Nick Nyhart, Institute for Justice, John G. Roberts, Jr, Ian Millhiser, Goldwater Institute, Lee Fang, Charles Koch

Timeline Tags: Civil Liberties

Rolling Stone reporter Ari Berman writes that Republican lawmakers across the nation have launched “an unprecedented, centrally coordinated campaign to suppress the elements of the Democratic vote that helped elect Barack Obama in 2008. Just as Dixiecrats once used poll taxes and literacy tests to bar black Southerners from voting, a new crop of GOP governors and state legislators has passed a series of seemingly disconnected measures that could prevent millions of students, minorities, immigrants, ex-convicts and the elderly from casting ballots.” The initiative is ostensibly to counter the “epidemic” of “voter fraud” that Republicans insist is not only plaguing the nation, but affecting the outcome of elections. (In 2007, the Brennan Center released a report that found the instance of voter fraud vanishingly small, and concluded that more people die by lightning strikes than commit voter fraud—see 2007). Judith Browne-Dianis of the Advancement Project tells Berman, “What has happened this year is the most significant setback to voting rights in this country in a century.” As far back as 1980, powerful Republican operative Paul Weyrich told evangelical leaders: “I don’t want everybody to vote. As a matter of fact, our leverage in the elections quite candidly goes up as the voting populace goes down.” In 2010, the American Legislative Exchange Council (ALEC), a group founded by Weyrich and funded in part by the billionaire Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011), began working to disenfranchise hundreds of thousands, perhaps millions, of legitimate voters, almost of all identified as being part of ethnic or gender groups that are more likely to vote Democratic. Thirty-eight states have submitted legislation designed to impede voting “at almost every step of the electoral process.”
Requiring Proof of Citizenship - Kansas and Alabama now require would-be voters to show proof of US citizenship before being allowed to vote.
Impeding Voter Registration - Florida and Texas have passed legislation making it more difficult for groups like the League of Women Voters, an organization widely considered to lean Democratic, to register new voters. Maine repealed same-day registration, which had been in effect since 1973 and had worked to significantly increase voter participation. The Florida legislature passed a law requiring groups to hand in voter registration forms within 48 hours of collection, and imposed what Berman calls “a barrage of onerous, bureaucratic requirements” and serious criminal penalties for those who fail to comply. As a result, many people who once volunteered to help register voters are afraid to do so again. The League of Women Voters says it will no longer operate in Florida, and called Florida’s efforts “good old-fashioned voter suppression.” The Florida statute took effect one day after its passage, under an emergency statute designed for “an immediate danger to the public health, safety or welfare.” Since 2009, Florida has arrested a total of three people for suspected voter fraud. Republican state senator Mike Fasano, one of the few in his party to oppose the restrictions on registrations, says, “No one could give me an example of all this fraud they speak about.”
Curbing Early Voting - Florida, Georgia, Ohio, Tennessee, and West Virginia have cut short early-voting periods. Six states have moved to impose new restrictions on voter registration drives. In 2004, then-Florida governor Jeb Bush (R-FL) said he thought early voting was “great.… It’s another reform we added that has helped provide access to the polls and provide a convenience. And we’re going to have a high voter turnout here, and I think that’s wonderful.” However, his successor Rick Scott (R-FL) does not agree, and neither do most Republicans. After analysis showed what a benefit early voting was for Obama’s numbers, early voting became a key target. Florida has cut early voting days from 14 to 8 days. Ohio, where early voting numbers gave Obama a narrow victory in 2008, has cut its early voting days from 35 to 11, with only limited hours on weekends. Both states have banned voting on the Sunday before elections, when many black churches historically mobilize their constituents. The Early Voting Information Center at Reed College states, “There is no evidence that any form of convenience voting has led to higher levels of fraud.”
Denying Convicted Felons the Right to Vote - Florida and Iowa have passed laws denying convicted felons the right to vote, disenfranchising thousands of previously eligible voters even if they have already served their sentences and have returned to society. Former Florida Governor Charlie Crist (R-FL) restored the voting rights of 154,000 felons convicted of non-violent crimes. In March 2011, after 30 minutes of public debate, Governor Scott overturned that decision, instantly disenfranchising almost 98,000 citizens and prohibiting another 1.1 million convicts from being allowed to vote after they are released from prison. Former President Bill Clinton asked in July: “Why should we disenfranchise people forever once they’ve paid their price? Because most of them in Florida were African-Americans and Hispanics and would tend to vote for Democrats—that’s why.” Iowa Governor Terry Branstad (R-IA) recently took a similar action, overturning his predecessor’s decision to restore voting rights to some 100,000 ex-felons. Until recent years, Iowa saw up to five percent of its residents ineligible to vote, including 33 percent of its African-American residents. Florida, Iowa, Kentucky, and Virginia require former felons to apply for the right to vote to be restored.
Voter Identification - Six states—Alabama, Kansas, South Carolina, Tennessee, Texas, and Wisconsin, all controlled by Republican governors and legislatures—have passed laws requiring an official government ID to cast a ballot. Berman notes that some 10 percent of US citizens lack such identification, and the number of young and black voters, groups that traditionally lean Democratic, are much higher. The turn towards voter ID requirements began in 2008, when the US Supreme Court upheld an Indiana photo-ID requirement even though state lawyers could not produce a single instance of the kind of voter fraud that photo ID laws are designed to prevent. After the ruling, ALEC orchestrated a nationwide move towards photo ID requirements. ALEC wrote draft legislation for Republican legislators based on Indiana’s ID requirement. Five of the states that passed those laws had their legislation submitted by legislators who belong to ALEC. Heather Smith, president of the voter-registration group Rock the Vote, says: “We’re seeing the same legislation being proposed state by state by state. And they’re not being shy in any of these places about clearly and blatantly targeting specific demographic groups, including students.” In Texas, the Republican-dominated legislature passed “emergency” legislation that was signed into law by Governor Rick Perry saying that a concealed-weapons permit is acceptable ID, but a college ID is not. Republicans in Wisconsin effectively disenfranchised every college student by requiring that acceptable IDs contain information that no colleges put on their IDs. Dane County board supervisor Analiese Eicher says, “It’s like creating a second class of citizens in terms of who gets to vote.” In Wisconsin, for example, about half of African- and Hispanic-American citizens do not have a driver’s license, and the state has an extremely small number of Department of Motor Vehicles (DMV) offices—some of which are only open one day a month. Governor Scott Walker (R-WI) attempted to close 16 DMV offices, all in heavily Democratic-voting areas. Berman notes, “Walker planned to close a DMV in Fort Atkinson, a liberal stronghold, while opening a new office 30 minutes away in the conservative district of Watertown.” Democratic governors in five states—Minnesota, Missouri, Montana, New Hampshire, and North Carolina—have all vetoed ID laws. Voters in Mississippi and Montana are considering ballot initiatives requiring voter IDs. Legislation is currently pending in Pennsylvania. Perhaps the most restrictive law was signed into effect by South Carolina Governor Nikki Haley (R-SC). Voters must have a free state ID to vote—but they must pay for a passport or birth certificate. Brown-Dianis says, “It’s the stepsister of the poll tax.” Many elderly black residents who were born at home in the segregated South and were never issued birth certificates can no longer vote unless they go to family court to prove their identity.
Significant Impact on 2012 Voting - Berman writes that when these measures are taken in the aggregate, the turnout of Democrats to the 2012 votes will be significantly smaller, perhaps enough to throw races to Republican candidates. In July, Clinton told a group of student activists: “One of the most pervasive political movements going on outside Washington today is the disciplined, passionate, determined effort of Republican governors and legislators to keep most of you from voting next time. Why is all of this going on? This is not rocket science. They are trying to make the 2012 electorate look more like the 2010 electorate than the 2008 electorate.” Clinton was referring to the 2010 elections, widely considered a Republican “wave” election in part because of far smaller turnouts among young and minority voters than in 2008, and because of a large number of “tea party” voters. Clinton added, “There has never been in my lifetime, since we got rid of the poll tax and all the Jim Crow burdens on voting, the determined effort to limit the franchise that we see today.”
Cracking Down on Voter Fraud? - Republicans insist that voter fraud is rampant in America. Since George W. Bush took office in 2001 after losing the popular vote (see 9:54 p.m. December 12, 2000), his administration made “voter fraud” a top priority for Justice Department prosecutors. In 2006, the DOJ fired two US Attorneys who refused to prosecute patently fraudulent voter fraud allegations. Bush advisor Karl Rove called voter fraud “an enormous and growing problem.” He told the Republican National Lawyers Association that America is “beginning to look like we have elections like those run in countries where the guys in charge are colonels in mirrored sunglasses.” The Republicans successfully destroyed the community activism group ACORN (Association of Community Organizations for Reform Now) after false allegations were made that it was, as Berman writes, “actively recruiting armies of fake voters to misrepresent themselves at the polls and cast illegal ballots for the Democrats.” A massive DOJ probe in 2006 and 2007 failed to prosecute a single person for intentionally impersonating another person at the polls, an action that the DOJ claimed was at the heart of the voter fraud investigation. Eighty-six cases of voter fraud did win convictions, but most of those were immigrants and former felons who did not intentionally cast illegal votes. An enormous investigation in Wisconsin resulted in 0.0007 percent of the electorate being prosecuted for voter fraud. And the Brennan Center report found the instance of voter fraud in America extraordinarily small (see 2007).
Voter Fraud Allegations Dog Obama Victory - Republican lawmakers and activists made a raft of allegations after the November 2008 elections that placed the White House in the hands of Barack Obama (D-IL). The 29 states that register voter affiliation showed a roughly 2-1 increase in new Democratic voters over Republicans for 2008, and Obama won almost 70 percent of those votes. Election reform expert Tova Wang says flatly, “This latest flood of attacks on voting rights is a direct shot at the communities that came out in historic numbers for the first time in 2008 and put Obama over the top.” Berman cites Kansas Secretary of State Kris Kobach as emblematic of the Republican pushback against the Obama victory. Kobach is a former Bush-era Justice Department advisor who helped push through his state’s requirement that every voter prove his or her citizenship, ignoring the fact that Kansas has prosecuted exactly one case of voter fraud since 2006. Kobach used fear of illegal immigrants to help push his requirement through, stating without evidence, “In Kansas, the illegal registration of alien voters has become pervasive.” He also stated that many people were casting ballots in the name of dead voters, and cited the example of Alfred K. Brewer as a dead voter who mysteriously voted in 2008. However, as the Wichita Eagle showed, Brewer is very much alive. “I don’t think this is heaven,” Brewer told the Eagle, “[n]ot when I’m raking leaves.” Representative John Lewis (D-AL), a civil rights crusader who was brutally beaten during the 1960s effort to win voting rights for African-Americans, says bluntly, “Voting rights are under attack in America.” On the House floor in July, Lewis told the assemblage, “There’s a deliberate and systematic attempt to prevent millions of elderly voters, young voters, students, minority and low-income voters from exercising their constitutional right to engage in the democratic process.”
Fighting Voter Disenfranchisement - Voting-rights organizations are fighting back as best they can. The American Civil Liberties Union (ACLU) is challenging several of the new voter-restriction laws in court. Congressional Democrats are pushing the Department of Justice to block or weaken laws that impede minority voters from exercising their rights. Lewis says, “The Justice Department should be much more aggressive in areas covered by the Voting Rights Act.” Meanwhile, many voting-rights experts predict chaos at the polls in November 2012, as voters react with confusion, frustration, and anger at being barred from voting. “Our democracy is supposed to be a government by, of, and for the people,” says Browne-Dianis. “It doesn’t matter how much money you have, what race you are, or where you live in the country—we all get to have the same amount of power by going into the voting booth on Election Day. But those who passed these laws believe that only some people should participate. The restrictions undermine democracy by cutting off the voices of the people.” [Rolling Stone, 8/30/2011]

An unofficial logo for the Cain presidential campaign.An unofficial logo for the Cain presidential campaign. [Source: Draft Cain (.org)]Republican presidential candidate Herman Cain (R-GA), who is battling allegations that he sexually harassed two former employees, is further shaken by reports that his campaign may have accepted illegal corporate donations. The apparently-defunct corporation, Prosperity USA, was run by Wisconsin political operatives Mark Block and Linda Hansen, who now serve as Cain’s chief of staff and deputy chief of staff, respectively. The corporation, which incorporated itself as a nonprofit, tax-exempt organization under federal tax law, helped get Cain’s campaign up and running by paying for tens of thousands of dollars in expenses, including computers, chartered flights, and travel to several states. Such payouts are possible violations of federal tax and campaign law. According to documents obtained by the Milwaukee Journal-Sentinel, Prosperity USA claims it was owed about $40,000 by the Cain campaign for a variety of items in February and March. It is unclear whether the Cain campaign has reimbursed Prosperity USA. Cain began taking donations for his presidential bid on January 1, 2011, but records indicate Prosperity USA may have been spending money on behalf of him well before that date. The records have been verified as authentic by sources close to Prosperity USA. Cain’s federal election filings make no mention of monies owed to Prosperity USA, and the figures in the documents do not match payments made by the Cain Campaign. Other payouts include a $100,000 fee to the Congress of Racial Equality (CORE), a conservative black organization; Cain spoke at the organization’s annual Martin Luther King Jr. dinner in mid-January, an event hosted by controversial conservative blogger Andrew Breitbart. CORE is heavily involved in tea party events. Apparently Cain was not paid for the appearance, inasmuch as his personal financial disclosure forms do not show any honorariums for speeches. [Milwaukee Journal-Sentinel, 10/30/2011; USA, 10/31/2011 pdf file]
Apparent Violations of Tax, Campaign Law - Election law experts say the transactions raise many questions about Priorities USA and its connection to the Cain campaign. A Washington, DC, lawyer who advises many Republican candidates and conservative groups on campaign issues, and refuses to be publicly identified, says, “If the records accurately reflect what occurred, this is way out of bounds.” She says it is a violation of tax law for Prosperity USA to advance money to the Cain campaign for the items invoiced, and the expenditures also seem to violate federal campaign regulations. “I just don’t see how they can justify this,” she says. “It’s a total mess.” Wisconsin campaign attorney Michael Maistelman, a Democrat who has worked for candidates from both parties, agrees, saying, “The number of questionable and possibly illegal transactions conducted on behalf of Herman Cain is staggering.” Think Progress legal expert Ian Millhiser writes that “if Prosperity USA effectively donated money to the Cain campaign by fronting money to them and agreeing not to be paid back, that is a violation of federal election law,” even if the Cain campaign eventually pays the money back. Block and Hansen have refused to comment on the issue. In 1997, Block, then advising the campaign of former Wisconsin Supreme Court Justice Jon Wilcox, settled allegations of election-law violations by agreeing to pay a $15,000 fine and to stay out of Wisconsin politics for three years. [Milwaukee Journal-Sentinel, 10/30/2011; Think Progress, 10/31/2011] Election lawyer Lawrence H. Norton, who formerly served as a general counsel for the Federal Election Commission (FEC), later says, “If they are supporting his campaign, whether directly or indirectly, they are violating the law.” [New York Times, 11/3/2011]
Connections to Koch-Funded Political Organization - In recent years, Block has run the Wisconsin chapter of Americans for Prosperity (AFP—see Late 2004), a nonprofit conservative lobbying and political action group co-founded by the conservative Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). AFP played a key role in organizing the tea party movement. Block met Cain through AFP, and encouraged him to run for president. Block has incorporated a number of offshoot organizations and corporations from AFP, most of which bore the word “prosperity” in their names. AFP officials insist that Block’s organizations are legally separate from theirs. Documents show that when Block left AFP at the beginning of 2011, he left behind tens of thousands of dollars in unpaid invoices.
History of Involvement with Cain Campaign - Block’s largest group was the now-defunct Wisconsin Prosperity Network (WPN), envisioned as an umbrella organization that would spend over $6 million a year underwriting other conservative political organizations. Hansen was the group’s executive director. WPN was also set up as a tax-exempt nonprofit organization. Under the law, neither WPN nor Prosperity USA can have direct political involvement with any candidate or candidate organization. Sources familiar with the situation say the two organizations were closely linked, and raised hundreds of thousands of dollars from Wisconsin conservatives. One supporter, who still advocates for Cain and thusly refuses to have his name publicly disclosed, says he and many others are very upset with the groups for failing to use the money they raised for their intended purposes. The supporter names Hansen as being particularly responsible for the groups’ money usage. By February 2011, both groups were deeply in debt, with WPN showing a net loss of $62,000 and Prosperity USA showing net losses of $110,000. Prosperity USA’s biggest debt was an almost-$40,000 debit to “FOH,” which records show means “Friends of Herman Cain,” the name of Cain’s presidential operation. The debt includes almost $15,000 for what is called an “Atlanta invoice”; $17,000 for chartered flight service; $5,000 for travel and meetings in Iowa, Las Vegas, Dallas, Houston, and Louisiana; and $3,700 for iPads purchased for the Cain campaign. Other small-ticket items for travel and expenses by Block are listed as “not billed to FOH but due from them.” Other expenses include a September 2010 bill for $5,000 for costs incurred by Cain’s speech to the conservative Right Nation rally in Chicago, which records show Cain attended at the request of AFP; the Cain campaign later used a segment from that speech in a campaign ad. Prosperity USA also paid for a trip by Block to Washington, DC, to meet with billionaire oil magnate and conservative financier David Koch. Singer Krista Branch, who recorded “I Am America,” the unofficial anthem of the tea party movement, was supposed to be paid $3,000 by Prosperity USA; Cain has since adopted the song as his campaign theme. Branch’s husband, Michael, is a Cain campaign and fundraising consultant. The records also show $150,000 in loans from individuals who are not identified. Sources say Hansen paid much of that loan money to CORE earlier in the year. Michael Dean, the attorney for both Prosperity USA and WPN, resigned his position with WPN in the summer of 2011, and contacted the IRS about the organization’s tax-exempt status. And WPN is a listed litigant in a case pending before the Wisconsin Supreme Court.
'Outside Counsel' Will Review Allegations - The Cain campaign will respond by saying that an “outside” lawyer will review the allegations. “As with any suggestions of this type, we have asked outside counsel to investigate the Milwaukee Journal Sentinel’s suggestions and may comment, if appropriate, when that review is completed,” says campaign spokesman J.D. Gordon. Gordon refuses to identify the “outside counsel,” or give a time frame as to when the review will be complete. [Milwaukee Journal-Sentinel, 10/30/2011; New York Times, 11/3/2011]

Entity Tags: Herman Cain, Americans for Prosperity, Ian Millhiser, Andrew Breitbart, Congress of Racial Equality, Herman Cain presidential campaign (2012), Wisconsin Prosperity Network, J.D. Gordon, Milwaukee Journal-Sentinel, Prosperity USA, Linda Hansen, Lawrence H. Norton, Mark Block, Michael Dean, Michael Maistelman, Jon Wilcox

Timeline Tags: Civil Liberties, 2012 Elections

Former Republican presidential candidate Tim Pawlenty (R-MN), now a supporter of Republican frontrunner Mitt Romney (R-MA), tells a reporter from the liberal news Web site Think Progress that the 2010 Citizens United decision allowing donors to contribute unlimited amounts of money to independent groups supporting individual candidates (see January 21, 2010) is “leveling the playing field” in politics. Reporters Scott Keyes and Travis Waldron call Pawlenty’s comment “a turn of phrase that would give George Orwell satisfaction.” Since the decision, a relatively small number of wealthy corporations and individuals have transformed US politics with their multi-million dollar donations (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, October 30, 2011, December 1, 2011, December 19, 2011, January 3, 2012, and January 6, 2012). But Pawlenty seemingly believes that campaign finance laws are still too restrictive, and says he believes that donors should be able to make unlimited donations directly to candidates (see December 21, 2011 and January 10, 2012) instead of making those donations to third-party groups. Pawlenty refuses to say the Citizens United decision will help Romney defeat President Obama in the November general election, and instead says that the decision helps “free speech” (see January 21, 2010 and January 22, 2010). Pawlenty continues: “Every time they try to contain speech, it pops up somewhere else. This is just me talking personally, I’m not speaking for Mitt’s position on this. The better position is to allow full and free speech in whatever form, but have instant disclosure.” Keyes asks, “You’re talking completely unlimited donations?” and Pawlenty responds: “We have that now, it’s just a question of where the money gets pushed to the third party groups. This leveling the playing field to some extent because in the past, unions in particular (see June 25, 1943 and June 23, 1947) and other interest groups had an advantage in the old system. Now the playing field’s being leveled a little bit.” He clarifies: “Right now, with super PACs and third party groups, there’s essentially unlimited giving to various aligned super PACs and groups. The point is, the United States Supreme Court has spoken. They have said we’re going to have free speech as it relates to political contributions. The First Amendment should be respected and protected, but I think we should also have full disclosure.” Keyes and Waldron write that billionaire corporate owners such as the Koch brothers (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) have pledged staggering amounts of money to defeat Obama in the November elections, and conclude, “This massive influx of unregulated campaign spending will almost certainly be the new normal as wealthy individuals and corporations find new ways to influence elections, helped in large part by the now-two year old Citizens United decision.” [Think Progress, 1/21/2012]

Entity Tags: Travis Waldron, Barack Obama, US Supreme Court, Scott Keyes, Willard Mitt Romney, Tim Pawlenty

Timeline Tags: Civil Liberties, 2012 Elections

Oxbow Carbon logo.Oxbow Carbon logo. [Source: Mississippi Valley Transit and Transport]The presidential campaign of Mitt Romney (R-MA) has benefited from at least $1.22 million in donations from coal, oil, and gas corporations, which have given their donations to Romney’s “independent” super PAC, Restore Our Future (ROF—see June 23, 2011). ROF has already raised $30 million for Romney’s presidential campaign. It has spent $800,000 on pro-Romney ads and $17 million in ads attacking Romney’s Republican primary challengers. The entirety of ROF’s funds comes from fewer than 800 donors, and 85 percent of those donors have already given the maximum allowed under law—$2,500—to Romney’s campaign itself. Romney’s campaign has raised $500,000 from legitimate, aboveboard donations from oil and gas companies. Those same corporations have given far more to ROF, and are poised to give more. Some of the ROF energy industry donors are:
bullet Coal mining corporations: Oxbow Carbon at $750,000, Oxbow president William Koch at $250,000, and Consol Energy at $150,000.
bullet Oil and gas corporations: Ballard Exploration at $25,000, Bassoe Offshore president Jonathan Fairbanks at $25,000, Murphy Wade of Murphy Oil Corporation at $15,000, and Joseph Grigg of American Energy Operations at $5,000.
Oxbow Carbon’s Bill Koch contributed $250,000 to the Romney campaign; he is the brother of oil billionaires Charles and David Koch of Koch Industries (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). Romney has benefited from the departure of primary challenger Rick Perry (R-TX); with Perry out of the race, Romney has received more money from mining and oil than any other presidential candidate. Think Progress’s Rebecca Leber says that with Romney’s increase in energy industry donations, his positions on energy issues have moved closer to the positions of his corporate supporters. Romney once supported regulations on coal pollution, but now questions whether carbon emissions are even dangerous. He has abandoned his belief in man-made climate change, and has criticized government regulations designed to force industries to produce cleaner energy. [Think Progress, 2/6/2012; Forbes, 9/2012]

Entity Tags: Joseph Grigg, Consol Energy, Ballard Exploration, Jonathan Fairbanks, William I. (“Bill”) Koch, Restore Our Future, James Richard (“Rick”) Perry, Murphy Wade, Rebecca Leber, Mitt Romney presidential campaign (2012), Oxbow Carbon, Willard Mitt Romney

Timeline Tags: Civil Liberties, 2012 Elections

Billionaire oil magnate David Koch, who with his brother Charles Koch has become one of the driving financial forces behind the US conservative political movement (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011), gives an interview to the Palm Beach Post’s Stacey Singer. Koch, who rarely gives interviews, chose to meet with Singer because of her background as a health and science writer, according to Koch spokesperson Cristyne Nicholas. The interview focuses in part on the cancer research underway at the University of Texas’s MD Anderson Cancer Center, where Koch is being treated for prostate cancer. However, the interview also touches on the Koch brothers’ political participation. Singer begins her report of the interview by informing her readers of the media portrayal of the “secretive” brothers and their construction of what she calls “a clandestinely built political machine that disdains government regulation and taxes, obfuscates the science on global warming, and now pulls the strings of decision-makers at every level, from Florida Tea Party members to Wisconsin state senators—even US Supreme Court justices.” She writes that Koch seems “baffled” by that perception, saying: “They make me sound like a bully. Do I look like a bully?” According to Singer, Koch wants to improve his media image. The Koch brothers have given, Singer reports, “many millions to far-right organizations dedicated to spreading an Ayn Rand-infused ideology, one in which a benevolent business class flourishes, unfettered by taxes and regulations. Some have called it free-market fundamentalism.” Nicholas says Koch wants to be remembered more for his philanthropy than his political involvement. “That’s what his legacy will hopefully be: finding a cure for cancer,” she writes. “That is his goal in life right now and it far exceeds any political views he has. Which are strong.” Koch is proud of his political activism, admitting without restraint his organizations’ involvement in protecting Governor Scott Walker (R-WI) from being recalled. “We’re helping him, as we should. We’ve gotten pretty good at this over the years,” he says. “We’ve spent a lot of money in Wisconsin. We’re going to spend more.” The “we” in his statement is primarily Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization that is spending some $700,000 on a single advertisement buy in Wisconsin on Walker’s behalf, an ad that makes statements many union members and public workers say is filled with false and misleading praise for Walker’s policies. In a now-famous prank phone call, a blogger posing as Koch got Walker to say that his goal was to “crush” Wisconsin’s unions, a goal Koch may share, though he is more circumspect in his language. “What Scott Walker is doing with the public unions in Wisconsin is critically important,” Koch says after an expansive dinner featuring salmon and white wine. “He’s an impressive guy and he’s very courageous. If the unions win the recall, there will be no stopping union power.” Nicholas later “clarifies” Koch’s remarks, saying: “Koch companies support voluntary associations, and where they so choose, we recognize employees’ rights to be represented and bargain collectively. We think the best workplace relationships are fostered when the employer works directly with its employees. It is a mischaracterization of our principles to say this means we oppose unions or want to dismantle all unions.” Singer writes that Koch’s usage of the term “union power” seems as biting as one might have said “Bolshevik” in an earlier time—“a new red scare for a new century,” she writes. Besides funding such organizations as AFP, the Cato Institute, the Heritage Foundation, the Republican Governors Association, the American Legislative Exchange Council (where, Singer writes, “copycat conservative legislation is passed among conservative state politicos”), and others, the Koch brothers are one of the most powerful and influential financial forces behind the “tea party” movement, largely through AFP. Singer conducts the interview on February 11; the Palm Beach Post publishes the report based on the interview on February 20. [Palm Beach Post, 2/20/2012; Nation, 2/20/2012] Koch’s public admission of support for Walker could constitute a violation of the laws administering such “nonprofit” organizations as AFP, according to one journalist (see February 20, 2012).

Entity Tags: Cristyne Nicholas, Americans for Prosperity, American Legislative Exchange Council, Charles Koch, Stacey Singer, Palm Beach Post, Republican Governors Association, Heritage Foundation, David Koch, Cato Institute, Scott Kevin Walker, MD Anderson Cancer Center

Timeline Tags: Civil Liberties, 2012 Elections

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]

The billionaire oil magnates and conservative political financiers Charles and David Koch (see 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) launch a court battle to take control of the libertarian Cato Institute, a Washington-based think tank. The Cato Institute began in 1974 as the Charles Koch foundation and changed its name to the Cato Institute in 1976, with the support and funding of the Koch brothers (see 1977-Present). Until last year, the institute had four primary shareholders with a controlling interest: the Koch brothers, Cato president Edward H. Crane III, and William A. Niskanen, a former Reagan administration economic advisor who died in 2011. The Kochs believe that there should be only three shareholders now, which would give them complete control of the organization, but Crane says Niskanen’s 25 percent share should go to Niskanen’s widow, Kathryn Washburn. Koch lawyer Wes Edward says the dispute is about nothing but shareholder rights. Cato has 120 full-time staffers and around 100 visiting or adjunct scholars. Its annual operating budget is $23 million. [Politico, 3/1/2012]

Entity Tags: David Koch, Charles Koch, William A. Niskanen, Kathryn Washburn, Cato Institute, Edward H. Crane III, Wes Edward

Timeline Tags: Domestic Propaganda

Kenneth Griffin.Kenneth Griffin. [Source: Start a Hedge Fund (.com)]Billionaire hedge fund investor Kenneth Griffin tells a Chicago reporter that he does not believe the extraordinarily wealthy wield enough political influence in America, and says that they must step up to stop America’s “drift” towards Soviet-style “socialism.” Griffin, alone and in conjunction with his wife Anne, has given $150,000 to Restore Our Future, the super PAC that supports Mitt Romney (see June 23, 2011). He has also given over $560,000 to the Republican Governors Association and $300,000 to American Crossroads, the advocacy organization founded by Republican strategists Ed Gillespie and Karl Rove. The Griffins have been heavy Republican donors in previous election cycles, and have given around $1.5 million to Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization founded and sponsored by the billionaire oil magnates Charles and David Koch. Of his contributions to AFP, he explains: “Charles and David Koch are huge advocates for free markets (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). I have a tremendous respect for their intellectual and financial commitment to embracing a set of economic policies that will give us global competitiveness.… I share their fundamental belief that economic freedom is core to the ethos of our country. It’s the idea that any person can pursue their dreams, whether it’s starting a business or who they choose to work for.” Asked, “Do you think the ultrawealthy have an inordinate or inappropriate amount of influence on the political process?” Griffith replies: “I think they actually have an insufficient influence. Those who have enjoyed the benefits of our system more than ever now owe a duty to protect the system that has created the greatest nation on this planet. And so I hope that other individuals who have really enjoyed growing up in a country that believes in life, liberty, and the pursuit of happiness—and economic freedom is part of the pursuit of happiness—[I hope they realize] they have a duty now to step up and protect that.… At this moment in time, these values are under attack. This belief that a larger government is what creates prosperity, that a larger government is what creates good [is wrong]. We’ve seen that experiment. The Soviet Union collapsed. China has run away from its state-controlled system over the last 20 years and has pulled more people up from poverty by doing so than we’ve ever seen in the history of humanity. Why the US is drifting toward a direction that has been the failed of experiment of the last century, I don’t understand. I don’t understand.” Asked if he believes he should continue to be allowed to make unlimited donations on behalf of candidates (see January 21, 2010), he answers: “In my opinion, absolutely. Absolutely. The rules that encourage transparency around that are really important.… My public policy hat says transparency is valuable. On the flip side, this is a very sad moment in my lifetime. This is the first time class warfare has really been embraced as a political tool. Because we are looking at an administration that has embraced class warfare as being politically expedient, I do worry about the publicity that comes with being willing to both with my dollars and, more importantly, with my voice to stand for what I believe in (see July 20, 2011).… I live in financial services, and every bank in the United States is really under the thumb of the government in a way it’s never been before. And that’s really worrisome to me, as someone who’s willing to say, ‘Wait, we need to step back and try to push government outside the realm of every dimension of our lives.’” [Think Progress, 3/10/2012; Chicago Tribune, 3/11/2012]

Entity Tags: David Koch, American Crossroads, Americans for Prosperity, Charles Koch, Republican Governors Association, Willard Mitt Romney, Kenneth Griffin, Anne Griffin, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

American Energy Alliance logo.American Energy Alliance logo. [Source: NJI Media]The press learns that a recent $3.6 million television ad campaign attacking President Obama on gasoline prices was funded by the oil billionaires Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011 and February 14, 2011). The ad campaign was launched by the American Energy Alliance (AEA), the political arm of the Institute for Energy Research. Both organizations are heavily funded by the Koch brothers and their donor network, though information about their finances is sketchy, as the groups do not have to disclose their donor rolls to the public. The two groups are run by Tom Pyle, a former lobbyist for Koch Industries. Pyle regularly attends what news Web site Politico calls “the mega-donor summits organized by the Koch brothers.” Koch-funded organizations intend to spend well over $200 million on behalf of conservative groups before the November elections. The AEA ad claims that the Obama administration is responsible for the recent surge in gasoline prices. Democratic National Committee (DNC) spokesman Brad Woodhouse says that the Koch brothers are “funding yet another shadowy outside group to defend the interests of Big Oil and protect their own tax breaks and profits with [Republican presumptive presidential nominee] Mitt Romney being the ultimate beneficiary.” The DNC and the Obama campaign have targeted the Koch brothers in previous statements, calling them some of the “secretive oil billionaires” funding the Romney campaign. AEA spokesman Benjamin Cole accuses the DNC and the Obama campaign of playing “shadowy” politics intended “to delay, deny, and deceive the American public about the president’s record on energy prices.” The AEA ad is not connected to the Romney campaign, Cole says, and adds that the ad campaign is not intended to benefit Romney, stating, “[W]e have been public and unashamed of criticizing Mitt Romney or any candidate for office, Republican or Democrat, that doesn’t support free market energy solutions.” Cole refuses to confirm that the Koch brothers are financing the ad campaign, instead saying: “People ask if Koch is behind this ad. There is only one person behind this ad and it is President Barack Obama.” The Koch brothers are becoming increasingly involved in the 2012 presidential campaign, sending representatives like Marc Short to network with former Bush advisor Karl Rove, who runs the super PAC American Crossroads and its sibling Crossroads GPS. [Politico, 3/29/2012]

Entity Tags: Karl C. Rove, Barack Obama, American Energy Alliance, Benjamin Cole, Brad Woodhouse, Obama administration, Charles Koch, David Koch, Thomas Pyle, Willard Mitt Romney, Marc Short

Timeline Tags: Civil Liberties, 2012 Elections

President Obama speaks on the topic of clean energy in front of the Copper Mountain Solar Project in Boulder City, Nevada, in March 2012.President Obama speaks on the topic of clean energy in front of the Copper Mountain Solar Project in Boulder City, Nevada, in March 2012. [Source: CleanTechnica (.org)]An analysis by Reuters claims that the $90 billion investment made by the federal government to generate jobs in the field of clean energy (see February 2009) has not produced as many jobs as initially touted. In March 2012, President Obama spoke in front of the Copper Mountain Solar Project in Boulder City, Nevada, which uses 1 million solar panels to power 17,000 homes. The facility only employs 10 people. The green initiative has put people to work retrofitting over a million homes to lower heating and cooling costs, and energy generation from solar and wind sources has nearly doubled since 2008. But some say the program has not created enough jobs. Critics say the program was expected to lower the unemployment rate, currently hovering above 8 percent, and say it has not done so. Supporters say the administration promised too much in the short term and fear a backlash that might undermine support for clean-energy policies across the board. Clean energy specialist Mark Muro of the Brookings Institution says, “All of this stuff is extraordinarily worthy for driving long-term economic transformation but extremely inappropriate to sell as a short-term job program.” Janet Bluman, head of the Foundation for an Independent Tomorrow, says, “From my perspective it makes more sense for us to arm our clients with the basic skills, rather than saying, ‘By golly, you will do something in the green economy or you won’t work.’” Bluman claims that her organization, which trains people for jobs in the Las Vegas area, has seen positions in trucking and accounting go unfilled because training money had been earmarked for green efforts. The federal program earmarked some $500 million for job training, and has employed some 20,000 people, far short of its stated goal. Republicans say the clean-energy program is merely a way for the Obama administration to give money to Obama’s friends (see October 15, 2012). GOP presidential candidate Mitt Romney has claimed, “[Obama] handed out tens of billions of dollars to green energy companies, including his friends and campaign contributors at companies like Solyndra that are now bankrupt.” Romney and other Republicans have not advanced proof of their allegations. Supporters say that in the long term, clean energy will “create a bounty of stable, middle-class jobs and fill the gap left by manufacturing work that has moved overseas,” as Reuters reports. White House officials say that there is more to the clean energy program than creating jobs. “We have a record of success that has created tens of thousands of jobs and is ensuring that America is not ceding these industries to countries like China,” White House spokesman Clark Stevens says. “Thanks to the investments we’ve made, these industries will continue to grow, along with the jobs they create.” Senator Charles Grassley (R-IA), an opponent of the program, says: “The green jobs-training program just didn’t work. It was a poor investment of tax dollars.” Darren Devine of the College of Southern Nevada says: “Will it add a significant number of jobs, enough to make a real dent in our unemployment? No, I don’t see that happening.” What it will do is help the country reduce its energy consumption, lower the amount of carbon dioxide being pumped into the atmosphere, and help create jobs in the clean-energy and other fields, such as health care, education, and technology. [Reuters, 4/13/2012]

Entity Tags: Janet Bluman, Barack Obama, Charles Grassley, Darren Devine, Obama administration, Copper Mountain Solar Project, Reuters, Willard Mitt Romney, Mark Muro

Timeline Tags: Global Economic Crises, US Solar Industry

Politico reports that Republican super PACs and other outside groups are coordinating under the leadership of what it calls “a loose network of prominent conservatives, including former Bush political advisor Karl Rove, the oil billionaire Koch brothers, and Tom Donohue of the US Chamber of Commerce,” to spend an unprecedented $1 billion between now and November to help Republicans win control of the White House and Congress. The plans include what Politico calls “previously undisclosed plans for newly aggressive spending by the Koch brothers” (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, and Late March 2012) to organize funding for county-by-county operations in key states, using tools such as the voter database Themis (see April 2010 and After) to build “sophisticated, county-by-county operations in key states.” The Kochs’ organizations have upped their spending plans to $400 million. Just the Kochs’ spending will outstrip the $370 million spent by the 2008 John McCain presidential campaign, and the $1 billion will exceed the $750 million spent by the 2008 Barack Obama campaign. The “independent” super PAC supporting the presidential campaign of Mitt Romney, Restore Our Future (ROF—see June 23, 2011 and January 31, 2012), plans on spending $100 million on the campaign to unseat Obama. American Crossroads and Crossroads GPS, the two Rove-led groups coordinating much of the Republican spending efforts, plan to spend $300 million on efforts to elect Romney and other Republicans (see February 21, 2012). The raised millions will go to, among other things, television, radio, and Web advertising; voter turnout efforts; mail and telephone appeals; and absentee- and early-balloting drives. The $1 billion is entirely “outside” spending. Romney and the Republican National Committee (RNC) intend to raise some $800 million on their own. According to Politico: “The Republican financial plans are unlike anything seen before in American politics. If the GOP groups hit their targets, they likely could outspend their liberal adversaries by at least two-to-one, according to officials involved in the budgeting for outside groups on the right and left.… The consequences of the conservative resurgence in fundraising are profound. If it holds, Romney and his allies will likely outraise and outspend Obama this fall, a once-unthinkable proposition. The surge has increased the urgency of the Democrats’ thus-far futile efforts to blunt the effects of a pair of 2010 federal court rulings—including the Supreme Court’s seminal Citizens United decision (see January 21, 2010)—that opened the floodgates for limitless spending, and prompted Obama to flip-flop on his resistance to super PACs on the left.” The super PAC supporting Obama’s re-election, Priorities USA Action, has not raised anywhere near the amount of money being garnered by Rove and the Koch brothers, partly because of Obama’s initial reluctance to have such groups operating on his behalf (see January 18, 2012). US labor unions may be able to raise some $200 to $400 million on behalf of Obama and other Democrats. The AFL-CIO’s Michael Podhorzer says his organization does not intend to try to match the Republican donor groups, but instead will spend most of its money reaching out to union members and other workers: “Progressives can’t match all the money going into the system right now because of Citizens United, so we have to have a program that empowers the worker movement.” Politico notes that billionaire Sheldon Adelson single-handedly kept the Newt Gingrich (R-GA) primary challenge afloat (see December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, January 23, 2012, February 21, 2012, February 21, 2012, March 26, 2012, April 22, 2012, and May 2, 2012), and billionaire Foster Friess (see February 16-17, 2012) was the key funder for Republican primary challenger Rick Santorum (R-PA). Outside money helped “tea party” challengers defeat incumbents like Senator Richard Lugar (R-IN) in the 2012 primaries (see February 21, 2012). “Republicans have taken one big lesson away from campaigns conducted to date in 2011 and 2012,” Politico states: “outside money can be the difference-maker in elections.” [Politico, 5/30/2012]

Entity Tags: Foster Friess, Sheldon Adelson, Tom Donohue, American Crossroads GPS, American Crossroads, David Koch, Richard Lugar, Rick Santorum, Republican National Committee, Karl C. Rove, Michael Podhorzer, Newt Gingrich, Priorities USA Action, Charles Koch, Politico, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Politico reporters Kenneth P. Vogel and Tarini Parti report on the difficulty of getting solid information about the donors being organized by the billionaire Koch brothers. Oil magnates Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) intend to raise at least $400 million to defeat President Obama in the 2012 election (see Late May 2012), and to ensure victory for Republicans in state and local races around the nation (see February 21, 2012). Vogel and Parti call the Koch political operation “its own political party,” almost, even going so far as to hold its own semi-annual conventions, including one scheduled for late June in San Diego. That convention will bring together dozens of millionaire and billionaire conservatives, who will write big checks for the Koch efforts. Additionally, the Kochs will unveil their new voter database, Themis (see April 2010 and After), which they expect will help in targeting potential Republican voters around the country. Themis played a big part in a recent successful effort to stop Governor Scott Walker (R-WI) from being recalled, as did huge amounts of Koch-organized donations on behalf of Walker. Three of the prime figures in the Koch efforts are convention “emcee” Kevin Gentry and political operatives Marc Short and Tim Phillips (see May 29, 2009); the operation is orchestrated primarily by Koch advisor and operative Richard Fink. Additionally, the Koch brothers intend to take over the Cato Institute think tank (see February 29, 2012) and make it more politically active. Minnesota television station owner Stanley Hubbard, a longtime Koch supporter, says: “They ask for support—and they get it because we all love our country and we have a different vision than do the liberals. I’ve gotten friends to be involved, and I think others have, too, so I would guess, yes, that’s expanding.” Vogel and Parti expand on how secretive the Koch network (which they call “Koch World”) actually is. They are unable to find out where the San Diego convention is to be held, though they did determine that it is scheduled to take place over the weekend of June 23. A Republican who has worked with Koch-backed groups says: “The Koch groups are very complex in the way they do things. They’re difficult to penetrate from the outside, which is smart. You often need a Sherpa.” The conventions are heavily patrolled by hired security guards, who at one recent convention threw out a Politico reporter under threat of arrest. Participants are required not to discuss the convention with outsiders, including making posts on Facebook or Web blogs. (The winter 2011 convention in Rancho Mirage, California, leaked to the press, sparking what Politico calls “raucous protests” outside the exclusive resort hosting the conference.) According to Vogel and Parti, Phillips runs the lobbying organization Americans for Prosperity (AFP—see Late 2004 and November 2009). Short oversees the spending of Koch network monies by other approved groups, some of which air television ads attacking Democrats. Gentry raises money for the Koch network. Gentry often uses urgent and even apocalyptic rhetoric in his fundraising appeals, warning potential donors of “dangerous and imminent threats” to American society and comparing the Koch conventions to the Continental Congress of 1776. One recent email lauded efforts by Supreme Court Justice Clarence Thomas to help the Koch brothers’ fundraising. Gentry also spearheads the fundraising efforts for an informal network of conservative think tanks such as the Heritage Foundation, AFP, and the Texas Public Policy Foundation. Some conservatives are uncomfortable with the Koch brothers’ attempts to gain dominance in conservative party politics. “Koch has been angling for the last three or four years to consolidate more of the conservative movement within their network,” says one conservative operative. “That’s why they do these seminars—to try to consolidate more big donors’ money and direct it into their projects.” The operative admits that the Koch fundraising efforts are very effective, saying, “Some of the donors believe giving to one source makes it easier for them instead of having to give to a dozen different places, and others just want to come out to hang with the billionaire brothers and be part of a very elite universe.” Koch conventions regularly feature prominent conservatives like Thomas and fellow Supreme Court Justice Antonin Scalia, Texas Governor Rick Perry, New Jersey Governor Chris Christie, Virginia Governor Bob McConnell, House Majority Leader Eric Cantor (R-VA), and right-wing radio hosts Rush Limbaugh and Glenn Beck. While federal documents track some $120 million in donations from recent Koch summit donors, most of the money raised and spent goes untracked, instead being hidden away by “nonprofit” groups that purport to be non-political social advocacy groups. Gentry has assured donors, “There is anonymity that we can protect.” [Politico, 6/15/2012]

Entity Tags: Cato Institute, Stanley Hubbard, Scott Kevin Walker, Tarini Parti, Texas Public Policy Foundation, Themis, Tim Phillips, Rush Limbaugh, Americans for Prosperity, Antonin Scalia, Bob McConnell, Richard Fink, Marc Short, Clarence Thomas, Christopher J. (“Chris”) Christie, Charles Koch, Politico, Eric Cantor, David Koch, Heritage Foundation, Barack Obama, Kenneth Vogel, James Richard (“Rick”) Perry, Kevin Gentry, Glenn Beck

Timeline Tags: Civil Liberties

Casino billionaire Sheldon Adelson gives $10 million to the billionaire Koch brothers, joining them in their efforts to defeat President Obama in the November presidential elections. Charles and David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, Late March 2012, and June 15, 2012) are planning to spend some $400 million to elect Republican candidate Mitt Romney (R-MA) and defeat Obama. The information about Adelson’s donation comes from a Republican Party source in Nevada. Adelson makes his pledge at a Koch donor convention in San Diego, the first time he has attended a Koch-sponsored political event. He has already given $10 million to a Romney “super PAC” (see June 13, 2012), $10 million to a “super PAC” operated by former Bush White House advisor Karl Rove, and $10 million to two groups backing Republican House candidates (see Mid-June, 2012). The Kochs are the driving force behind the “astroturf” organization Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has spent millions of dollars on advertisements attacking Obama and other Democrats. The Kochs are also funding Themis, a voter information database (see April 2010 and After). Koch funding extends well into state and even local elections. [Huffington Post, 6/16/2012; Washington Post, 6/29/2012]

Entity Tags: Sheldon Adelson, Barack Obama, Charles Koch, Willard Mitt Romney, David Koch, Karl C. Rove

Timeline Tags: Civil Liberties, 2012 Elections

Conservative columnist Charles Lane, writing for the Washington Post, pens a column deriding the renewable energy industry and says that powerful Democratic politicians are using that industry to make themselves rich. He cites the example of former Vice President Al Gore, who has made somewhere around $100 million “partly through investing in alternative energy firms subsidized by the Obama administration.” Lane juxtaposes this information with a note that Republican presidential candidate Mitt Romney earned the cheers of “thousands” when, at a rally in Ohio, he proclaimed his support for the coal industry. Lane writes that liberals and Democrats are profiting handsomely by forcing the government to subsidize what he characterizes as an industry doomed to failure: “As the Democrats become more committed to, and defined by, a green agenda, and as they become dependent on money from high-tech venture capitalists and their lobbyists, it becomes harder to describe them as a party for the little guy—or liberalism as a philosophy of distributive justice.” Lane claims that Gore has an inherent conflict of interest in speaking out about alternative energy and climate change while at the same time investing in alternative energy research and development. He then lambasts the entire renewable energy industry as “not cost-competitive with traditional energy,” and claims that it “won’t be for years. So it can’t work without either taxpayer subsidies, much of which accrue to ‘entrepreneurs’ such as Gore, or higher prices for fossil energy—the brunt of which is borne by people of modest means.” Lane writes that “expensive electricity is bad for industry, as Germany is discovering. Fact is, subsidies for green energy do not so much create jobs as shift them around.” So-called “smart grids,” advanced technology that makes conventional electricity’s transmission more efficient and reliable, is bad, he writes, because it puts “human meter readers” out of work, “just as solar panels put coal miners out of work.” If any new energy technology is worth pursuing, he writes, it is “fracking,” the industry practice that promises to extract millions of tons of natural gas from the ground. Solar and other renewable energy industries would not exist if it were not for government subsidies, he claims, and will never be sustainable without government payouts. [Washington Post, 10/15/2012] Lane’s claim about Germany’s failure to create jobs in its renewable energy industry is contradicted by a German study showing that the industry creates hundreds of thousands of jobs each year (see July 31, 2013). Similarly, his claim that wealthy solar energy producers are sustained by higher rates paid by poor consumers will be strongly challenged (see April 5, 2013).

Entity Tags: Charles Lane, Washington Post, Willard Mitt Romney, Albert Arnold (“Al”) Gore, Jr.

Timeline Tags: US Solar Industry

A report by the Edison Electric Institute (EEI) finds that within a decade or so, solar energy and other renewable distributed energy resources (DER) could lay waste to the utility business model and to American power utilities. The utility business model, which has remained relatively unchanged since the early 20th century, is not capable of coping with the “disruptive challenges” posed to it by solar and other renewable energy power generation. David Roberts, a staff writer for the environmental news publication Grist, will write of the EEI report in April 2013: “It is one of the most prescient and brutally frank things I’ve ever read about the power sector. It is a rare thing to hear an industry tell the tale of its own incipient obsolescence.” Standard power utilities are “regulated monopolies,” which means they are the sole providers of power in their service areas. The business model relies on the utilities selling power as “overseen” by public utility commissions (PUCs), which control what utilities can charge for their power. Inexpensive solar (photovoltaic, or PV) power “eats away at [that business model] like acid,” Roberts writes. Solar power is not regulated for the benefit of the utility companies. In simplistic terms, a kilowatt-hour (kwh) of solar energy generated by, say, a rooftop solar array is a kilowatt-hour of reduced demand for the utility. Solar power peaks each day at noon, usually the time of most intense sunlight, which is one of the power utilities’ “peak load” times. Power utilities make much of their profits from peak load electricity, as they charge more per kwh for peak load electricity. Roberts writes, “[W]hen solar panels provide peak power, they aren’t just reducing demand, they’re reducing demand for the utilities’ most valuable product.” The EEI report also challenges the myth that power consumers must rely on grid power and not solar power because solar power is not available when the sun is not shining. Battery storage, micro turbine, and other developing technologies are making it possible for many consumers to go entirely “grid free,” to opt out of grid-generated electricity entirely. Duke Energy CEO Jim Rogers says, “If the cost of solar panels keeps coming down, installation costs come down and if they combine solar with battery technology and a power management system, then we have someone just using [the grid] for backup.” If a large number of consumers begin generating their own power and using the grid for backup alone, the EEI report says, the utilities face “irreparable damage to [their] revenues and growth prospects.” Utilities generally anticipate revenues that allow them to invest heavily in fossil fuel plants that will not recoup costs for 30 years. Those investments could be more difficult to recoup if consumers begin generating their own power via solar and other DER power sources, leading the utility companies to contemplate raising the rates of those consumers who do not opt out of grid-based power. The EEI report states: “The financial implications of these threats are fairly evident. Start with the increased cost of supporting a network capable of managing and integrating distributed generation sources. Next, under most rate structures, add the decline in revenues attributed to revenues lost from sales foregone. These forces lead to increased revenues required from remaining customers… and sought through rate increases. The result of higher electricity prices and competitive threats will encourage a higher rate of DER additions, or will promote greater use of efficiency or demand-side solutions. Increased uncertainty and risk will not be welcomed by investors, who will seek a higher return on investment and force defensive-minded investors to reduce exposure to the sector. These competitive and financial risks would likely erode credit quality. The decline in credit quality will lead to a higher cost of capital, putting further pressure on customer rates. Ultimately, capital availability will be reduced, and this will affect future investment plans. The cycle of decline has been previously witnessed in technology-disrupted sectors (such as telecommunications) and other deregulated industries (airlines).” In other words, as consumers begin to opt out of grid-based power consumption, and utilities raise their rates to compensate for the loss of revenue, more and more consumers will opt out, further shrinking the number of consumers paying the utilities to generate their electricity. Even small numbers of consumers using rooftop solar strikes at the utilities’ main profit centers (one reason why German utilities are already feeling the pinch). Currently, less than 1 percent of US electricity is generated by solar arrays. But a projection by Bloomberg Energy Finance forecasts that in some areas of the nation, up to 10 percent of power load will be generated by solar arrays. The EEI report speculates that utility consumers in those areas will see massive increases in their rates as the utilities compensate for the lost revenues. [Kind, 1/2013 pdf file; Grist Magazine, 4/10/2013]

Entity Tags: Edison Electric Institute, Bloomberg Energy Finance, Grist, David Roberts, Jim Rogers

Timeline Tags: US Solar Industry

Solar expert David Roberts, a columnist for the online magazine Grist, writes that like most modern industrial systems, the traditional electricity generating utility is extraordinarily “over-engineered,” which he defines as “built to be prepared for maximum demand even though maximum demand is, by definition, rare.” Over-engineering is not necessarily a bad thing; for example, an SUV can be considered “over-engineered” until it becomes involved in a collision, when its capability of protecting its passengers comes into play. The electricity system is also over-engineered, Roberts says, mostly because there is no simple way to store electricity. Demand for electricity must be met by generated electricity; it cannot be stored. “That imposes a certain logic on the system,” he writes. “There must always be enough power generation capacity available to handle the maximum possible demand (what’s called ‘peak load’). The result is that most of our power plants, like most of our cars, spend most of their time parked, idled. They are there for those few minutes of the day when everyone gets home from work and turns on the TV.” Because of the “real-time” nature of the electrical grid, it is susceptible to blackouts. On occasion, less responsive grids are prone to cascade failures, leading to hundreds of thousands of customers being without power. In contrast, Roberts writes, the data grid operating the Internet is “fault-tolerant,” with built-in responsive features to handle blockages, slowdowns, and errors. The Internet uses buffering to increase the durability of the system and reduce the need for overcapacity, and has the capability to isolate and route around faults and failures. Electricity systems generally have neither. These capacities can be built into modern electrical grids, and the costs of such upgrades is declining. But most utility companies do not install such upgrades. Why not? Because, he writes, “the oversight system governing the utilities does not provide incentive for upgrades. These costs must be shared directly with the ratepayer and public service commissions have been reluctant to approve such measures.” Public utility commissions (PUCs) are obliged by law to have utilities provide power at the lowest cost to the consumer, and as a result there is no incentive for utilities to spend more money than necessary upgrading and improving their systems. “There is no way build a new power system while also providing lowest-cost electricity from moment to moment,” he writes. “It’s impossible. The legal and regulatory system is practically built to prevent long-term systemic change.” As the energy production and transmission systems of the United States transform themselves into a 21st-century model, systems will need to be redesigned. Roberts concludes: “We could be doing that with our electrical system. We would be doing it already if we had open, competitive markets for electricity services. Instead we have quasi-public quasi-monopolies practically mandated by law to stick with what they know and nibble around the edges. Until that legal and regulatory system changes, we’ll be stuck with the dumb, over-engineered, wasteful system we have today.” [Grist Magazine, 2/7/2013]

Entity Tags: David Roberts

Timeline Tags: US Solar Industry

San Antonio electric utility CPS Energy says it intends to cut the amount it pays for solar power generated from residential customers by about half, claiming that some of the city’s power users are not paying their fair share for the utility’s transmission infrastructure. Clean energy activists and system installers say the cuts are intended to cripple the region’s solar industry. Lanny Sinkin of Solar San Antonio says: “There was zero consultation with the solar industry in the development of this proposal. They’re going to kill the solar industry.” CPS, a municipally owned utility that in theory is owned by the ratepayers, wants to end the current system of “net metering,” which allows residential customers with solar panels to use each kilowatt-hour of energy they generate to cancel each kilowatt-hour they draw from the utility’s electric grid—in essence, the residence owners cancel a kilowatt-hour they pay for to CPS (at retail rates) by generating a kilowatt-hour of solar energy. Instead, CPS proposes a system it calls “SunCredit,” which would assign a fixed value to the price of the solar power produced and credit that amount against their accounts. The SunCredit program would give only a little over half of what a kilowatt-hour of solar power is worth under net metering, by crediting residential consumers with solar-produced kilowatt-hours at CPS’s wholesale rate. CPS spokesperson Lisa Lewis says of the existing practice: “I think that it’s not unimportant to recognize that solar customers use poles and wires and the grid. If we move to a situation where more and more customers have solar systems, they leave that infrastructure cost… stranded, and the people who can least afford to pay it are the ones paying for it” (see January 2013). Existing solar power producers would be granted the existing rates until 2023, while new solar producers would begin receiving the new, lower rate immediately.
Decision Already Made? - Although Lewis says the utility is still soliciting feedback on the program and will consider making changes, Sinkin says the utility has already made its decision. Recently, the utility informed the public of its decision during a contentious meeting, when solar installers said the new program would make it impossible for them to sell systems to the public. CPS Energy instituted cuts in its solar subsidies in 2012 when it reduced the size of the rebate it offers to help customers cover the cost of installing their solar power systems at their homes.
Expert Explains Issue - Solar expert David Roberts of Grist explains the issue, writing: “Under net metering, if a rooftop solar customer generates as much electricity as she consumes, she pays nothing. If she generates more than she consumes, the utility pays her. In either case, her portion of the utility’s fixed costs is transferred onto other, non-solar ratepayers. As more and more people opt for solar, fixed costs are paid by a smaller and smaller group of customers, which drives rates up, which drives more and more of them to solar, in a vicious cycle. The utility’s fixed assets are ‘stranded’—it is unable to recover those investment costs because of the shrinking pool of customers. (It’s also worth noting that the first customers to go solar tend to be well-off, which leaves the less well-off paying more, so there’s an economic-justice angle here too.)” Roberts notes that CPS is being ingenuous in its contentions that solar consumers are costing the utility money, as rooftop solar arrays save the utility money in terms of avoided transmission and equipment costs. Moreover, solar power benefits the region in reduced air pollution and carbon emissions. He also notes that CPS did not hesitate to offer its employees $16.4 million in bonuses in 2012 (most of which went to the firm’s top executives), the same year it cut its solar subsidies. Roberts concludes: “The dilemma… is how to align CPS’s incentives so that it can drive rapid solar adoption and reliably recover costs from its fixed assets and protect its lower-income ratepayers from being unfairly burdened. If we can’t figure out a solution to that dilemma, more and more utilities will do what CPS is doing and the spread of rooftop solar in the US, which has barely gotten underway, will slow to a crawl. That isn’t what we want, is it?” [San Antonio Express-News, 6/21/2012; San Antonio Express-News, 4/9/2013; Grist Magazine, 4/12/2013]
Idea that Solar Power Consumers Pay Unfairly Low Share Challenged - Many solar advocates have successfully challenged the idea that solar power consumers cost their area’s utilities revenue (see April 5, 2013).
Utility Agrees to Postpone Implementation - Following the announcement, CPS will agree to postpone implementation of the new policy for a year and to work with solar advocates to craft changes to the policy. [CPS Energy, 5/9/2013; Grist Magazine, 5/15/2013]

Entity Tags: Lisa Lewis, CPS Energy, David Roberts, Lanny Sinkin

Timeline Tags: US Solar Industry

Several of the nation’s largest solar installers, including SolarCity, Sungevity, SunRun, and Verengo, form a lobbying organization, the Alliance for Solar Choice (ASC), to fight back against conventional utilities’ efforts to curtail or cancel programs that support renewable energy in 43 states. The ASC will begin by working to preserve “net metering” policies that require utilities to purchase surplus electricity at retail rates from customers with rooftop solar systems. ASC president Bryan Miller, a SunRun executive, says the group is responding to “the coordinated utility attack on net metering throughout the country.” Many utilities “have opposed net energy metering since its inception.” Utilities argue that as more people install solar arrays and generate power for themselves, non-solar customers are forced to pay higher rates to subsidize utility costs for grid maintenance and the like. (That argument has been strongly challenged—see April 5, 2013.) [Bloomberg, 5/10/2013]

Entity Tags: Sungevity, SolarCity, Verengo, SunRun, Bryan Miller, Alliance for Solar Choice

Timeline Tags: US Solar Industry

Grist columnist and distributed energy expert David Roberts attempts to explain the viewpoints of the solar and the conventional utility industries over utility regulations as they pertain to solar power generation. He calls the issue “unavoidably wonky” but “a pivotal issue” that is “long overdue” for public understanding. The problem between the two has two components: short-term and long-term. The short-term argument between the two camps involves how electricity rates are structured and how utilities compensate, or do not compensate, customers who generate some of their own power with rooftop solar PV panels. The long-term issue revolves around the creation of “an entirely new business model for utilities, one that aligns their financial interests with the spread of distributed energy.” Battling over the short-term issues delays resolution of the long-term issue, Roberts writes.
Utilities' Perspective - About 70 percent of Americans are served by investor-owned utilities (IOUs), the traditional, for-profit, regulated-monopoly utilities that have what Roberts calls “a captive customer base and profits guaranteed by law.” IOUs are leading the pushback against distributed solar energy. IOUs make their profits by:
bullet estimating how much power their customers will need;
bullet estimating the investments they will need to make in power plants, fuel, transmission lines, and so forth in order to meet that demand;
bullet estimating how much they need to charge customers to cover their investments and offer a reasonable rate of return to their investors;
bullet convincing their state’s public utility commission (PUC) that their rates are warranted and fair; and
bullet charging that rate until they can convince the PUC to let them raise their rates.
Residential customers pay the PUC-approved “retail rate” for their electricity. [Grist Magazine, 5/15/2013]
Net Metering - NC State’s Database for State Incentives for Renewables and Efficiency (DSIRE) defines net metering as “a popular and administratively simple policy option [that] allows electric customers who generate their own electricity using solar or other forms of renewable energy to bank excess electricity on the grid, usually in the form of kilowatt-hour (kWh) credits.… In effect, the customer uses excess generation credits to offset electricity that the customer otherwise would have to purchase at the utility’s retail rate. Traditionally, net metering has been accomplished through the use of a single, conventional, bi-directional meter.” In its most simple terms, customers who participate in net metering programs get rebates or subsidies from their IOUs based on how much solar energy they generate for themselves: if they generate 10 hours of solar power a week, they receive 10 kilowatt-hours (at the retail rate) of credit on their electric bills. The policies are in force in some 40 states, though the details of their implementation vary widely from state to state. The utilities say that net metering is inherently unfair, since a consumer who lowers or even zeroes out their utility bill through solar power generation does not pay enough for fixed costs such as power plant construction, transmission line installation and maintenance, etc., even though these consumers still make use of these services. The utilities argue that the complexity of managing these distributed energy producing consumers increases their costs; net metering, they say, makes customers who cannot afford solar arrays subsidize those who can. (This argument has been strongly challenged—see April 5, 2013.) Utilities in many states are trying to end or dramatically cut back on net metering rebates (see April 9-12, 2013). As noted in a January 2013 report that predicted utilities will be forced into near-bankruptcy by increasing use of solar-generated power (see January 2013), many IOUs are attempting to add “customer service charges” to subsidize their fixed costs, and to lower the subsidies paid to rooftop solar producers. David Rubin of Pacific Gas and Electric has said, “We need to set the stage for continued growth in solar in what we believe will be a sustainable way which is to not have solar customers that are being subsidized by the rest of our customers and producing unsustainable rates for those customers.” [DSIRE Solar, 2013; Grist Magazine, 5/15/2013]
Solar Perspective - The solar community is not convinced, Roberts writes, and is actively, and sometimes angrily, pushing back against the utilities’ stance. Recently, some of the nation’s largest solar installers formed an organization called the Alliance for Solar Choice (see Shortly Before May 10, 2013). Their argument boils down to the contention that utilities raise their rates regardless of who produces solar or wind power for themselves. In fact, they charge, utilities raise their rates far more than is warranted to cover what they argue are higher costs due to solar generation. Because of their monopolistic structure, they are able to make extraordinarily high profits even while bemoaning their costs. PUCs guarantee them hefty profit margins (rates of return on their investments) regardless of whether the investments were necessary. They essentially have a captive customer base, Roberts writes, and are used to charging heavily padded retail rates on the power they sell their customers. Utilities have no interest in innovation or competition, he writes, and as a result their customers “are getting shafted all over the country. Utilities overestimate demand, underestimate efficiency, and contract for gigantic central-generation power plants that customers pay for whether or not they need the power.” Roberts cites the examples of Southern California Edison customers, who are paying $68 million a month to subsidize a nuclear plant in San Onofre that has not produced a watt of energy in over a year. Mississippi customers are paying huge amounts to subsidize a coal-fired plant in Kemper County. We Energies in Wisconsin is trying to force its customers to pay for its Oak Creek coal plant, a hugely expensive facility that has been plagued with outages and breakdowns. Roberts says that utilities are not worried about increasing customers’ rates, but do not like the loss in revenue due to solar consumption. “It’s competition they don’t like,” he writes, “the potential loss of their captive customers.” Homes that are essentially “unplugged” from the grid do not impose costs on the utility, and actually save the utility money on transmission and distribution costs and in other areas. Utilities rely on consumers to pay exorbitant rates for their poorly envisioned and constructed power plants, transmission facilities, and the like, Roberts argues, instead of absorbing the losses themselves. [Milwaukee Journal-Sentinel, 6/27/2012; Grist Magazine, 5/15/2013]
Conclusion - While the solar advocates have a stronger case, Roberts says, some of them have become a bit extreme in their view that all utilities are automatically the enemy. “Some utilities, at least, seem to be grappling with this issue in good faith,” he says. But even these utilities, he says, “are struggling with the question of how to appropriately compensate for distributed solar. The fact is, as long as utilities operate under their current business model, rooftop solar really does hurt them.” Roberts says the best solution is to revamp the business model, particularly the IOU. [Grist Magazine, 5/15/2013] The regulatory contract that most IOUs operate under—existing as corporations legally protected from competition, charging rates as approved by state governments, and receiving guaranteed returns—is almost completely the opposite of the free market concept. “It is the most Soviet of economic sectors,” Roberts writes. Moreover, utilities make most of their profits not from selling electricity, but from making investments and receiving returns on them. The more power lines and plants they build, the more money they earn. In the ideal free market, companies profit by competing, cutting costs, and innovating. None of this applies to the typical American utility. As long as they can make their local PUC happy, utilities are free to generate revenue merely by building more facilities, whether those facilities are needed or even useful. Now, though, the paradigm is not as profitable. Utilities’ profits have peaked, and in coming years they will continue to drop, in large part because of the increase in the usage of renewable energy in place of utility-generated energy. Meanwhile, utilities are locked into paying for facilities and improvements for the next 20 years or so, and want to charge customers as much as possible to help them pay off the debts they have incurred and keep their profit margins in place. Roberts says that while society as a whole needs distributed, renewable energy platforms, the utilities do not want them: “As a society, we need energy efficiency and demand response. We need distributed renewable energy. We need to cancel out future power plants and transmission lines. All those things are to the good, economically and ecologically. Yet utilities have every incentive to oppose them, as they are direct threats to their familiar, comfortable business model, which has survived nearly a century unchanged.… We need a ground-up rethink of how utilities work, how they are structured, and how they can be reformed in a way that enables and accelerates long-overdue innovation in the electricity space.” [Grist Magazine, 5/21/2013]

Entity Tags: Southern California Edison, David Rubin, David Roberts, Alliance for Solar Choice, Database for State Incentives for Renewables and Efficiency

Timeline Tags: US Solar Industry

Arizona’s largest public utility, Arizona Public Service (APS), is proposing to charge its customers who install rooftop solar panels $50 to $100 a month, or more, to cover what it says is the cost of maintaining its power grid. The increase would primarily impact new solar consumers, and not those who already have solar arrays installed. Solar energy advocates say the utility’s move will cost thousands of jobs in the solar industry, but APS says the surcharge is justified. Gregory Bernosky, an APS official in charge of the company’s renewable energy policy, says: “Right now the model isn’t sustainable. We love customers to go solar; the energy is a great resource as part of our energy portfolio. But this is about cost shifting and fairness to non-solar customers.” Bernosky says that solar-producing customers are not paying their fair share for the conventional electricity they use, in part because under a policy known as net metering, they can sell the excess energy they generate back to APS for what Bernosky says is too much credit. “We’re not collecting all the costs we need to maintain infrastructure from solar customers, and as time goes on and we have more of them, they put a greater burden on non-solar customers,” he says. This claim has been strongly challenged (see April 5, 2013 and July 31, 2013). Tim Hanna, a Solar City employee who has a rooftop array, says he pays little more than $20 or $30 for electricity even in the summer, because he generates so much solar energy for his own use. He would not be affected by the rate increase, but says many others would, stating, “I think it will put a big damper on things because whenever you talk to people, you tell them they can save a good chunk of money, and now they might not be able to save like they used to.” Arizona’s solar industry employs over 10,000 people now, a number that is expected to rise. But many solar advocates say that APS’s new policy could halt job growth and cost current jobs. Meghan Nutting of Solar City says: “Louisiana and Idaho fought similar proposals. No other state with net metering, which is 43 states, has enacted a tax hike like this. It’s crazy that Arizona, the sunniest state in the nation, might actually consider doing this.” [AZFamily.com, 7/16/2013]

Entity Tags: Gregory Bernosky, Meghan Nutting, Arizona Public Service, Tim Hanna

Timeline Tags: US Solar Industry

Amory B. Lovins, the chief scientist for the Rocky Mountain Institute and a well-known expert on sustainable and renewable energy, writes in a blog post for the Institute that the US solar industry is being attacked by an onslaught of disinformation and lies by the mainstream media, much of it designed to promote the interests of the conventional electric utilities. He begins by citing the infamous “flub” by Fox Business reporter Shibani Joshi, who in January 2013 lied to viewers when she said Germany has a more successful solar industry than the US because it has “got a lot more sun than we do” (see February 7, 2013). Lovins notes, “She recanted the next day while adding new errors.” He cites a pattern of what he calls “misinformed or, worse, systematically and falsely negative stories about renewable energy.” Some are simply erroneous, he admits, “due to careless reporting, sloppy fact checking, and perpetuation of old myths. But other coverage walks, or crosses, the dangerous line of a disinformation campaign—a persistent pattern of coverage meant to undermine renewables’ strong market reality. This has become common enough in mainstream media that some researchers have focused their attention on this balance of accurate and positive coverage vs. inaccurate and negative coverage.” The coverage issue has become one of note, he says. Tim Holmes of the UK’s Public Interest Research Centre (PIRC) says that media reporting has an outsized influence on the thinking of lawmakers. In Britain, Holmes says, left-leaning newspapers tend to write positively about renewable energy, while more conservative, Tory-favoring news outlets give far more negative coverage. Overall, negative coverage of renewable energy more than doubles the amount of positive coverage in the British press. In Britain, the “lopsided” coverage is largely driven by nuclear power advocates who fear competition from wind power.
Myth: Renewable Energy Industries Cause Job Losses - Lovins cites the October 2012 claim by a Washington Post opinion columnist that subsidies for green energy do not create jobs, where the columnist cited Germany as an example of his assertion (see October 15, 2012). He cites data from a German study debunking the Post claim, showing that Germany’s renewable energy sector created over 380,000 jobs in 2011 alone and was continuing to create more jobs each year. Lovins writes, “More jobs have been created than lost in Germany’s energy sector—plus any jobs gained as heavy industry moves to Germany for its competitive electricity.” He writes that “a myth persists that countries lose more jobs then they gain when they transition to renewables.” He calls this claim an “upside-down fantasy” promulgated by a faulty study released by King Juan Carlos University in Spain in 2009 and written by an economist with reported ties to ExxonMobil, the conservative Heartland Institute, and the far-right Koch brothers (see August 30, 2010). The study claimed that for every job created in Spain’s renewable energy industry, 2.2 jobs were lost in the general job market. The story is still reported as fact today. But the study was debunked by experts from the National Renewable Energy Laboratory (NREL—see 1977) and the Spanish government. A 2012 study by the International Labour Organization shows that Spain is leading Europe in “green” job creation. Similar claims have been made about the American job market, with right-wing think tanks such as the Cato Institute (also funded by the Koch brothers—see 1977-Present and February 29, 2012) asserting that if people think renewable energy industries will create jobs, “we’re in a lot of trouble.” In reality, the American renewable energy industries created over 110,000 new jobs in 2012; in 2010, the US had more jobs in the “clean economy” than in the fossil-fuel industries.
Disinformation Campaign - Lovins writes that the attacks on the renewable energy industry are too systematic and coordinated to be accidental. Only one out of every 10 articles written about renewable energy had a quote from a spokesperson with the renewable energy industry, according to a recent survey. Retired Vice Admiral Dennis McGinn, head of the American Council on Renewable Energy (ACORE), says that enemies of the renewable energy industries “are dominating the conversation through misrepresentation, exaggeration, distraction, and millions of dollars in lobbying and advertising.” Lovins concludes: “This misleading coverage fuels policy uncertainty and doubt, reducing investment security and industry development. Disinformation hurts the industry and retards its—and our nation’s—progress. As Germany has shown, investing in renewables can grow economies and create jobs while cutting greenhouse gas emissions even in a climate as ‘sunny’ as Seattle. We just have to get the facts right, and insist that our reporters and media tell us the truth, the whole truth, and nothing but the truth.” [Rocky Mountain Institute, 7/31/2013]

Entity Tags: Rocky Mountain Institute, Amory B. Lovins, Cato Institute, International Labour Organization, Shibani Joshi, Tim Holmes, Dennis McGinn, Washington Post

Timeline Tags: US Solar Industry

Keally DeWitt, an executive with solar provider SunRun, writes an opinion column lambasting a proposal by the Arizona Public Service (APS) utility company that would drastically overhaul Arizona’s net metering policy, favoring the utilities and damaging the ability of solar installers like SunRun to function in Arizona. DeWitt says the proposal, if approved by the Arizona Corporation Commission (ACC), would doom the solar industry in that state. APS has proposed two options to replace the current policy. One is to charge solar homeowners $50 to $100 a month for accessing the electrical grid, no matter how little they may actually use electricity generated by the utilities (see July 16, 2013). The second option is to change the net metering practice from paying solar power consumers a credit for solar consumption at the retail rate to the much lower wholesale rate. APS has stated, “The plan is built around two options, either of which would ensure that APS customers who choose rooftop solar in the future will be compensated fairly for the electricity they generate and pay a fair price for their use of the electricity grid.” DeWitt writes that APS is “ignoring the fact that clean, local energy is worth more than fossil fuel-generated energy being transported hundreds of miles.… Both options would eliminate any financial benefits for homeowners, especially those in the working or middle classes, who want to control costs with rooftop solar.” DeWitt says that APS has created “astroturf,” or fake grassroots, groups such as 60 Plus and Prosper HQ, and used those groups to air advertisements attacking solar users. One ad compares Arizona’s solar industry to the bankrupt, much-reviled solar corporation Solyndra, and claims, “California billionaires are getting rich off of your tax dollars.” DeWitt writes, “Using outdated scare tactics and financial figures that have been publicly denounced, the groups appear to be blatantly lying to the public (and driving people crazy through overplaying their ads on YouTube).” Bryan Miller, an executive for SunRun and the head of the Alliance for Solar Choice (see Shortly Before May 10, 2013), called the ad a “disgusting attack against their own Arizona solar customers,” and said APS is responsible for the video. APS spokesperson Jenna Shaver retorted, “APS had nothing to do with the making of or the content of the video, but we were aware 60 Plus was going to engage in the discussion and we welcome their support.” Shaver said the ad merely counters attack ads aired by the Arizona solar industry. A solar advocacy group, Tell Utilities Solar won’t be Killed (TUSK), headed by Republican Barry Goldwater Jr., has countered with its own ad featuring rooftop solar customers and a rooftop solar worker, all APS ratepayers, who are against the changes. TUSK’s Jason Rose recently said: “The proposal allows the ACC to create a backdoor tax on solar owners that will either severely curtail or kill solar in Arizona.… Solar is a disruptive technology and APS can’t compete. They are trying to maintain their profits and protect their shareholders’ stock price. We have spent a lot of time talking with them and they fear for their future.” One homeowner told DeWitt: “I had a solar system installed over a year ago and it has been a great benefit to me. APS, even more, benefits from the electricity that I produce. It does not cost them anything to produce the electricity; I even pay for the repairs that are needed. Why should I be penalized from going solar? This will only deter people from purchasing solar and eliminate jobs in the growing solar market in Arizona.” Rose recently told a reporter, “After conservative states like Idaho and Louisiana rejected proposals to change net metering, it would be a travesty for Arizona, the sunniest state in the union, to do it.” Miller said flatly, “The fight for net metering in Arizona is the most significant fight for solar in the country.” [Greentech Media, 7/3/2013; Greentech Media, 7/12/2013; Renewable Energy World, 8/14/2013]

Entity Tags: Jenna Shaver, Arizona Public Service, Arizona Corporation Commission, 60 Plus, Barry Goldwater Jr., Jason Rose, Prosper HQ, SunRun, Keally DeWitt, Tell Utilities Solar won’t be Killed, Bryan Miller

Timeline Tags: US Solar Industry

Reporter Grace Wyler of the online technology magazine Motherboard writes that solar power generation “poses a mortal threat to the mainline power utilities that have dominated energy distribution in the US since the late 19th century.” Wyler echoes the findings of a January 2013 report by the Edison Electric Institute (EEI—see January 2013). The price of solar energy is dropping, she writes, and a new solar unit is being installed somewhere in the country every four minutes. The nation’s solar capacity has doubled since 2008 and costs are down 40 percent. Within 10 years, perhaps sooner, analysts predict, the price of solar generated energy will reach parity with other power sources. Naturally, conventional energy utility companies “are waging an escalating war against independent power distributors, and particularly against a new crop of solar technology companies that threaten to disrupt their century-old business model,” she writes.
Net Metering Among Largest Issues - One of the biggest issues is “net metering,” a policy which allows renewable energy consumers to sell their excess power back to the grid at retail prices. Net metering is taking the place of state subsidies for solar energy producers, allowing solar consumers to lower their energy bills. However, utilities fear what Wyler calls “a so-called ‘utility death spiral,’ in which more and more customers generate their own power, forcing utilities to charge higher rates to maintain infrastructure that was intended for a much larger pool of energy consumers, which will in turn encourage more people to turn to distributed energy options—which in most cases means solar panels.” Duke Energy CEO Jim Rogers told a Bloomberg reporter: “It is obviously a potential threat to us over the long term. If the cost of solar panels keeps coming down, installation costs come down, and if they combine solar with battery technology and a power management system, then we have someone just using [the grid] for backup.” The EEI wrote that if the utility industry does not take immediate action, renewable energy could soon cause “irreparable damages to revenues and growth prospects” of utilities. These firms are battling net metering, claiming that conventional energy consumers are paying higher rates because of solar energy usage, a claim that has been challenged (see April 5, 2013). Utilities are fighting net metering policies in at least 11 states, asking regulators to impose new rate structures that would lower the amount utilities pay to buy back excess power from renewables consumers, and in some cases impose new grid-use fees on solar customers. Solar energy and technology producers such as Sungevity, SunRun, and SolarCity are fighting back against the utilities’ push.
Odd Political Bedfellows Joining to Fight Utility Restrictions - The solar companies are fighting the policy restrictions, not just on financial grounds, but, Wyler writes, because they believe government-sanctioned utilities monopolies are outdated and interfere with progress, calling it “the techno-libertarian view that regulation is an impediment to innovation and technological progress.” SolarCity spokesperson William Craven says: “Having more choice and more competition in the sector benefits pretty much everyone except the monopoly that has enjoyed having a monopoly for the past 100 years. It’s not clear that that system benefits anyone else. Generally, greater choice and greater competition drives innovation and drives reduced costs.” Many libertarian conservatives are joining the push for deregulation, broadening the base of solar consumers and advocates by aligning themselves with the more left-leaning solar advocates whose push for renewable energy is largely driven by environmental concerns. Even some far-right tea party groups are joining the push for deregulation. “From a conservative, or libertarian, perspective, it raises the question of why are we giving these guys a monopoly when they don’t need it anymore?” says John Farrell of the Institute for Local Self-Reliance, which pushes for distributed generation. “We can generate electricity in lots of different ways. We don’t need a big centralized corporate entity to generate electricity. We can do it ourselves.” Wyler says this “strange grassroots coalition” is successfully fighting back against the utilities’ attempts to weaken net metering, citing victories in California, Georgia, Idaho, and Louisiana. Rosalind Jackson of Vote Solar says: “Utilities have a simple argument that sounds compelling, but time and again, we’ve seen such strong public outcry against the idea of utilities trying to take away the right to generate power that the decisions have actually come down on the side of solar customers.… This is a regulated industry that has not had to innovate for a century. But they are faced with a real disruptive technology. There are new entrants for customers who have never had an option before. So that’s a very real threat.” [Motherboard, 9/23/2013]

Entity Tags: Sungevity, SunRun, William Craven, Rosalind Jackson, Edison Electric Institute, Grace Wyler, Jim Rogers, SolarCity, John Farrell

Timeline Tags: US Solar Industry

The Arizona Public Service (APS), Arizona’s largest utility, admits that it paid a national conservative organization, the 60 Plus Association, to run advertisements attacking Arizona’s solar energy industry. APS has previously denied funding the ad campaign (see August 14, 2013). APS is trying to persuade the state’s public utility commission to change a state policy allowing homes and businesses that generate their own solar power to sell the excess energy they generate back to the grid (see July 16, 2013), a practice known as “net metering.” Solar advocates say the policy has helped create an increasing demand for rooftop solar energy equipment. APS has argued that solar energy producers pay less than their fair share for conventionally generated electricity, a popular argument among conservative opponents of solar power (see October 15, 2012) that has been challenged as false and misleading (see April 5, 2013 and July 31, 2013). A recent report showed that the utility companies fear massive loss of revenues in the future as solar power begins to eat into their monopoly on electricity provision in Arizona and other states (see January 2013), in part because most utility companies find it difficult and expensive to modernize their industry (see February 7, 2013). Solar advocates say that the elimination of net metering would essentially “kill rooftop solar in Arizona” (see August 14, 2013). Republican state icon Barry Goldwater Jr. leads a pro-solar organization, TUSK, that many in the conventional utility industry seem to fear. In July 2013, APS spokesman Jim McDonald flatly denied that APS was paying 60 Plus to run the ads, telling a reporter, “No, we are not” funding the ad campaign. But reporting by the Arizona Republic has revealed that APS did pay 60 Plus to run ads attacking the solar industry, as well as paying other groups such as Prosper and perhaps others to engage in similar advertising. McDonald now admits, “It goes through our consultant, but APS money does ultimately fund 60 Plus and Prosper.” McDonald now says he was not lying in July, because “[t]hat was my understanding at the time.” He denies knowing how much APS has paid 60 Plus, Prosper, and perhaps other groups, but says whatever money was spent came from shareholders’ funds and not ratepayer money. He then pivots, saying that the issue is “a phony controversy fueled by opponents who are eager to distract attention from the real substance from the issue.” He adds: “We’re in the middle of a bitter political fight. This is not a battle that we want to fight, but we cannot back down.… [W]e are not going to lie down and get our heads kicked in. We are just not. We are obligated to fight. It is irresponsible to our customers not to fight back.” APS vice president John Hatfield tells another reporter that APS “is contributing money to the nonprofits [60 Plus and Prosper], and potentially other groups through political consultant Sean Noble and his firm, DC London.” McDonald denies that APS is anti-solar, but the ads by 60 Plus are openly hostile to solar energy. Prosper has aired ads attacking both solar energy and Medicaid expansion. Bryan Miller of the Alliance for Solar Choice says: “APS knows how popular solar is. Rather than owning up to their attacks, they set up shady organizations and worked behind them, and lied to the public and regulators for months and months. They owe the public an explanation.” Solar industry officials say that most consumers would not choose to use solar if they did not get credit for the excess energy they give back to APS. Lyndon Rive, the founder and CEO of Solar City, says that most new solar customers are installing the panels with leases, and with their new lower power bill and lease payment, they save from $5 to $10 a month. Any additional cost to solar customers greater than a few dollars would prevent most people from using solar, he says, a claim that other industry experts echo. Goldwater recently told a reporter, “Innovation is happening all around APS, and they are sitting there like an elephant in a mud puddle.” He added: “All of the [utility] commissioners are Republicans and conservatives who believe in [market] choice. They will come down on the side of competition and against APS. They better, or they are in trouble. That’s why we have elections. If we don’t like the job they are doing, we will replace them. The people in the bleachers know a lot more about what’s going on down on the field than we give them credit for.” McDonald says TUSK and other pro-solar groups are merely masquerading as conservatives, and in truth are linked to Democrats and the Obama administration.
60 Plus Funded by Koch Brothers; Ads Link Arizona Solar Industries to Solyndra - 60 Plus, an organization that calls itself a more conservative alternative to the more mainstream AARP, is a lobbying organization funded by oil magnates Charles and David Koch (see 1981-2010). In recent years, 60 Plus has produced ads attacking health care reform using false and misleading claims (see Shortly Before August 10, 2009 and August 11, 2009), and was part of a 2009 push to create “astroturf” (fake grassroots) organizations to attack health care legislation (see August 14, 2009). 60 Plus has led the conservative pushback against TUSK and other pro-solar lobbying and advocacy groups, calling net metering “corporate welfare.” The ads attempt to link Arizona solar energy companies SolarCity and SunRun with Solyndra, the solar manufacturer that went bankrupt in 2011. The two firms have no known connections to Solyndra. One ad shows images of secretive businessmen doing deals outside a corporate jet while the voiceover tells listeners, “California billionaires are getting rich off of your tax dollars.” The Prosper ad made an unsubstantiated claim that every rooftop array “adds $20,000 in costs to customers,” a claim that APS CEO Don Brandt has made since the spring of 2013. 60 Plus is led by Noble, a conservative operator who has been called “the wizard behind the screen” in the Koch’s donor network.
Prosper Founded by Republican Politicians and Staffers - Prosper is led by former Arizona House Speaker Kirk Adams, a Republican, and former staffers for ex-Senator Jon Kyl (R-AZ). Adams denies that Prosper was formed to work on APS’s behalf, and that it is also working to block Arizona’s planned expansion of Medicaid. [Arizona Republic, 10/21/2013; Mother Jones, 10/21/2013; GreenTech, 10/22/2013; Huffington Post, 10/25/2013]

Entity Tags: David Koch, Barry Goldwater Jr., Arizona Republic, Arizona Public Service, 60 Plus Association, Charles Koch, SunRun, Sean Noble, SolarCity, Lyndon Rive, Kirk Adams, John Hatfield, Bryan Miller, Jim McDonald, Prosper, Solyndra Corporation

Timeline Tags: US Solar Industry

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