A Lesson in Fractured Politics (and 10 Common Sense Solutions)

We've often discussed how America is no longer a Constitutional or democratic Republic over the years. America, as you know, is an Corporatocracy , run by an Oligarchy comprised small clique of very rich individuals who are pulling the political strings of this country.  As various academic studies have shown, the average taxpayer in this country has a statistically probably of zero percent of having any real influence on Congress. 

Compare this with corporations, who spend millions on lobbyists and millions more on financing campaigns and underwriting politicians, who have a near 100% likelihood of success in getting what they want from Congress (not to mention the fact that the same corporate lobbyists actually write the legislation they want passed). 

In 2020, 55 corporations alone spent $450 million dollars over three campaign cycles and sent 526 lobbyists to Washington to make sure they got what they wanted..and paid for..  So, is it any wonder that the majority of these same companies not only pay nothing in taxes, but often get back millions of taxpayer dollars?

Just so you don't think that only one party is to blame, remember that these lobbyists cater to both sides of aisle. The top two House and Senate Democrat committees received $1.45 million dollars while the same committees on the Republican side were given $1.3 million. In exchange for enabling them to avoid federal taxes, these same 55 corporations got back $3.5 billion dollars in paid taxes and avoided another $8.5 billion in potential taxes.

Who are these companies?  While you could just go down the list of major Wall Street companies, a few stand out. One is Archer Daniels Midland, the giant food conglomerate. They made $438 million dollars in pre-tax profit. Not only did they avoid paying any federal taxes, they actually got a tax rebate of $164  million dollars. Athletic apparel maker, Nike, made $2.9 billion dollars and paid nothing in federal taxes. Instead, they got a rebate of $109 million dollars.

FedEx earned a profit of $1.2 billion dollars and received a rebate of $230 million dollars. Of course, there are many more, and these don't even include companies like Exxon, Facebook, Apple, Netflix, Chevron, General Motors  and others like them who either paid no federal taxes, or next to nothing.

Of course, each one will tell you that they paid what taxes they were obligated to paid. But what they won't tell you is how their lobbyists, either directly or through trade and professional associations, were able to lobby members of Congress into sponsoring bills they (the lobbyists) wrote or helped write and shepherded through the various committees and onto the House and/or Senate floor for a final vote.

I'll Take Two Congressmen and Hold the Mayo

According to OpenSecrets, in 2020, lobbyists paid out $14,869,908 to Democrats and $14,175,224 to Republicans (the average "donation" was about $30,000). Another $129,095 went to other individuals such as senior staffers. Of the money given, almost all of it went to incumbents. Now, do you want to know who was the beneficiaries in 2020? Well, I'll tell you.

In 2020, the top beneficiary of Corporate America's largess was none other than Joe Biden who received $776,590.  David Purdue (R-GA) got $712,710. Kelly Loeffler (R-GA) took in $593,330. Next was Thom Tillis (R-NC) who was gifted $558,702. Mitch McConnell (R-KY) saw $537,229 in donations from lobbyists. Among other notables, Donald Trump (R) received only $269,112. Nancy Pelosi (D-CA) got $153,936. Dick Durbin (D-IL) picked up $145,600 while Liz Cheney (R-WY) saw $123,170.  Chuck Schumer (D-NY) got $116,463.

Now, while this might not seem like a lot, remember this was just one election cycle and doesn't include any in-kind contributions, nor does it include any monies donated by corporate lobbyists to various partisan committees (such as the National Republican Senatorial Committee which received $2,771,454  or Democratic Congressional Campaign Committee which took in $1,111,816).

Often these committees redirect money to certain campaigns, "Leadership Committees", or political action committees (aka PACs) which are set up to avoid donation caps and, in many cases, are designed to give the false impression of widespread popular support for some issue or candidate.

I would be remiss not to point out that most members of Congress put in an average 10 -12 hour day, of which over half is typically used not on "the People's business" as Nancy Pelosi likes to say, but on fundraising either for themselves, the party, a committee or PAC. As for writing bills, that's all subbed out to corporate lobbyists.

There should be no question in your minds that are Republic is gone. We have no one in Washington, or our state capitols, or even City Hall writing legislation for us. We the People can't even remotely hope to raise the kind of money that Corporate America does. Even unions can't compete. The best they can do is raising one dollar for every five dollars Wall Street gives. Such was the folly of Citizens United and unbelievable ignorance and political naiveté of the Chief Justices.

With gerrymandering practically guaranteeing a particular candidate's reelection and unlimited terms for most seats, who in their right mind can call this a democracy; a government of, by, and for the People?  To make matters worse, the same corporations which own government also own the media.

 That means they control and dictate content, and unless you have access to other sources of media outside the mainstream, you're not going to know what's really going on (as an aside, even your entertainment, be it music, movies, television, video game, or sports is controlled by the same folks. How does that make you feel---warm and fuzzy?). 

The House Always Wins

We're living in a dystopian society better constructed than the best SciFi author. Not even the great Ray Bradbury, Fyodor Dostoyevsky, Frank Herbert, Isaac Asimov, or George Orwell could have come up with this, although they came close! The question (indeed, the only real question which matters) is what, if anything, we can do about it?

I think that at some deep level, we already have a sense of what needs to be done. We know the system is broke beyond repair. "Reform" at this point would be like trying to duck tape the Titanic. I don't think even Flex Seal will work! First, we need to stop thinking like partisans. We're Americans first, last, and foremost. Second, we have to accept the fact that the Founding Fathers were right when it came to political parties---they're wrong for society. They serve an interest which isn't the American People.

Third, we need to register to vote and encourage others to vote. In fact, voter registration should be automatic when you turn 18. As an aside, yes, we need photo IDs to vote. It doesn't discriminate against anyone except those trying to rig elections. A picture ID is the only way to ensure the right people shows up to vote. We need to go back to paper ballots. They weren't always perfect, and they took a bit longer, but they were harder to manipulate.

Elections need to be held either on the weekend or it should be a federal holiday. Fourth, we need voter initiatives and referendums. It's our right as citizens to place issues on the ballot, which is why career politicians fear them. Fifth, we need term limits to end career politicians and the accompanying cronyism.

Next, we need to end gerrymandering. Politicians shouldn't be allowed to pick their voters. Seventh, we need Rank Choice Voting to ensure we get the best choices available. Eighth, we must have a level political field. That means that the same rules apply for Independent and third party candidates as it does for partisan ones.

If a Democrat or Republican need just three signatures to get on the ballot, then why should a Independent or third party candidate need a hundred or a thousand (or more, depending on the office)? It's discrimination and it's illegal. Additionally, the public deserves to hear all points of view. Therefore, all candidates on the ballot should be included in all debates.

 Ninth, no political office should be partisan. When you're elected, you are elected to serve everyone, not just those of your party. As it is now, if someone outside your party is elected for your district, you aren't represented for the length of that term.  You also get the privilege of still having to pay taxes despite not being represented. Let that sink in!  All incoming office holders should resign from their political party in order to represent everyone in their district and community or state as a whole.

Finally, we absolutely must get corporate money out of politics. Citizens United was wrong. It effectively removed the ordinary citizen from having any influence in politics. It made Congress a de facto Millionaire's Club. We need to create other ways of financing elections, including public financing, free (but limited) TV and air time for candidates, and restricting the length of "campaign season" as a number of other countries do (many limit it to 60 or 90 days).

As an aside, speaking of campaign finance reform and the "Millionaire's Club" Congress, I thought you'd find this interesting. Remember those financial beneficiaries of lobbyists I mentioned above? Did you know that Kelly Loeffler's net worth is $500 million? David Perdue's is $15.9 million. Dick Durbin's $3 million. Mitch McConnell's is over $22.5 million. Nancy Pelosi's net worth is $120 million, while Thom Tillis' is about $10.5 million. Finally, Joe Biden's net worth is over $9 million. Don't sound like "common folk" to me. Do they to you? Oh, and there some whose net worth is far greater.

None of this isn't about scare mongering. This is reality. You can research it yourself just as I've done over many years. It's a lot of work, but there's a lot of us too. Pick one or two from the list above and get busy, or maybe come up with one of your own. But know that we can do it. We've overcome greater obstacles in our nation's past. We have to do this if we want our country and our Republic back. The alternative is to prepare for the long dark night that is surely to come. if you want to know more, check out the links below. They're a great way to start.

 

Corporations That Paid Zero Federal Income Tax Spent $400million in Lobbying

55 Corporations Paid $0 in Federal Taxes on 2020 Profits

60 Top Corporations Paid $0 Federal Tax Dollars Under TrumpTax Law

OpenSecrets: Lobbyists

OpenSecrets: Top Recipients of Contributions from Lobbyists2020

Not A Single Person in Congress Actually Writes Legislation or Laws. It's All Subbed Out to K Street

When Lobbyists Literally Write the Bill

Corporate Welfare

I’m sure just about everyone has noticed that a bipartisan Congress gave some $4 billion dollars worth of subsides and tax credits to the oil companies, and yet oil company executives belly ache about how much money they’re not making. We notice their “plight” every time we buy gas, oil, or anything else made with petroleum (like plastic). We notice Exxon made $7 billion dollars in profit the first three months of this year, but that’s just a fraction of the story.

Last year, according to the Spark newsletter, Exxon made after-tax profits of $26 billion dollars, an increase of 52% over 2003. Chevron-Texaco made $13 billion, an 86% increase from the previous year. Shell Oil was up 48% over 2003, with $19 billion dollars in profits. Poor babies. I suppose the increase in pump prices is to compensate oil companies for hiring more accountants to count all the money they’re raking in.

Continuing increases in oil prices will in the long run severely damage the economy. People will stop spending as much in order to compensate for the increase in gas and oil prices. The decrease in purchases will lead to a decrease in sales, which in turn will lead to layoffs. Service businesses, ranging from anyone in the transportation industry down to the pizza delivery person, will see a decrease in business in direct relationship to the increase in costs of their services as a result of the cost of oil and gas. Manufactures of high end vehicles such as trucks and SUVs will see a decrease in purchases as customers move to more cost effective cars. Businesses which use petroleum based products, which includes everything made of plastics, will see the costs increase. While some of the increase can be offset internally, it will eventually be passed on to the consumer in the form of higher prices for such things as milk (plastic containers) and computers. For fun, take a minute and look around. Count the number of items made of plastic. That will give you an idea of where the increases will come from.

In short, consumers will have less disposable income, and will make adjustments to compensate for the increase. Manufactures will be forced to increase costs to adjust for the increase of supply costs on their end. With less money to go around, companies will be forced to reduce costs in the form of “sales” which may offer a short term boost in the economy, but will make the economy more instable, forcing marginal companies to either layoff or close. Housing and “big ticket” sales will suffer as folks have less money to spend, and are increasing worried about the economy, which feeds into an increasing unstable economy. The Fed may have to step in to reduce interest rates in order to artificially stimulate the economy. This may, again, have short term benefits, but doesn’t address the cause. The long term result could be a recession.

In 1976, during the “Oil Crisis”, then President Jimmy Carter promised Americans that the US Government would do whatever was necessary to harness alternative energy sources. Well folks, we’re more dependent on foreign oil than ever before, and geo-political nature of world is far more dangerous and volatile than ever. The hated “oil rich Sheiks” of the 1970s turned out to be the same US oil companies that boasted such impressive profits cited above. Oil companies stifled any real efforts to develop alternative energy while it was still in its infancy. President Bush recently remarked that he couldn’t understand the public’s concern over the increase in pump prices, and cited that the increases had “been gradually coming over time.” What he meant to say was that the oil company’s dominance over energy has been gradually coming over time. My solution would be simple. First, invest heavily in alternate fuel sources. Set “non-breakable” time tables, and require oil companies to contribute to its financing. After all, since they spent millions trying to stop it, seems only fair they should now have to fund it. Second, demand auto manufactures develop energy efficient cars and trucks (as an aside, the auto industry has been very successful in dodging this one. In fact, cars are less efficient now than just 10 years ago). Set specific “drop dead” dates with stiff financial penalties, and accept no more whiney ass excuses. Third, nationalize oil and gas companies, along with all other energy and water producing facilities. Industries that have such an effect on national security and the public’s well being should not be in the hands of folks motivated solely by profit. Fourth, and perhaps the most important, put the presidents, CEOs, and boards of directors on trial for war profiteering, for clearly that’s what it is.