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rachelramirez

Even Trump's Kids Haven't Donated to His Campaign - The Daily Beast - 0 views

  • Even Trump’s Kids Haven’t Donated to His Campaign
  • With less than two weeks until the election, Donald Trump has amassed an impressive army of small donors, fueling his bid with individual contributions of $200 or less. But noticeably absent from the list of contributors is basically anyone with the last name Trump, many of the surrogates who represent The Donald on national television, and members of his own campaign staff.
  • On Sept. 7, 2016, Eric Trump appears to have contributed $376.20 listed only as “meeting expense: meals.”
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  • Ivanka Trump, who previously contributed to Hillary Clinton and John McCain in 2007 and 2008 respectively, does not appear to have given to her father.
  • t. Gen. Michael Flynn, the former Defense Intelligence Agency director turned Trump warm-up act, has not given the candidate a dime. Neither has Governor Chris Christie
  • Many of Trump’s surrogates, who have been generous in previous campaigns, this year have kept their wallets closed to The Donald.
  • Ben Carson, another staunch Trump defender, gave Mitt Romney $1,000 in April 2012 but nothing to Trump this cycle.
  • And contributions below $200 are not required to be reported by presidential campaigns.
  • The kind of anything goes rule when it comes to donations applies evenly to both candidates in the race and some of Clinton’s team is not on record providing contributions either.
  • However, Clinton’s campaign chairman John Podesta appears to have given $2,700 on April 16, 2015. And Chelsea Clinton gave her mother’s campaign $2,700 on Jan. 21, 2016. There are also documented contributions from newly-appointed Democratic National Committee chair Donna Brazile, Clinton’s campaign manager Robby Mook, and former strategist for President Obama David Axelrod.
  • One major Clinton surrogate who is noticeably absent from her extensive list of contributors is billionaire Mark Cuban who has been a public thorn in Trump’s side.
  • And by September, Trump had paid his own businesses around $8.2 million, comprised of rent, food, and facilities and payroll for corporate staffers. He even used tens of thousands of dollars in campaign donations to buy copies of his own book.
  • Meanwhile, Trump is still asserting that he will invest $100 million in his own campaign
aidenborst

FEC fines National Enquirer publisher over Trump hush-money payment - CNNPolitics - 0 views

  • The Federal Election Commission on Tuesday said it had fined the publisher of the National Enquirer for its role in a "hush-money" payment made to quiet a woman who alleged an affair with former President Donald Trump during the 2016 election cycle, according to documents made public by Common Cause, a watchdog group.
  • The $187,500 fine came after the commission found that American Media Inc., whose successor is A360 Media, LLC, made an illegal corporate campaign contribution by paying $150,000 during Trump's first presidential campaign to prevent former Playboy model Karen McDougal from going public with her claims of an affair. Trump has denied the affair.
  • The FEC conciliation agreement with A360 Media -- made public by Common Cause, which had filed a complaint about the McDougal payment -- came after AMI signed a 2018 non-prosecution agreement with Manhattan federal prosecutors in which it admitted that its "principal purpose in entering into the agreement" to pay McDougal "was to suppress [McDougal's] story so as to prevent it from influencing the election."
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  • The McDougal payment was orchestrated by former Trump lawyer Michael Cohen, who pleaded guilty in 2018 to campaign violations stemming from his role in two hush-money payments: the one AMI made to McDougal and a separate $130,000 payment he made to another woman, Stormy Daniels, who also alleged an affair that Trump denies.
  • When the FEC's vote on the matter became public in May, Trump praised the results, saying it closed the book on what he called the "phony case against me."
Javier E

Wake up, Republicans. Your party stands for all the wrong things now. - The Washington ... - 0 views

  • “Look, I was just wondering: What’s the Republican Party all about these days? What does it, well, stand for?”
  • Republicans now partly define their party simply as an alternative to that other party, as in, “I’m a Republican because I’m not a Democrat.”
  • In a long-forgotten era — say, four years ago — such a question would have elicited a very different answer.
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  • Though there was disagreement over specific issues, most Republicans would have said the party stood for some basic principles: fiscal sanity, free trade, strong on Russia, and that character and personal responsibility count. Today it’s not that the Republican Party has forgotten these issues and values; instead, it actively opposes all of them.
  • Trump didn’t hijack the GOP and bend it to his will. He did something far easier: He looked at the party, saw its fault lines and then offered himself as a pure distillation of accumulated white grievance and anger.
  • In short, he let a lot of long-suppressed demons out of the box.
  • A party that has as its sole purpose the protection and promotion of its leader, whatever he thinks, is not on a sustainable path.
  • Can anyone force a change? I’m not optimistic. Trump won with 46.1 percent of the vote in 2016, while Mitt Romney lost with 47.2 percent in 2012; no wonder Republicans have convinced themselves that the path to victory and power lies with angry division.
  • Having ignored the warning signs for years myself, I know the seductive lure of believing what you prefer while ignoring the obvious truth.
  • I’d like to say that I believe the party I spent so many years fighting for could rise to the challenge of this moment. But there have been too many lies for too long.
yehbru

How Trump made people care about politics again - CNNPolitics - 0 views

  • Record numbers of Americans felt strongly favorable or unfavorable toward Trump during his time in office. (The strongly favorable and unfavorable was 71% in a Fox News poll last month, for instance.)
  • Trump's presidency drove historic turnout and record donations to political campaigns in a country whose voters have often shown a disinterest in politics.
  • The 2020 campaign, by comparison, had a little less than 160 million voters participate
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  • Just 51.7% of the voting-eligible population cast a ballot, according to the US Elections Project. That was the lowest since 18-year-olds got the vote before the 1972 election. In raw numbers, a little more than 96 million voters decided to take part in that year's presidential election.
  • Half of the voter-eligible population turned out to vote in 2018. This 50.0% turnout rate was more than 13 points higher than in 2014 (36.7%). In raw numbers, nearly 120 million turned out in 2018 compared to only a little more than 80 million in 2014.
  • What's amazing is how far back you have to go to beat 66.7% for a turnout rate in a presidential election. There wasn't a higher turnout rate in either the 20th or 21st century.
  • the US Elections Project estimates a turnout rate of 66.7% of the voting-eligible population.
  • The strong feelings toward Trump also drove record donations to political candidates up and down the ballot.
  • Through November 30, 2020, the FEC reports that nearly $24 billion was raised by federal candidates, PACs and party committees during the 2020 election cycle. No other year comes anywhere close to that total. For comparison, a little more than $9 billion was raised by federal candidates, PACs and party committees during the 2016 election cycle.
  • Looking just at the presidential candidates, over $4 billion was taken in. Never before had more than $2 billion been raised.
  • In the House races, candidates raised $1.9 billion. Again, that's a record for any cycle. The next highest total was in 2018 with Trump in the White House. During the midterm cycle, $1.7 billion was raised by House candidates.
  • The interest in elections during the past four years isn't just about Trump the individual. It's about everything around Trump and everything that can strengthen or lessen the power he has.
Javier E

Republicans for Campaign-Finance Reform: Lindsey Graham, Chris Christie, and Ted Cruz -... - 0 views

  • “I’ve told my six-year-old daughter, ‘Running for office is real simple: you just surgically disconnect your shame sensor,’” he said. “Because you spend every day asking people for money.
  • Starting with the attack on the McCain-Feingold campaign-finance law in 2003, opponents have won an accelerating series of victories against similar laws. The result has completely changed the world of campaign finance. Citizens United struck down limits on independent expenditures. SpeechNow made it possible for contributions to be largely hidden. Aggregate limits on personal contributions were swept away by McCutcheon v. FEC in 2014
  • For extremely wealthy donors who want to elect candidates and influence issues, their newfound power is a godsend. After spending $92 million on super PACs in 2012, Sheldon Adelson can summon any Republican candidate he wants and has their ears to discuss Israel, his pet issue.
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  • The Koch brothers have put together a coalition that intends to spend almost $1 billion in 2016. Some donors complained after McCutcheon that they'd no longer be able to hide behind limits when they didn't want to give, but the overall landscape has clearly shifted toward those writing the checks.
  • Members of Congress get the shaft, too, spending up to 12 hours a day dialing for dollars. The simple drag of having to do all that seems like a potent reason for candidates to push back
  • even as it fails to rise to the top of most voters' agendas, majorities of Democrats, Republicans, and independents have voiced concern about the corrupting influence of money in polls, and the public generally supports spending caps.
  • The candidates who are doing best at fundraising, or for whom super PACs are likely to raise money effectively, are staying tactfully quiet on the issue.
  • she also called last week for a constitutional amendment to create limits or mandate transparency for campaign cash.
  • Peter Schweizer has excited the political world with allegations of quid pro quos, in which foreign governments gave to the Clinton Foundation and Hillary Clinton, then serving as secretary of state, did them favors—essentially alleging bribery in foreign affairs
  • Shadowy organizations funded by multimillionaires, many of which scrupulously cover up their sources of donations, are going to pour huge amounts of money into trying to sway the democratic process—all in an attempt to prove that huge, insufficiently transparent infusions of cash from wealthy donors can corrupt a public servant’s policy decisions. Is this irony lost on the donors and the candidates they back, or does it simply not bother them?
dangoodman

Ted Cruz did not disclose major bank loans during his Senate run - CNNPolitics.com - 0 views

  • Ted Cruz failed to disclose hundreds of thousands of dollars in loans from the nation's largest banks when he ran for the Senate in 2012, a potential violation of federal election rules.
  • The senator did eventually list the loans on personal financial disclosures
  • "These loans have been disclosed over and over and over again,"
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  • She estimated the total loans were less than $500,000
  • "It's a matter of semantics in terms of listing that that was a loan and we're asking the FEC what we need to do to update it, if anything."
  • Cruz frequently shares with audiences the decision by his wife, Heidi
  • When asked by CNN's Dana Bash how he squared his image with the large loan from Goldman Sachs, Cruz played up the hard decision to pour their income into the Senate run.
  • "Heidi and I when we ran for Senate, we made decision to put our liquid net worth into the campaign."
  • Federal election records show Cruz extended loans of more than $1 million to his campaign during the 2012 cycle.
  • Campaign aides on Wednesday were publicly treating the fracas lightly, sharing other examples of #CruzCrimes
Javier E

Opinion | Boeing's Political Ties and the Decision to Ground the 737 Max - The New York... - 0 views

  • how do campaign donations that appear to be connected with Boeing manage to avoid violating this law? The answer is a loophole, cemented in the law in the 1970s, that permits government contractors to set up “separate segregated funds,” or political action committees, to make political contributions using money typically pooled from the contractors’ executives and major shareholders. Such funds are legal even if the parent company pays for their operating and fund-raising costs. This exemption — whose ostensible justification is the free-speech rights of contractors’ employees — is why political action committees like Boeing’s can exist.
  • The corporate PAC workaround is “clearly bad, policy-wise,” said Brendan Fischer, the director of federal reform at the Campaign Legal Center, a nonpartisan ethics watchdog
  • Boeing’s PAC is a “major player” Mr. Fischer said. The sum of its contributions is three times larger than the sum of any independent individual contributions from its employees
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  • Boeing correctly reports that the company itself does not directly fund super PACs (which are allowed to raise unlimited amounts of money). Doing so would be a violation of the contributor ban. However, it has ways around this
  • The company’s PAC may give up to $5,000 to a candidate’s campaign committee or use its funds for any other “lawful purpose” — which includes unlimited contributions to super PACs or “dark money” nonprofit groups as well. Last cycle, the company’s PAC gave $250,000 to the Mitch McConnell-aligned Senate Leadership Fund; $250,000 to Karl Rove’s dark-money group, One Nation; and $250,000 to the dark-money group American Action Network.
  • There is also, in effect, another even larger loophole for contractors looking to influence national politicians: the inaugural committee for a president-elect. Because inaugural committees are technically not connected to the political campaign, “all bets are off,
  • Boeing gave a million dollars to Mr. Trump’s inaugural committee
Javier E

The Suffocation of Democracy | by Christopher R. Browning | The New York Review of Books - 0 views

  • In the 1920s, the US pursued isolationism in foreign policy and rejected participation in international organizations like the League of Nations. America First was America alone, except for financial agreements like the Dawes and Young Plans aimed at ensuring that our “free-loading” former allies could pay back their war loans. At the same time, high tariffs crippled international trade, making the repayment of those loans especially difficult. The country witnessed an increase in income disparity and a concentration of wealth at the top, and both Congress and the courts eschewed regulations to protect against the self-inflicted calamities of free enterprise run amok. The government also adopted a highly restrictionist immigration policy aimed at preserving the hegemony of white Anglo-Saxon Protestants against an influx of Catholic and Jewish immigrants. (Various measures barring Asian immigration had already been implemented between 1882 and 1917.) These policies left the country unable to respond constructively to either the Great Depression or the rise of fascism, the growing threat to peace, and the refugee crisis of the 1930s.
  • Today, President Trump seems intent on withdrawing the US from the entire post–World War II structure of interlocking diplomatic, military, and economic agreements and organizations that have preserved peace, stability, and prosperity since 1945.
  • Paul von Hindenburg, elected president of Germany in 1925, was endowed by the Weimar Constitution with various emergency powers to defend German democracy should it be in dire peril. Instead of defending it, Hindenburg became its gravedigger, using these powers first to destroy democratic norms and then to ally with the Nazis to replace parliamentary government with authoritarian rule. Hindenburg began using his emergency powers in 1930, appointing a sequence of chancellors who ruled by decree rather than through parliamentary majorities, which had become increasingly impossible to obtain as a result of the Great Depression and the hyperpolarization of German politics.
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  • Thinking that they could ultimately control Hitler while enjoying the benefits of his popular support, the conservatives were initially gratified by the fulfillment of their agenda: intensified rearmament, the outlawing of the Communist Party, the suspension first of freedom of speech, the press, and assembly and then of parliamentary government itself, a purge of the civil service, and the abolition of independent labor unions. Needless to say, the Nazis then proceeded far beyond the goals they shared with their conservative allies, who were powerless to hinder them in any significant way.
  • If the US has someone whom historians will look back on as the gravedigger of American democracy, it is Mitch McConnell. He stoked the hyperpolarization of American politics to make the Obama presidency as dysfunctional and paralyzed as he possibly could. As with parliamentary gridlock in Weimar, congressional gridlock in the US has diminished respect for democratic norms, allowing McConnell to trample them even more. Nowhere is this vicious circle clearer than in the obliteration of traditional precedents concerning judicial appointments. Systematic obstruction of nominations in Obama’s first term provoked Democrats to scrap the filibuster for all but Supreme Court nominations. Then McConnell’s unprecedented blocking of the Merrick Garland nomination required him in turn to scrap the filibuster for Supreme Court nominations in order to complete the “steal” of Antonin Scalia’s seat and confirm Neil Gorsuch. The extreme politicization of the judicial nomination process is once again on display in the current Kavanaugh hearings.
  • Like Hitler’s conservative allies, McConnell and the Republicans have prided themselves on the early returns on their investment in Trump. The combination of Trump’s abasement before Putin in Helsinki, the shameful separation of families at the border in complete disregard of US asylum law (to say nothing of basic humanitarian principles and the GOP’s relentless claim to be the defender of “family values”), and most recently Michael Cohen’s implication of Trump in criminal violations of campaign finance laws has not shaken the fealty of the Republican old guard, so there is little indication that even an explosive and incriminating report from Special Counsel Robert Mueller will rupture the alliance.
  • Republicans begin with a systemic advantage in electing senators and representatives, because the Democratic Party’s constituency has become heavily concentrated in big states and big cities. By my calculation every currently serving Democratic senator represents roughly 3.65 million people; every Republican roughly 2.51 million. Put another way, the fifty senators from the twenty-five least populous states—twenty-nine of them Republicans—represent just over 16 percent of the American population, and thirty-four Republican senators—enough to block conviction on impeachment charges—represent states with a total of 21 percent of the American population. With gerrymandering and voter suppression enhancing even more the systemic Republican advantage, it is estimated that the Democrats will have to win by 7 to 11 points (a margin only obtainable in rare “wave” elections) in the 2018 elections to achieve even the narrowest of majorities in the House of Representatives
  • In France the prospect of a Popular Front victory and a new government headed by—horror of horrors—a Socialist and Jew, Léon Blum, led many on the right to proclaim, “Better Hitler than Blum.” Better the victory of Frenchmen emulating the Nazi dictator and traditional national enemy across the Rhine than preserving French democracy at home and French independence abroad under a Jewish Socialist.
  • The fascist movements of that time prided themselves on being overtly antidemocratic, and those that came to power in Italy and Germany boasted that their regimes were totalitarian. The most original revelation of the current wave of authoritarians is that the construction of overtly antidemocratic dictatorships aspiring to totalitarianism is unnecessary for holding power
  • the most apt designation of this new authoritarianism is the insidious term “illiberal democracy.” Recep Tayyip Erdoğan in Turkey, Putin in Russia, Rodrigo Duterte in the Philippines, and Viktor Orbán in Hungary have all discovered that opposition parties can be left in existence and elections can be held in order to provide a fig leaf of democratic legitimacy, while in reality elections pose scant challenge to their power. Truly dangerous opposition leaders are neutralized or eliminated one way or another.
  • Total control of the press and other media is likewise unnecessary, since a flood of managed and fake news so pollutes the flow of information that facts and truth become irrelevant as shapers of public opinion. Once-independent judiciaries are gradually dismantled through selective purging and the appointment of politically reliable loyalists. Crony capitalism opens the way to a symbiosis of corruption and self-enrichment between political and business leaders. Xenophobic nationalism (and in many cases explicitly anti-immigrant white nationalism) as well as the prioritization of “law and order” over individual rights are also crucial to these regimes in mobilizing the popular support of their bases and stigmatizing their enemies.
  • Both Mussolini and Hitler came to power in no small part because the fascist-conservative alliances on the right faced division and disarray on the left. The Catholic parties (Popolari in Italy, Zentrum in Germany), liberal moderates, Social Democrats, and Communists did not cooperate effectively in defense of democracy.
  • In the five presidential elections of the twenty-first century, Democrats have won the popular vote four times. Two of these four (2000 and 2016) nonetheless produced Republican presidents, since the Electoral College reflects the same weighting toward small, more often Republican states as the Senate. Given the Supreme Court’s undermining of central provisions of the Voting Rights Act (Shelby County v. Holder), its refusal to take up current flagrant gerrymandering cases (Gill v. Whitford for Wisconsin; Benisek v. Lamone for Maryland), and its recent approval of the Ohio law purging its voting rolls (Husted v. Randolph Institute), it must be feared that the Court will in the future open the floodgates for even more egregious gerrymandering and voter suppression.
  • The unprecedented flow of dark money into closely contested campaigns has distorted the electoral process even further. The Supreme Court decision declaring corporations to be people and money to be free speech (Citizens United v. FEC) in particular has greatly enhanced the ability of corporations and wealthy individuals to influence American politics
  • To consolidate his dictatorship, Hitler had to abolish the independent unions in Germany in a single blow. Trump faces no such problem. In the first three postwar decades, workers and management effectively shared the increased wealth produced by the growth in productivity. Since the 1970s that social contract has collapsed, union membership and influence have declined, wage growth has stagnated, and inequality in wealth has grown sharply. Governor Scott Walker’s triumph over public sector unions in Wisconsin and the recent Supreme Court decision striking down mandatory public sector union dues (Janus v. AFSCME) simply accelerate a process long underway.
  • Alongside the erosion of an independent judiciary as a check on executive power, other hallmarks of illiberal democracy are the neutralization of a free press and the steady diminution of basic human rights
  • In Trump’s presidency, those functions have effectively been privatized in the form of Fox News and Sean Hannity. Fox faithfully trumpets the “alternative facts” of the Trump version of events, and in turn Trump frequently finds inspiration for his tweets and fantasy-filled statements from his daily monitoring of Fox commentators and his late-night phone calls with Hannity. The result is the creation of a “Trump bubble” for his base to inhabit that is unrecognizable to viewers of PBS, CNN, and MSNBC and readers of The Washington Post and The New York Times. The highly critical free media not only provide no effective check on Trump’s ability to be a serial liar without political penalty; on the contrary, they provide yet another enemy around which to mobilize the grievances and resentments of his base. A free press does not have to be repressed when it can be rendered irrelevant and even exploited for political gain.
  • the curtailment of many rights and protections Americans now enjoy is likely. Presumably marriage equality will survive, given the sea change in American public opinion on that issue. But the right of businesses and individuals to discriminate against gays is likely to be broadly protected as a “sincerely held religious belief.” Chief Justice John Roberts’s favorite target, affirmative action, is likely to disappear under his slogan that to end racial discrimination, one must end all forms of racial discrimination. And a woman’s right to abortion will probably disappear in red states, either through an outright overturning of Roe v. Wade or more likely through narrower rulings that fail to find any “undue burden” in draconian restrictions that in practice make abortion unavailable. And equal protection of voting rights is likely to be eroded in red states through ever more insidiously designed voter suppression laws and gerrymandering once the Supreme Court makes clear that it will not intervene to curb such measures
  • No matter how and when the Trump presidency ends, the specter of illiberalism will continue to haunt American politics. A highly politicized judiciary will remain, in which close Supreme Court decisions will be viewed by many as of dubious legitimacy, and future judicial appointments will be fiercely contested. The racial division, cultural conflict, and political polarization Trump has encouraged and intensified will be difficult to heal. Gerrymandering, voter suppression, and uncontrolled campaign spending will continue to result in elections skewed in an unrepresentative and undemocratic direction. Growing income disparity will be extremely difficult to halt, much less reverse.
  • Finally, within several decades after Trump’s presidency has ended, the looming effects of ecological disaster due to human-caused climate change—which Trump not only denies but is doing so much to accelerate—will be inescapable. Desertification of continental interiors, flooding of populous coastal areas, and increased frequency and intensity of extreme weather events, with concomitant shortages of fresh water and food, will set in motion both population flight and conflicts over scarce resources that dwarf the current fate of Central Africa and Syria. No wall will be high enough to shelter the US from these events. Trump is not Hitler and Trumpism is not Nazism, but regardless of how the Trump presidency concludes, this is a story unlikely to have a happy ending.
Javier E

Failure Is an Option: Does History Forecast Disaster for the United States? - The Atlantic - 1 views

  • it is clear that human societies do not progress inevitably toward greater wealth. Creating the conditions in which self-interest will foster economic development is harder than optimistic Enlightenment thinkers believed. Economic growth is not predestined: Many countries have seen long-term declines in standards of living, as did Argentina in the twentieth century. Others, such as large parts of Africa, seem mired in strife and poverty. With even the United States and Western Europe facing economic stagnation, burdensome debt levels, unfavorable demographics, and rising global competition, it seems that sustained stability and prosperity may be the historical exception rather than the rule.
  • Why some societies stagnate while others thrive is the question addressed by economist Daron Acemoglu and political scientist James Robinson in Why Nations Fail: The Origins of Power, Prosperity, and Poverty.
  • differences, Acemoglu and Robinson argue, can all be explained by institutions. Long-lasting institutions, not short-term government policies, are the key determinant of societal outcomes. Development is not as simple as adopting a smarter set of economic policies: Instead, "the main obstacle to the adoption of policies that would reduce market failures and encourage economic growth is not the ignorance of politicians but the incentives and constraints they face from the political and economic institutions in their societies."
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  • Acemoglu and Robinson outline a theory of how economic and political institutions shape the fate of human societies. They reinterpret the rise and fall of civilizations throughout history, showing how differences in institutions interact with changing circumstances to produce development or stagnation.
  • It also has implications for the contemporary United States, where increasing inequality and the growing influence of money in politics threaten to reshape our political institutions.
  • In more fortunate countries, pluralistic political institutions prevent any one group from monopolizing resources for itself, while free markets empower a large class of people with an interest in defending the current system against absolutism. This virtuous circle, which first took form in seventeenth-century England, is the secret to economic growth.
  • Economic institutions are themselves the products of political processes, which depend on political institutions. These can also be extractive, if they enable an elite to maintain its dominance over society, or inclusive, if many groups have access to the political process. Poverty is not an accident: "[P]oor countries are poor because those who have power make choices that create poverty." Therefore, Acemoglu and Robinson argue, it is ultimately politics that matters.
  • The logic of extractive and inclusive institutions explains why growth is not foreordained. Where a cohesive elite can use its political dominance to get rich at the expense of ordinary people, it has no need for markets and free enterprise, which can create political competitors. In addition, because control of the state can be highly lucrative, infighting among contenders for power produces instability and violence. This vicious circle keeps societies poor
  • Countries differ in their economic success because of their different institutions, the rules influencing how the economy works, and the incentives that motivate people," write Acemoglu and Robinson. Extractive institutions, whether feudalism in medieval Europe or the use of schoolchildren to harvest cotton in contemporary Uzbekistan, transfer wealth from the masses to elites. In contrast, inclusive institutions -- based on property rights, the rule of law, equal provision of public services, and free economic choices -- create incentives for citizens to gain skills, make capital investments, and pursue technological innovation, all of which increase productivity and generate wealth.
  • Acemoglu and Robinson differentiate their account from alternatives that they label the "culture," "geography," and "ignorance" hypotheses.
  • An example of the first is Max Weber's famous argument that Calvinism lay at the roots of capitalist development
  • the best-known recent example of the second is Jared Diamond's explanation of the Spanish Conquest as the inevitable outcome of geographic differences between Eurasia and the Americas.
  • Most economists, Acemoglu and Robinson assert, subscribe to the ignorance hypothesis, according to which "poor countries are poor because they have a lot of market failures and because economists and policymakers do not know how to get rid of them." According to this view, development can be engineered through technocratic policies administered by enlightened experts.
  • this focus on policy obscures the fundamental importance of politics.
  • Their perspective is informed by New Institutional Economics, an approach developed in the last quarter of the twentieth century, and associated with prominent economists such as Douglass North and Oliver Williamson, that focuses on how economic forces are mediated by institutions such as political systems and legal codes
  • A state based on extractive institutions, whether the Kuba Kingdom of seventeenth-century Central Africa or more recently the Soviet Union, can generate growth, especially when starting from low levels of development. But in most of these cases, the ruling elite is unwilling to allow inclusive economic institutions because they would threaten its political supremacy; the inevitable result is economic stagnation.
  • This leaves open the question of why some societies end up with inclusive rather than extractive institutions -- why some are rich and some are poor. The answer, according to Acemoglu and Robinson, is that institutions evolve -- and that history is messy.
  • Institutions change in subtle ways over time, allowing societies to drift apart. When major shocks occur, small differences in institutions can send societies down vastly different historical paths.
  • Early modern England, France, and Spain were all feudal societies with power-hungry monarchs. But the English Parliament had slightly more power than its continental relatives; as a result, the crown was unable to monopolize trade with the Americas, which made many merchants rich instead; in turn, this new commercial class became an important part of the coalition that overthrew James II in 1688, successfully fighting off absolutism. In Spain, by contrast, the monarchy controlled overseas trade, quashed internal challenges to its authority, and maintained extractive economic institutions -- and the country went into long-term decline. Crucially, Acemoglu and Robinson remind us that these outcomes were not preordained. James II might have suppressed the Glorious Revolution, or the Spanish Armada might have succeeded a century earlier. History is like that.
  • In this light, the material prosperity of the modern world, unevenly distributed though it is, is a fortunate historical accident.
  • But inclusive institutions can also break down. In the late thirteenth and early fourteenth centuries, a small group of families transformed Venice's semi-democratic institutions into a hereditary aristocracy and then monopolized long-distance trade, spelling the end of the city-state's economic expansion
  • Acemoglu and Robinson, by contrast, examine why nations fail. Societies, in their telling, are like Tolstoy's families: The success stories are similar -- pluralist democracies with regulated capitalist economies -- but failure comes in different forms. There are many ways in which elites can impose extractive institutions that cripple economic development.
  • The United States is one of the happy families of Why Nations Fail. Although our institutions have often been deeply flawed, Acemoglu and Robinson show how crucial moments in history, from Jamestown to the Progressive Era to the civil-rights movement, have led to the expansion of political democracy and economic opportunity.
  • Rather than as a series of inevitable triumphs, however, this history can also be seen as a warning -- that our institutions are fragile, always at risk of being subverted by elites seeking to exploit political power for their narrow economic ends. That risk has reappeared today.
  • The power of the financial sector is only one example of the broader threat to our inclusive political institutions: namely, the ability of the economic elite to translate their enormous fortunes directly into political power. In the wake of the Supreme Court's 2010 decision in Citizens United, super PACs can mobilize unlimited amounts of money--and can accept contributions from 501(c)4 organizations, which do not have to identify their donors.
  • This may seem like a level playing field. But money is not distributed evenly. American Crossroads, for example, has consistently raised more than 90 percent of its funds from billionaires (with a "b"). The recent, breathtaking rise in inequality has put unprecedented resources at the disposal of the super-rich. With the ability to secretly invest unlimited sums in political activities, they now have the opportunity to swamp all other participants in American politics.
  • Rising inequality and deregulation of political spending have made possible a new kind of class warfare. The 1 percent can blanket the airwaves, install their chosen representatives, and sway public policy in their favor.
  • The most direct way to translate political power into cold, hard cash is to advocate for lower taxes. Republican presidential candidates spent the past year competing to offer the most bountiful tax cuts to the super-rich
  • Showering goodies on the rich would require draconian cuts to Social Security and Medicare -- programs that are popular among the Tea Party rank and file. Republicans' current anti-tax orthodoxy reflects the interests of their wealthy funders rather than their middle-income base.
  • As Warren Buffett observed, "there's been class warfare going on for the last twenty years, and my class has won." This should be little surprise: "My side has had the nuclear bomb. We've got K Street, we've got lobbyists, we've got money on our side."
  • Supreme Court justices appointed by Republican presidents were instrumental in unleashing unlimited corporate political spending in Citizens United, accelerating the concentration of political power in the hands of the super-rich.
  • The most potent bulwark of inclusive institutions is probably the rich variety of influential interest groups that all have the ability to participate in politics. Still, the accumulation of huge fortunes and their deployment for political ends has changed the nature of our political institutions. Funding by the economic elite is a major reason why Republicans advocate transfers from ordinary people to the rich in the form of tax cuts and reductions in government services -- and why Democrats have been dragged to the right along with the GOP
  • Acemoglu recently said, "We need noisy grassroots movements to deliver a shock to the political system," citing both the Tea Party and Occupy Wall Street as potentially helpful developments. As he recognized, however, the one with more staying power -- the Tea Party -- has been co-opted by well-funded, elite-dominated groups (including Americans for Prosperity). If a popular movement can be bankrolled as easily as an attack ad, it is hard to see what money can't buy in politics. The next test for America will be whether our political system can fend off the power of money and remain something resembling a real democracy -- or whether it will become a playground where a privileged elite works out its internal squabbles.
andrespardo

Why Democrats share the blame for the rise of Donald Trump | Robert Reich | Opinion | T... - 0 views

  • ut why are we so divided? We’re not fighting a hugely unpopular war on the scale of Vietnam. We’re not in a deep economic crisis like the Great Depression. Yes, we disagree about guns, gays, abortion and immigration, but we’ve disagreed about them for decades. Why are we so divided now?
  • But that begs the question of why we have been so ready to be divided by Trump. The answer derives in large part from what has happened to wealth and power.
  • hey talked instead about Bernie Sanders and Donald Trump. When I asked why, they said Sanders or Trump would “shake things up” or “make the system work again” or “stop the corruption” or “end the rigging”.
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  • “Democrats don’t have a ‘white working-class’ problem. They have a ‘working class problem’ which progressives have been reluctant to address honestly or boldly.
  • peaking at a factory in Pennsylvania in June 2016, he decried politicians and financiers who had betrayed Americans by “taking away from the people their means of making a living and supporting their families”.
  • Racism did play a part. But to understand why racism had such a strong impact in 2016, especially on the voting of whites without college degrees, it’s important to see what drove it. After all, racism in America dates back long before the founding of the Republic, and even modern American politicians have had few compunctions about using racism to boost their standing.
  • Clinton and Obama chose not to wrest power back from the oligarchy. Why? In the first two years of the Bill Clinton and Barack Obama administrations, Democrats controlled both houses of Congress. Yet both Clinton and Obama advocated free trade agreements without providing millions of blue-collar workers who consequently lost their jobs any means of getting new ones that paid at least as well. Clinton pushed for Nafta and for China joining the World Trade Organization, and Obama sought to restore the “confidence” of Wall Street instead of completely overhauling the banking system.
  • Both Clinton and Obama turned their backs on campaign finance reform. In 2008, Obama was the first presidential nominee since Richard Nixon to reject public financing in his primary and general election campaigns, and he never followed up on his re-election promise to pursue a constitutional amendment overturning Citizens United vs FEC, the 2010 supreme court opinion opening wider the floodgates to big money in politics.
  • There is no longer a left or right.
  • A direct line connects the four-decade stagnation of wages with the bailout of Wall Street, the rise of the Tea Party (and, briefly, Occupy), and the successes of Sanders and Trump in 2016. As Eduardo Porter of the New York Times notes, since 2000 Republican presidential candidates have steadily gained strength in America’s poorer counties while Democrats have lost ground. In 2016, Trump won 58% of the vote in the counties with the poorest 10% of the population. His share was 31% in the richest.
  • Democrats cannot defeat authoritarian populism without an agenda of radical democratic reform, an anti-establishment movement. Trump has harnessed the frustrations of at least 40% of America. Although he’s been a Trojan horse for big corporations and the rich, giving them all they’ve wanted in tax cuts and regulatory rollbacks, the working class continues to believe he’s on their side.
clairemann

Jaime Harrison is Giving Lindsey Graham A Run for His Seat | Time - 0 views

  • . A Democrat hasn’t won statewide office in South Carolina in more than a decade, President Donald Trump is easily outpacing Democratic presidential candidate Joe Biden, and the three-term incumbent, Republican Lindsey Graham, won his last re-election contest by more than 15 points.
  • Once a moderate Republican who was part of the bipartisan group that devised a 2013 immigration reform bill, Graham has transformed from a Donald Trump critic to one of the President’s closest allies.
  • Harrison has capitalized by focusing on local issues. “The urgency to get Supreme Court justices through, or tee time with the President, or going on Fox News—all those things are much higher on the priority level for Lindsey Graham than addressing the issues people are dealing with,”
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  • Harrison is hardly the first candidate to raise extraordinary amounts of money against a red-state incumbent whom Democrats detest.
  • Harrison’s campaign is “completely organized, it’s extremely efficient,” says Amanda Loveday, chief of staff of Unite the Country, a pro-Biden super PAC, and former executive director for the South Carolina Democratic Party while Harrison was party chair. “It had to be flawless, and it has been. It’s purely based on energizing the base and reminding South Carolinians, no matter their political stature, what Lindsey has not done for them.”
  • Harrison has become a ubiquitous presence in the state, with ads blanketing the airwaves. He’s presented himself as a unifier and pledged to grow the middle class and protect health care.
  • Given Graham’s political straits, Harrison also happens to be in the right place at the right time. “It takes that sort of alignment for somebody with a ‘D’ after their name to have a shot at the top of the ticket in South Carolina, and I think he does have a shot,”
  • Win or lose, Harrison has created openings for other Democrats in the state by drawing national money to the state that’s trickling down to other candidates.
  • “The investment that’s being made at the county level, the state level, and then both caucus levels is going to transform the makeup of the Democratic party for at least 10 years,” says South Carolina state Rep. JA Moore.
  • Harrison’s campaign did not provide a total amount of money it has transferred to the state Democratic Party or other Democratic entities in the state, but a scroll through party receipts shows the Harrison campaign has passed along millions. If Democrats can flip five state Senate seats, for example, they could take outright control of the chamber, which has even higher stakes this year due to redistricting.
  • “All of the things that a normal campaign needs to have to win, we just never had those resources and we had to rely on a lot of volunteers. But now because of Jaime’s campaign efforts, it’s a new day in terms of Democratic infrastructure,”
  • “Lindsey’s always had some measure of difficulty with the Republican base,” says former Republican Governor and U.S. Rep. Mark Sanford. “I think when it comes down to actually pulling the lever between Lindsey, as much as they may not like him, and a Democrat, they’re going to go Lindsey.”
  • Other Republicans are similarly confident in Graham’s chances. “I’m not worried. Lindsey’s going to win. Senator Graham’s going to pull it out, he’ll win comfortably,” says Chad Connelly, former South Carolina GOP chairman. “The only reason the race was ever tight was money.”
andrespardo

US lets corporations delay paying environmental fines amid pandemic | Environment | The... - 0 views

  • US lets corporations delay paying environmental fines amid pandemic
  • Ten corporations that agreed to a total of $56m in civil penalties for allegedly breaking environmental laws are not being required to make payments under a pause granted by the US government during the Covid-19 pandemic.
  • They signed settlements with the government agreeing to pay fines without admitting liability but the justice department last month advised most of the companies of extensions in letters which were obtained by the government watchdog group Accountable.US via public records requests.
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  • Denver-based oil and gas company K P Kauffman allegedly violated air pollution laws, emitting volatile organic compounds that form smog in the Denver-Julesburg Basin, an area that wasn’t meeting smog standards. The company settled and agreed to pay $1m in eight installments over four years, but it has not been required to pay its second installment because of the freeze. The company did not respond to requests for comment.
  • Chris Saeger, director of strategic initiatives at Accountable.US, said: “This is exactly the time to make sure support is flowing to the federal, state and local governments that need a hand with responding to the coronavirus crisis and with the environmental problems that these special interests have caused.”
  • The companies will not be required to pay penalties before 1 June, although they have the option to do so and at least two companies told the Guardian they made payments despite the extension. The EPA would not respond to inquiries about its policy and or say which companies paid penalties.
  • One company, Virginia power provider Dominion Energy, settled and agreed to pay $1.4m for allegedly releasing 27.5m gallons of water from a coal ash impoundment that seeped into groundwater along the shore of the James River. Coal ash contains dangerous pollutants, including mercury, cadmium and arsenic, which can cause widespread environmental damage. The company said it plans to pay the settlement penalty once it is finalized.
  • Another alleged violator, one of the world’s largest steel companies, ArcelorMittal, decided to pay the $5m penalty it agreed to for air quality issues at steel plants in East Chicago, Indiana; Burns Harbor, Indiana; and Cleveland, Ohio, according to a spokesman.
  • BP was accused of emitting too much particle pollution, which is linked to asthma and heart attacks. The justice department’s assistant attorney general Brian Benczkowski represented BP in the past. BP employees have given $85,000 to Trump campaign groups.
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