Jane Mayer has a bone to pick with the David and Charles Koch, billionaire brothers who spend (some of) their money supporting libertarian causes and fighting government regulation. Their spending, she seems to think, is central to the Obama administration’s current (extended) bout of political misfortune. She also insinuates they’ve used their money dirtily, somehow improperly influencing the political process. But, though she spends nearly 10,000 words in her New Yorker article picking through their history and following their money trails, it’s not clear that there’s much there there. What there is is a lot of spending money to support causes that Mayer apparently finds distasteful, a few (serious) lapses by the brothers’ corporation, and absolutely nothing (apart from quotations from Democratic Party operatives) to suggest that the Kochs have managed to manufacture a political movement out of thin air. And there is absolutely nothing in her article to suggest that the Kochs have engaged in inappropriate or illegal political activity.
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She recounts how the two brothers took the oil company that their father left to them (and two other brothers, whom David and Charles bought out), and, after renaming it Koch Industries in their father’s honor, turned it into the second-largest private company in the U.S., with holdings that include “oil refineries in Alaska, Texas, and Minnesota, . . . Brawny paper towels, Dixie cups, Georgia-Pacific lumber, Stainmaster carpet, and Lycra.” WIth their money, they’ve taken to donating funds to organizations that share their views. Among them are the Cato Institute, a nonpartisan libertarian think tank, the Mercatus Center, an economics think tank based at George Mason University in Arlington, Virginia, and the Institute for Justice, a libertarian public-interest law firm that spends its time fighting “eminent domain abuse” and onerous bureaucratic red tape.
Though Mayer accuses the brothers of “[subsidizing] a pro-corporate movement,” even she acknowledges that their money hasn’t been limited to their own financial interests:
The Kochs have gone well beyond their immediate self-interest, . . . funding organizations that aim to push the country in a libertarian direction. . . . Many of the organizations funded by the Kochs employ specialists who write position papers that are subsequently quoted by politicians and pundits. David Koch has acknowledged that the family exerts tight ideological control. “If we’re going to give a lot of money, we’ll make darn sure they spend it in a way that goes along with our intent,” he told [an interviewer]. “And if they make a wrong turn and start doing things we don’t agree with, we withdraw funding.”
It’s not clear what the problem is with this. It’s perfectly fine for individuals or organizations to try to affect public debate. The wealthy and powerful are not denied that right, and Mayer notes (and does not object to) George Soros’ Open Society Institute spending up to $100 million a year in the U.S. George Soros happens to support greater social welfare spending, and the Kochs don’t agree. Are they prohibited from spending money to support freer markets just because it would benefit them?
As Joseph Lawler notes, the language she uses to describe the Koch brothers is awfully extreme relative to the activities she’s describing. In response to Mayer’s description of David Koch’s promotion of libertarianism as “[funding] stealth attacks on the federal government, and on the Obama Administration in particular,” Lawler asks
If that is how you describe peaceful, lawful activism, then what words are left to describe, for instance, the actions of al Qaeda, which funded an actual stealth attack on the federal government?
Though Mayer weaves a good story, she mostly weaves it by insinuation of political impropriety, unfounded by evidence. (She does cite maintenance and safety failures at Koch Industries in the 1990s, some serious, including a leak that led to an explosion that killed 2 people. Safety failures are lamentable and should be corrected, and Koch Industries should comply with the law and face consequences when it fails to. But any large organization is bound to make mistakes—sometimes serious ones; such mistakes don’t disqualify the corporations from defending their own interests.)
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Update: Lots of folks have commented on Mayer’s piece. And, apparently, Koch Industries saw fit to link to my blog post. I’m happy for the attention, and just in case anyone’s wondering, nothing (and no one) prompted my post but the questionable innuendo in the New Yorker piece.
—Nathan, August 30, 2010 at 9:52 p.m.
Sorry to say but at least Geroge Soros has no qualms about letting people know what he stands for and what his money is going to. The Kochs like to hide in the shadows... They fund the marches and teh demonstations but hide out of sight so no one ones it is them. Well i for one will no longer be buying any Koch related products. I have printed out a list that i will keep and will go other ways when it is time for shopping. If the Koch brothers think they are doing nothing wrong why dont that come out of the shawdows and defend their work themselves. The reason why...They realize the backlash could result in people not buyign their prodcuts anymore. why else would you try to keep a known carcinogens like formaldihyde off the known carcinogens list...becasue it adversly affects their bottem line.
Simon, I hope you realize that all of the spin of Ms. Mayer was done using public information. She generated no new data, only spin. It is also pretty laughable to say that the Kochs hide out of sight or don’t let people know what they stand for when one ran as a VP candidate on the Libertarian ticket and another published a book outlining his beliefs.
It is astounding to me how individuals in our media-mad society make no attempt to fact check before they repeat what they have read in magazines or heard on TV and radio. The only reason the Kochs are perceived as covert is that they have never wasted one cent on self promotion, unlike Soros and other more “media friendly” businessmen. To the Kochs, self promotion via PR and media produces no real product of any long term value to their company, their employees, themselves, their family or society, so they simply do not invest their profits in self-promotion and publicity. In today’s society, the average individual has become so intellectually lazy that they expect private citizens like the Kochs to play the self-promotion game as a rule, and deliver their self-serving PR every doorstep. Ironically, the fact that the Kochs never have and never will is even MORE evidence of their devotion to their openly stated principles. Perhaps if Mr. Simon had taken the time to read Charles Koch’s inspiring book, “The Science of Success” when it came out years ago, he might understand that by making a boycott list, Mr. Simon is doing in part what the Kochs advocate as free-market Libertarians, which is to cast their vote in the marketplace. Unfortunately, if you are voting based on disinformation and ignorance, as opposed to the actual product value, personal integrity, sound science, fact-based research and responsible behavior, you are only contributing to the problem and not the solution.
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