The Billionaires Bankrolling the Tea Party

August 28, 2010


ANOTHER weekend, another grass-roots demonstration starring Real Americans who 
are mad as hell and want to take back their country from you-know-who. Last 
Sunday the site was Lower Manhattan, where they jeered the "ground zero mosque."

This weekend, the scene shifted to Washington, where the avatars of oppressed 
white Tea Party America, Glenn Beck and Sarah Palin, were slated to "reclaim 
the civil rights movement" (Beck's words) on the same spot where the Rev. 
Martin Luther King Jr. had his dream exactly 47 years earlier. There's just one 
element missing from these snapshots of America’s ostensibly spontaneous and 
leaderless populist uprising: the sugar daddies who are bankrolling it, and 
have been doing so since well before the "death panel" warm-up acts of last 
summer. Three heavy hitters rule. You've heard of one of them, Rupert Murdoch. 
The other two, the brothers David and Charles Koch, are even richer, with a 
combined wealth exceeded only by that of Bill Gates and Warren Buffett among 
Americans.

But even those carrying the Kochs' banner may not know who these brothers are. 
Their self-interested and at times radical agendas, like Murdoch's, go well 
beyond, and sometimes counter to, the interests of those who serve as spear 
carriers in the political pageants hawked on Fox News. The country will be in 
for quite a ride should these potentates gain power, and given the 
recession-battered electorate's unchecked anger and the Obama White House's 
unfocused political strategy, they might. All three tycoons are the latest 
incarnation of what the historian Kim Phillips-Fein labeled "Invisible Hands" 
in her prescient 2009 book of that title: those corporate players who have 
financed the far right ever since the du Pont brothers spawned the American 
Liberty League in 1934 to bring down F.D.R. 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 J.F.K. and Medicare to the 
Koch-Murdoch-backed juggernaut against our "socialist" president.

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, 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 U.S. 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. Last week the 
Kochs were shoved unwillingly into the spotlight by the most comprehensive 
journalistic portrait of them yet, written by Jane Mayer of The New Yorker. Her 
article caused a stir among those in Manhattan's liberal elite who didn't know 
that David Koch, widely celebrated for his cultural philanthropy, is not merely 
another rich conservative Republican but the founder of the Americans for 
Prosperity Foundation, which, as Mayer writes with some understatement, "has 
worked closely with the Tea Party since the movement’s inception." To New 
Yorkers who associate the David H. Koch Theater at Lincoln Center with the New 
York City Ballet, it's startling to learn that the Texas branch of that 
foundation's political arm, known simply as Americans for Prosperity, gave its 
Blogger of the Year Award to an activist who had called President Obama 
"cokehead in chief."

The other major sponsor of the Tea Party movement is Dick Armey's FreedomWorks, 
which, like Americans for Prosperity, is promoting events in Washington this 
weekend. Under its original name, Citizens for a Sound Economy, FreedomWorks 
received $12 million of its own from Koch family foundations. Using tax 
records, Mayer found that Koch-controlled foundations gave out $196 million 
from 1998 to 2008, much of it to conservative causes and institutions. That 
figure doesn’t include $50 million in Koch Industries lobbying and $4.8 million 
in campaign contributions by its political action committee, putting it first 
among energy company peers like Exxon Mobil and Chevron. Since tax law permits 
anonymous personal donations to nonprofit political groups, these figures may 
understate the case. The Kochs surely match the in-kind donations the Tea Party 
receives in free promotion 24/7 from Murdoch’s Fox News, where both Beck and 
Palin are on the payroll. The New Yorker article stirred up the right, too. 
Some of Mayer's blogging detractors unwittingly upheld the premise of her 
article (titled "Covert Operations") by conceding that they have been Koch 
grantees. None of them found any factual errors in her 10,000 words. Many of 
them tried to change the subject to George Soros, the billionaire backer of 
liberal causes. But Soros is a publicity hound who is transparent about where 
he shovels his money. And like many liberals — selflessly or foolishly, 
depending on your point of view — he supports causes that are unrelated to his 
business interests and that, if anything, raise his taxes. This is hardly true 
of the Kochs.

When David Koch ran to the right of Reagan as vice president on the 1980 
Libertarian ticket (it polled 1 percent), his campaign called for the abolition 
not just of Social Security, federal regulatory agencies and welfare but also 
of the F.B.I., the C.I.A., and public schools — in other words, any government 
enterprise that would either inhibit his business profits or increase his 
taxes. He hasn't changed. As Mayer details, Koch-supported lobbyists, 
foundations and political operatives are at the center of climate-science 
denial — a cause that forestalls threats to Koch Industries' vast fossil fuel 
business. While Koch foundations donate to cancer hospitals like Memorial 
Sloan-Kettering in New York, Koch Industries has been lobbying to stop the 
Environmental Protection Agency from classifying another product important to 
its bottom line, formaldehyde, as a "known carcinogen" in humans (which it is). 
Tea Partiers may share the Kochs' detestation of taxes, big  government and 
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.

Yet inexorably the Koch agenda is morphing into the G.O.P. agenda, as 
articulated by current Republican members of Congress, including the putative 
next speaker of the House, John Boehner, and Tea Party Senate candidates like 
Rand Paul, Sharron Angle, and the new kid on the block, Alaska's anti-Medicaid, 
anti-unemployment insurance Palin protégé, Joe Miller.

Their program opposes a federal deficit, but has no objection to running up 
trillions in red ink in tax cuts to corporations and the superrich; apologizes 
to corporate malefactors like BP and derides money put in escrow for oil spill 
victims as a "slush fund"; opposes the extension of unemployment benefits; and 
calls for a freeze on federal regulations in an era when abuses in the oil, 
financial, mining, pharmaceutical and even egg industries (among others) have 
been outrageous. The Koch brothers must be laughing all the way to the bank 
knowing that working Americans are aiding and abetting their selfish interests. 
And surely Murdoch is snickering at those protesting the "ground zero mosque." 
Last week on "Fox and Friends," the Bush administration flacks Dan Senor and 
Dana Perino attacked a supposedly terrorism-tainted Saudi prince whose 
foundation might contribute to the Islamic center. But as "The Daily Show" 
keeps pointing out, these Fox bloviators never acknowledge that the evil prince 
they're bashing, Walid bin Talal, is not only the biggest non-Murdoch 
shareholder in Fox News’s parent company (he owns 7 percent of News 
Corporation) and the recipient of Murdoch mammoth investments in Saudi Arabia 
but also the subject of lionization elsewhere on Fox. No less a Murdoch 
factotum than Neil Cavuto slobbered over bin Talal in a Fox Business Channel 
interview as recently as January, with nary a question about his supposed 
terrorist ties.

Instead, bin Talal praised Obama's stance on terrorism and even endorsed the 
Democrats' goal of universal health insurance. Do any of the Fox-watching 
protestors at the "ground zero mosque" know that Fox's profits are flowing to a 
Obama-sympathizing Saudi billionaire in bed with Murdoch? As Jon Stewart summed 
it up, the protestors who want "to cut off funding to the 'terror mosque' " are 
aiding that funding by watching Fox and enhancing bin Talal's News Corp. 
holdings.

When wolves of Murdoch's ingenuity and the Kochs' stealth have been at the door 
of our democracy in the past, Democrats have fought back fiercely. Franklin 
Roosevelt's triumphant 1936 re-election campaign pummeled the Liberty League as 
a Republican ally eager to "squeeze the worker dry in his old age and cast him 
like an orange rind into the refuse pail."

When John Kennedy's patriotism was assailed by Birchers calling for 
impeachment, he gave a major speech denouncing their "crusades of suspicion." 
And Obama? So far, sadly, this question answers itself.

http://www.nytimes.com/2010/08/29/opinion/29rich.html?hp

 
                                                                                
                               
 











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