It’s no use pretending that what has obviously happened has not in fact happened. The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.
Economists long ago tried to justify the vast inequalities that seemed so troubling in the mid-19th century—inequalities that are but a pale shadow of what we are seeing in America today. The justification they came up with was called “marginal-productivity theory.” In a nutshell, this theory associated higher incomes with higher productivity and a greater contribution to society. It is a theory that has always been cherished by the rich. Evidence for its validity, however, remains thin. The corporate executives who helped bring on the recession of the past three years—whose contribution to our society, and to their own companies, has been massively negative—went on to receive large bonuses. In some cases, companies were so embarrassed about calling such rewards “performance bonuses” that they felt compelled to change the name to “retention bonuses” (even if the only thing being retained was bad performance). Those who have contributed great positive innovations to our society, from the pioneers of genetic understanding to the pioneers of the Information Age, have received a pittance compared with those responsible for the financial innovations that brought our global economy to the brink of ruin. [Read more]
Our Declaration of Independence (1776) listed grievances against King George III. A good number of them could have been made against “King” George W. Bush who not only brushed aside Congressional War-making authority under the Constitution but plunged the nation through lies into extended illegal wars which he conducted in violation of international law. Even conservative legal scholars such as Republicans Bruce Fein and former Judge Andrew Napolitano believe he and Dick Cheney still should be prosecuted for war and other related crimes. The conservative American Bar Association sent George W. Bush three “white papers” in 2005-2006 that documented his distinct violations of the Constitution he had sworn to uphold.
Here at home, the political system is a two-party dictatorship whose gerrymandering results in most electoral districts being one-party fiefdoms. The two Parties block the freedom of third parties and independent candidates to have equal access to the ballots and to the debates. Another barrier to competitive democratic elections is big money, largely commercial in source, which marinates most politicians in cowardliness and sinecurism.
Our legislative and executive branches, at the federal and state levels, can fairly be called corporate regimes. This is corporatism where government is controlled by private economic power. President Franklin Delano Roosevelt called this grip “fascism” in a formal message to Congress in 1938. [Read more]
The billionaire brothers David and Charles Koch no longer sit outside Washington’s political establishment, isolated by their uncompromising conservatism. Instead, they are now at the center of Republican power, a change most evident in the new makeup of the House Energy and Commerce Committee.
Wichita-based Koch Industries and its employees formed the largest single oil and gas donor to members of the panel, ahead of giants like Exxon Mobil, contributing $279,500 to 22 of the committee’s 31 Republicans, and $32,000 to five Democrats.
Nine of the 12 new Republicans on the panel signed a pledge distributed by a Koch-founded advocacy group — Americans for Prosperity — to oppose the Obama administration’s proposal to regulate greenhouse gases. Of the six GOP freshman lawmakers on the panel, five benefited from the group’s separate advertising and grass-roots activity during the 2010 campaign.
Claiming an electoral mandate, Republicans on the committee have launched an agenda of the sort long backed by the Koch brothers. A top early goal: restricting the reach of the Environmental Protection Agency, which oversees the Kochs’ core energy businesses. [Read more]
A year ago today, the Supreme Court issued its bizarre Citizens United decision, allowing unlimited corporate spending in elections as a form of “free speech” for the corporate “person.” Justice John Paul Stevens, writing for the dissent, had the task of recalling the majority to planet earth and basic common sense.
“Corporations have no consciences, no beliefs, no feelings, no thoughts, no desires,” wrote Stevens. “Corporations help structure and facilitate the activities of human beings, to be sure, and their ‘personhood’ often serves as a useful legal fiction. But they are not themselves members of ‘We the People’ by whom and for whom our Constitution was established.”
Fortunately, movements are afoot to reverse a century of accumulated powers and protections granted to corporations by wacky judicial decisions.
In Vermont, state senator Virginia Lyons on Friday presented an anti-corporate personhood resolution for passage in the Vermont legislature. The resolution, the first of its kind, proposes “an amendment to the United States Constitution … which provides that corporations are not persons under the laws of the United States.” Sources in the state house say it has a good chance of passing. This same body of lawmakers, after all, once voted to impeach George W. Bush, and is known for its anti-corporate legislation. Last year the Vermont senate became the first state legislature to weigh in on the future of a nuclear power plant, voting to shut down a poison-leeching plant run by Entergy Inc. Lyons’ Senate voted 26-4 to do it, demonstrating the level of political will of the state’s politicians to stand up to corporate power. [Read more]
There’s the guy who became a billionaire selling dog food, a couple of sports-team owners and the developer of an international spy museum.
That’s not to mention the convicted felon, the business leader who was the main financier of Bob Ney’s defense fund before the former Heath congressman went to federal prison, or the cowboy-hat-wearing industrialist who supports a mysterious out-of-state entity now delinquent in paying a record $5.2 million election fine in Ohio.
They are among an esoteric baker’s dozen of individuals and families who have led the way in bankrolling Ohio political campaigns during the past decade. Together, those 13 deep-pocketed donors poured more than $25 million into state races since 2000.
Despite limits placed on campaign contributions in the mid-1990s, Ohioans just witnessed the most expensive gubernatorial campaign in state history. In fact, every statewide nonjudicial race this year broke spending records, some of which had stood for 20 years.
When he signed legislation capping donations to candidates, parties and political-action committees in May 1995, Gov. George V. Voinovich said, “I’m confident there’ll be a substantial reduction in the amount of money spent on campaigns.” Others readily agreed.
Instead, the price tag for statewide campaigns in the past decade leaped almost 73 percent from the total for the 1990s, most of which had no limits on political contributions, according to a Dispatch computer analysis of more than 4.3 million state campaign-finance records involving more than $1.7 billion in transactions.
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WASHINGTON – A year ago, two top Republican strategists sat down for lunch at the venerable Mayflower Hotel, five blocks from the White House, calculating how to exploit the voter anger they had seen erupt at Democratic town hall meetings that summer.
Today, the money-raising success of the GOP-allied attack led by the U.S. Chamber of Commerce and the Karl Rove-inspired American Crossroads has stunned opponents and even its own architects. It’s one big slice of the estimated $3.5 billion expected to be spent on this year’s campaigning, a record for a midterm election.
Financed to a great degree by undisclosed donors — and helped by a new Supreme Court ruling — the deep-pocketed groups have become a dominant part of this election’s narrative. They have reversed past pre-eminence by Democratic outside groups. And they have become a prototype for elections to come.
Their effort has been a major factor in the $264 million in spending so far in this election by outside groups — organizations separate from the political parties and candidates. [Read more]
Pity the campaign finance reform activist. For years he’s fought to wring big money out of politics and shine a spotlight on who’s funding campaigns. But less than a decade after that shining moment for the campaign finance reform movement, the 2002 Bipartisan Campaign Reform Act (known as McCain-Feingold after its two chief Senate sponsors, John McCain and Russ Feingold), its successes are unraveling and its prospects look dimmer by the day.
The 2010 elections will likely see more than $300 million spent by conservative independent groups who disclose little or nothing about their donors. (Pro-Democratic unions will spend perhaps half that, though their funds come from rank-and-file members, not outside donors.) That comes on the heels of a January 2010 Supreme Court ruling in the Citizens United case, which declared that corporations and unions are entitled to spend their money on direct electioneering — meaning to help or defeat candidates — as a function of their free speech. Campaign reformers say the Citizens United decision has effectively served as a green light for a new torrent of corporate cash that’s being funneled in the political system through intermediary groups, like the U.S. Chamber of Commerce, which take advantage of legal loopholes to keep their donors anonymous. [Read more]