This is a must read for anyone who wants to understand the reality of US politics today. Big money has always played a significant role, but the Supreme Court rulings in Citizens United and Speech Now has made it the dominant factor. In Mayer’s well documented book, the US has become a de facto oligarchy.
The prime organizing force behind this trend is the Koch brothers. Immensely wealthy ($41 billion), they, along with their billionaire allies control a cast network of “philanthropic” institutions, think tanks, lobbyists, and superpacs. This “Kochtopus” promotes minimal government, low taxes, the “free market,” deregulation, privatization and cuts to welfare, social security and Medicare. They reject the science of climate warming and oppose all environmental regulations, unions, minimum wages and food stamps. But they demand, and receive, vast subsidies and tax breaks for themselves. The Kochs have been convicted many times of violations of environmental laws, but have been let off with fines. Many of their allies have been convicted of tax evasion, insider trading and many other crimes, but never imprisoned.
The Koch campaign began a generation ago as an effort to change the conversation by setting up ‘foundations’ and think tanks to subsidize supportive writers and publishers, fund chairs at universities and push their message among the intellectual elite. Then, because of the regulatory threat to their business, they moved to lobbying and direct involvement in state and national campaigns. Their interventions led to the defeat of several Democratic incumbents and the elections of otherwise obscure Republicans, such as Scott Walker in Wisconsin. He proceeded to follow the script to the letter, trashing the public service unions and attacking public education.
The rise of the Tea Party after Obama’s election in 2008 was widely heralded as a populist reaction to Wall Street and corrupt elites. However with the backing of the Kochtopus, it was soon transformed into an anti-government, right wing movement which was used to divert anger away from the banks and towards government, unions and the unemployed. This strategy was very successful in the 2010 elections, which produced Republican gains in Congress and in many states. The victories in the states allowed Republicans to control the 2011 redistricting process and to make voting more difficult for minorities and the poor. In states like Texas, Ohio, Florida, North Carolina and more, they were able to gerrymander electoral districts to ensure Republican wins. In several state elections, for example, the Democrats won the popular vote, but the Republicans won the most seats.
The Kochtopus has succeeded in making the GOP the party of the very wealthy. Candidates are asked to take the ‘no tax increase, no environmental regulations’ pledge in order to receive Koch funds. Moderates are denied money and forced out. John Boehner, majority leader of the House of Representatives, was displaced when he wouldn’t bow to the extremists. Governor John Kasich of Ohio criticized the Koch opposition to Obamacare, in April 2014, and was ostracized. His campaign for president was denied funds and has withered. It is remarkable that Trump’s campaign also had no backing from the Kochtopus and has flourished so far. Whether it will ultimately succeed remains to be seen.
The Democratic party is not immuneto the influence of Big Money, although most of their backers, such as George Soros, have a more progressive agenda. Obama’s dependence on Wall Street money led to his administration’s weak response to the 2008 financial collapse. The result is a very un-virtuous circle. The more influence Big Money acquires, the more public policy is altered to allow them to make even more profits, which in turn gives them more influence. The result is rising inequality – “a system controlled by a handful of ultra-wealthy people who got rich from the system.”
Donald Trump has made a point of refusing Kochtopus money for his campaign. He claims his own wealth gives him immunity from the influence of corporate money. Hence he is anathema to the Republican establishment, but it remains to be seen if his opposition to free trade, Wall Street and corporate welfare is genuine.
By contrast, Bernie Sander’s campaign is an inspiration. His program directly confronts that of the Kochs and there is no doubt of his authenticity. His phenomenal fundraising ability (average donation $27) reflects his widespread support, especially among the young. Clinton, on the other hand, is beholden to Wall Street and big Democratic money. While Sanders is unlikely to win the presidency, his campaign shows that resistance is still possible.
Our Comment.
Dave Gracey is the retired principal of an alternative school in downtown Toronto. He is a long-time member of COMER whose extensive contribution has included many excellent articles in COMER journals. This review of Dark Money is a welcome introduction to an invaluable resource!
Elan
