Financing Politics and Democracy: the ultimate one percent
Posted: December 13, 2011 Filed under: U.S. Politics, We are so F'd | Tags: campaign finance reform, Political donations, Super PACs 19 Comments
A recent examination of political donors by the Sunlight Foundation has found some extremely disturbing numbers on how campaigns are financed. I knew it would be bad but it’s worse than I personally imagined. Nearly all political donations are made by a select few and those donors are not ordinary citizens. There is a sliver of folks/institutions that fund campaigns and they do so with huge amounts of funds and impact. It is difficult to imagine that democracy can survive under these circumstances.
In the 2010 election cycle, 26,783 individuals (or slightly less than one in ten thousand Americans) each contributed more than $10,000 to federal political campaigns. Combined, these donors spent $774 million. That’s 24.3% of the total from individuals to politicians, parties, PACs, and independent expenditure groups. Together, they would fill only two-thirds of the 41,222 seats at Nationals Park the baseball field two miles from the U.S. Capitol. When it comes to politics, they are The One Percent of the One Percent.
A Sunlight Foundation examination of data from the Federal Election Commission and the Center for Responsive Politics reveals a growing dependence of candidates and political parties on the One Percent of the One Percent, resulting in a political system that could be disproportionately influenced by donors in a handful of wealthy enclaves. Our examination also shows that some of the heaviest hitters in the 2010 cycle were ideological givers, suggesting that the influence of the One Percent of the One Percent on federal elections may be one of the obstacles to compromise in Washington.
The One Percent of the One Percent are not average Americans. Overwhelmingly, they are corporate executives, investors, lobbyists, and lawyers. A good number appear to be highly ideological. They give to multiple candidates and to parties and independent issue groups. They tend to cluster in a limited number of metropolitan zip codes, especially in New York, Washington, Chicago, and Los Angeles.
There is little wonder in my mind about the role of this type of campaign finance concentration in the ever-increasing march to plutocracy. It is no wonder that most laws reflect self-dealing and monopoly protection to these same interests. It is also why we continue to see bail outs for these folks and usound economic policy during recessions. There is no room for common sense when policy priorities can be bought. These folks are savvy. Their money is going to Super PACS to represent their interests. We know that Grover Norquist sits on an incredible amount of bucks and is accountable to no one. We also know that his deep pockets have bought off many a republican. He is just one example.
In the 2010 election cycle, the average One Percent of One Percenter spent $28,913, more than the median individual income of $26,364
At the top of this elite group are individuals such as Bob Perry, CEO of Perry Homes, who gave $7.3 million to Karl Rove’s American Crossroads in 2010 and $4.4 million to Swift Vets and POWs for Truth in 2004, and Wayne Hughes, owner and chairman of Public Storage Inc., who gave $3.25 million to American Crossroads in 2010, and Fred Eshelman, CEO of Pharmaceutical Product Development who spent $3 million in 2010 on his own group, RightChange. Sunlight’s Ryan Sibley writes more about the top donors here.
Unlike the other 99.99% of Americans who do not make these contributions, these elite donors have unique access. In a world of increasingly expensive campaigns, TheOne Percent of the One Percent effectively play the role of political gatekeepers. Prospective candidates need to be able to tap into these networks if they want to be taken seriously. And party leaders on both sides are keenly aware that more than 80% of party committee money now comes from these elite donors.
Campaign finance reform is one of those things that doesn’t get much press. It goes no where in Congress. Lobbyists fight it tooth and nail. It appears the stranglehold of big, monied interests is a sure thing. It can only lead to more social unrest since there are no traditional ways to remove it. The Supreme Court has upheld the rights of institutions to act as individuals. Courts have generally been the only bastion of counter measures. This is the kind of thing that sent many tea party and Occupy participants to the streets. Unfortunately, these statistics show that no one is listening.
Eyes in the Sky
Posted: December 10, 2011 Filed under: Breaking News, Civil Liberties, Drone Warfare, Injustice system, Patriot Act, We are so F'd | Tags: drones, police state, privacy 8 CommentsFor anyone who is not persuaded that this country has made a significant U-turn in terms of privacy, civil liberties and what we used to quaintly refer to as ‘freedom,’ this You Tube report is for you. Hat tip to Democratic Underground on this particular find.
Personally, these drones scare the bejesus out of me. But any public official saying that ‘nothing is ruled out’ when it comes to drone application in the domestic arena is even more frightening. It should also remind us that this is what perpetual war and disaster capitalism creates–a security industry for profit wrapped in secrecy and the American flag.
The Eyes in the Sky will be watching. All of us.
More Journalistic Malpractice from WAPO
Posted: November 17, 2011 Filed under: The Media SUCKS, the villagers, We are so F'd | Tags: Journalistic Malpractice, Lori Montgomery, WAPO 14 CommentsPredictably, WAPO propaganda specialist Lori Montgomery and her cronies have produced more junk journalism based on bias instead of any actual knowledge of economics or interviews with folks that would actually know about economics. This time she teamed up with Rosalind Helderman to push her same disinformation about Social Security within the framework of the super committee. Then there’s the added confidence fairy story. It’s about time we consider WAPO to be a source of malinformation and place it on newsstands in the same category as Globe Magazine. Well, maybe not quite the same category. At least the Globe only spins lies about celebrities and alien invasions. Can WAPO just turn their coverage of the federal budget over to Pete Peterson and at least be honest about its obvious dependence on biased think tanks instead of real economics? Why do we have to suffer through bad writers like Lori Montgomery when we can just cut out the middle man? Why hide the real source of this nonsense?
Even as supercommittee members struggled to chart a path to a compromise that would not alienate their respective political bases, a bipartisan group of lawmakers from the House and the Senate planned to renew a call Wednesday for the panel to pursue a more ambitious deal that would require major surgery to Medicare, Medicaid and Social Security, as well as historic tax increases.
Yup. Just what we need. More ambitious cuts that send us straight to a depression. As usual, WAPO writers just can’t help wrongly inserting Social Security into any talk of the federal deficit. How many times do actual economists need to point out that Social Security is a stand alone program with its own source of financing?
Robert Kuttner of the American Prospect shreds WAPO and its biased coverage. WAPO also continues to spew the confidence fairy nonsense. Some how, every one will feel all snug and warm and the economy will recover if we take money away from the vast majority of American households to protect the comfortable few. Wow, just imagine the need for the safety net programs if we downgraded the 1% from filthy stinking rich to stinking rich. Whatever would happen to sales at Tiffany and Mercedes Benz dealerships? Oh, the humanity! Oh, the economic devastation! Hully Gee! WAPO just keeps making up these story lines!
Wednesday’s Washington Post deserves some kind of perverse award for advocacy journalism—in this case, for advocating the proposition that dire economic consequences will ensue if the congressional Super Committee fails to cut a deal for drastic deficit reduction. This is, of course, one side of an argument.
Those on the other side, including myself, have argued that austerity in a deep recession makes no economic sense and that as a matter of politics, the Obama administration would be far better advised to let the automatic sequester formula take effect, knowing that it would have to be reopened because of Republicans’ horror of deep defense cuts and the expiration of the Bush tax cuts.
Moreover, Social Security does not belong in this conversation, and Democrats are better off, substantively and politically, defending it against Republican proposed cuts rather than lumping it in with budget talks.
But I digress. The Post has been an editorial champion of the Super Committee and austerity politics, and of the bogus claim that Social Security is partly responsible for the current deficit, which has seeped into the news coverage of the predictably biased Lori Montgomery.
In yesterday’s Post, the lead piece on deficit politics, by Montgomery and Rosalind Henderman, includes the subtitle, “Pressure mounts from all sides as deadline nears.” Reading the piece, we learn that “talks have focused on a tax package of as much as $650 billion over the next decade”—a Republican claim that the Post took at face value in order to drum up support for the deal. The Republican arithmetic has been thoroughly demolished by Bob Greenstein, whose analysis was just a keystroke away from Montgomery’s wishful keyboard.
Greenstein and Horney’s analysis at CEPR demonstrates that the Toomey plan is not a balanced approach to deficit reduction. As I said yesterday, it is a bait and switch or
some kind of Wimpynomics. Toomey will gladly “reform” taxes Tuesday for devastating budget cuts in social programs today. Nearly all the Republican plans begin with saving the Bush Tax Cuts which have done all kinds of damage to the budget and have had little impact on the economy. Republican suggestions include some weird bargain that would cut spending immediately and postpone overhauling the tax code. I still argue that the Bush Tax Cuts must go or we will be permanently locked into a death spiral.
Senator Pat Toomey and other Republicans on the Joint Select Committee on Deficit Reduction (“Supercommittee”) portray their new offer to raise close to $300 billion in revenues (under a plan to reduce deficits by about $1.5 trillion over ten years) as a significant concession, and some observers have suggested it represents a welcome first step toward a balanced deficit reduction plan to put the budget on a sustainable path. But a closer examination of the proposal raises grave concerns and indicates that, in fact, it adds little balance.
It uses savings from closing tax loopholes and narrowing other tax expenditures mainly to set tax rates permanently at levels well below those of President Bush’s tax cuts, and to make permanent both the highly preferential treatment of capital gains and dividend income under the Bush tax cuts and the temporary hollowing out of the estate tax for estates of the wealthiest one-quarter of 1 percent of Americans that Congress enacted in late 2010. Consequently, the proposal seems designed to make only a modest revenue contribution toward deficit reduction and then to take revenues off the table for the larger rounds of deficit reduction that must follow. Moreover, even while yielding modest savings, the revenue component would make the package less balanced by conferring large new tax cuts on the wealthiest Americans while forcing low- and middle-income Americans to bear most of the plan’s budget cuts as well as its tax increases.
By permanently locking in tax rates well below the Bush levels, the plan would remove the potential to secure $800 billion in deficit reduction by letting the Bush tax cuts for households with incomes over $250,000 expire on schedule at the end of 2012, and it would remove the leverage that the scheduled expiration of these tax cuts provides to those who seek balanced deficit reduction with a substantial revenue contribution. It also would remove the potential to secure a substantial deficit reduction contribution from tax reform.
The most absurd storyline in WAPO pointed out by Kuttner is that some how the failure of the super committee will act like the Grinch that Stole Christmas. Neil Irwin and Ylan Q. Mui write some absurd piece that suggests that people will be more apt to spend for the holidays–due to the perpetually present confidence fairy–after they completely gut Social Security, Medicare and Medicaid. Wow. That makes absolutely no sense. How would causing income to go down and expenses to go up for seniors cause them to go on a shopping spree? How would it give businesses more confidence knowing congress drained them of a source of revenue–in the case of the medical professions–and decreased the income to their customers? WAPO must have some crazy back-asswards macroeconomic models at play!
I can’t wait for Dean Baker and some other economists to take this on again. At the moment, Baker is taking on how the austerity meme is killing the Euro which–if it happens–will undoubtedly send us right back into a global depression and keep us there for some time. Here’s two short paragraphs that point to the root of all our current economic problems. It’s still a lack of demand brought on by the vast wealth and income destruction caused by banks that overleveraged and engaged in pure speculative activities. Their bad investment portfolios wounded many western economies. This austerity kick will most likely mortally wound us all.
The absurdity of this situation is that the eurozone countries would not need outside support from the BRICs if the ECB was prepared to pursue these policies today. Just as is the case now with the United States, there is no shortage of wealth in the EU, in the sense that it has the ability to produce vastly more goods and services than it is currently producing. The main problem is simply a lack of demand.
We have known how to generate demand since Keynes wrote his masterpiece in the ’30s. However, rather than pursue the simple steps needed to restore the eurozone’s economy to stable growth, the ECB is adhering to an ideological agenda that will destroy the euro and throw the economy into an even more severe recession than the last one. This is an extraordinary tragedy unravelling in slow motion in front of the world.
How much more can our civilization endure of policy via junk science and right wing ideology? How can we actually solve any problems when we have huge national papers basically pushing ignorance agendas? We are so f’d.
Monday Reads
Posted: November 7, 2011 Filed under: #Occupy and We are the 99 percent!, abortion rights, Banksters, Environment, morning reads, religious extremists, Reproductive Health, Violence against women, We are so F'd, Women's Rights | Tags: Financial Crisis, Herman Cain, Keystone Pipe Line, Occupy, Protests, sexual abuse, Sexual assault of Journalists 45 Comments
Good Morning!
It hardly seems possible that the first week of November has passed already. There seems to be a lot of unhappiness and unrest around the world right now. Ordinary people are continuing to express their discontent with their governments who ignore the rights of the many to support the wealth of the few.
Jineth Bedoya Lima is a Colombian journalist who is trying to use her own abuse as a way to end sexual assault of women’s journalists. She also wants to highlight the inaction of Colombia in pursing cases for women that have been brutalized.
As a journalist who was kidnapped, tortured, and violently gang-raped 11 years ago, when she was 26, Bedoya had finally gotten the chance she’d been waiting for, one that most women who’ve endured what she has will never get. After 11 years of her case lying motionless at Colombia’s attorney general’s office, she has the prospect of seeing some justice at the international level.
During a morning visit to Bogota’s maximum-security La Modelo prison in May 2000, as part of a newspaper investigation into alleged arms trafficking involving state officials and members of the right-wing paramilitary group United Self-Defense Forces of Colombia (AUC), she was grabbed, drugged, and driven hours away. Three men repeatedly raped her and left her bound in a garbage dump at the side of a road, where a taxi driver discovered her that evening.
Later Bedoya told the news media how her kidnappers had gripped her hair and told her to “pay attention” as they tortured her. “We are sending a message to the press in Colombia,” they said.
After so many years of waiting on the Colombian justice system to investigate her attack, Bedoya is in D.C. to advance her case at the Inter-American Commission. The Pan-American human rights body will take up a case when all options have been exhausted on the country level or when a country has failed to bring justice in a reasonable amount of time. Bedoya and her lawyers appear to have banked and won on the latter.
All the inaction has taken its toll. When I asked after the hearing whether the look she’s had on her face all morning is anger, Bedoya answered quickly: “No, what you see is an expression of deep pain.”
Support for Republican Herman Cain has waned since the public discovery of settlements for sexual harassment. The polls indicate a definite gender gap. Women are well aware of how prevalent sexual harassment is and they are also aware of Cain’s evolving explanations.
The poll showed the percentage of Republicans who view Cain favorably dropped 9 percentage points, to 57 percent from 66 percent a week ago.
Among all registered voters, Cain’s favorability declined 5 percentage points, to 32 percent from 37 percent.
The survey represents the first evidence that sexual harassment claims dating from Cain’s time as head of the National Restaurant Association have taken a toll on his presidential campaign.
A majority of respondents, 53 percent, believe sexual harassment allegations against Cain are true despite his denials. Republicans were less likely to believe they are true, with 39 percent thinking they are accurate.
“The most striking thing is that Herman Cain is actually seeing a fairly substantial decline in favorability ratings toward him particularly among Republicans,” said Ipsos pollster Chris Jackson.
A major story on sexual predation broke over the weekend. Two Penn State officials have been charged with covering up sexual abuse allegations against a coach.
In a development that strikes very close to Joe Paterno’s storied football program, Pennsylvania State University athletic director Tim Curley and another university official were charged Saturday with perjury related to a child sexual abuse investigation of longtime Nittany Lions assistant coach Jerry Sandusky.
The Pennsylvania Attorney General’s Office said Curley, 57, and Gary Schultz, 62, Penn State’s senior vice president for finance and business, also were charged with failure to report, a summary offense. The perjury count is a third-degree felony punishable by up to seven years in prison and a $15,000 fine.
The protest was organized by the Natural Resources Defence Council, a U.S. environmental group. Spokeswoman Susan Casey-Lefkowitz told CBC News many Americans are concerned with the potential environmental impact of the pipeline.
“Tarsands expansion, climate change and particularly this pipeline is a major concern for many, many Americans,” she said, “and the numbers are growing every day.
“You know, for the president, it’s about making sure he holds true to the promises he made to fight climate change,” she said. “And to the other candidates, it’s about calling them out when they act like climate change is not real, which of course it is.”
Mississippi votes tomorrow to enact or reject a radical definition of human ‘life’. Every one interested in the health of women will be watching the southern state that’s best know for being at the bottom of every list of good things in the country. Colorado has voted on a similar initiative but it was rejected by voters.
Opponents said the definition is too broad and, in addition to outlawing abortion, could have effects on in vitro fertilization and birth control methods.
Stan Flint, a consultant for Mississippians for Healthy Families — a group that opposes the measure — said the group has tried to educate voters that they can be against abortion and vote against the initiative.
“Hopefully, everyone in Mississippi will understand this is a dangerously flawed vehicle,” Flint said. “It’s an extreme government intrusion.”
Here’s a really disturbing video from Occupy Oakland of some one being shot at by a rubber bullet by riot police while filming them. Kind’ve makes you wonder about which countries are police states, doesn’t it?
Barry Ritholz continues to make certain that the causes of the financial crisis can’t be white washed by politicians seeking political donations from Wall Street. He writes on the “big lie” at WAPO.
Why are people trying to rewrite the history of the crisis? Some are simply trying to save face. Interest groups who advocate for deregulation of the finance sector would prefer that deregulation not receive any blame for the crisis.
Some stand to profit from the status quo: Banks present a systemic risk to the economy, and reducing that risk by lowering their leverage and increasing capital requirements also lowers profitability. Others are hired guns, doing the bidding of bosses on Wall Street.
They all suffer cognitive dissonance — the intellectual crisis that occurs when a failed belief system or philosophy is confronted with proof of its implausibility.
Be sure to check the list that follows this quote. He has a really good step by step explanation of how Allan Greenspan’s low interest rates led to banks looking for high profits in all the wrong places. They have no one to blame but themselves. So, why are people like Mayor Bloomberg the blaming poor home owners?
So, that will get us started this morning. What’s on your reading and blogging list?







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