Democratic Republic or Secret Plutocracy






A Brief Synopsis of ‘Dark Money’ by Jane Mayer







Len Leritz



Preface

In the U.S., “dark money” is a term used to describe donations given to nonprofit organizations — primarily social welfare and trade association groups — that can receive unlimited donations from corporations, individuals, and unions, and spend funds to influence elections, but are not required to disclose their donors. While technically these organizations cannot have political activity — such as creating ads advocating for or against candidates — as their primary purpose, these dark money groups do change public attitudes and have a large cultural impact. According to the Center for Responsive Politics, a non-partisan organization, spending by dark money organizations has increased from less than $5.2 million in 2006 to well over $300 million in the 2012 presidential election cycle.1 Nearly $900 million has already been pledged by Republican donors for the 2016 presidential election cycle. There is not good data on how much has been pledged by Democratic donors.

I recently read Jane Mayer’s new book, Dark Money, which discloses the secret four-decade campaign by a handful of wealthy white men (and a few women) to change public opinion in order to gain political power so they could serve their own self-interests.2 I was very disturbed by the story she tells. They began as an anti-government, fringe libertarian movement, but in time decided it was to their benefit to align with the Republican Party to gain more traction. At the same time, they made some attempts to influence in the Democratic Party with much less success. Over the past 20 years they have gotten the Republican Party to adopt their anti-regulation, anti-tax agenda, but in doing so, they have created a civil war within the Republican Party. In addition, in the past two years, they have created a stealth political party structure outside of the Republican Party. In the 2016 election cycle, with the rise of a blue collar populist movement supporting Donald Trump, they have created a party in chaos.

I had known bits and pieces of this, but I did not understand how the whole interlocking story fit together, and I did not realize the breadth and depth of what has and is still occurring. I did not understand the impact that dark money has had on our constitutional republic. In essence, dark money has:

What follows is a brief synopsis of the story, why I think it is important, and an invitation to join me in a discussion about how we can change what is occurring. I want people to understand the back story as to why the playing field has become so uneven and why there is such gridlock in Washington. I have two objectives: (1) Create an open and fair playing field in American politics, and (2) Re-create an environment in which thoughtful people can have respectful conversations and together find mutually-beneficial solutions to our country’s needs.

In short, my desire is to support the mission of the Sunlight Foundation:

The Sunlight Foundation is a national, nonpartisan, nonprofit organization that uses the tools of civic tech, open data, policy analysis and journalism to make our government and politics more accountable and transparent to all. Our vision is to use technology to enable more complete, equitable and effective democratic participation. Our overarching goal is to achieve changes in the law to require real-time, online transparency for all government information, with a special focus on the political money flow and who tries to influence government and how government responds. And, our work focuses on the local, state, federal and international levels.3

The body of this paper is in large part taken from the fine work of Jane Mayer. However, I did not follow Mayer’s outline. Instead content is presented in an effort to boil it down to the key points for those who will not take the time to read the book. In doing so, I have literally quoted her as well as liberally paraphrased her writing to capture her work as closely as possible. I hope that I have done it justice. I encourage you to read the book in its entirety. I think only then will you experience the real gravity of what she has spent five years researching.

The last sections of this paper on Why it Matters, What Needs to Happen, and Some Final Thoughts on the current political scene playing out in the 2016 presidential election, are my thoughts based both on Mayer’s work and on additional research I did after reading Mayer’s book. Mayer, in focusing on this libertarian movement that has so influenced the Republican Party, answered questions that had been bothering me for several years. I did additional research on the following questions: What is going on in the Democratic Party? What is the degree of impact that this covert libertarian movement has had over time? What is occurring in the current election cycle?

I hope you will join me in this conversation.

Len Leritz




Questions About Five Symptoms

1. Income and Wealth Inequality

According to the Pew Research Center, U.S. income inequality is the highest since 1928. “In 1928, the top 1% of families received 23.9% of all pre-tax income, while the bottom 90% received 50.7%. The Depression and World War II dramatically reshaped the nation’s income distribution: By 1944 the top 1% ‘s share was down to 11.3%, while the bottom 90% were receiving 67.5%, levels that would remain more or less constant for the next three decades.” 4

Thus in 1975 and for the three preceding decades, there was general income equality in the U.S. Things have changed. The median household income adjusted for inflation from 1965 to 2015 rose only 5.9%, and has been declining since 2000. This means the real purchasing power of the average American has been shrinking for a long time.

It is a different story for the top 1% in America. Americans in the top 1% average 38 times more income than the bottom 90%, and Americans in the top 0.1% are taking in over 184 times the income of the bottom 90%. The result is that the top 1% owns as much wealth as the bottom 90%.5 As an example, David and Charles Koch’s fortunes nearly tripled from 2009 (the beginning of Obama’s administration) to 2015 — from $14B apiece to $41.6B apiece. Their ranking as the 6th and 7th wealthiest people in the world has improved. (Mayer, p. 378)

What has caused income inequality to become so extreme in the past forty years?

2. The Political Divide

In the late 1960’s, Congress with broad bi-partisan agreement, passed the Clean Air Act, the Clean Water Act, and the Toxic Substances Control Act. In 1970, also with broad bi-partisan support, President Nixon signed legislation creating both the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA).

In January 2009, when President Obama was inaugurated, the leader of Republicans in the Senate, Mitch McConnell, declared, “We have a new president with an approval rating in the 70 percent area. We do not take him on frontally. We find issues where we can win, and we begin to take him down, one issue at a time. We create an inventory of losses, so it’s Obama lost on this, Obama lost on that. And we wait for the time when the image has been damaged to the point where we can take him on.” In 2010, just before the midterm elections, McConnell famously said that “the single most important thing we want to achieve is for Obama to be a one-term president.”6 Likewise, the Republican Leadership in the House met and vowed to obstruct Obama’s presidency in every way that they could.

In that same year, Obama decided to attempt what no president had been able to do in 40 years — pass a health care reform bill. Initially, several moderate Republican senators were working with the Obama administration to draft a bi-partisan bill, but they were pressured to withdraw from the negotiations. In 2010, the Affordable Care Act (ACA) barely passed with exactly the minimum number of votes needed, and without a single Republican vote. In the following years, the Congress voted 50 times to repeal the ACA without ever offering an alternative plan. Are the Republicans opposed to the ACA because they really believe that it is a bad bill doing harm to people, or because they have wanted Obama’s presidency to fail?

The political gridlock became worse after the 2010 mid-term elections when Tea Party conservatives became a powerful block in the Republican controlled House. Their mission was to never compromise. What followed were repeated maneuvers to shut down the government and to repeatedly pass bills to repeal the ACA. They forced House Speaker Boehner to break off negotiations with Obama at the last minute to reach a ‘grand bargain’ to avoid a government default. In the end, they forced Boehner to resign. The result has been near total gridlock.

By 2015, the anti-government position of the Radical Right in the Republican Party has prevented a long list of important issues from being addressed: Global warming; economic inequality; funding basic public services like the repair of America’s infrastructure; improving the ACA to expand health care coverage to millions of Americans; and campaign finance reform. They are opposed to any limits on campaign spending, and they want to shrink and privatize Social Security even though Americans overwhelmingly want to see Social Security expanded. And they are opposed to raising taxes on anyone, especially the very wealthy.

At the same time, the Democratic Party has become much more liberal in its positions. What has caused the two parties to move so far apart and to become so divisive? What happened to the moderates and bi-partisan commitment to address the real needs of our nation? Why has the Republican Party become the ‘party of no’ — where it is more important to be obstructionist that to pass a positive agenda for the American people?

3. Environmental Regulations

According to a national study done by Yale University in 2010, American’s Knowledge of Climate Change, a majority of Americans believe that global warming is happening, while 19% say it is not happening, and 19% say they don’t know. Half of Americans (50%) say that if global warming is happening, it is caused mostly by human activities. Over a third (35%) say that if it is happening it is caused by natural changes, while 7% reject the question and say global warming is not happening. Thirty three percent (33%) say that most scientists think global warming is happening, while 38% say there is a lot of disagreement among scientists whether or not global warming is happening.

In a poll by Gallup, from 2008 to 2010, “…the percentage of Americans who believed the world was warming had dropped a precipitous 14 points from 2008. Almost half of those polled by Gallup in 2010 (48%) believed that fears of global warming were ‘generally exaggerated,’ the highest numbers since the polling firm first posed the question more than a decade before.” (Mayer, p. 224)

As late as 2003, over 75% of Republicans supported strict environmental regulations. (Mayer, p. 209) In 2014, among Democrats and Democratic leaners, 45% say they worry a great deal about the quality of the environment. This percentage drops to 16% among Republicans and Republican leaners.7

In December 2015, the Paris climate agreement was unanimously approved by 195 nations. The landmark accord commits nearly every country in the world to lower greenhouse gas emissions. The United Nations Secretary-General Ban Ki-moon said in an interview, “this is truly a historic moment. For the first time, we have a truly universal agreement on climate change, one of the most crucial problems on earth.” Senator Jim Inhofe (R-Okla.), chairman of the Senate Environment and Public Works Committee, blasted the accord saying it is not binding, it doesn’t change anything, that China and India would not be held to high standards, and demanded that the accord be submitted to the Senate for approval, which was not required since it was not a treaty.8 Inhofe has long been a critic of global warming and worked for months to undermine the Paris agreement before the conference. Inhofe has received repeated campaign donations from Koch Industries PAC. In December of 2015, the U.S. Supreme Court took the unprecedented action of blocking the EPA from regulating coal-fired power plants while the issue worked its way through lower courts. This action jeopardizes the Paris agreement because if the U.S. cannot regulate coal-fired power plants, it cannot keep its commitment in the climate agreement.

There are two big questions here. The first is why does 38% of Americans believe that there is disagreement among scientists about global warming and 48% believe that fears about global warming are ‘generally exaggerated’, when in fact there is almost universal consensus among scientists? The second big question is even though nearly every nation on earth believes global warming is such a critical issue that they came to Paris with plans to address it, and signed the accord, why has the Republican Party adopted such a strong position against the science supporting global warming? What has caused them to move to this position over the past 15 years? Do they really not believe the overwhelming evidence that the earth is warming up at a dangerous rate and human beings are significantly contributing to it, or is there another reason?

4. Campaign Finance Reform

In a 2014 Washington Post article, Dan Balz observed, “When W. Clement Stone, an insurance magnate and philanthropist, gave $2 million to Richard M. Nixon’s 1972 campaign, it caused public outrage and contributed to a movement that produced the post-Watergate reforms in campaign financing “for which there was bi-partisan support.” (Mayer, p. 8) For the 2016 election cycle, after the Supreme Court’s decision in Citizens United, the Koch brothers and their network have pledged nearly one billion dollars ($889 million). There are no limits on political spending by outside groups, and their contributors can remain anonymous. The Republicans now are adamantly opposed to any regulations governing campaign spending. In July 2012, the Republicans blocked the DISCLOSE Act (also known as H.R. 5175), which would have required organizations spending $10,000 or more to reveal their donors because in the 2012 cycle 81% of the dark money was going to Republicans.9 How did we get here, and why?

5. The Republican Gains

According to Larry Sabato, a political science expert at the University of Virginia Center for Politics, the Republicans have won 11 governorships, 13 U.S. Senate seats, 70 former Democratic seats in Congress, 910 state legislative seats, and taken control of 30 state legislative chambers in the 2010 and 2014 midterm elections. It is a historical trend for two- term presidents to lose seats to the other party, but is has been worse than usual during Obama’s administration. This raises the questions of why and how? According to Sabato voters in midterm elections tend to be older and whiter and therefore more conservative. Young voters and minorities who tend to vote Democratic also tend to not show up for midterm elections. Also some of the lost Senate seats were in red states which favored the Republicans. Another reason, as Sabato points out, is that in the past voters were more centrist and would vote with one party in presidential elections but may vote for the other party in midterms. In recent years, as the parties have become more extreme in their positions, their members tend to vote a straight party line down the ballot and stay with their party.10 This analysis explains some of the reasons why the Democrats have lost seats in the last two midterm elections, but not why they have lost so badly.

The Underlying Problem/The Common Thread

The current configuration or status of these five issues: Income and wealth inequality, the political divide, environmental regulations, campaign finance reform, and recent Republican gains in the last two midterm elections all have a common underlying cause — wealthy white men (and a few wealthy women) who have used the tax laws to wage an underground four-decade-long campaign to shape public policy for their own self-interest at the expense of everyone else. It has been a stealth campaign to protect and increase their wealth, and to gain power. There is a common back story to each of these symptoms outlined above.

It is human nature to want to protect what we have and to want to pass on what we have to our heirs. It is also human nature to want the right to express our beliefs and to have the freedom to make an argument for what we value and think is important, and in doing so to influence what others think. That is why our founding fathers wrote the first amendment into the U.S. Constitution — defining our freedom of religion, speech, press, assembly, and petition. But when this is done in a deceptive, dishonest way… When wealthy men and women use their wealth to distort the truth in order to manipulate and deceive the general population so they can gain political power and enhance their wealth, then we are in danger of losing our republic and becoming a plutocracy. And that is where we are.

A republic is a form of government in which the power resides with citizens who have the right to vote for and elect representatives who are responsible to them and who govern by the law. A plutocracy is a country ruled or controlled by the small minority of wealthiest citizens. Legally, we are a constitutional republic. In reality, over the past forty years, we have been evolving into a shadow plutocracy.

A primary example is what has occurred during the past seven years of the Obama administration. In November 2008, Obama was elected President by the citizens of the republic. But in January 2009, shortly after his inauguration, the Koch brothers convened a meeting of some of the wealthiest men in America at the Renaissance Esmeralda Resort and Spa in Indian Wells, California. Their goal was to use their combined wealth to do everything they could to nullify Obama’s election. They were committed to do everything they could to ensure that our republic failed. They were not meeting to commit to a plan for what they could do over the next four years for the American people. They were meeting to strategize how they could increase their own wealth and power.

Back in Washington, Mitch McConnell, the Republican Senate majority leader, announced his primary goal was to take Obama down one issue at a time to damage his approval ratings, and to ensure that Obama would be a one-term president. At the same time, the Republican leadership in the House met and committed to obstruct Obama in every way they could. The result, of course, has been seven years of even worse gridlock, not because the Republicans always had policy differences, but because they wanted to increase their political power.

As Jane Mayer writes: “The 112th Congress soon unfolded as a case study of what David Frum, an advisor to the former president George W. Bush, described as the growing and in his view destructive influence of the Republican Party’s ‘radical rich.’ The ‘radicalization of the party’s donor base,’ he observed, ‘propelled the party to advocate policies that were more extreme than anything seen since Barry Goldwater’s 1964 presidential campaign.’ It also ‘led Republicans in Congress to try tactics they would never have dared use before.’” (Mayer, p. 273)

Examples of this abound throughout the Obama administration. The Koch brothers and their network kept constant pressure on the administration to accept tax cuts that directly increased their wealth at the expense of everyone else. For years the Kochs and 17 of the wealthiest families in the country collectively spent half a billion dollars to lobby for an elimination of estate taxes, which they termed as ‘death taxes.’ These families would save $71 billion dollars. In December 2010, Republican negotiators insisted on cuts in estate taxes that would cost the Treasury $23 billion. This was two years after the 2008 financial meltdown.
Another prime example was the Koch’s influence over the House Energy and Commerce Committee. The previous Congress had successfully passed the cap-and-trade bill that died in the Senate. In this Congress, Koch Industries PAC was the single largest donor to 22 of the committee’s 31 Republican members and five of its Democratic members. Almost all of the members on the committee had signed the Koch’s “No Climate Tax” pledge, along with 156 members of Congress. The committee also led a crusade against alternative, renewable energy programs.
Currently the Koch brothers are opposing government subsidies for electric cars. Phillip Ellender, a spokesman for Koch Industries said, “What we oppose is government subsidizing and mandating a particular form of energy over another. We oppose all subsidies — even for those industries in which we participate.”11 That has not been true historically. Koch Industries took full advantage of government tax credits and subsidies for their oil, ethanol, and pipeline businesses during the George W. Bush administration. (Mayer, p. 213)

One member of the Committee, in whose campaign the Kochs had heavily invested, was Morgan Griffith who represented Saltville, Virginia. Griffith led the charge in the House Republicans’ war on the EPA and got the House to reduce its budget by 27%. The EPA had halted the flow of mercury from an Olin Corporation plant into Saltville’s streams. Koch Industries has also had a steady stream of charges brought against them for violating environmental regulations with impunity. “In 2012, according to the EPA’s Toxic Release Inventory database, which documents the toxic and carcinogenic output of eight thousand American companies, Koch Industries was the number one producer of toxic waste in the United States.” (Mayer, p. 275) Koch Industries had spent over $8 million in 2011 lobbying Congress, mostly on environmental issues.

Another example of the Koch brothers’ shadow power on the Congress was Paul Ryan’s April 2011 budget plan called “The Path to Prosperity.” In the past there was not much support for it, but this time it easily passed in the House 235-193 without a single Democratic vote. This was after the huge Republican gains in Congress in the 2010 midterm elections. Among other things, it:

Robert Greenstein of the Center on Budget and Policy said the plan “would likely produce the largest redistribution of income from the bottom to the top in modern U.S. history.” (Mayer, p. 294)

And then there was the battle in the spring of 2011 over raising the debt ceiling. As Mayer writes: “…the self-styled “Young Guns,” backed by the Tea Party faction in the House, forced a fight over raising the debt ceiling, a pro forma measure long used to authorize payment of the country’s financial obligations. It looked as if the Tea Party radicals were protesting profligate spending, but in fact all they were doing was refusing to formally authorize payment of funds that Congress had already appropriated, in essence refusing to pay congress’s credit card bill after the previous year’s shopping spree. In the end, their self-destructive fight hurt themselves more than anyone else, but meanwhile the radicals’ willingness to pitch the U.S. government into default created a national crisis. The increasingly desperate standoff might produce chaos and dysfunction, but that prospect merely served the conservatives’ anti-government agenda.” (Mayer, p. 296)

Mayer goes on to say “By 2011, the extremist upstarts had formed a powerful clique within the party’s leadership and appeared itching to challenge Boehner’s authority. Many owed more to the Kochs and other radical rich backers than they did to the party….Pushing the Young Guns forward toward the financial cliff was Americans for Prosperity, the Kochs’ political arm. Some forty other Tea Party and antitax groups also clamored for all-out war. Among the most vociferous was the Club for Grow, a small, single-minded, Wall Street-founded group powerful for one reason: it had the cash to mount primary challenges against Republicans who didn’t hew to the uncompromising line. The club had developed the use of fratricide as a tactic to keep officeholders in line after becoming frustrated that many candidates it backed became more moderate in office.” (Mayer, p. 297)
Obama and Boehner were close to negotiating what they called a ‘grand bargain’ that would close some tax loopholes, which the Young Guns and Eric Cantor were opposed to because it would cut into the profits hedge funds and private equity firms (major contributors to Cantor’s campaign fund). It was estimated that closing this one loophole would raise $20 billion over the next decade. During this time Boehner went to New York to plead with David Koch for help. Obama thought he and Boehner had a deal, but Boehner suddenly stopped returning his phone calls and then publicly denounced Obama and blamed him for the failure to reach an agreement. The outcome of all of this was the “sequester” and America’s credit rating being downgraded by Standard & Poor’s (S&P) for the first time in history.

How Have They Done It?

They have accomplished this phenomenal power by using the tax code to their advantage. In his book, Rich People’s Movements: Grassroots Campaigns to Untax the One Percent, Isaac William Martin, a professor of sociology at the University of California in San Diego, points out that the passage of the income tax in 1913 (the Revenue Act) was viewed as devastating by the wealthy, and set off a century-long campaign to roll back progressive forms of taxation. The same Revenue Act also defined 29 types of nonprofit organizations that are exempt from some federal income taxes, which the wealthy have used to promote their agenda.

Around this same time, John D. Rockefeller got permission from the state of New York (because he had failed to get permission from Congress) to set up a general-purpose private foundation so he could give away some of his mounting wealth. This began the practice of private foundations. By 1917, philanthropists convinced Congress to give them a tax break, so Congress granted unlimited charitable deductions to private foundations. The term ‘private foundation’ was finally defined in the Internal Revenue Code in 1969.

Another tax structure is charitable remainder trusts which are authorized by the Internal Revenue Code. The concept of charitable trusts came over on the Mayflower and prior to the 1970’s they were used by wealthy families to pass their assets on from one generation to the next. They did this by setting up charitable trusts that stipulated that all net income had to be donated to non-profit charities for a set number of years, usually 20 years, and after that time, the principal could pass to their beneficiaries tax free.

In time, instead of donating the profits from their trusts to public charities, wealthy families like the Kochs began making tax deductible contributions to their own private foundations:

501(c)(4) and501(c)(6) organizations were set up as vehicles to funnel money for political and issue spending. Americans for Prosperity, the Center to Protect Patient’s Rights, Freedom Partners, Libre Initiative, Americans for Limited Government, Club for Growth, Partnership for Ohio’s Future, Americans for Tax Reform, and the Tea Party Patriots are examples of these types of organizations. In some cases, the organizations are simply post office boxes used to hide the money trail.

The advantage of these private foundation organizations are that they provide the donors with a tax deductible way to impact society however they please. The private foundations give them complete control on how to use their money, thus they are flexible and agile, and they provide cover for businessmen who want to stay under the radar.

Another important development in the history of private foundations is that think tanks were initially founded for the purpose of using social science to promote general public welfare (i.e., Ford Foundation; Brookings Institute; Russell Sage Foundation). According to John Judis, The Paradox of American Democracy, with the creation of organizations like the Heritage Foundation and the Cato Institute, think tanks were turned into stealth political weapons driven by narrow private or partisan interests.

Key Figures in the Movement

In the spring of 1971, there were antiwar and student demonstrations, black power militants, Ralph Nader investigating auto safety hazards, and criticism of corporate America by liberal intellectuals. The late sixties and early seventies were a difficult time for the American business community because of the passage of a package of government environmental regulations and the creation of the Environmental Protection Agency. In the summer of 1971, two months before Lewis Powell was nominated to the Supreme Court by Nixon, he wrote a memorandum for the business league at the request of the Chamber of Commerce. His memo, “Attack on American Free Enterprise System” was a call to arms for corporate America to organize and fight back.

“...He urged America’s capitalists to wage ‘guerilla warfare’ against those seeking to ‘insidiously’ undermine them. Conservatives must capture public opinion, he argued, by exerting influence over the institutions that shape it, which he identified as academia, the media, the churches, and the courts. He argued that conservatives should control the political debate at its source by demanding ‘balance’ in textbooks, televisions shows, and news coverage. Donors, he argued, should demand a say in university hiring and curriculum and ‘press vigorously in all political arenas.’ The key to victory, he predicted, was “careful long-range planning and implementation,’ backed by a ‘scale of financing available only through joint effort.’ “ (Mayer, p. 75) And so it came to pass. Powell’s memo inspired and provided a battle plan for “…a new breed of wealthy ultraconservatives to weaponize their philanthropic giving in order to fight a multifront war of influence over American political thought.” (Mayer, p. 76)

Early figures in the war of influence included:

What’s obvious here?
Many of the wealthiest citizens have wanted to control American politics so they can get laws passed that allow them to become even wealthier. They espouse libertarian principles of free markets and limited government, which means they want to be free to do whatever they want to do to amass more wealth. By free markets and limited government they mean no inheritance taxes, no income taxes or at least lower rates, no environmental or safety regulations that will limit their profits, and no services or programs for the poor or middle class that will take money out of their pockets.

To accomplish this they have waged a four-decade long, covert, and deceptive campaign to change how the general public thinks (to get them to believe in libertarian principles), to influence the judiciary, and to win elections so they can control the executive and legislative branches of government. To change the thinking and beliefs of the American public and to influence the legislative process, they have:

To accomplish their electoral goals and to control the legislative branches of both the state and the federal government, they have:

To influence the judicial branch, they have used their institutes and positions in universities to create programs, like the Law and Economics program, to indoctrinate huge numbers of federal judges in their paradigm.

To finance all of this, they have used and manipulated the tax code related to 501(c)(3), (4), and (6) organizations, which has allowed them to make tax-deductible donations to their own foundations to wage their battles, and to solicit money from other wealthy donors and hide their identities. Following the example of the John Birch Society, they have done all of this secretly and deceptively because they knew they could not get away with it if people really understood what they were doing.
Examples of this are:

Why Does All of This Matter?

This is what I believe:

The answers to this go back to the five symptoms outlined above and the questions raised at the beginning of this paper. Income inequality has become extreme. The poor are getting poorer and the middle class is disappearing, while the rich get phenomenally richer and more powerful. According to Robert Reich, in Saving Capitalism, 63% of Americans have less than $500 saved for emergencies.

The extreme political divide that exists in America today is the direct result of the campaign that the Kochs and their cohorts have waged the last 40 years. They have pushed the Republican Party to the extreme right which has caused a counter response pushing the Democratic Party to the left. It has also created a civil war within the Republican Party that has left it divided and chaotic.

The principle of force fields is that when one force pushes against another, the second force pushes back with equal or greater force to protect itself. What this means in human relations, is that when someone pushes against us, we push back and the result is that we become further apart and competitive, or worse still, embattled.

When we view that principle through the lens of developmental psychology, it gives us insight into what causes relationships to fail or to flourish. We human beings develop through cognitive and emotional stages throughout our lives. We are conscious of the physical development occurring in people as they get taller and stronger and more coordinated. A similar less obvious process is going on inside of us in terms of our cognitive and emotional development. We develop increasingly more complex ways to think and to emotionally be in the world.

As adults, we move in and out of different levels of development each day. As we become more rested and safe, and supported and successful, we become older or more complex or more mature; and therefore, more competent and generous and collaborative. We are more able to understand others’ points of view and needs, and we search for more mutually beneficial solutions. We negotiate and compromise instead obstruct and use force. I call this being “generative.”

As we become more tired or threatened, or abandoned or fail, we become younger or simpler or more immature, which means we become less competent and more self-protective and competitive or combative. We only see our own point of view and we try to force our perspective onto others. We refuse to compromise and try to control others and the situations we are in. We are resentful and believe that we have not been treated fairly. We will be deceptive and secretive and manipulate others to get our way. If that doesn’t work, we use force.

We assume that what is good for us is good for everyone. We are afraid that there is not enough for everyone, so we must do whatever we can to ensure that we get our ‘fair share.’ But what we really do is grab everything we can, and we rationalize it by saying that others are similarly motivated: So I need to do it to them before they do it to me. I call this “scorekeeper development,” which is characteristic of elementary-aged children or adults who do not trust.

Jane Mayer’s quote on Charles Koch at the end of Dark Money is telling: “When called upon to split a treat with others, he would say with a wise-guy grin, “I just want my fair share – which is all of it.” I believe this really characterizes who Charles Koch is. He is not who he purports to be. He has been operating a covert operation for over four decades using secret donors, phony front organizations, and deceptive practices to achieve his objectives. The Koch brothers have done it deceptively because they do not trust; they do not believe that if they were open and transparent about what they want, that people who are not similarly motivated would respect them and agree with them.

Because of the extreme wealth and the power that the Kochs have amassed over four decades, the Kochs have created an environment of rancor and distrust that has infected the entire country. Congress gets historically low approval ratings, yet people vote for people who represent extreme positions and who they believe will stand firm and not compromise. They believe that people on the other side of the political divide will do the same, so they have to stand firm to protect themselves. In addition, the Kochs have created an environment of fear in legislators through their threat of running more conservative candidates against them. I believe that the majority of legislators actually want to do the right thing and want to work in constructive ways to solve problems. I think the threat of the Koch network lobby prevents them from doing so. The Kochs and their donor network have created an environment of distrust and fear.

Where we are today — with campaign finance regulations and the public’s confusion about the science related to global warming and the Republican Party’s total denial — are the consequence. I do not believe that the majority of Republican legislators really do not understand that global warming is a real threat. They are not that stupid. I believe that they are afraid to say publicly what they believe, and I believe that they lack moral courage.

I had wondered before I read Dark Money why and how the Republicans had made such massive gains in state and federal elections during the last two midterm elections. How could Americans thinking change that far to the Right in two years after Obama’s decisive win? Mayer’s book answers those questions. They did it with a plan, with lots of money, and deceit. Everyone has a right to express their views and to make their case in the arena of public discourse and public opinion. But it must be done with transparency, not deceit. It must be done in the sunlight.

The Koch brothers say that they want limited government. What they really want, I believe, is power over the government for their own self-interest. They want to control the government, just like Charles has controlled his companies and the Cato Institute. He and David want the John Boehners of the world coming to them asking for help. He wants no one to have control over him as his father did. It is fascinating that he has been able to convince all of his wealthy cohorts to give him their hundreds of millions of dollars and let him control how it is used.

In Mayer’s chapter entitled ‘Selling the New Koch: A Better Battle Plan,’ she describes how the Koch network assessed their loss in the 2012 presidential race not as a policy problem, but as a messaging problem. In March 2013, the heads of Washington’s most influential think tanks met at their annual Conservative Political Action Conference. At that conference, Arthur Brooks, the president of the American Enterprise Institute said that their problem was that 38% of Americans believe that Republicans did not care about the poor. Thus “… if the ‘1 percent wanted to win control of America, they needed to rebrand themselves as champions of the other ’99 percent’. “ (Mayer, pp. 354,355)

In June 2014, at the Kochs’ semiannual donor summit, Richard Fink, Kochs’ ‘grand strategist,’ presented a seminar called “The Long-Term Strategy: Engaging the Middle Third.” In his talk he stated that a third of voters agreed with them, a third were not reachable, so they needed to focus on winning the middle third of voters. This segment, he said, thinks that big business is greedy and does not care about the under-privileged.

“Assuming that he was among friends, Fink readily conceded that these critics weren’t wrong. ‘What do people like you say? I grew up with very little, okay? And I worked my butt off to get what I have. So,’ he went on, when he saw people ‘on the street,’ he admitted, his reaction was ‘Get off your ass and work hard, like we did.’

”Unfortunately, he continued, those in the ‘middle third’ – whose votes they needed – had a different reaction when they saw the poor. They instead felt ‘guilty.’ Instead of being concerned with ‘opportunity’ for themselves, Fink said, this group was concerned about ‘opportunity for other people’.

“So, he explained, the government-slashing agenda of the Koch network was a problem for these voters. Find acknowledged, ‘We want to decrease regulations. Why? It’s because we can make more profit, okay? Yeah, and cut government spending so we don’t have to pay so much taxes. There’s truth in that.’ But the ‘middle third’ of American voters, he warned, was uncomfortable with positions that seemed motivated by greed.

“What the Koch network needed to do, he said, was to persuade moderate, undecided voters that the ‘intent’ of economic libertarians was virtuous. ‘We’ve got to convince these people we mean well and that we’re good people,’ said Fink. ‘Whoever does,’ he said, ‘will drive this country.’ …

“But rather than altering their policies, those in the Koch network, according to Fink, needed a better sales plan. ‘This is going to sound a little strange,’ he admitted, ‘so you’ll have to bear with me.’ But to convince the ‘middle third’ of the donors’ good ‘intent’, he said, the Koch network needed to reframe the way that it described its political goal. What it needed, he said, was to ‘launch a movement for well-being.’

“The improved pitch, he said, would argue that free markets were the path to happiness, while big government led to tyranny and fascism. His reasoning went like this: Government programs caused dependency, which in turn caused psychological depression. Historically, he argued, this led to totalitarianism. …

” Free fighters, as Fink labeled the donors, needed to explain to American voters that their opposition to programs for the poor did not stem from greed and their opposition to the minimum wage wasn’t based on a desire for cheap labor. Rather, as their new talking points would portray it, unfettered free-market capitalism was simply the best path to human ‘well-being….

“ To ‘earn the respect and good feeling’ of those whose support they needed, Fink went on to explain during his talk, the Kochs would also form and publicize partnerships with unlikely allies….like the United Negro College Fund and with the National Association of Criminal Defense Lawyers. “ (Mayer, pp. 358-361)

“Eight days later, the Charles Koch Institute hosted what it called its Inaugural Well-Being Forum at the Newseum in Washington.” (Mayer, p. 366) On the panel that day was Arthur Brooks. This was their initial attempt to rebrand themselves as caring for the 47% that Romney had declared as victims in his 2012 presidential campaign. It is their current strategy to deceive the American people for their own greed and power. This is what the Kochs have always done.

So why does this matter? We are losing our republic to a secret plutocracy. Mayer begins her book with a quote from Louis Brandeis: “We must make our choice. We may have democracy, or may have wealth concentrated in the hands of a few, but we can’t have both.” Wealth inequality is not just a problem because it makes the lives of millions of Americans harder. It is a problem because it poses a threat to our democracy. Today, we are not the country that our forefathers envisioned. We are not who we can be and need to be. We are a nation that is constricting, from a developmental perspective, and are distrustful and embattled and competitive. We are not working together to solve the problems facing our nation. Instead we are playing zero sum hard-ball politics caused by a secret group of wealthy families who care more about their own welfare and wealth than what is good for our country, and the world when it comes to global warming.

I envision a true democratic republic which is characterized by fairness, and equality, and respect, and transparency, rather than a secretive plutocracy in which the masses are controlled by a few wealthy men who are primarily motivated by their own self-interest.
What does this republic look like?

Add your own: There is no limit to our vision capacity. Our vision is as big as our imagination and heart. What’s your vision for America?

What Needs to Happen?

One obvious answer is that we need to get Citizens United reversed and reinstall campaign finance regulations that limit the amount of money that can be spent on elections and require transparency of all donors. The law governing 501(c)(3) and (4) organizations needs to be changed and these groups need to be monitored. There is an opportunity now with the death of Antonin Scalia to change the balance on the Supreme Court and reverse Citizens United, but this will only happen if a Democrat gets elected to the presidency in 2016. It will significantly help if the Democrats can also take back the Senate.

Until then, we need to find out what has been and is going on by the Koch brothers and their cohorts. We need a ‘Kochtopus watch’ network that discloses what they are up to in real time so they lose their power to deceptively manipulate public opinion. Some, like blogger and Web producer Lauren Windsor, who published the tapes from the Kochs’ donor summit where Richard Fink laid out their new public relations ‘welfare’ scheme, have done a great job of exposing the Koch’s real motives. Other liberal leaning websites like the Center for Media and Democracy’s PR Watch, the People for the American Way’s Right Wing Watch, The Drudge Report, Jim Hightower, and The Huffington Post all provide a great service.

But, it is not just the Koch network. We need to also monitor the rising use of dark money on the Democratic side. The Democrats were slow on the uptake, but they have decided that to be competitive, they have to fight fire with fire. They are creating their own 501(c)(4) social welfare, issue advocacy organizations, like the NewDEAL that was founded by Governor Martin O’Malley and Senator Mark Belgich of Alaska. There are two excellent nonpartisan organizations monitoring everyone: the Sunlight Foundation mentioned earlier, and the Center for Responsive Politics and their website OpenSecrets.org. Check them out if you are not familiar with them.

In addition to getting more transparency in our politics, we need a motivated electorate that is willing to consistently take action over a long period of time, and not just sit back and feel powerless and assume that they cannot change the current political system. We need a ground force that will counter the secret Koch political organization that they have created in every state. We need people who are willing to engage others in respectful discourse that seeks to understand instead of beat down and threaten. We need people who are willing to financially support them and provide them with the resources they need to sustain their work and to be effective and not dissolve like the Occupy Wall Street Movement did.

We need students to stand up to university administrators who allow their academic institutions to be bought off by conservative organizations with hidden agendas.

We need leaders who will inspire and can both articulate visions for a ‘Generative America,’ and help craft pragmatic plans to implement those visions. These leaders need to be ethical and courageous and motivated to do what is in the best interests of the American people — leaders who are not available to be bought off by special interests and who are not motivated by amassing power for themselves.

We need an on-going effort to register voters to counter the voter suppression trend by Republicans in many states. This is an immediate action that everyone can volunteer to do. I think that Ed Gillespie got it right, and Richard Fink got it partially right. We need to focus on the states, and we need to focus on the middle third that are open to thoughtful discourse.

We need to focus on the states because a lot of the policy that affects peoples’ lives is passed on the state level, and Republican-controlled state legislatures in collaboration with ALEC have passed, and Republican governors have signed, a lot of harmful legislation in recent years — anti-gay, anti-abortion, anti-regulatory, anti-poor, anti-health care, tax laws favorable to the wealthy, and voter suppression laws aimed at the poor, at students, and at minorities. The state legislatures also draw the federal congressional map every ten years.

Thus we need a long-term, robust, well-coordinated voter registration strategy — not just in the months preceding elections, but continuously. We need to understand what the current voter demographic is in each state and county, and recruit people in those communities to do voter registration. In the process, we need to educate voters why it is important to vote, and we need robust GOTV strategies, especially in midterm election cycles. Voters need to understand how dark money has impacted their lives, and they need to understand the current issues that are going to affect their lives. For example, the importance of having a Democratic president elected in 2016 to change the balance on the Supreme Court to get Citizens United reversed. A constitutional amendment to reserve Citizens United is not going to get through the Congress. We need to register, educate, and GOTV.

Some Final Thoughts and an Invitation

This issue should matter to both Democrats and Republicans. Democrats have been on the losing side for the past six years in many areas, especially on the state level, and will not likely regain control of the Congress for the next decade. What has occurred in North Carolina should be a rallying cry to take action. They are also going down the same dark money path that the Republicans have gone down.

Ironically, it is perhaps even a more immediate and critical problem for the Republican Party. Republicans have had their party taken over, pushed to the extreme right, and then supplanted by a new covert party. The Republican Party has been gripped by an internal civil war for the past several years, a civil war created by the Koch donor network and their political operatives. As Amy Walters recently pointed out on the February 29, 2016, PBS News Hour program, they have only been united in fighting Obama. Now in the 2016 presidential election cycle, with the assent of Donald Trump, the Party is on the verge of splitting apart in the coming months. We may be looking at the dissolution of the Party as it currently exists.

For all the money that the Koch network spent on doing research to figure out what the ‘middle third’ wanted, and how they could market their agenda deceptively to them, they got it wrong again. The Koch donor network and their political operatives thought the battle in 2016 would be between a main stream candidate like Jeb Bush, and a conservative outsider like Ted Cruz. Trump came in and transcended that divide and appealed to a disaffected group of voters who felt like no one was representing them.

As David Frum in his article in the January/February 2016 issue of The Atlantic points out, “Trump’s surge was a decisive repudiation by millions of Republican voters of the collective wisdom of their party elite.” Their rebellion against the organized money in the plutocratic GOP has caught the Republican establishment off guard. Trump’s message did not resonate with those who had easily recovered their losses from the 2008 recession. But it did resonate with those white, middle-aged, blue collar workers with less than a college degree who had lost their earning power and have not benefited from the economic recovery.

In her article, ‘The Rise of American Authoritarianism,’ Amanda Taub gives even more insight into Trump supporters. She points to research done by a group of political scientists on authoritarianism, which is not a political preference but a personality profile. Authoritarians are people who have a high need for security and order, and a heightened fear of outsiders who threaten their status quo. This group is attracted to leaders whom they perceive as strong leaders who will protect them by taking forceful action.

Trump’s supporters are not ideologically driven, and they are not all Republicans. They also include Democratic-leaning union rank and file members. They are driven by economic insecurity, specifically, by the loss of working class jobs. They are also threated by social change that may include threats from terrorist groups like ISIS, as well as threats posed from same-sex marriage, or Muslims building mosques in their cities, or illegal immigrants, or dark skinned people becoming the majority.

As result, they do not support tax cuts for the wealthy, and they do not want entitlement programs slashed through more government austerity. They are against globalization which takes away their jobs and lowers their wages (hence they are against the trade agreements that establishment Republicans support). They are anti-immigrant and racially prejudiced because immigrants and minorities are ‘the other,’ and they see the immigrants and minorities making claims and taking money away from them. They also see minorities displacing their privileged position in society as they gradually become the minority race.

The fact that Fox News and conservative radio personalities constantly spread a message of threats posed by ISIS, and constantly degrade Obama for not doing enough about it, feeds this fear. I mentioned earlier that from a developmental psychology perspective, when people feel threatened, their cognitive and emotional capacities constrict. For some percentage of the population, probably 20 to 25%, this is their normal mode of operating. For another 20% of the population, this is not their normal level of operating, but when they feel threatened enough, they, too, begin to think in simpler ways. They become more self-protective, more prone to forceful action, less accepting of others who are different from them, less compromising, and less willing to negotiate. They feel like they need a strong leader to protect them. In a poll done by Morning Consult the day after the New Hampshire primary, 44% of white respondents nationwide scored as ‘high’ or ‘very high’ authoritarians.12

What is important to realize here is that this faction of the American populace and of the Republican Party exists apart from Trump. He is simply appealing to their needs. He did not create them. They will be here after Trump, and they will be pushing the Republican Party further to the right on social issues while simultaneously eroding support for the libertarian economic policies that the Koch donor network has gotten the establishment Republican faction to embrace. The donor class has failed to understand this demographic group and the power they are and will continue to wield within the GOP in the future. This may be the dynamic that substantively alters who the Republican Party is in the future, as Amy Walters has forecasted.

Trump has broken from GOP gospel and promised to save Social Security and not get their kids into a war in Syria. He has run a campaign free of influence from dark money, and he has promised to protect their wages from being cut by Republican immigration policy. He has promised to build the wall with Mexico, deport millions of illegal immigrants, and prevent Muslims from coming into the country. He has promised to create jobs. And his style is tough, simple, and direct. He makes them feel safer.

This is not what the Koch donor network had in mind for this presidential election cycle. They had put their money on Jeb Bush to further their agenda. That hasn’t turned out so well for them. They wasted a lot of money, and as Frum states, “…the Republican donor elite failed to impose its preferred candidate on an unwilling base in 2015.” After all, this was a primary objective of the shadow Koch political party machine. Their next hope was Rubio, who dropped out after losing Florida. After Super Tuesday, the establishment Republicans and the Koch network were so panicked they got $20 to $25 million in pledges to stop Trump, and Mitt Romney did the unprecedented step of publicly repudiating Trump.

Ironically, the supporters of Trump and Bernie Sanders are a rebellion against the intransient obstructionism that the Koch network has created in the Republican Party for the past seven years. They created the ‘party of no.’ They put all of their money and energy into blocking anything constructive from being done for the American people because they thought that would enable them to gain more political power and to take control of the government. Many voters are fed up with it and they are taking action.

Whether you find yourself standing on the left or the right side of the political divide or somewhere in between, it is very important to understand that the people who are supporting Trump or Sanders are not bad people. They are not evil. They are simply frustrated and scared and feeling powerless to effect the change they need to improve their lives and to feel safe.

Like most Americans, I don’t know how to win back our republic. I am just an average citizen. I am tired of feeling powerless and hopeless about our current state of affairs. I vowed to myself after reading Mayer’s book that I would not just feel frustrated and forget about it, as I have in the past, and not take action. So I thought about what I could do, given my health and physical limitations, where I live, my experience and competencies, and the fact that I do not have millions of dollars to work with. So I began talking to people to understand what was happening around me and what I might contribute. Over a few weeks, I began to see a path for what I could do to counter the voter suppression laws and regulations that have been passed in my state.

I am working to create a permanent volunteer force. I want to create a perpetual campaign of registering and education voters, and getting them to vote, especially in midterm elections. I want voters in places like North Carolina to understand what Ed Gillespie and Art Pope did to them. I want the voters in every one of the 21 states that have passed voter suppression laws that ALEC wrote to take back their power by registering more people to vote, ensuring they have the voter ID that they need, and then getting them to the polls. I invite you explore what you can do to preserve our democratic republic, and to join me in a conversation about how we can do that.

One option to create better public awareness that is the march from Philadelphia to Washington in April with a congressional sit-in to put pressure on Congress to sign pending legislation related to dark money. Check it out at www.democracyspring.org.

If you have read this and do not feel bothered by it, then I have failed at my objective. Recently Jane Mayer published a brief summary of Dark Money. It is an excellent thirty minute read that succinctly describes the main points in her book, high lights ten takeaways, and gives a brief analysis of each. Her summary publication is a great addition to her book, but not a replacement for it. It brings into focus the major points in her book, but it is not motivational. It did not move me to want to take action. It does not tell the back story of the people and events that have taken place to get us to where we are today.

It does not give you the insight into why George Mason University is renaming its law school after Antonin Scalia because of an anonymous thirty million dollar donation. The reason is that the Koch brothers have poured tens of millions of dollars to shape George Mason into their leading libertarian university. This is just their latest ‘anonymous’ donation. It does not explain that North Carolina’s passage of anti-gay legislation is latest outcome of Ed Gillespie’s Red Map strategy that, with the help of ‘Art’ Pope’s and the Koch donor network’s money, flipped the state into the Republican column through deceptive campaigning during recent midterm elections. Since read Mayer’s book, when I frequently hear Republican politicians and candidates like Ted Cruz use the terms free markets, limited government, and liberty, those terms have a whole new meaning and context for me. The summary by itself does not give me that insight. Read the whole book if you can.

Again, think about what you can do. I look forward to hearing your thoughts, continuing this conversation, and creating a call to action together. You can reach me at leritz@bellsouth.net.


1. Center for Responsive Politics, March 10, 2012. OpenSecrets.org

2. Mayer, Jane. Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right, Doubleday, January 19, 2016.

3. http://sunlightfoundation.com

4. Desilver, Drew. “U.S. income inequality, on rise for decades, is now highest since 1928,” December 5, 2013. Retrieved from http://pewrsr.ch/1bkeYHr

5. Short, Doug. “U.S. Census Bureau Data and the Bureau of Labor Statistics Consumer Price Index,” Advisor Perspective, Sept 23, 2015.

6. MacGillis, Alec. NY Times, February 21, 2016.

7. Retrieved from http://www.gallup.com/poll/167843/climate-change-not-top-worry.aspx

8. Cane, Timothy. The Hill, December 12, 2015.

9. Statement from the Sunlight Foundation on the DISCLOSE Act vote, July 17, 2012.

10. Sander, Katie. PunditFact: ‘Have Democrats Lost 900 Seats in State Legislatures Since Obama Has Been President?”, January 15, 2015.

11. Fung, Brian. Washington Post: Tec Blog, February 19, 2016.