A recent New Yorker piece tells us a lot about the behind-the-scenes politics and ideology driving much of the public discussion during this election season. It’s worth a read for anyone craving more depth than they get from the usual sources. But it omits some crucial context about this year’s hot button issue—Social Security.
Jane Mayer has written an admirably detailed and revealing narrative about the billionaire Koch brothers, whose family became rich in the oil business. Two of the brothers, David and Charles, turned into lifelong libertarians, and now use their money in an attempt to guide public debate in ways that suit their pro-corporate ideology. Mayer’s piece points out where the Kochs spend their money, how they’re linked to groups such as Americans for Prosperity (which in turn has links to the Tea Party movement), and how it has funded other enterprises ranging from conservative think tanks in Washington to cultural institutions in New York City.
It is the Koch’s subsidization of the pro-corporate movement, Mayer writes, that in many ways fulfills the vision former Supreme Court Justice Lewis Powell laid out in a 1971 memo for the U.S. Chamber of Commerce, urging American business to fight back against threats to the free enterprise system—threats not from Communism or the New Left, but from “respectable elements of society” like intellectuals, journalists, and scientists. Powell called for a long-term, unified campaign to change public opinion, and thanks to the Koch brothers (and others), that ongoing crusade has begun to show results—this year manifesting itself in the fight over Social Security.
Mayer notes how the Kochs provided the funds to start the Cato Institute, the country’s first libertarian think tank, and how Cato—now with a staff of more than one hundred full-time employees—sends forth policy papers pushing such issues as corporate tax cuts, reductions in social services, and laissez-faire environmental policies. She illustrates that agenda item with Cato’s efforts to discredit calls to stop global warming and to raise skepticism about climate change. The oil business and climate change don’t mesh. She also told about how David Koch had helped found another right-wing think tank, Citizens for a Sound Economy, which was also active in the 1990s. A few years ago, internal rivalries caused that group to split apart, and Koch went on to sire its offspring, Americans for Prosperity. This group, Mayer reported, helps “educate” Tea Party activists on the fine points of policy details and gives them next-step training after their rallies.
Mayer gave a lot of details about the Kochs’ personal lives, some of which could have been left out in favor of a robust explication of the role of Cato and Citizens for a Sound Economy in changing the thinking about the third rail of American politics. Those groups softened the ground for the assault on Social Security being waged today.
In the mid-1990s, both Cato and Citizens for a Sound Economy provided the intellectual power behind the movement to privatize Social Security, bringing the concept to the attention of policymakers and the media. Cato, with funds raised from American business, including Wall Street firms, sent Chile’s ex-labor minister, Jose Pinera, on a road show to promote the virtues of privatization in Chile, which had occurred a few years before. It funded focus groups showing that baby boomers thought of Social Security as a dodo bird or a dinosaur, and fashioned the privatization sales pitch around the idea as described by Cato’s Michael Tanner that “it’s time to redesign Social Security for the future” with a “new program to answer the young.” Cato began to exploit the generational compact that undergirds Social Security. Opponents are continuing to do that today.
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Social Security - 'this year's hot-button issue'? Hot-button to Trudy Lieberman, maybe. Out in the real country, it's jobs and federal spending and cultural issues like immigration and the national identity. I always thought that urban-Left journalists suffered from their distance from ordinary voters. Almost every piece I read in CJR confirms it. The staff simply cannot grasp thinking that differs from its own.
Oh, I forgot. New York.
#1 Posted by Mark Richard, CJR on Wed 8 Sep 2010 at 02:31 PM
I guess NH isn't the "real" country. We're mighty concerned about jobs AND Social Security. In fact, our conception of "national identity" involves fairness, and looking out for one another. We're not interested in the politics of fear and xenophobia.
It sure is nice to know that we aren't part of the "real" country. Apparently Mr. Richard is using the "real America" map drawn up by the Alaskan Goobernatorial Drop Out.
#2 Posted by Susan Bruce, CJR on Wed 8 Sep 2010 at 02:58 PM
So Cato was successful at "convincing" what you portray as a hapless media that Social Security privatization was/is a viable option to Social Security bankruptcy? Seems your beef should be with the media.
#3 Posted by Khristine Brookes, CJR on Wed 8 Sep 2010 at 03:10 PM
Brilliant! Thanks for shedding light on where these proposals come from. Sad that journalists don't do the extra research to understand the program. Where did we go wrong? How could they be unaware that information packets from CATO would be highly one-sided to borderline false? So weird how your stories get pounced on but please keep them coming.
#4 Posted by Jamie, CJR on Wed 8 Sep 2010 at 04:11 PM
Good reminder, Trudy. They're still coming after SS, and will keep on doing it until they win or they're beaten back. No one's even tried yet.
Part of the problem, I think, is the abandonment of SS by some government employees. Police and fire fighters in Baltimore opted out a couple generations ago. Now that their pensions are radically under-funded, part of their pitch to the public is that "we don't get Social Security."
Aside from its disingenuousness (their 20-years-and-out pension and liberal moonlighting regs allows them to work a whole second career inside the SS system), the argument (and the opt-out itself) undermines the system for the rest of us who depend on it. But this is never discussed.
#5 Posted by edward ericson jr., CJR on Wed 8 Sep 2010 at 05:18 PM
Thanks for your excellent essay, citizens need the dots connected as the msm fails to do so on a daily basis. Between the hostile rhetoric of conservative talk radio dominating drive time radio to and from work, the 24/7 fear mongering by FOX News on cable tv which regularly features experts from AEI, CATO and CSE, and the msm's willingness to quote from AEI, CATO and CSE as if they were neutral academics, "The New Yorker" profile of the Koch brothers was desperately needed.
As if on cue, NPR conducted an interview with a libertarian and a liberal commentator on the Koch brothers shortly after the Mayer article was published. Unfortunately for the listeners of NPR, the discussion equated the funding by Norman Lear and George Soros of liberal causes and think tanks with the Koch brothers funding of conservative causes and think tanks. There's a big difference however, and NPR never connected the dots for its listeners.
NPR's moderator never put into context that the Koch brothers fund think tanks designed to conduct research and lobby for legislation that will directly improve the profit margins of Koch corporations. How? By relaxing safety standards and pollution regulation, all in the name of "deregulation" and "libertarian principles". If the Koch funded think tanks succeed: workers' lives are put at risk; citizens downwind breath dirty air; and waterfowl, fish and animals down stream swim and drink in polluted water.
Soros and Lear don't profit through maiming workers, Soros and Lear don't profit from polluting the air and water, but the Koch brothers do.
While Mayer's profile could have been a lot better, I'd wager had Mayer connected the dots, NPR and other news organizations may have been more willing to do so as well.
#6 Posted by Greg, CJR on Wed 8 Sep 2010 at 05:59 PM
To Susan, Lieberman identified Social Security as 'the' hot button issue of the elections this year. If you are a Democratic activist, yes, the Democrats are doing their every-four-years number of scaring Granny. But I haven't seen a single 'issue poll' that names Social Security as the Number One topic on the minds of voters, likely or otherwise. If said activists are operating on the assumption that it is, as they operated on the assumption that the Obama health care bill was more important to voters than job creation, it is no wonder they appear headed for a setback this November.
I usually write in commenting on a story, rather than to get the party line from the sorts of liberal Democrats who populate this thread. I already know the party line. I'd appreciated it if, instead of defending Lieberman's push-button leftist framing, someone would stick his neck and assert - with the kind of evidence they usually demand of their political adversaries - that the elections this year are going to turn on Social Security first and foremost. If this is the case, what is the message the polls are sending? Would Lieberman assert, should Nov. 2 produce GOP majorities, that The People Have Spoken, and it's time to rethink Social Security? My guess is that people on the Left will be perversely pleased to be able to inhabit their self-image as an Enlightened Minority vs. the stupid, easily-led masses. And is Lieberman entirely pleased that she only has defenders and credibility with that paper tiger of American electoral politics, left-wing opinion?
#7 Posted by Mark Richard, CJR on Wed 8 Sep 2010 at 08:14 PM
Mark, it isn't so much that it is polling as a hot-button issue, so to speak. The point is that a majority of those polled don't think the program is viable, that it needs to be reformed (it won't be there in the future, etc) Here is one such poll, you can Google a whole lot more.
http://www.pollingreport.com/social.htm
This is what makes it a hot-button issue and a legitimate topic for journalists. Millions of voters are being mislead and misinformed. IT IS NEWS when millions of voters are being mislead this way, regardless of who is responsible for misinforming the voters (journalists, think tanks, politicians, etc).
#8 Posted by David Black, CJR on Wed 8 Sep 2010 at 09:12 PM
David, thanks for your civil disagreement, but . . . Lieberman didn't say Social Security was 'a' hot button issue in this year's elections. She said it was 'the' hot button issue. I never said it wasn't a legitimate topic for journalists, either. But it's been a legitimate topic, year after year, since 1935. It's also a legitimate topic for the Koch brothers and Alan Simpson, by the way.
The amount of 'misleading' (usually just dissenting from the urban, generally democratic socialist impulses of journalistic conformists like Lieberman) by the Koch brothers does not begin to match the misleading done by the proponents of Social Security. Opponents assert it's radically regressive nature; the social-dems change the subject. Opponents seek a distinction (other than transparency) between Social Security and Ponzi schemes (perhaps this term should be updated to 'Madoff schemes'); proponents change the subject. Opponents using Social Security's own projections argue that the current generation entering the work force will not get back anything like what they are compelled to contribute; opponents call them names. So it goes. And for journalists of the quality of Jane Mayer (all over the Clarence Thomas case, but found with her guts in a blind trust during Bill Clinton's peccadillo-stained heyday) and Trudy Lieberman, it's attack the opposition ad hominem, rather than engage their arguments.
#9 Posted by Mark Richard, CJR on Thu 9 Sep 2010 at 12:40 PM