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Oil magnate Fred Koch co-founds Wood River Oil and Refining Company, later renamed Koch Industries. The firm will grow to become one of the largest energy conglomerates in the US, and Koch will become an influential backer of right-wing politics. Koch is a virulent anti-Communist who will be one of the first members of the John Birch Society (JBS—see March 10, 1961 and December 2011), a far-right organization that reflects his hatred of Communism (he believes both the Republican and Democratic parties are irretrievably infilitrated by Communists) and opposes almost every aspect of governance in general. Koch will write glowingly of Italian dictator Benito Mussolini’s murderous suppression of Communists during World War II. Both Koch and the JBS have little use for minorities; of African-Americans, Koch will write, “The colored man looms large in the Communist plan to take over America,” and he will say that government welfare programs were designed to attract large numbers of blacks to the cities, where they would foment “a vicious race war.” In 1963, using language that reporter Jane Mayer will later say “prefigures the Tea Party’s talk of a secret socialist plot,” Koch will warn that Communists would “infiltrate the highest offices of government in the US until the president is a Communist, unknown to the rest of us.” Koch’s two sons, David and Charles, will have their father’s political views deeply ingrained into them (see August 30, 2010). In 2007, David Koch will tell a reporter: “He was constantly speaking to us children about what was wrong with government.… It’s something I grew up with—a fundamental point of view that big government was bad, and imposition of government controls on our lives and economic fortunes was not good.” Gus diZerega, once a close friend of Charles’s, will later say that the brothers transfer their father’s hatred of Communism to the US government, which they will come to view as a tyranny. DiZerega will write that the Kochs, like many other hard-right conservatives, redefine “socialism” as almost any form of government which taxes citizens and regulates businesses. (Mayer 8/30/2010)
The billionaire Koch brothers, Charles and David, launch the libertarian Cato Institute, one of the first of many think tanks and advocacy organizations they will fund (see August 30, 2010). While records of the Koch funding of the institute are not fully available, the Center for Public Integrity learns that between 1986 and 1993 the Koch family gives $11 million to the institute. By 2010, Cato has over 100 full-time employees, and often succeeds in getting its experts and policy papers quoted by mainstream media figures. While the institute describes itself as nonpartisan, and is at times critical of both Republicans and Democrats, it consistently advocates for corporate tax cuts, reductions in social services, and laissez-faire environmental policies. One of its most successful advocacy projects is to oppose government initiatives to curb global warming. When asked why Cato opposes such federal and state initiatives, founder and president Ed Crane explains that “global warming theories give the government more control of the economy.” (Mayer 8/30/2010)
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.” (Mayer 8/30/2010)
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.” (Mayer 8/30/2010)
The billionaire Koch brothers, Charles and David, launch the first of a number of “citizen advocacy” groups they either found or fund, Citizens for a Sound Economy. The Kochs are staunch right-wing libertarians determined to successfully combat government regulation and oversight of businesses, government taxation, and government funding of social programs (see August 30, 2010). Between 1986 and 1993, the brothers will provide $7.9 million to the group, even as it promotes itself as a “grassroots,” “citizen-driven” organization. (Such organizations that call themselves “citizen-based” while actually being founded, operated, and funded by corporate interests are called “astroturf” organizations.) Matt Kibbe, who will go on to head a Koch-funded lobbying organization, FreedomWorks, will later say of Citizens for a Sound Economy that its driving force was to take the Kochs’ “heavy ideas and translate them for mass America.… We read the same literature Obama did about nonviolent revolutions—Saul Alinsky, Gandhi, Martin Luther King. We studied the idea of the Boston Tea Party as an example of nonviolent social change. We learned we needed boots on the ground to sell ideas, not candidates.” One organization participant will say that the brothers are “very controlling, very top down. You can’t build an organization with them. They run it.” By 1993, the organization will become powerful enough to successfully thwart the Clinton administration’s efforts to place a “BTU tax” on energy, and mounts successful “citizen protests” against Democrats, sometimes funnelling millions of Koch monies into the political campaigns of their Republican opponents. (Mayer 8/30/2010)
The Senate launches an investigation into what a minority (Democratic) report calls “an audacious plan to pour millions of dollars in contributions into Republican campaigns nationwide without disclosing the amount or source” in order to evade campaign finance laws. A shell corporation, Triad Management, is found to have paid more than $3 million for attack ads in 26 House races and three Senate races. More than half of the advertising money came from an obscure nonprofit group, the Economic Education Trust. The Senate minority report finds that “the trust was financed in whole or in part by Charles and David Koch of Wichita, Kansas” (see August 30, 2010). Many in the investigation believe that the Koch brothers paid for the attack ads, most of which aired in states where Koch Industries does business. The brothers refuse to confirm or deny their involvement to reporters. In 1998, the Wall Street Journal will confirm that a consultant on the Kochs’ payroll had been involved in the scheme. Charles Lewis of the Center for Public Integrity will describe the scandal as “historic,” explaining: “Triad was the first time a major corporation used a cutout (a front operation) in a threatening way. Koch Industries was the poster child of a company run amok.” (Mayer 8/30/2010)
Citizens for a Sound Economy (CSE), an “astroturf” advocacy organization funded by the Koch brothers (see 1984 and After), is accused of breaking campaign laws to support the Bush re-election campaign. Oregon’s CSE branch had attempted to get consumer advocate Ralph Nader on the presidential ballot, in an attempt to dilute Democratic support for presidential candidate John Kerry (D-MA). Critics argue that it is illegal for a tax-exempt organization such as CSE to donate its services for partisan purposes. The Federal Election Commission (FEC) dismisses a complaint brought against the organization. (Mayer 8/30/2010)
After the 2004 presidential election, the “astroturf” organization Citizens for a Sound Economy (see Late 2004) splits due to internal dissension. Oil billionaire David Koch and Koch Industries lobbyist Richard Fink (see August 30, 2010) launch a new “astroturf” organization, Americans for Prosperity (AFP—see May 29, 2009)). They hire Tim Phillips to run the organization. Phillips (see August 6, 2009) is a veteran political operative who worked closely with Republican operative Ralph Reed; the two co-founded the political consulting firm Century Strategies. Phillips’s online biography will describe him as an expert in “grasstops” and “grassroots” political organizing. Conservative operative Grover Norquist will call Phillips “a grownup who can make things happen.” In 2009, Phillips will claim that AFP has “only” 800,000 members, but its Web site will claim “1.2 million activists.” A former employee of the Cato Institute, a Koch-founded libertarian think tank, will say that AFP is “micromanaged by the Kochs” (indicating involvement by both David and Charles Koch). (Mayer 8/30/2010)
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.’” (Moore 5/6/2006; Fang 10/20/2010)
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.” (Kirchick 1/8/2008; Thomas DiLorenzo 1/12/2008; David Bernstein 1/12/2008; Kirchick 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).
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.” (Fang 12/6/2009)
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. (Vogel 10/10/2011; Pilkington 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.” (Vogel 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). (Vogel 10/10/2011; Pilkington 11/7/2011; Glennon 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. (Lachkovic 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.” (Vogel 10/10/2011; Pilkington 11/7/2011; Glennon 11/8/2011)
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:
a seminar on “The Bankrupting of America”;
a seminar on the “regulatory assault” on environmental concerns and how to further business goals by defeating environmental regulations;
a seminar on how to influence universities and colleges to “advance liberty”;
a seminar on how to “micro-target” the electorate in order to win elections for conservative Republican candidates;
a seminar on “The Threats to American Freedom and Prosperity” conducted by Koch himself;
“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);
a seminar on “An Integrated Strategy to Face These Threats,” moderated by Koch’s senior assistant Richard Fink;
an evening address, “Is America On the Road to Serfdom?” by former Fox News talk show host Glenn Beck;
a seminar, “We’re Spending Too Much,” on how to lower government spending, conducted by Russ Roberts of the far-right libertarian Mercatus Center;
a seminar, “Understanding This Year’s Electorate,” by journalist and AEI fellow Michael Barone;
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;
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);
a seminar hosted by Arthur Brooks of AEI on how to frame the “fight” as one between “free enterprise and Big Government”;
a seminar on how best to target participants’ philanthropic gifting;
a seminar on “reforming” K-12 public and charter schools;
a seminar on impacting judicial elections in several key states;
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;
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. (Fang 8/23/2010; Koch 9/24/2010 )
The advocacy wing of the Americans for Prosperity (AFP) Foundation, founded by right-wing billionaire David Koch in 2004 (see Late 2004 and August 30, 2010), holds a weekend summit called “Texas Defending the American Dream” in Austin, Texas.
Koch-Funded, Koch Brand Not in Evidence - Neither David Koch nor his brother, Charles, attend the affair, and the name Koch is not in evidence. An advertisement for the event portrays it as a populist uprising against vested corporate power, stating: “Today, the voices of average Americans are being drowned out by lobbyists and special interests. But you can do something about it.” The ad makes no mention that the event is funded by Koch Industries, the second-largest private corporation in the US. Of Americans for Prosperity, Obama adviser David Axelrod says, “What they don’t say is that, in part, this is a grassroots citizens’ movement brought to you by a bunch of oil billionaires.”
Funding and Training the Tea Parties - Koch Industries has long denied that it has any connection to tea party organizations, and has denied that either the firm or the Koch brothers have funded any tea party groups (see February 27, 2009 and April 15, 2009). David Koch has denied ever being approached by tea party representatives. But at the Austin event, event organizer Peggy Venable—an AFP employee who has worked for Koch-funded political groups since 1994—tells the crowd, “We love what the tea parties are doing, because that’s how we’re going to take back America!” She calls herself one of the earliest members of the tea party movement, telling a reporter, “I was part of the tea party before it was cool!” AFP, she says, is in business to help “educate” tea party activists on policy details and to train them for further activism so that their political energy can be channelled “more effectively.” AFP has provided tea party organizers with lists of elected Democrats to target. Of the Kochs, she says: “They’re certainly our people. David’s the chairman of our board. I’ve certainly met with them, and I’m very appreciative of what they do.”
'Victory or Death!' - Some 500 people attend the event, which features training seminars for “tea party” activists around the state and a series of speakers launching blunt attacks against President Obama and his administration. Venable warns the attendees that the Obama administration has “a socialist vision for this country.” She gives the Texas AFP “Blogger of the Year” award to a woman named Sibyl West, who recently called Obama the nation’s “cokehead in chief.” Featured speaker Janine Turner, an actress best known for her role in the TV series Northern Exposure, tells the audience: “They [Obama and the Democratic Party] don’t want our children to know about their rights. They don’t want our children to know about a God!” Former Texas Solicitor General Ted Cruz tells the crowd that Obama is “the most radical president ever to occupy the Oval Office,” and has a hidden agenda: “the government taking over our economy and our lives.” Defeating Obama and his “secret agenda” is, Cruz says, “the epic fight of our generation!” As the crowd gives him a standing ovation, Cruz shouts the words said by a Texan at the Alamo: “Victory or death!” (Mayer 8/30/2010)
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. (Rich 8/28/2010)
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. (Mayer 8/30/2010)
Mother Jones columnist Kevin Drum compares the “tea party” movement to earlier organizations, each formed, he writes, to oppose Democratic presidencies. “[T]oo many observers mistakenly react to the tea party as if it’s brand new, an organic and spontaneous response to something unique in the current political climate,” he writes. “But it’s not. It’s not a response to the recession or to health care reform or to some kind of spectacular new liberal overreach. It’s what happens whenever a Democrat takes over the White House. When FDR was in office in the 1930s, conservative zealotry coalesced in the Liberty League (see August 23, 1934 and After). When JFK won the presidency in the ‘60s, the John Birch Society flourished (see November 1963). When Bill Clinton ended the Reagan Revolution in the ‘90s, talk radio erupted with the conspiracy theories of the Arkansas Project. And today, with Barack Obama in the Oval Office, it’s the tea party’s turn.” While differences between the various groups are substantive, Drum writes, the similarities are overwhelming. Drum notes that industrialist Fred Koch, an early backer of the Birchers (see 1940 and After), gave way to his sons, David and Charles Koch, who helped launch the organization that would become FreedomWorks and Americans for Prosperity, both of which are major funders and organizers of the tea party movement (see 1979-1980 and 1984 and After). Tea partiers rely on a 50-year-old radical reinterpretation of the Constitution, W. Cleon Skousen’s The 5000 Year Leap; Skousen’s anti-Communist polemics were popular with the Birchers. And Robert Welch, the founder of the John Birch Society (JBS—see March 10, 1961 and December 2011), believed that the 17th Amendment, which affirms the direct election of US senators, was what Drum calls “a poisonous concentration of power in the federal government.” Tea partiers and Fox News hosts hawk this same theory today (see October 16, 2009, April 8, 2010, and June 11, 2010). Drum writes that, far from being motivated by personal economic hardship (tea party supporters tend to be more affluent and less affected by the economic downturn than the average American—see April 14, 2010) or even because of a dislike of President Obama because of his race, the tea party exists because “[e]ver since the 1930s, something very much like the tea party movement has fluoresced every time a Democrat wins the presidency, and the nature of the fluorescence always follows many of the same broad contours: a reverence for the Constitution, a supposedly spontaneous uprising of formerly nonpolitical middle-class activists, a preoccupation with socialism and the expanding tyranny of big government, a bitterness toward an underclass viewed as unwilling to work, and a weakness for outlandish conspiracy theories.”
Constitutional 'Purity' - One similarity is the focus of each group on what they term the “purity” or “sanctity” of the US Constitution, even as they apply their sometimes-radical reinterpretations of constitutional mandates. “The Liberty Leaguers… spoke of it with ‘worshipful intensity,’” Drum writes. “The John Birch Society—which is enjoying a renaissance of sorts today (see July 22, 2007, August 4, 2008, October 10, 2008, April 13, 2009, April 19, 2010, and August 24, 2010)—says of itself, ‘From its earliest days the John Birch Society has emphasized the importance of the Constitution for securing our freedom.’ And… study groups dedicated to the Constitution have mushroomed among tea partiers” (see May 2010).
Fear of 'Creeping Socialism' and Tyranny - Drum writes: “Other shared tropes include a fear of ‘losing the country we grew up in,’ an obsession with ‘parasites’ who are leeching off of hardworking Americans, and—even though they’ve always received copious assistance from business interests and political operatives—a myth that the movement is composed entirely of fed-up grassroots amateurs” (see 1984 and After, Late 2004, January 2009 and After, February 17, 2009, February 19, 2009 and After, March 13, 2009 and After, April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, July 3-4, 2010, and August 30, 2010). Above all, though, is the recurring theme of “creeping socialism and a federal government that’s destroying our freedoms.” The American Liberty League fought to stop the Roosevelt administration from establishing Social Security, the Works Progress Administration (WPA), and what Drum calls an “alphabet soup of new regulatory agencies.” In the 1960s, the John Birch Society (JBS) felt the government was being overrun by Communism and “collectivism.” Drum notes that JBS founder Robert Welch’s mantra, “Less government and more responsibility,” echoes central tenets of tea party beliefs. In the 1990s, then-Representative Newt Gingrich (R-GA) became House Speaker in large part because of his opposition to the Clinton administration and his leadership in the right’s battle to defund federal social-net programs. Today, tea partiers echo the JBS in their insistence that Obama is a closet Marxist or socialist, and echo fears from earlier groups that Obama, the Democrat, intends to turn American democracy into a tyranny.
Conspiracy Theories - Drum echoes conservative writer Jonathan Kay by noting the tea partiers’ “insatiable appetite for conspiracy theories” (see February 4-8, 2010). Welch argued that the federal government was bowing to Communist manipulation by fluoridating the water supply (see 1945 and After), but more importantly, promoted the idea that a mysterious group of “insiders” had been running the world since at least 1776, when the Illuminati took over most European governments. The “insiders” continued their influence, Welch avowed, through the years, taking over France after the French Revolution, Russia and other nations after the advent of Communism, and continued to exercise control through such organs as the United Nations, the Council on Foreign Relations, and the Trilateral Commission. The same groups are at the center of many conspiracy theories embraced by numerous tea partiers. Drum points out the fondness of the “anti-Clinton zealots” for their “colorful and ever-growing bestiary of shadowy plots,” most surrounding their belief that Clinton was a rapist, a murderer, and a drug peddler. Similar conspiracy theories were promulgated by the JBS about John Kennedy. “Today’s conspiracy theories are different in detail but no less wacky—and no less widespread,” Drum writes. The “birther” conspiracy theory, which holds that Obama is not a natural-born citizen, is quite popular with tea party supporters, and many more believe that Obama intends to place conservatives such as themselves in internment camps, a theory peddled by the JBS in the early 1960s. And many believe that ACORN (the Association of Community Organizations for Reform Now), the now-defunct community service organization, somehow took control of the Democratic Party, destroyed banks by forcing them to make loans to indigent minorities, crashed the economy, and installed Obama into power.
Effectiveness Improving over Time - Drum writes that each iteration of this right-wing phenomenon is more successful than the last. The Liberty League made no impact whatsoever on President Roosevelt’s 1936 re-election attempt. In 1964, the JBS succeeded in helping right-wing libertarian candidate Barry Goldwater (R-AZ) win the Republican presidential nomination. In the 1990s, Gingrich rode the wave of far-right activism to become speaker of the House, and the activism culminated in the impeachment of President Clinton and the election of President George W. Bush. Drum predicts that the latest wave, the tea party movement, will for all intents and purposes take over the Republican Party. In each iteration, moderate Republicans resisted the wave of right-wing change, but, Drum believes, not enough moderate Republicans exist in any position of power to resist the tea party transformation. The GOP has been shifting ever rightward since the 1970s, Drum notes, and the tea party movement has profited from a transformed media environment, where it can present its ideology almost nonstop on Fox News and rely on social media such as Facebook to connect with new recruits. Drum calls the paradigm shift “the mainstreaming of extremism.” In 1961, Time magazine disparaged the JBS as “tiresome” (see March 10, 1961); in 2009, it hailed Fox News personality Glenn Beck as “gifted.” Moderates have virtually no chance in today’s environment of pushing back against the tea party’s rightward surge. “Unlike the Birchers, or even the Clinton conspiracy theorists, the tea partiers aren’t a fringe part of the conservative movement,” Drum writes. “They are the conservative movement.” Drum believes that even with all the tea party’s current success, it will eventually burn itself out, “while its broader identity becomes subsumed by a Republican Party that’s been headed down the path of ever less-tolerant conservatism for decades. In that sense, the tea party movement is merely an unusually flamboyant symptom of an illness that’s been breeding for a long time.” (Drum 9/2010)
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. (Fang 8/23/2010; Koch 9/24/2010 )
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.” (Lohan 10/30/2010; Roosevelt 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.” (Roosevelt 11/2/2010)
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. (Lichtblau 2/14/2011)
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.” (Vogel 6/27/2011; Millhiser 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. (Fang 6/28/2011)
Liberal columnist Joan Walsh uses a recent op-ed by authors and researchers David Campbell and Robert Putnam (see August 16, 2011) to ask why the media portrays the “tea party” movement as a powerful new force of non-partisan advocates of small government, when research shows that the movement is, as Walsh and others have long argued, largely formed of right-wing social conservatives. Walsh writes: “It’s great to have data, but this is something a lot of us believed all along—the tea party was the Republican base dressed up in silly costumes. Why was the media so quick to declare them a vital new force in politics?” Walsh points to the early involvement of the billionaire Koch brothers (see July 3-4, 2010 and August 30, 2010), lobbying groups such as FreedomWorks (see April 8, 2009 and April 14, 2009) and Americans for Prosperity (see Late 2004), and Fox News, whom she says did early and “energetic publicity for… tea party rallies” (see March 23-24, 2009, April 6-13, 2009, April 6-7, 2009, April 8, 2009, April 13-15, 2009, April 15, 2009, April 16, 2009, May 13-14, 2009, July 28, 2009, August 3, 2009, August 3, 2009, August 8, 2009, August 10, 2009, August 11, 2009, August 28, 2009, September 1, 2009, September 12, 2009, September 18, 2009, Early November 2009, and May 22, 2011). Former Fox News talk show host Glenn Beck helped start one of the earliest nationwide “tea party” organizations, the “9-12 movement” (see March 13, 2009 and After). The first “tea party” rally Walsh attended, in San Francisco in April 2009, was sponsored by right-wing talk radio station KSFO and featured speakers such as Melanie Morgan, who, Walsh recalls, “whipped the crowd into an anti-government frenzy that day.” Many “birthers”—people who insist that President Obama is not the legitimate president because he is not an American citizen—were on hand. Race is a big issue for many “tea party” members, Walsh writes: while Obama’s race is a bone of contention for many “tea partiers,” “it’s worth noting that these are the same people who’ve been fighting the Democratic Party since the days of the Civil Rights Act, the Voting Rights Act, and the beginning of the War on Poverty, almost 50 years ago. They associate those long overdue social reforms with giving folks, mainly black people, something they don’t deserve. I sometimes think just calling them racist against our black president obscures the depths of their hatred for Democrats, period.” (Walsh 8/17/2011) Walsh is echoing similar claims made by Mother Jones columnist Kevin Drum almost a year ago (see September 2010).
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.” (Berman 8/30/2011)
The campaign of presidential candidate Mitt Romney (R-MA), the former governor of Massachusetts, acknowleges the influence of the Koch brothers (see July 3-4, 2010 and August 30, 2010) on Republican politics and the “tea party” movement. According to an internal campaign memo, the Koch brothers, particularly David Koch, are the “financial engine of the tea party” even though Koch “denies being directly involved.” The memo explicates the attempts that Romney and the campaign have taken to secure the support of the Koch brothers, including a January 2011 meeting between Romney and David Koch at an elite club in Manhattan, and an August 28 meeting that was canceled because of Hurricane Irene. David Koch publicly endorsed Romney for president in 2008, and one of Romney’s first major campaign fundraisers for the 2012 race was held at Koch’s mansion in the Hamptons. Political strategists acknowledge the success the Koch brothers have had in getting dozens of far-right candidates elected to Congress in 2010 and creating a network of tea party members who can help Romney secure the 2012 presidential nomination. Strategists have also noted Romney’s lack of support among many tea party members and organizations, and the likelihood that Romney will fail to capture the 2012 Republican presidential nomination without tea party support. “In many national surveys, Romney has had difficulty breaking 25 percent in support and that’s because [tea party] conservatives are suspicious of him and doubt his commitment to their issues,” says the Brookings Institution’s Darrell West. “He’s courting the tea party because he needs them to win.” But that support is far from certain. Judson Phillips, the co-founder of Tea Party Nation, says: “Our vote is split up among so many candidates—none of whom are Romney. Romney’s problem with a lot of tea party voters, myself included, is at this point I don’t know what he believes and I don’t care—because even if he tells me, ‘When I get to the White House I’m going to be fiscally conservative,’ he will probably change his mind, depending on which way the political winds are blowing.” Romney has a reputation as a “flip-flopper” who has changed his mind on a number of key issues, and a closet moderate who once supported abortion rights, the 2008 government bank bailouts, gay rights, and gun control. (Peterson 11/2/2011; Fang 11/3/2011)
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. (Singer 2/20/2012; Nichols 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).
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.” (Thompson 2/2/2012; Reich 2/21/2012; Shaw 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. (Mason 2/2012; Shaw 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.” (Mason 2/24/2012) Friess is often described in the press as a “billionaire,” but both Friess and Forbes magazine say that appellation is inaccurate. (Kilachand 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. (Allen 3/1/2012)
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.’” (Dorner 3/10/2012; Harris 3/11/2012)
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. (Vogel 3/29/2012)
Investigative journalist Robert Parry speaks at a conference in Heidelberg, Germany concerning the progression of journalism from the 1970s to the present. Parry tells the gathering that American investigative journalism may have hit something of a zenith in the 1970s, with the media exposure of the Pentagon Papers (see March 1971) and the Watergate scandal (see August 8, 1974). “That was a time when US journalism perhaps was at its best, far from perfect, but doing what the Founders had in mind when they afforded special protections to the American press,” he says. “In the 1970s, besides the Pentagon Papers and Watergate, there were other important press disclosures, like the My Lai massacre story and the CIA abuses—from Iran to Guatemala, from Cuba to Chile. For people around the world, American journalism was the gold standard. Granted, that was never the full picture. There were shortcomings even in the 1970s. You also could argue that the US news media’s performance then was exceptional mostly in contrast to its failures during the Cold War, when reporters tended to be stenographers to power, going along to get along, including early in the Vietnam War.” However, those days are long past, Parry notes, and in recent years, American journalism has, he says, gone “terribly wrong.” Parry says that the American press was subjected to an orchestrated program of propaganda and manipulation on a par with what the CIA did in many foreign countries: “Think how the CIA would target a country with the goal of shoring up a wealthy oligarchy. The agency might begin by taking over influential media outlets or starting its own. It would identify useful friends and isolate troublesome enemies. It would organize pro-oligarchy political groups. It would finance agit-prop specialists skilled at undermining and discrediting perceived enemies. If the project were successful, you would expect the oligarchy to consolidate its power, to get laws written in its favor. And eventually the winners would take a larger share of the nation’s wealth. And what we saw in the late 1970s and early 1980s in the United States was something like the behavior of an embattled oligarchy. Nixon’s embittered allies and the Right behaved as if they were following a CIA script. They built fronts; they took over and opened new media outlets; they spread propaganda; they discredited people who got in the way; ultimately, they consolidated power; they changed laws in their favor; and—over the course of several decades—they made themselves even richer, indeed a lot richer, and that, in turn, has translated into even more power.”
Building a Base - Right-wing billionaires such as the Koch brothers (see 1979-1980) and Richard Mellon Scaife, along with Nixon-era figures such as former Treasury Secretary William Simon (a Wall Street investment banker who ran the right-wing Olin Foundation) worked to organize conservative foundations; their money went into funding what Parry calls “right-wing media… right-wing think tanks… [and] right-wing attack groups. Some of these attack groups were set up to go after troublesome reporters.” Parry finds it ironic, in light of the CIA’s interference in the affairs of other nations, that two foreign media moguls, Sun Myung Moon and Rupert Murdoch, were key figures in building and financing this conservative media construct. Some media outlets, such as Fox News (see Summer 1970 and October 7, 1996), were created from scratch, while others, such as the venerable and formerly liberal New Republic, were bought out and taken over by conservatives. When Ronald Reagan ascended to the White House, Parry says, he brought along with him “a gifted team of [public relations] and ad men.” Vice President George H.W. Bush, a former CIA director, enabled access to that agency’s propaganda professionals. And Reagan named William Casey to head the CIA; Casey, a former Nixon administration official, was “obsessed [with] the importance of deception and propaganda,” Parry says. “Casey understood that he who controlled the flow of information had a decisive advantage in any conflict.”
Two-Pronged Attack - Two key sources of information for Washington media insiders were targeted, Parry says: the “fiercely independent” CIA analytical division, whose analyses had so often proven damaging to White House plans when reported, and the “unruly” Washington press corps. Casey targeted the CIA analysts, placing his young assistant, Robert Gates, in charge of the analytical division; Gates’s reorganization drove many troublesome analysts into early retirement, to be replaced with more malleable analysts who would echo the White House’s hard line against “Soviet expansionism.” Another Casey crony, Walter Raymond Jr., worked to corral the Washington press corps from his position on the National Security Council. Raymond headed an interagency task force that ostensibly spread “good news” about American policies in the foreign press, but in reality worked to smear and besmirch American journalists who the White House found troubling. According to Parry, “Secret government documents that later emerged in the Iran-Contra scandal revealed that Raymond’s team worked aggressively and systematically to lobby news executives and turn them against their reporters when the reporters dug up information that clashed with Reagan’s propaganda, especially in hot spots like Central America.” It was easy to discredit female journalists in Central America, Parry says; Raymond’s team would spread rumors that they were secretly having sexual liaisons with Communist officials. Other reporters were dismissed as “liberals,” a label that many news executives were eager to avoid. Working through the news executives was remarkably successful, Parry says, and it was not long before many Washington reporters were either brought to heel or marginalized.
'Perception Management' - Reagan’s team called its domestic propaganda scheme “perception management.” Parry says: “The idea was that if you could manage how the American people perceived events abroad, you could not only insure their continued support of the foreign policy, but in making the people more compliant domestically. A frightened population is much easier to control. Thus, if you could manage the information flows inside the government and inside the Washington press corps, you could be more confident that there would be no more Vietnam-style protests. No more Pentagon Papers. No more My Lai massacre disclosures. No more Watergates.” The New York Times and Washington Post, the newspapers that had led the surge of investigative reporting in the 1970s, were effectively muzzled during the Reagan era; Parry says that the two papers “became more solicitous to the Establishment than they were committed to the quality journalism that had contributed to the upheavals of the 1960s and 1970s.” The same happened at the Associated Press (AP), where Parry had attempted, with limited success, to dig into the Reagan administration’s Central American policies, policies that would eventually crystallize into the Iran-Contra scandal (see May 5, 1987). Few newspapers followed the lead of AP reporters such as Parry and Brian Barger until late 1986, when the Hasenfus air crash provided a news story that editors could no longer ignore (see October 5, 1986). But, Parry says, by the time of the Iran-Contra hearings, few news providers, including the Associated Press, had the stomach for another scandal that might result in another impeachment, particularly in light of the relentless pressure coming from the Reagan administration and its proxies. By June 1990, Parry says he understood “the concept of ‘perception management’ had carried the day in Washington, with remarkably little resistance from the Washington press corps.… Washington journalists had reverted to their pre-Vietnam, pre-Watergate inability to penetrate important government secrets in a significant way.” The process accelerated after 9/11, Parry says: “[M]any journalists reverted back their earlier roles as stenographers to power. They also became cheerleaders for a misguided war in Iraq. Indeed, you can track the arc of modern American journalism from its apex at the Pentagon Papers and Watergate curving downward to that center point of Iran-Contra before reaching the nadir of Bush’s war in Iraq. Journalists found it hard even to challenge Bush when he was telling obvious lies. For instance, in June 2003, as the search for WMD came up empty, Bush began to tell reporters that he had no choice but to invade because Saddam Hussein had refused to let UN inspectors in. Though everyone knew that Hussein had let the inspectors in and that it was Bush who had forced them to leave in March 2003, not a single reporter confronted Bush on this lie, which he repeated again and again right through his exit interviews in 2008” (see November 2002-March 2003, November 25, 2002, December 2, 2002, December 5, 2002, January 9, 2003, March 7, 2003, and March 17, 2003).
The Wikileaks Era and the 'Fawning Corporate Media' - Parry says that now, the tough-minded independent media has been all but supplanted by what former CIA analyst Ray McGovern calls the “Fawning Corporate Media.” This has increased public distrust of the media, which has led to people seeking alternative investigative and reporting methods. Parry comments that much of the real investigative journalism happening now is the product of non-professionals working outside the traditional media structure, such as Wikileaks (see February 15, 2007, 2008, and April 18, 2009). However, the independent media have not demonstrated they can reach the level of influence of institutions like the Washington Post and the New York Times. “[I]f we were assessing how well the post-Watergate CIA-style covert operation worked,” Parry says, “we’d have to conclude that it was remarkably successful. Even after George W. Bush took the United States to war in Iraq under false pretenses and even after he authorized the torture of detainees in the ‘war on terror,’ no one involved in those decisions has faced any accountability at all. When high-flying Wall Street bankers brought the world’s economy to its knees with risky gambles in 2008, Western governments used trillions of dollars in public moneys to bail the bankers out. But not one senior banker faced prosecution.… Another measure of how the post-Watergate counteroffensive succeeded would be to note how very well America’s oligarchy had done financially in the past few decades. Not only has political power been concentrated in their hands, but the country’s wealth, too.… So, a sad but—I think—fair conclusion would be that at least for the time being, perception management has won out over truth. But the struggle over information and democracy has entered another new and unpredictable phase.” (Parry 5/15/2012)
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.” (Allen and VandeHei 5/30/2012)
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.” (Vogel and Parti 6/15/2012)
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. (Stone 6/16/2012; Weiner 6/29/2012)
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. (Randazzo and Anglen 10/21/2013; Kroll 10/21/2013; Trabish 10/22/2013; Sheppard 10/25/2013)
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