Is GOP Party Chair Michael Steele confused about jobs and campaign
money? BF's Account of His Checkered Political History.
Submitted by meg on Mon, 02/09/2009 - 1:01pm. Analysis
A BUZZFLASH NEWS ANALYSIS
by Meg White

Jobs are on everyone's mind right now. Spokespeople for every party
and organization in the country are weighing in on the subject,
whether they have any idea what they're talking about or not.


So it is with newly-minted GOP National Committee Chair Michael
Steele. On Sunday, Steele got into a confusing argument with George
Stephanopoulos on This Week. He declared that people employed by the
government don't really have "jobs" per se:


"If you got a government contract that's a fixed period of time it
goes away. The work may go away. There's no guarantee that there's
going to be more work when you're done with that job."


Watch a snippet of the interview here:


When Stephanopoulos noted that private sector jobs are not any more
stable than government ones, Steele said cryptically that "they come
back."


Steele's argument willfully ignored the existence of millions of
teachers, police officers and other federal and state employees, who
are by no means temporary workers. Steele also ignores the fact that
much of the work that will come out of the stimulus bill will go to
private companies in the form of government contracts.


Essentially, Steele would rather the government give private
companies
tax breaks than contracts, so he makes a nonsensical argument to try
to bolster his party's flawed line of reasoning on the stimulus
package. He calls the work temporary, but tax cuts are an even more
short-lived solution.


Steele's lack of a coherent argument about employment goes back
further than Sunday, however.  He has been living off his party and
the government for years, so it is ironic that he still denies that
the government can produce jobs. Steele's story is proof that his own
argument about government jobs is wrong, with a hint of corruption
thrown in for good measure.


Steele started out as a Republican Party regular in Maryland. When he
was tapped to run for lieutenant governor in 2002, his private sector
job wasn't cutting it, so the GOP paid Steele $5,000 a month to run
for the office. Though the arrangement was unusual, and called
"obscene" by the opposition at the time, it is legal for a party to
pay a candidate to run.


The real question is, if Steele truly thinks the private sector is
the
key to the success of this country, why did he close down his legal
consulting firm and accept an allowance from the GOP to run for
office?


It seems that the party stipend and the years of being on the state's
payroll as lieutenant governor weren't enough for Steele.
Contemplating a future run for governor as his term as lieutenant
governor ran out in 2007, he instructed an aide to transfer more than
$500,000 from his lieutenant governor campaign funds to another bank
account so that the GOP could not distribute the funds to other
candidates.


Such a transfer of funds is legal, but only because Steele planned to
use it to run for state office, not spend it on his failed 2006
Senate
race, which would have been a national office. The accusation of
illegality, contained in a confidential court document accidentally
mailed to The Washington Post, is based on the fact that the transfer
was carried out by an aide and not Steele himself.


Steele contends that the transfer was legal. In fact, Steele insists
that every accusation levied against him by his former finance chair
for his 2006 Senate run is false. Alan Fabian was convicted on
unrelated fraud charges and made several accusations against Steele
in
a failed effort to get a reduced sentence.


Fabian also accused Steele of making improper campaign fund payments,
both to his own sister for more than $37,000 and to a law firm to the
tune of $75,000. Fabian alleged the services for which the payments
were made were never rendered.  Furthermore, The Washington Post
notes
that Steele's sister's company had been dissolved for 11 months by
the
time the payment was made.


These payments may be, as Steele insists, perfectly legal. But the
fact that Steele is being investigated by the FBI suggests that this
is more than just a convicted felon naming names in order to get out
of jail sooner.


Furthermore, Fabian's story makes more sense in historical context.
As
part of a failed bid for state comptroller in 1998, Steele owed
$35,000 in campaign debt, mostly to his sister. Also, he's been fined
twice for missing campaign reporting deadlines. The overall situation
suggests a lack of good judgment, a worrisome pattern of ethical
problems and sketchy motivation for Steele's entire political career.


Steele's brand new job is to get members of his party elected to
Congress. His history of problems with campaign finance shouldn't
inspire much confidence. Moreover, he doesn't seem to think the
government provides real jobs. In keeping with his twisted logic, he
axed a slew of jobs as one of his first acts as GOP chair. Steele
seems to be saying that only he and his family should be allowed to
live off of party and government money.


As we noted last week, Steele fits quite nicely into the
characteristic GOP hypocrite frame. Not only is he duplicitous for
promising change but delivering more of the same, but he's
hypocritical in his desire to live off the taxes and political
contributions of others, at the same time that he criticizes the idea
that the public sector could be a source of employment.


Steele is just one more contradiction showing that the GOP's economic
arguments fail to pass the common sense test. It looks to us like
Steele is not in government to serve the public, but to enrich
himself
and his own friends and family, while working to reduce the
government
itself to drowning size.



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