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“A Defeat For American Democracy”: The Senate Tried To Overturn ‘Citizens United’ Today. Guess What Stopped Them?

A majority of the United States Senate has voted to advance a constitutional amendment to restore the ability of Congress and the states to establish campaign fundraising and spending rules with an eye toward preventing billionaires and corporations from buying elections.

“Today was a historic day for campaign finance reform, with more than half of the Senate voting on a constitutional amendment to make it clear that the American people have the right to regulate campaign finance,” declared Senator Tom Udall, the New Mexico Democrat who in June proposed his amendment to address some of the worst results of the Supreme Court’s interventions in with the recent Citizens United v. Federal Election Commission and McCutcheon v. Federal Election Commission decisions, as well as the 1976 decision in Buckley v. Valeo.

That’s the good news.

The bad news is that it’s going to take more than a majority to renew democracy.

Fifty-four senators, all Democrats and independents who caucus with the Democrats, voted Thursday for the amendment to clarify in the Constitution that Congress and the states have the authority to do what they did for a century before activist judges began intervening on behalf of wealthy donors and corporations: enact meaningful campaign finance rules and regulations.

But forty-two senators, all Republicans, voted no. As a result, Udall noted, the Republican minority was able to “filibuster this measure and instead choose to support a broken system that prioritizes corporations and billionaires over regular voters.”

The Republican opposition effectively blocked further consideration of the amendment proposal, since sixty votes were needed to end debate and force a vote. And, even if the Republicans had not filibustered the initiative, actual passage of an amendment would have required a two-thirds vote.

Though the Republican move was anticipated, Senator Bernie Sanders, the Vermont independent who has been one of the Senate’s most ardent advocates for reform, expressed frustration with the result. “I am extremely disappointed that not one Republican voted today to stop billionaires from buying elections and undermining American democracy,” said the senator, who has advocated for a more sweeping amendment to address the influence and power of corporate cash on American elections and governance. “While the Senate vote was a victory for Republicans, it was a defeat for American democracy. The Koch brothers and other billionaires should not be allowed to spend hundreds of millions of dollars electing candidates who represent the wealthy and the powerful.“

Now, said Sanders, “the fight to overturn Citizens United must continue at the grassroots level in every state in this country.”

Sanders is right to reference the role of grassroots movements.

Four years ago, when the US Supreme Court removed barriers to corporate spending to buy elections, serious reformers said a constitutional amendment would be necessary to reverse the Court’s Citizens United ruling. Most pundits and politicians, even those who recognized the threat posed to democracy by the opening of the floodgates for big money, dismissed a constitutional fix as too bold and too difficult to achieve.

But the people embraced the constitutional route to reform. Grassroots organizing succeeded in getting sixteen states and close to 600 communities to formally demand that Congress act.

At the same time, the money poured in, with campaigning spending breaking records in the 2012 presidential and congressional elections—and heading toward breaking the record for midterm elections in 2014.

That was enough to shake up even the most cautious Senate Democrats, who began moving earlier this year to advance the Udall amendment. Though activists wanted a stronger amendment, the Senate deliberations confirmed that there is broad support for a constitutional response to the money-in-politics mess—and that a substantial number of senators now see that constitutional response as right and necessary.

“Less than five years after the Citizens United decision sparked national outrage, we have seen the movement to get big money out of politics go from local, grassroots organizing to a vote in the United States Senate,” explained People for the American Way Executive Vice President Marge Baker, who worked with activists from Public Citizen, Common Cause, Free Speech for People and other groups to collect and deliver 3.2 million signatures on petitions supporting an amendment. “Today’s historic majority vote is a remarkable milestone for this movement and a platform for taking the fight to the next level. The debate in the Senate this week is a debate that Americans across the country who are passionate about fixing our broken democracy have wanted to see.”

With the DC debate done, for now, the fight goes back to the grassroots. Activists with groups such as Move to Amend, Public Citizen’s “Democracy is for People” campaign and Free Speech for People will continue to organize and agitate, not just for an amendment but for an amendment that makes it absolutely clear that money is not speech, that corporations are not people and that citizens have a right to organize elections where votes matter more than dollars.

“We have amended the US Constitution before in our nation’s history. Twenty-seven times before. Seven of those times to overturn egregious Supreme Court rulings. For the promise of American democracy, we can and we will do it again,” declared John Bonifaz, the president of Free Speech for People, said Thursday. “The pressing question before the nation today is whether it is ‘we the people’ or ‘we the corporations and big money interests.’ This is not a Democratic issue or a Republican issue. This is a deeply American issue. Whatever our political differences may be, we all share the common vision of government of, for, and by the people. Today’s US Senate vote is just the beginning. While this amendment bill did not receive this time the required two-thirds support in order to pass the Senate, we will be back again and again until we win. History is on our side.’

 

By: John Nichols, The Nation, September 12, 2014

September 13, 2014 Posted by | Campaign Financing, Citizens United, Senate | , , , , , , , | Leave a comment

“The Entitlement Of The Very Rich”: Gutting Social Security And Medicare Far More Unthinkable Than Not Reauthorizing Ex-Im Bank

The very rich don’t think very highly of the rest of us. This fact is driven home to us through fluke events, like the taping of Mitt Romney’s famous 47 percent comment, in which he trashed the people who rely on Social Security, Medicare, and other forms of government benefits.

Last week we got another opportunity to see the thinking of the very rich when Jeffrey Immelt, the CEO of General Electric, complained at a summit with African heads of state and business leaders that there is even an argument over the reauthorization of Export-Import Bank. According to the Washington Post, Immelt said in reference to the Ex-Im Bank reauthorization, “the fact that we have to sit here and argue for it I think is just wrong.”

To get some orientation, the Ex-IM Bank makes around $35 billion a year in loans or loan guarantees each year. The overwhelming majority of these loans go to huge multi-nationals like Boeing or Mr. Immelt’s company, General Electric. The loans and guarantees are a subsidy that facilitates exports by allowing these companies and/or their customers to borrow at below market interest rates.

As a practical matter, whether the bank is reauthorized or not will have no noticeable impact on the economy. If the government took away the subsidy on this $35 billion in exports, it would probably lead to a decline of between 10 and 30 percent in these exports ($3.5 billion to $10.5 billion), while costing Boeing, GE, and the rest some of their profit margin on the portion they continued to export.

The loss of exports would be in the range of 0.2 percent to 0.5 percent of total exports or 0.02 percent to 0.06 percent of GDP. (This assumes that none of the exports include imported parts, which is obviously not the case.) In short the impact on the economy of ending the subsidies from the Ex-Im Bank would be almost invisible.

If the folks pushing for the Ex-Im Bank reauthorization were really concerned about jobs created through trade, we could generate far more jobs with even a modest decline (e.g. 1 percent) of the dollar against other currencies. This would make our exports cheaper to people in other countries and would reduce the price of domestically produced goods relative to imports, thereby leading consumers to purchase more U.S. made goods.

While ending the Ex-Im Bank would have little impact on trade and jobs it would be a big deal to Mr. Immelt’s company and presumably to Mr. Immelt’s compensation. Therefore it is not surprising that he might find it “just wrong” that we should even have to argue about it.

For some additional context, it is worth noting that Mr. Immelt is one of the members of the Peter Peterson initiated group, Fix the Debt. In that capacity he has gone around the country arguing for the need to cut Social Security and Medicare benefits. So we have someone who makes $25 million a year, at least in part from taxpayer handouts, who runs around the country complaining about retired workers getting $1,300 a month from Social Security, whining because he has to argue to continue the handouts he receives.

It would be nice if Immelt were just another crazed one percenter who had no credibility outside of his country club, however this is not the case. It was not an accident that Mr. Immelt was at this summit. He is a highly respected business leader and apparently is close enough to president Obama to have been made head of his Council on Jobs and Competitiveness.

The reality is that the Immelts of the world are able to put muscle behind their sense of entitlement because politicians need their campaign contributions to be credible candidates. For this reason, they are almost certain to secure the reauthorization of the Ex-Im Bank, which has the support of most of the leadership of both parties.

The rest of us just have our votes. But if the public has a clear understanding of the agenda of the Immelts of the world, and their political allies, it will be better positioned to protect the entitlements that workers depend on and have paid for. Gutting Social Security and Medicare should be far more unthinkable than not reauthorizing the Ex-Im Bank.

 

By: Dean Baker, Co-Director, CEPR; The Hufington Posst Blog, August 12, 2014

 

 

 

August 17, 2014 Posted by | Medicare, Social Security | , , , , , , | Leave a comment

“On Inequality Denial”: Good Ideas Don’t Need To Be Sold On False Pretenses

A while back I published an article titled “The Rich, the Right, and the Facts,” in which I described politically motivated efforts to deny the obvious — the sharp rise in U.S. inequality, especially at the very top of the income scale. It probably won’t surprise you to hear that I found a lot of statistical malpractice in high places.

Nor will it surprise you to learn that nothing much has changed. Not only do the usual suspects continue to deny the obvious, but they keep rolling out the same discredited arguments: Inequality isn’t really rising; O.K., it’s rising, but it doesn’t matter because we have so much social mobility; anyway, it’s a good thing, and anyone who suggests that it’s a problem is a Marxist.

What may surprise you is the year in which I published that article: 1992.

Which brings me to the latest intellectual scuffle, set off by an article by Chris Giles, the economics editor of The Financial Times, attacking the credibility of Thomas Piketty’s best-selling “Capital in the Twenty-First Century.” Mr. Giles claimed that Mr. Piketty’s work made “a series of errors that skew his findings,” and that there is in fact no clear evidence of rising concentration of wealth. And like just about everyone who has followed such controversies over the years, I thought, “Here we go again.”

Sure enough, the subsequent discussion has not gone well for Mr. Giles. The alleged errors were actually the kinds of data adjustments that are normal in any research that relies on a variety of sources. And the crucial assertion that there is no clear trend toward increased concentration of wealth rested on a known fallacy, an apples-to-oranges comparison that experts have long warned about — and that I identified in that 1992 article.

At the risk of giving too much information, here’s the issue. We have two sources of evidence on both income and wealth: surveys, in which people are asked about their finances, and tax data. Survey data, while useful for tracking the poor and the middle class, notoriously understate top incomes and wealth — loosely speaking, because it’s hard to interview enough billionaires. So studies of the 1 percent, the 0.1 percent, and so on rely mainly on tax data. The Financial Times critique, however, compared older estimates of wealth concentration based on tax data with more recent estimates based on surveys; this produced an automatic bias against finding an upward trend.

In short, this latest attempt to debunk the notion that we’ve become a vastly more unequal society has itself been debunked. And you should have expected that. There are so many independent indicators pointing to sharply rising inequality, from the soaring prices of high-end real estate to the booming markets for luxury goods, that any claim that inequality isn’t rising almost has to be based on faulty data analysis.

Yet inequality denial persists, for pretty much the same reasons that climate change denial persists: there are powerful groups with a strong interest in rejecting the facts, or at least creating a fog of doubt. Indeed, you can be sure that the claim “The Piketty numbers are all wrong” will be endlessly repeated even though that claim quickly collapsed under scrutiny.

By the way, I’m not accusing Mr. Giles of being a hired gun for the plutocracy, although there are some self-proclaimed experts who fit that description. And nobody’s work should be considered above criticism. But on politically charged issues, critics of the consensus need to be self-aware; they need to ask whether they’re really seeking intellectual honesty, or are effectively acting as concern trolls, professional debunkers of liberal pieties. (Strange to say, there are no trolls on the right debunking conservative pieties. Funny how that works.)

So here’s what you need to know: Yes, the concentration of both income and wealth in the hands of a few people has increased greatly over the past few decades. No, the people receiving that income and owning that wealth aren’t an ever-shifting group: People move fairly often from the bottom of the 1 percent to the top of the next percentile and vice versa, but both rags to riches and riches to rags stories are rare — inequality in average incomes over multiple years isn’t much less than inequality in a given year. No, taxes and benefits don’t greatly change the picture — in fact, since the 1970s big tax cuts at the top have caused after-tax inequality to rise faster than inequality before taxes.

This picture makes some people uncomfortable, because it plays into populist demands for higher taxes on the rich. But good ideas don’t need to be sold on false pretenses. If the argument against populism rests on bogus claims about inequality, you should consider the possibility that the populists are right.

 

By: Paul Krugman, Op-Ed Columnist, The New York Times, June 1, 2014

June 2, 2014 Posted by | Economic Inequality, Populism | , , , , , , , | 1 Comment

“Koch Cadre Billionaire Defends Nazi Comments”: For The Continued Success Of The Richest Americans

Ken Langone, the billionaire Home Depot founder, GOP donor and an ally of Charles and David Koch, clumsily defended his March 2014 comments comparing populist criticism of the 1% with the rise of Nazi Germany, in an interview with Capital New York published this week.

Langone, a regular attendee of the twice-yearly secret strategy sessions for the mega rich organized by Charles and David Koch, has been speaking publicly of his concerns for the continued success of the richest Americans.

“We’re being strangled by regulation,” Langone told a conference of hedge fund managers in Las Vegas in mid May, as reported by CNN. “You’re in the 1%, there’s nothing wrong with that,” he continued. “You can do so much more with money than pay your taxes.”

The Top One Percent as Victims

Now, Langone has spoken to defend his past Nazi comparison, despite having somewhat backtracked just two months earlier.

From Huff Post:

Billionaire Kenneth Langone is still defending his comparison of income inequality talking points to rhetoric in Nazi Germany, after apologizing two months ago for the comments.

In a Capital New York interview published Monday morning, the Home Depot co-founder and Republican megadonor said it was a fair analogy to illustrate how democratic elections can yield results he finds terrifying.

“I simply said just because we’re a democracy doesn’t mean you can’t have bad results,” he said. “That’s all! I stand on what I said.”

Huff Post continued:

In a March interview with Politico, which owns Capital, Langone said a GOP pivot toward the economic populism championed by progressives and by such Tea Party candidates as Kentucky Sen. Rand Paul and Texas Sen. Ted Cruz would mirror the rise of Adolf Hitler.

“I hope it’s not working,” Langone said of the political appeals at the time. “Because if you go back to 1933, with different words, this is what Hitler was saying in Germany.”

Koch “Cadre”

The Kochs have been building their politcal network for more than forty years.

Nicholas Confessore, wrote about the history of the Koch brothers political activities in a front page New York Times story on May 18, 2014, detailing the origins of the present day Koch political operation.

According to Confessore, in a speech given to business leaders and others in 1974, Charles Koch outlined that vision saying: “The development of a well-financed cadre of sound proponents of the free enterprise philosophy is the most critical need facing us today.”

The Koch brothers are not the only billionaires using their wealth to push for radical deregulation. They now have a whole cadre.

 

By: Nick Surgey, The Center For Media and Democracy, May 19, 2014

May 25, 2014 Posted by | Democracy, Economic Inequality, Koch Brothers | , , , , , , | 2 Comments

“Can The Kochs Hold Back History?”: You Can Buy A Lie, But You Can’t Make That Lie The Truth

For a time, the press lord William Randolph Hearst did everything in his vast powers to keep the film “Citizen Kane” from finding an audience. He intimidated theater owners, refused to let ads run in his newspapers, and even pressured studio sycophants to destroy the negative.

At first, the titan of San Simeon had his way: the film faded from view after a splashy initial release. But over the years, “Citizen Kane” came to be recognized for the masterpiece it is, and now regularly tops lists as the greatest film ever made.

The modern equivalent of Hearst is the Koch Brothers, David and Charles — known without affection as the Kochtopus. On certain days, depending on the stock market, their combined worth is more than any single American’s, somewhere around $80 billion.

They have used a big part of this fortune to attack the indisputable science on climate change, to buy junk scholars, to promote harmful legislation at the state level, to go after clean, renewable energy like solar, and to try to kill the greatest expansion of health care in decades. Money can’t buy love, but it certainly can cause a lot of havoc.

Yet, while these billionaire industrialists may win in the short term — the Republican Party, their toady, is likely to pick up seats in the House and may take control of the Senate as well — in the larger fight against progress and modernity the Kochs have already lost. Clean energy is here to stay, and no sane political party would try to take away the health care of eight million fellow Americans.

Check that — they’ll try in both instances. According to one study, the Kochs have already spent $61 million on various front groups dedicated to the flat-earth proposition that the globe is not warming. But so far, the only return on that investment is a cohort of people flopping around in the waters of stupidity. About 44 percent of Republicans and 70 percent of Tea Party-leaning voters believe there is no solid evidence that the earth is getting warmer, according to the Pew Research Center.

Now, this is not 70 percent who think Donald Duck is really a platypus, though in a way it is. This is 70 percent who have been convinced that the actual hard numbers, that 9 of the 10 warmest years on record have occurred in this century, are a hoax. It’s like saying, No, it was not 75 degrees in Atlanta yesterday — that’s just your view.

What this shows is that you can buy a lie, but you can’t make that lie the truth. Over the last nine months, three exhaustive studies have shown that climate change is happening now, and will continue to unfold in real time, with record droughts in the American West, rising seas along the Atlantic coast, and global megastorms so catastrophic they will divert CNN from the missing plane. The climate experts in these studies are the gold standard — from places like the National Academy of Sciences and the Royal Society. They are not political hacks looking to spin something.

So, the real Sisyphean struggle for the Kochs is against science itself. With the fight against solar — and other alternatives to the carbon-based source of the brothers’ wealth — the Kochs are up against market forces and the inevitability of an idea whose time has come. Across the nation, homeowners with solar have taken advantage of incentives that allow them to sell power they don’t need back to the grid. They get the citizen satisfaction of doing their own small part to reduce emissions, but they also get to tell a big corporate or government entity to stuff it. Once you’ve shown people they can be their own electrical utility, you’ve unleashed something that will be very hard to take away.

The Kochs, whose industries are among the nation’s biggest corporate polluters, are currently funding stealth campaigns to roll back incentives for clean energy. What they’re running up against are American do-it-yourselfers. The future of solar is now, with every homeowner tinkering on a roof, every company looking for tomorrow technology, every market improvement that brings the cost down and effectiveness up.

With their fight against health care, the Kochs are bumping into another wall of inconvenient truths. Not only has Obamacare exceeded expectations for sign-ups in the first year, but it’s projected now to cover more people over 10 years — 25 million — and cost $104 billion less than previously forecast, according to the nonpartisan Congressional Budget Office.

A study by the Annals of Internal Medicine found, in looking at the Massachusetts model for Obamacare, that expanding health insurance appeared to save many lives. Duh. But extrapolated from this report for the nation as a whole, you can make a case that the Affordable Care Act will prevent 24,000 deaths a year. Put another way, about 6,000 people a year will die in red states that refuse to expand Medicaid under Obamacare. There are your death panels.

The Kochs also had funding ties to a campaign to persuade young people not to sign up for health care, hoping to sabotage it with beer parties and scare ads of a creepy Uncle Sam looking at a woman in an examining room. No surprise, the kids saw through it. More than enough millennials got coverage — so many, that premiums may fall in the coming sign-up period.

Next year, the Kochs will have a Congress loaded with crackpots ready to serve their agenda. There will be show hearings, bills will be introduced, meaningless votes will be taken. In the end, health care and clean energy will march on. The Kochs, to close with another film reference, will be like Harold Lloyd in one of the great scenes from the silent movie era — hanging from the hands of a giant clock. It may cost them half a billion dollars to learn that they can’t stop time.

 

By: Timothy Egan, Contributing O-Ed Writer, The New York Times, May 8, 2014

May 11, 2014 Posted by | Clean Energy, Climate Change, Koch Brothers | , , , , , , | 2 Comments