mykeystrokes.com

"Do or Do not. There is no try."

“The Koch Brothers”: The Extremist Roots Run Deep

Some women and men spend their lives rebelling against their father or mother, but others follow in their footsteps or yearn for their approval. Some become friends.

A few spend millions to make their parents’ vision a reality.

Charles and David Koch are among those few.

Raw ideas that were once at the fringes have been carved into ‘mainstream’ policy through their wealth and will.

According to the lore, a lawsuit against his company by big oil companies forced their dad, Fred Koch, into helping Stalin build refineries, fueling his anti-communist/anti-government views.

The truth is less tidy.

A company called Universal Oil Products sued Fred Koch’s company for patent infringement in 1929.

Four years earlier, in 1925, the 25-year old Koch formed the Winkler-Koch Engineering Company, with Lewis Winkler. After studying at Rice and MIT, the Texan-born Koch joined Winkler and another man in launching the company in Wichita.

Before that, Winkler had worked as the chief engineer at Universal Oil Products, a firm that held patents on the fuel processing methods developed by Jesse Dubbs. Before joining up with Koch, Winkler had helped Dubbs’ son Carbon install one of the first thermal “cracking” stills that used the pressure and heat process that Koch’s firm would later deploy with slight modification, according to the expert testimony of the chairman of MIT’s chemical engineering department, as noted in Dan Schulman’s “Sons of Wichita.” Ultimately, though, after a bribery scandal involving an appellate judge the verdict against the Koch firm would be overturned and Universal Oil Products’ successor firms would pay the company damages.

But back in 1929 – before the sudden stock market crash and nearly three years before the patent case went to trial — Koch’s firm signed contracts to build cracking stills in the U.S.S.R.

The communist regime didn’t recognize intellectual property rights, but it did pay well.

America had broken diplomatic ties with Russia nearly twelve years earlier, after the bloody Bolshevik revolution. Koch’s firm was not the only U.S. company doing business there. Henry Ford inked a deal, too.

Koch spent a few months in the Soviet Union to help fulfill the terms of the $5 million contract. He claimed the experience made him deeply anti-communist, but that didn’t stop him from cashing in on Stalin’s rubles.

Five million in revenue in today’s dollars would put an American small business — like Koch’s firm was back then — in the top 1%, after the stock market crashed.

The average American’s net income in 1930 was $4,887 and one penny, according to the IRS. That was back when five cents could buy a Rocky Ford cigar and 500 bucks could buy a basic Model A Ford. The average gross revenue of companies that year was about $177,000. Koch’s soviet contract was worth millions more than that.

Flush with riches, in 1932 Koch was playing polo at the Kansas City Country Club when he met Mary Robinson whom he wooed and married, according to Fortune magazine. Four sons soon followed. Over the years, they imbibed many doses of their adamant father’s rightwing political and economic diatribes.

Koch expressed deep antipathy toward the New Deal policies that helped pull the country out of the Great Depression.

He was not alone. By 1950, Wisconsin Senator Joseph McCarthy began accusing workers at the State Department, veterans, playwrights, actors, and others of being communist sympathizers dedicated to the overthrow of the U.S. government. McCarthy even accused President Harry S. Truman and Democrats of being in league with communists.

The Progressive repeatedly wrote against McCarthyism and published a special issue in April 1954 entitled “McCarthy: A Documented Record,” helping to expose him for the fraud he was. A month later journalist Edward R. Murrow criticized McCarthy on national TV, noting “We must not confuse dissent with disloyalty.”

His fellow Senators censured McCarthy later that year.

Disgraced, by 1957 he was dead.

But McCarthy’s paranoid worldview was not.

In 1958, Robert Welch invited Fred Koch and a handful of other businessmen to his home to create the John Birch Society, as Schulman noted.

At that secret meeting, Welch practically channeled McCarthy on communism:

“This octopus is so large that its tentacles now reach into all the legislative halls, all of the union labor meetings, a majority of religious gatherings, and most of the schools of the whole world.”

Koch quickly signed up for the national council of the new John Birch Society.

That year, according to archives, Koch worked with fellow Kansan Robert Love, of the Love Box Company, to help amend the Kansas Constitution to limit the rights of workers and unions, making it a so-called right to work state.

In 1960, Koch published a pamphlet based on his speeches called “A Businessman Looks at Communism.” The booklet, which was reprinted in 1961, ranted and raved that the National Education Association was a communist group and public-school books were filled with “communist propaganda,” paranoia that extended to all unions, and the “pro-communist” Supreme Court. Fred Koch also claimed that African Americans would engage in a “vicious race war,” echoing the words of white supremacists–including Birchers–who opposed desegregating public schools.

Koch also claimed that President Eisenhower, the Supreme Commander of the U.S. and allied forces in World War II, was soft on communism.

Such red-baiting might be ancient history if fifty years later Fred’s son David were not calling President Obama a “scary” “hard-core socialist” and spending millions on groups trying to defeat him.

Koch’s fanaticism echoed claims of his Bircher buddy Welch, who had written: “Could Eisenhower really be simply a smart politician, entirely without principles and hungry for glory, who is only the tool of the Communists? The answer is yes . . . it is difficult to avoid raising the question of deliberate treason.”

Treason? (That charge has a familiar hollow ring, as rightwing pundits and Tea Party pals fling it at President Obama and Birchers also flung it a President Kennedy, before he was assassinated.)

Eisenhower’s face is now engraved on every American dime.

After the CIA’s invasion of Cuba spectacularly foundered, David Koch and his twin brother, William, led a “May Day” party at their MIT frat house that hanged Fidel Castro in effigy. A riot broke out and thirty people were arrested, as noted by Brian Doherty in Radicals for Capitalism. (There’s no record the Koch boys were among those booked.)

That was the year that Charles had moved home to Kansas to be groomed to take over the family firm, after finishing engineering degrees at MIT and a short gig designing cigarette filters.

Charles was not only his dad’s choice to succeed him at the company.

He was also the heir to his extreme anti-government politics. By the time Charles stepped in as CEO in 1966, he’d been steeped in Fred’s Bircher outlook and enthralled with the Austrian economics books lining his dad’s library walls, providing an academic rationale for the free market fundamentalism he’s peddled with millions of dollars ever since.

That year, his father Fred helped form and fund another Birch front group, the “1776 Committee,” to try to recruit Eza Taft Benson, one of the leaders of the Church of the Latter Day Saints, to run for president as an independent, along with U.S. Senator Strom Thurmond, the racist segregationist politician from South Carolina, to run for vice president. (This fact was discovered in the national archive review of the Center for Media and Democracy, but also discovered by other researchers like Ernie Lazar.)

Both Benson and Thurmond had routinely echoed Bircher attacks on the civil rights movement. The effort was ultimately rebuffed, although it underscores how central to the John Birch Society was its animus toward government efforts to challenge racial segregation and anti-discrimination laws.

Month after month in publications to its members and promoted in its bookstores, attacking the civil rights movement and lauding its opponents were the Birchers’ top domestic agenda items throughout the 1960s. Challenging the United Nations and opposing communism abroad were its foreign policy focal points.

Although years later Fred’s wife Mary claimed to the press that Fred had abandoned the John Birch Society as too extreme, archived letters show that Fred Koch continued to support it and its mission until he met his end, although his failing health made it harder for him to keep up the pace of its executive committee. His family also asked that memorials (donations) be given in his name to only a handful of organizations, including the John Birch Society bookstore in Wichita.

Archived documents also show that Charles continued his role in the John BIrch Society into the year after his father’s death.

Decades later, perhaps it should come as no surprise that Charles and his brother David have fueled operations that attack progressive policies and those who defend them as “communists,” “collectivists,” or “socialists.”

Such smears are not new, but with the Kochs’ doubling of their personal fortune during the Obama administration while most Americans’ wages have stagnated, such claims seem like grand misdirection. The volume of the revival of these attacks has grown dramatically, and will soon grow louder still, fueled by Koch cash and U.S. Supreme Court decisions that have unleashed billionaires to spend unlimited funds influencing American elections.

 

By: Lisa Graves, The Center for Media and Democracy, July 10, 2014

July 11, 2014 Posted by | Koch Brothers, Plutocrats | , , , , , , | Leave a comment

“Billionaires’ Crybaby Club”: Someone Get These Whiners A Bottle!

Does being super-wealthy make you extra susceptible to self-pity today? That’s the only conclusion we can draw from an epidemic of self-pitying American billionaires decrying their persecution by “despots,” and the “Kristallnacht” of rising concern about income inequality, over just the last few months.

Charles Koch is the latest to fall victim to what funnier folks than me have labeled the WATB syndrome, with a whiny op-ed in the Wall Street Journal. “Collectivists” in government, Koch writes – “those who stand for government control of the means of production and how people live their lives,” i.e. Democrats — “strive to discredit and intimidate opponents.” It gets worse: “They engage in character assassination. (I should know, as the almost daily target of their attacks.)”

I’m worried about Charles Koch. For one thing, with all his billions, he couldn’t find a better ghost writer? His silly op-ed, with its alarmist Marxist clichés and fusty Schopenhauer references, would have been dismissed as an April Fool’s joke if published just one day sooner. It came the same day as the Supreme Court’s McCutcheon decision, which only increased its ridiculousness.

But Koch’s self-pity and persecution complex is downright unhealthy. He clearly suffers from the same malady as Tom Perkins, who delusionally compared rising political concern about income inequality to “Kristallnacht” for the rich. Newspaper-destroying real estate mogul Sam Zell, who cosigned Perkins, is also a victim, complaining the super-rich “are getting pummeled because it’s politically convenient to do so,” when in fact “the 1 percent work harder.”

Self-pity sufferer Ken Langone of Home Depot even warned Pope Francis that Catholic billionaires might stop contributing to the church because of the pope saying the “exclusionary” culture of the rich made some of them “incapable of feeling compassion for the poor.” Langone had earlier joined self-pitying mogul Leon Cooperman to admonish President Obama for “new lows in polarizing rhetoric…aimed at successful people in the business sector.”

Maybe we need a public health campaign to warn billionaires about the dangers of self-pity: stress, anxiety, depression, isolation and illness. The authors of “47 Steps to Stress Management” say that “the effect of self-pity on the body is similar to chronic anxiety.” A widely quoted 2003 study of self-pity in the Journal of Personality found:

…Strong associations of self-pity with neuroticism, particularly with the depression facet. With respect to control beliefs, individuals high in self-pity showed generalized externality beliefs, seeing themselves as controlled by both chance and powerful others…Furthermore, individuals high in self-pity reported emotional loneliness and ambivalent-worrisome attachments.

Deepak Chopra says self-pity is linked to “dependency,” so clearly Paul Ryan ought to consider a crusade to change the “culture” of his billionaire patrons in addition to that of “inner city” men:

The issue is dependency. Self-pity is the opposite of self-esteem. It arises because you feel no one will lift you out of your difficulties. With no one stronger, older, wiser and kinder to help you, there’s a tremendous sense of lack. You cannot find the same strength that these rescuers have—or you imagine them to have—and the ache of not being enough is felt as self-pity or “poor me.”

Of course, this isn’t the Koch brothers first pity-party, or their first descent into making things up about President Obama. Three years ago Charles and David sat down with the Weekly Standard and complained about their “demonization” by Democrats and President Obama, who they then went on to demonize. (A clinical note: Projection is also associated with self-pity.)

Charles accused Obama of believing “Marxist models.” David went further, blaming Obama’s views on his father, “a hard core economic socialist in Kenya,” he said. “He had sort of antibusiness, anti-free enterprise influences affecting him almost all his life. It just shows you what a person with a silver tongue can achieve.”

David also called anti-Koch protesters “very, very extreme, and I think very dangerous….That was pretty shocking, to see what we’re up against, or what the country’s up against: to have an element like this.”

So clearly self-pity is a persistent problem for Charles and his brother. Maybe we need a public health campaign: If your bout of self-pity lasts more than four hours, call your doctor. The authors of “47 Steps to Stress Management” have other advice:

“If you have trouble breaking the self-pity habit, you might want to try an excellent way of getting your mind off of yourself: help others.”

Oh well, that’s probably not the answer.

I don’t know what to advise Charles Koch about his unhealthy habits. He certainly has the money to get the best professional help available. But I would urge the Wall Street Journal, the official newspaper of record for the top 1 percent, to stop encouraging the damaging dependency and self-destructive behavior of its readers and patrons, before it’s too late.

 

By: Joan Walsh, Editor at Large, Salon, April 3, 2014

April 4, 2014 Posted by | Economic Inequality, Koch Brothers | , , , , , , , , | Leave a comment

“Washing Koch As White As Snow”: No Matter The Camouflage, Things-Don’t-Go-Better-With-Koch

Joe Scarborough recently got into quite a huff—and got the Morning Joe crew to huff with him—over Harry Reid’s attacks on David and Charles Koch, the billionaire industrialists who fund dozens of conservative causes and Republican campaigns. Reid had said, rather catchily for him, that Senate Republicans “are addicted to Koch.” The Senate majority leader also said the brothers “have no conscience and are willing to lie” in political ads, and that they’re “un-American” for trying to “buy America.”

Reid said he doesn’t begrudge the Kochs their wealth, but “what is un-American is when shadow billionaires pour unlimited money into our democracy to rig the system and benefit themselves and the wealthiest 1 percent.”

That might sound hyperbolic unless you have followed the long list of ways the Kochs are indeed buying America. For starters, while their Koch Industries is the one of the nation’s largest air polluters, their money is a huge factor in blocking climate change progress and spreading know-nothing denialism; they fund ALEC and its stand-your-ground political agenda; and they’re waging a multimillion-dollar war against the Affordable Care Act, trying to convince young people, through ads like the one with the creepy Uncle Sam gynecologist, that they should be afraid, very afraid of Obamacare. Through innumerable think tanks, PACs, nonprofits and dark-money trap doors, Koch money has formed a veritable “Kochopus” that reaches deep into academia, industry, state legislatures and Congress. (For more, see here and here.)

But what’s really gotten Harry Reid to put up his dukes is that the Koch-funded PAC Americans for Prosperity (AFM) has spent more than $30 million, and counting, on ads attacking Democratic senate candidates in the upcoming midterm elections. To defeat Senator Kay Hagan of North Carolina, for instance, AFM has already dropped $8.2 million on TV, radio and digital ads. As Politico puts it, that’s more “than all Democratic outside groups in every Senate race in the country—combined.” Koch money could easily flip the Senate to a Republican majority, leaving little but presidential vetoes to blunt the GOP House’s politics of cruelty.

Joe Scarborough understandably fumed at the “un-American” charge, but he framed the Koch’s power quite differently.

“Let’s first tell the truth about them and what they do, put some perspective in it,” he said Thursday. “It’s unbelievable what they’ve done for cancer research, what they’ve done for the arts, what they have done for education.”

Indeed, you can tell by the way the bros have been slapping their names on cultural institutions that they think they can get their reps fixed wholesale. In New York City alone, the New York State Theater at Lincoln Center has become the David H. Koch Theater. As you enter the Metropolitan Museum of Art, signs tell you you’re standing on the new David H. Koch Plaza. David Koch’s name had also been elevated by his contributions to WNET, the city’s PBS affiliate. That ended last year, however, when WNET ran an independent documentary critical of him. To placate Koch, they axed a second similar film, but Koch resigned from the board and took his money with him.

But by emphasizing the Kochs’ philanthropy—which, come on, is the least two men worth $40 billion each and tied at number four on the Forbes rich people list, can do—Scarborough was providing exactly what their largesse was intended to produce: praise and a media force field that can deflect political criticism. Not that Joe is terribly adverse to their politics, but the point of his outrage in the Morning Joe banter was to shift focus away from Koch policies to Reid’s breach of polite discourse. Willie Geist said that the “addicted to Koch” line “seems beneath the office.” Former congressman and nominal Democrat Harold Ford sniffed, “There’s no need for that kind of vitriol.” Only Donnie Deutsch got close to the heart of the matter, asking whether the “Koch brothers spending a billion on advertising is good for democracy.”

Training your eyes on an oligarch’s philanthropy and away from what it camouflages is to accept in some way the essential justness of great wealth. As if to second that notion, Governor Chris Christie said at CPAC last week that Reid was “rail[ing] against two American entrepreneurs who have built a business, created jobs, and created wealth and philanthropy in this country. Harry Reid should get back to work and stop picking on great Americans who are creating great things in our country.” Some of those great things include millions in donations to the Republican Governors Association, which Christie (still) heads.

Reid’s attacks are part of a larger Democratic pushback, which includes TV spots and sites like KochAddiction.com and StopTheGreedAgenda. The strategy is transparent: link GOP candidates to the Kochs and make the Kochs into villains.

Creating a visible villain is, of course, a time-honored political activity. The Dems have vilified Newt Gingrich and more recently Mitt Romney’s Bain Capital, while the Republicans’ demons include Nancy Pelosi, the Rev. Wright and Bill Ayers. As for “un-American,” a few years ago Glenn Beck falsely portrayed George Soros, the closest big-time funder progressives have to the Kochs, as a Nazi collaborator.

But beyond a bunch of liberals who follow the Koch trail, will voters know or care about what the billionaire brothers do with their money?

Paul Waldman in The American Prospect doubts it. And so far, he says, the Democratic ads aren’t up to the job. In this very busy spot, running in Michigan, the Koch brothers appear as barely identified ghosts amid a jumble of hard-to-follow words.

For what it’s worth, the things-don’t-go-better-with-Koch message is getting across, at least with focus groups. Democratic pollster Geoff Garin told the Times, “Our research has shown pretty clearly that once voters recognize the source of the attacks [on Democratic candidates], they tend to discount them substantially.” Focus groups, he said, had an “overwhelmingly negative” reaction to the Kochs’ political involvement and believed that the Kochs’ “agenda will hurt average people and the undermine the middle class.’”

Billionaire venture capitalist Tom Perkins might have been only kidding when he said that democracies should be run more like corporations: “You pay a million dollars in taxes, you get a million votes.”

But if you pay for enough misleading ads, that is, in effect, what a million bucks can do. And the more the media unthinkingly hail your charitable giving, the more mileage a million dollars will get you.

 

By: Leslie Savan, The Nation, March 10, 2014

March 11, 2014 Posted by | Democracy, Koch Brothers | , , , , , , , | Leave a comment

“Boosting Their Bottom Line”: The Koch Brothers Revel In The Sequester

Although everyone from President Barack Obama to House Speaker John Boehner has lamented the negative impact of the $85 billion budget sequestration, at least two major Washington figures are thrilled about the severe cuts. For Charles and David Koch, the sequester accomplishes the goal that motivated the billionaire brothers to help launch the Tea Party movement in 2010: weakening the federal government. And now that the cuts have begun to take effect, the Koch brothers are reveling in their success.

Americans for Prosperity, the right-wing dark money group founded by the Koch brothers in 2004, sent out an email to supporters over the weekend claiming credit for sequestration. The email, from AFP President Tim Phillips, claims, “While Speaker Boehner and the GOP deserve credit and thanks for taking a gutsy stand, it’s important to realize what an incredible impact AFP activists like you” have had in convincing Congress to slash the federal budget across the board.

“These combined efforts helped spread a message across the country that enabled House Republicans to take heart and do the right thing knowing that conservatives had their back,” Phillips continues. His full letter, which also brags that USA Today “recognized the effectiveness of AFP activists and gave us the opportunity to articulate the importance of sequester cuts,” can be read here.

The Koch brothers are also taking to the airwaves to keep up the pressure for even more cuts. Public Notice, to which Charles and David Koch donated $8 million between 2009 and 2011, released a new ad Tuesday minimizing the impact of the sequester — and encouraging the government to make even deeper cuts.

“President Obama calls sequestration a ‘meat cleaver’ that will ‘eviscerate’ government services,” the ad’s narrator ominously charges. “What is sequestration? A three-percent cut in government spending. Three cents out of every dollar the government spends. We’re more than $16 trillion in debt, and the government wastes billions each year on duplicate programs.”

“Americans have made tough choices and cut back. Washington refuses,” the ad concludes. “Call Washington and ask them why it’s so hard to cut spending.”

The ad — which ignores the fact that government spending under President Barack Obama has grown at a slower rate than it did under any president since Dwight Eisenhower was president in the 1950s — will reportedly run until March 15.

Charles and David Koch’s enthusiasm for the sequester isn’t hard to understand. Although the cuts will have a devastating effect on society’s most vulnerable, they will likely boost Koch Industries’ bottom line. The budget sequester is expected to hamstring the Environmental Protection Agency’s regulatory efforts, and Energy Secretary Stephen Chu has warned that “under sequestration, funding reductions would decelerate the nation’s transition into a clean energy economy.” Both outcomes would seem to be very good news for the oil billionaires.

 

By: Henry Decker, The National Memo, March 5, 2013

March 6, 2013 Posted by | Koch Brothers, Sequester | , , , , , , , | 1 Comment

   

%d bloggers like this: