Wednesday, January 26, 2011

Former Democratic Party Candidate for President Speaks about the "Betrayal of the Democratic Party"

"Those that do not remember history are doomed to repeat it."
Alfred E. Smith, the four-term Democratic governor of New York, became the Democratic candidate for President in 1928 but lost to Herbert Hoover. Franklin Roosevelt had nominated Alfred Smith for the Democratic candidate for President in 1928. In 1932, Smith supported Franklin D. Roosevelt for President. By 1936, Smith was appalled by Roosevelt's "New Deal" policies and attempted to warn the Democratic Party. Because of Roosevelt's popularity, Smith's January 25, 1936 speech was considered by some to be treason. Remarkably, many of Smith's views would now be considered "Republican" or "Tea Party" viewpoints, portions sounding as though they were written by Glenn Beck himself. My how things have changed.
BETRAYAL OF THE DEMOCRATIC PARTYBy Alfred E. (Al) Smith
At the outset of my remarks let me make one thing perfectly clear. I am not a candidate for any nomination by any party at any time, and what is more I do not intend to even lift my right hand to secure any nomination from any party at any time. Further than that I have no ax to grind. There is nothing personal in this whole performance so far as I am concerned. I have no feeling against any man, woman or child in the United States. I was born in the Democratic party and I expect to die in it. And I was attracted to it in my youth because I was led to believe that no man owned it. Further than that, that no group of men owned it, but on the other hand, that it belonged to all the plain people in the United States.
Patriotism above Partisanship
It is not easy for me to stand up here tonight and talk to the American people against the Democratic Administration. This is not easy. It hurts me. But I can call upon innumerable witnesses to testify to the fact that during my whole public life I put patriotism above partisanship. And when I see danger, I say danger, that is the "Stop, look, and listen" to the fundamental principles upon which this Government of ours was organized, it is difficult for me to refrain from speaking up.
What are these dangers that I see? The first is the arraignment of class against class. It has been freely predicted that if we were ever to have civil strife again in this country, it would come from the appeal to passion and prejudices that comes from the demagogues that would incite one class of our people against the other.
In my time I have met some good and bad industrialists. I have met some good and bad financiers, but I have also met some good and bad laborers, and this I know, that permanent prosperity is dependent upon both capital and labor alike.
And I also know that there can be no permanent prosperity in this country until industry is able to employ labor, and there certainly can be no permanent recovery upon any governmental theory of "soak the rich" or "soak the poor."
A Government by Bureaucrats
The next thing that I view as being dangerous to our national well-being is government by bureaucracy instead of what we have been taught to look for, government by law.
Just let me quote something from the President's (Franklin Roosevelt) message to Congress:
"In 34 months we have built up new instruments of public power in the hands of the people's government. This power is wholesome and proper, but in the hands of political puppets of an economic autocracy, such power would provide shackles for the liberties of our people."
Now I interpret that to mean, if you are going to have an autocrat, take me; but be very careful about the other fellow.
There is a complete answer to that, and it rises in the minds of the great rank and file, and that answer is just this: We will never in this country tolerate any laws that provide shackles for our people.
We don't want any autocrats, either in or out of office. We wouldn't even take a good one.
The next danger that is apparent to me is the vast building up of new bureaus of government, draining resources of our people in a common pool of redistributing them, not by any process of law, but by the whim of a bureaucratic autocracy.
The 1932 Platform
Well now, what am I here for? I am here not to find fault. Anybody can do that. I am here to make suggestions. What would I have my party do? I would have them reestablish and redeclare the principles that they put forth in that 1932 platform.
The Republican platform was ten times as long. It was stuffy, it was unreadable, and in many points, not understandable. No Administration in the history of the country came into power with a more simple, a more clear, or a more inescapable mandate than did the party that was inaugurated on the Fourth of March in 1933 (the Democrats).
And listen, no candidate in the history of the country ever pledged himself more unequivocally to his party platform than did the President who was inaugurated on that day (Franklin Roosevelt).
Well, here we are!
Millions and millions of Democrats just like myself, all over the country, still believe in that platform. And what we want to know is why it wasn't carried out.
Now, let us wander for awhile and let's take a look at that platform, and let's see what happened to it. Here is how it started out:
"We believe that a party platform is a covenant with the people, to be faithfully kept by the party when entrusted with power, and that the people are entitled to know in plain words the terms of contract to which they are asked to subscribe.
"The Democratic Party solemnly promises by appropriate action to put into effect the principles, policies and reforms herein advocated and to eradicate the political methods and practices herein condemned."
My friends, these are what we call fighting words. At the time that that platform went through the air and over the wire, the people of the United States were in the lowest possible depths of despair, and the Democratic platform looked to them like the star of hope; it looked like the rising sun in the East to the mariner on the bridge of a ship after a terrible night.
But what happened to it?
Economy in Government
First plank: "We advocate immediate and drastic reduction of governmental expenditures by abolishing useless commissions and offices, consolidating departments and bureaus, and eliminating extravagance to accomplish a saving of not less than 25 per cent in the cost of the Federal Government." (remember, this was the Democrat's 1932 Platform)
Well, now, what is the fact? No offices were consolidated, no bureaus were eliminated, but on the other hand, the alphabet was exhausted. The creation of new departments -- and this is sad news for the taxpayer -- the cost, the ordinary cost, what we refer to as housekeeping cost, over and above all emergencies -- that ordinary housekeeping cost of government is greater today than it has ever been in any time in the history of the republic.
The Unbalanced Budget
Another plank: "We favor maintenance of the national credit by a Federal budget annually balanced on the basis of accurate Federal estimate within revenue."
How can you balance a budget if you insist upon spending more money than you take in? Even the increased revenue won't go to balance the budget, because it is hocked before you receive it. What is worse than that?
The Middle Class Will Pay the Debt
Now here is something that I want to say to the rank and file. There are three classes of people in this country; there are the poor and the rich, and in between the two is what has often been referred to as the great backbone of America, that is the plain fellow.
That is the fellow that makes from one hundred dollars a month ($1,500 a month in 2009 dollars) up to the man that draws down five or six thousand dollars a year ($76,500 to $92,000 annually in 2009 dollars).
Now, there is a great big army. Forget the rich; they can't pay this debt. If you took everything they have away from them, they couldn't pay it; they ain't got enough. There is no use talking about the poor; they will never pay it, because they have nothing.
This debt is going to be paid by that great big middle class that we refer to as the backbone and the rank and file, and the sin of it is they ain't going to know that they are paying it. It is going to come to them in the form of indirect and hidden taxation. It will come to them in the cost of living, in the cost of clothing, in the cost of every activity that they enter into, and because it is not a direct tax, they won't think they're paying, but, take it from me, they are going to pay it!
What About State's Rights?
Another plank: "We advocate the extension of Federal credit to the States to provide unemployment relief where the diminishing resources of the State make it impossible for them to provide for their needs."
That was pretty plain. That was a recognition in the national convention of the rights of the States. But how is it interpreted? The Federal Government took over most of the relief problems, some of them useful and most of them useless. They started out to prime the pump for industry in order to absorb the ranks of the unemployed, and at the end of three years their employment affirmative policy is absolutely nothing better than the negative policy of the Administration that preceded it.
"We favor unemployment and old age insurance under State laws."
Now let me make myself perfectly clear so that no demagogue or no crack-pot in the next week or so will be able to say anything about my attitude on this kind of legislation. I am in favor of it. And I take my hat off to no man in the United States on the question of legislation beneficial to the poor, the weak, the sick, or the afflicted, or women and children
Because why? I started out a quarter of a century ago when I had very few followers in my State, and during that period I advocated, fought for, introduced as a legislator and finally as Governor for eight long years, signed more progressive legislation in the interest of the men, women and children than any man in the State of New York.
Unconstitutional Measure -- Unfulfilled Pledges
And the sin of this whole thing, and the part of it that worries me and gives me concern, is that this haphazard, hurry-up passage of legislation is never going to accomplish the purposes for which it was designed and -- bear this in mind, follow the platform -- under State laws.
Another one: "We promise the removal of Government from all fields of private enterprise except where necessary to develop public works and national resources in the common interest."
NRA (National Recovery Administration)! A vast octopus set up by government, that wound its arms around all the business of the country, paralyzed big business, and choked little business to death.
Did you read in the papers a short time ago where somebody said that business was going to get a breathing spell?
What is the meaning of that? And where did that expression arise?
I'll tell you where it comes from. It comes from the prize ring. When the aggressor is punching the head off the other fellow he suddenly takes compassion on him and he gives him a breathing spell before he delivers the knockout wallop.
Wasteful Extravagance
Here is another one: "We condemn the open and covert resistance of administrative officials to every effort made by congressional committees to curtail the extravagant expenditures of Government and improvident subsidies granted to private interests."
Now, just between ourselves, do you know any administrative officer that has tried to stop Congress from appropriating money? Do you think there has been any desire on the part of Congress to curtail appropriations?
Why, not at all. The fact is that Congress threw them right and left -- didn't even tell what they were for.
And the truth, further, is that every administrative officer sought to get all that he possibly could in order to expand the activities of his own office and throw the money of the people right and left. And as to subsidies, why, never at any time in the history of this or any other country were there so many subsidies granted to private groups, and on such a huge scale.
The fact of the matter is that most of the cases now pending before the United States Supreme Court revolve around the point whether or not it is proper for Congress to tax all the people to pay subsidies to a particular group.
Here is another one: "We condemn the extravagance of the Farm Board, its disastrous action which made the Government a speculator of farm products, and the unsound policy of restricting agricultural products to the demand of domestic markets."
What about the restriction of our agricultural products and the demands of the market? Why, the fact about that is that we shut out entirely the farm market, and by plowing under corn and wheat and the destruction of foodstuffs, food from foreign countries has been pouring into our American markets -- food that should have been purchased by us from our own farmers.
In other words, while some of the countries of the Old World were attempting to drive the wolf of hunger from the doormat, the United States flew in the face of God's bounty and destroyed its own foodstuffs. There can be no question about that.
Now I could go on indefinitely with some of the other planks. They are unimportant, and the radio time will not permit it. But just let me sum up this way. Regulation of the Stock Exchange and the repeal of the Eighteenth Amendment, plus one or two minor planks of the platform that in no way touch the daily life of our people, have been carried out, but the balance of the platform was thrown in the wastebasket. About that there can be no question.
Let's see how it was carried out. Make a test for yourself. Just get the [1936] platform of the Democratic Party, and get the [1936] platform of the Socialist Party (see also "The Road Ahead: A Draft Platform for the Socialist Party," December, 1936), and lay them down on your dining room table, side by side, and get a heavy lead pencil and scratch out the word "Democrat," and scratch out the word "Socialist," and let the two platforms lay there.
Then study the record of the present Administration up to date. After you have done that, make your mind up to pick up the platform that more nearly squares with the record, and you will put your hand on the Socialist platform. You don't dare touch the Democratic platform.
Democratic or Socialistic?
And incidentally, let me say, that it is not the first time in recorded history, that a group of men have stolen the livery of the church to do the work of the devil.
Now, after studying this whole situation, you will find that that is at the bottom of all our troubles. This country was organized on the principles of representative democracy, and you can't mix Socialism or Communism with that. They are like oil and water; they refuse to mix.
And incidentally, let me say to you, that is the reason why the United States Supreme Court is working overtime throwing the alphabet out of the window -- three letters at a time.
Now I am going to let you in on something else. How do you suppose all this happened? Here is the way it happened. The young Brain Trusters caught the Socialists in swimming and they ran away with their clothes.
Now, it is all right with me. It is all right to me if they want to disguise themselves as Norman Thomas or Karl Marx, or Lenin, or any of the rest of that bunch, but what I won't stand for is to let them march under the banner of Jefferson, Jackson, or Cleveland.
"We Can Take a Walk"
Now what is worrying me, where does that leave me as a Democrat? My mind is now fixed upon the Convention in June, in Philadelphia. The committee on resolutions is about to report, and the preamble to the platform is:
"We, the representatives of the Democratic Party in Convention assembled, heartily endorse the Democratic Administration."
What happens to the disciples of Jefferson and Jackson and Cleveland when that resolution is read out? Why, for us it is a washout. There is only one of two things we can do. We can either take on the mantle of hypocrisy or we can take a walk, and we will probably do the latter.
Now leave the platform alone for a little while. What about this attack that has been made upon the fundamental institutions of this country? Who threatens them, and did we have any warning of this threat? Why, you don't have to study party platforms. You don't have to read books. You don't have to listen to professors of economics. You can find the whole thing incorporated in the greatest declaration of political principles that ever came from the hands of man, the Declaration of Independence and the Constitution of the United States.
Constitutional Limitations
Always have in your minds that the Constitution and the first ten amendments to it were drafted by refugees and by sons of refugees, by men with bitter memories of European oppression and hardship, by men who brought to this country and handed down to their descendants an abiding fear of the bitterness and all the hatred of the Old World was distilled in our Constitution into the purest democracy that the world has ever known.
There are just three principles, and in the interest of brevity, I will read them. I can read them quicker than talk them.
"First, a Federal Government, strictly limited in its power, with all other powers except those expressly mentioned reserved to the States and to the people, so as to insure State's rights, guarantee home rule, and preserve freedom of individual initiative and local control."
That is simple enough. The difference between the State constitutions and the Federal. Constitution is that in the State you can do anything you want to do provided it is not prohibited by the Constitution. But in the Federal Government, according to that government, you can do only that which that Constitution tells you that you can do.
What is the trouble? Congress has overstepped its bounds. It went beyond that Constitutional limitation, and it has enacted laws that not only violate the home rule and the State's right principle -- and who says that? Do I say it? Not at all. That was said by the United States Supreme Court in the last ten or twelve days.
Chorus of Yes-Men in Congress
Secondly, the Government, with three independent branches, Congress to make the laws, the Executive to execute them, the Supreme Court, and so forth. You know that.
In the name of Heaven, where is the independence of Congress? Why, they just laid right down. They are flatter on the Congressional floor than the rug on the table here. They surrendered all of their powers to the Executive, and that is the reason why you read in the newspapers references to Congress as the Rubber Stamp Congress.
We all know that the most important bills were drafted by the Brain Trusters, and sent over to Congress and passed by Congress without consideration, without debate and, without meaning any offense at all to my Democratic brethren in Congress, I think I can safely say without 90 per cent of them knowing what was in the bills.
That was the meaning of the list that came over, and besides certain bills were "Must." What does that mean? Speaking for the rank and file of American people we don't want any executive to tell Congress what it must do, and we don't want any Congress or the Executive jointly or severally to tell the United States Supreme Court what it must do!
And further than that, we don't want the United States Supreme Court to tell either of them what they must do.
What we want, and what we insist upon, and what we are going to have is the absolute preservation of this balance of power which is the keystone, the arch upon which the whole theory of democratic government has got to rest. When you rattle that you rattle the whole structure.
Of course, when our forefathers wrote the Constitution of the United States it couldn't be possible that they had it in their minds that it was going to be all right for all time to come. So they said, "Now, we will provide a manner and method of amending it."
That is set forth in the document itself, and during our national life we amended it many times.
We amended it once by mistake, and we corrected it. What did we do? We took the amendment out. Fine, that is the way we want to do it, by recourse to the people.
But we don't want an Administration that takes a shot at it in the dark and that ducks away from it and dodges away from it and tries to put something over in contradiction of it upon any theory that there is going to be a great public howl in favor of that something; possibly the United States Supreme Court may be intimidated into a friendly opinion with respect to it.
What I have held all during my public life is that Almighty God is with this country, and He didn't give us that kind of Supreme Court.
Now this is pretty tough on me to have to go at my own party this way, but I submit that there is a limit to blind loyalty.
As a young man in the Democratic Party, I witnessed the rise and fall of Bryan and Bryanism, and I know exactly what Bryan did to our party. I knew how long it took to build it after he got finished with it. But let me say this to the everlasting credit of Bryan and the men that followed him, they had the nerve and the courage and honesty to put into the platform just what their leaders stood for. And they further put the American people into a position of making an intelligent choice when they went to the polls.
Why, the fact of this whole thing is -- I speak now not only of the executive but of the legislature at the same time -- that they promised one set of things; they repudiated that promise, and they launched off on a program of action totally different.
Well, in 25 years of experience I have known both parties to fail to carry out some of the planks in their platform. But this is the first time that I have known a party, upon such a huge scale, not only not to carry out the plank, but to do the directly opposite thing to what they promised.
Suggested Remedies
Now, suggestions, and I make these as a Democrat anxious for the success of my party, and I make them in good faith.
No. 1: I suggest to the members of my party on Capitol Hill here in Washington that they take their minds off the Tuesday that follows the first Monday in November. Just take their minds off it to the end that you may do the right thing and not the expedient thing.
Next, I suggest to them that they dig up the 1932 platform from the grave that they buried it in, read it over, and study it, breathe life into it, and follow it in legislative and executive action, to the end that they make good their promises to the American people when they put forth that platform and the candidate that stood upon it 100 per cent. In short, make good!
Next, I suggest to them that they stop compromising with the fundamental principles laid down by Jackson and Jefferson and Cleveland.
Fourth: Stop attempting to alter the form and structure of our Government without recourse to the people themselves as provided in their own Constitution. This country belongs to the people, and it doesn't belong to any Administration.
Next, I suggest that they read their Oath of Office to support the Constitution of the United States. And I ask them to remember that they took that oath with their hands on the Holy Bible, thereby calling upon God Almighty Himself to witness their solemn promise. It is bad enough to disappoint us.
Washington or Moscow
Sixth: I suggest that from this moment they resolve to make the Constitution the Civil Bible of the United States, and pay it the same civil respect and reverence that they would religiously pay the Holy Scripture, and I ask them to read from the Holy Scripture the Parable of the Prodigal Son and to follow his example.
Stop! Stop wasting your substance in a foreign land, and come back to your Father's house.
Now, in conclusion let me give this solemn warning. There can be only one Capitol, Washington or Moscow!
There can be only one atmosphere of government, the clear, pure, fresh air of free America, or the foul breath of Communistic Russia.
There can be only one flag, the Stars and Stripes, or the Red Flag of the Godless Union of the Soviet.
There can be only one National Anthem. The Star Spangled Banner or the Internationale.
There can be only one victor. If the Constitution wins, we win. But if the Constitution . . . stop! Stop there. The Constitution can't lose! The fact is, it has already won, but the news has not reached certain ears.
Contemporary Cartoon: "Planned Economy or Planned Destruction?"
What was the political mood at the time? Here is a 1934 political cartoon from the Chicago Tribune.
(click image to enlarge)
They say that the nut never falls far from the tree. On careful examination of the cartoon, you may notice a familiar name among those riding in the wagon. The man in the middle, looking straight at you with a shaking fist, is "Ickes". Harold L. Ickes was Franklin Roosevelt's Secretary of the Interior and was responsible for implementing much of Roosevelt's "New Deal" policies. Ickes son, Harold M. Ickes was President Clinton's Deputy Chief of Staff, was a contender for Chairman of the Democratic National Committee (DNC) against Howard Dean, and was a political strategist for Hillary Clinton's failed 2008 Presidential campaign.
Other Reading

Wednesday, November 10, 2010

Is America A Great Country or What?

This video is courtesy of the CBS affiliate WBZ-TV in Boston. It is presented here without comment. All I ask is that while you watch the videos that you consider our entitlement system, our immigration system, and our legal system. Does the system as practiced make sense and does it meet the goals for which is was designed? Do her views possibly explain the policies and practices of the current Administration?

In the President's defense, I fully understand deadbeat relatives. But, to the best of my knowledge, none is currently violating any laws. Likewise, the President is toughing it out having only declared only $5.5 MILLION in adjusted gross income and himself living in taxpayer-provided housing.

Favorite line: "If I come as an immigrant, you have the obligation to make me a citizen."

Part 1:

Part 2:


See also ...

Wednesday, November 3, 2010

One of These Things Is Not Like the Others ...


Cookie Monster of Sesame Street fame teaches children how to spot important difference while singing his equally-famous "One of These Things Is Not Like the Others" song. Let's see if we can spot any differences in how most Californians think about redistricting.

There were two -- count 'em two! -- redistricting measures on the November 2010 ballot in California. One, Proposition 20, extended existing redistricting reforms by empowering the Citizens Redistrict Commission to draw U.S. Congressional districts. Proposition 20 passed with a 60% plus majority.

The second redistricting initiative on the ballot was Proposition 27. Proposition 27's aim was to eliminate the Citizens Redistricting Commission and to return redistricting control back to the California Legislature. Why was this a bad idea? First, the California Legislature is dominated by one party with nearly a 2-to-1 majority. Second, everybody remembers the horrible job that the Legislature did drawing the 2001 political district lines. Proposition 27 was funded by 25 self-serving incumbent politicians and their well-connected, big-money party donors--many from outside of California! No surprise, Californians rejected Proposition 27, also by nearly a 60% majority.

At the county level, both Proposition 20 and Proposition 27 were nearly universally approved or rejected statewide. Note the key word, "nearly." One county, and only one county, voted completely opposite of all the others. See if you can spot which one. Look carefully.
Spot the difference yet? Look along the West coast (the left edge) mid-way up the state.

San Francisco county was the only California county to oppose Proposition 20 and support Proposition 27.

Initial Reflection on California 2010 Election Results


As a fourth-generation Californian and a fiscal conservative, I am obviously disappointed by the 2010 election results. I have little respect for Jerry Brown and even lower expectations from his second Gubernatorial administration. I cannot fathom how Californians could re-elect Senator Boxer, but I do acknowledge their hesitation with Carly Fiorina (I supported Tom Campbell in the primary). Are these really the best leaders that California can produce?

Fortunately, there were a few positives from the election.

First and foremost, the naked power grab by the Democratic Party oligarchy in California, Proposition 27, failed at the ballot box by nearly a 60% majority. Proposition 27's aim was to disband the Citizens Redistricting Commission and to return redistricting decisions to the California Legislature, currently dominated by the Democrats with a nearly 2-to-1 majority. Proposition 27 was funded by many well-connected, big money donors to the Democratic Party, many from outside California! For more information, see ...

Proposition 27 Revealed!

Interestingly, the electorate not only defeated Proposition 27 but also passed Proposition 20 by a 60%+ majority. Proposition 20 increased the power and scope of the Citizens Redistricting Commission by expanding their redistricting responsibilities to include U.S. Congressional districts. This has big implications for future elections especially given the changes in the 2010 Census. As evidence that redistricting reform is needed, just look at how many California incumbents were re-elected in a year when other states removed long-standing incumbents from office. The poster boy for redistricting reform is 20-term Congressman Pete Stark, who received over 95% of his campaign contributions from out-of-state political action committees (PACs). Does he work for his constituents or for his benefactors?

Bill Lockyer was re-elected state Treasurer. Interestingly, in an 2009 address to the California Legislature he said, "Particularly I would say to the Democrats, in an era when we aren't going to have tax increases, give it up. Figure out how to be more efficient about spending the money we've got."

His words were prescient about other California 2010 election results.
  • Proposition 21 failed. There will be no additional car fees to pay for state parks (although I supported this one).
  • Proposition 22 passed. The state can no longer raid local governments for funds.
  • Proposition 24 failed. There will be no repeal of earlier corporate tax breaks.
  • Proposition 26 passed. Fee increases now require a 2/3rd majority vote, just like taxes.
California's future will be interesting, to say the least. Over the last decade, California's government spending increased both as a percent of gross domestic product (GDP, or the size of the economy) and per person, adjusted for inflation (shown here as constant 2005 dollars).


The state's taxpayers still face a massively underfunded state employee pension problem along with dwindling tax revenues. The pension problem was spawned by the California Legislature when it approved overly generous pension benefits with SB 400 passed in 1999. Ahhhh, yes. Remember 1999? We were all going to get rich selling dog food from our web site--and then the Internet bubble popped. Californians and California businesses long ago adjusted to that economic reality. California's state government and pension system has yet to confront either the economic reality of the 2000 Internet bubble or the 2008 sub-prime mortgage bubble.

It's impossible for this Legislature to reform the pension system and if we don't, we bankrupt the state.
...
And I don't think anybody can do it here because of who elected you. You're just captive of the current environment. I don't see any way out.
It really inspires confidence and provides hope for the future, doesn't it? What exactly did Bill Lockyer mean when he said, "I don't think anybody can do it here because of WHO elected you"? Who elected the California Legislators? Wasn't it the people? Or, was Bill Lockyer merely acknowledging the people that PAID to elect many of the California Legislature--namely public sector unions. After all, according to the California Fair Political Practices Commission (FPPC), the California Teachers Association (CTA) and the California State Council of Service Employees (a.k.a. SEIU) are the two largest spenders in California politics, attempting to influence voters and public officials. See the full list on page 10 in the following document.

Big Money Talks: California's Billion Dollar Club

After the 2010 election, California Democrats now have nearly unanimous control of the State of California, including the following offices.
  • Governor (Jerry Brown)
  • Lt. Governor (Gavin Newsom)
  • Secretary of State (Debra Bowen)
  • Controller (John Chiang)
  • Treasurer (Bill Lockyer)
  • Attorney General (likely at the time of this writing)
  • Insurance Commissioner (Dave Jones)
  • A nearly two-thirds majority in the California Senate
  • A nearly two-thirds majority in the California Assembly
California Democrats now OWN the government's response to success or failure of the California economy going forward. I hope and pray that they can show real leadership in addressing state's many daunting challenges. First and foremost, they must confront their traditional allies in California's public sector unions and adjust California's budget to reflect economic reality.

Personally, I expect conditions to deteriorate as more California taxpayers and businesses move to other states or at least leave California's taxation authority.

For a great read on how California arrived in this horrible situation, I recommend ...

The Golden State’s War on Itself: How politicians turned the California Dream into a nightmare

Wednesday, October 20, 2010

A Fake Latino Reform Group Appears in Nevada

Apparently the Nevada Angle/Reid Senate race is going ugly. First, it was radio ads against Sharron Angle from a fake Tea Party group called The Patriot Majority, funded by labor unions and Harry Reid supporters. Now, radio ads urging Hispanics not to vote in the upcoming election come from a fake reform group called Latinos for Reform.

There is scant Federal Elections Commission (FEC) data on this group, although OpenSecrets.org has some information.

Latinos for Reform: Overview

http://www.opensecrets.org/527s/527cmtedetail.php?ein=943447148&cycle=2008

Donor List

http://www.opensecrets.org/527s/527cmtedetail_donors.php?ein=943447148&cycle=2008

An alternate source of information is from CampaignMoney.com. Their data matches the OpenSecrets.org information.

From the OpenSecrets.org information, it appears that the organization raised most of their money in 2008 and spent all but about $25,000. According to NPR, the group ran advertisements against candidate Obama in the 2008 Presidential race. The NPR article also indicates that Latinos for Reform has connections to a Republican political consultant named Robert Posada.

Searching for the address at the bottom of the Latinos for Reform web page, yields hits to one of the contributors of record for Latinos for Reform. The address itself appears to be in rural Virginia.

One Marketing & Research Inc.
205 North Berry Lane
Madison, VA 22727

The company appears not have an independent web site. Searching for One Marketing & Research yields a LinkedIn profile for one Robert Posada of One Marketing &Research.

Robert Posada's name appears on a 2008 IRS filing for Latinos for Reform. Robert de Posada is listed as the "contact person" on line 6a. Similarly, Robert Garcia de Posada of One Marketing & Research Inc. is listed as a contributor on page 2, 6th contributor from the top.

Here's a classic Jimmy Kimmel send up on the situation.


See also …

Soquel by the Creek, “A Fake Tea Party Group Appears in Nevada

NPR, “Promoting An Ethnic Wedge Issue,” October 24, 2008

Fire Dog Lake, “Latinos for Reform Run By Bush Pioneers and Appointees

Huffington Post, “GOP-Linked 'Latinos For Reform' Airs Nevada Ads Urging Hispanics Not To Vote

Talking Points Memo (TPM), “Just Coming Right Out & Saying It

Talking Points Memo (TPM), "Maker Of Ad Telling Latinos Not To Vote Has Long History In GOP"


Tuesday, October 19, 2010

Resources for Tracking Campaign Spending

A variety of people have requested information on how to track campaign spending. Here are a few of my personal favorites. I would love to hear if you have others to suggest.

Center for Responsive Politics

My all-time favorite tracking tool for campaign spending is OpenSecrets.org, run by the Center for Responsive Politics.

Their search engine could use some work, but the information is generally there for those willing to dig a little deeper.

Here are some of the things that you can find.

Influence Explorer

Influence Explorer is a great tool courtesy of the Sunlight Foundation. It doesn't provide as much detail as OpenSecrets.org, but it's a great starting point to see overall spending and relationships.


MAPLight.org

The MAPLight.org web site is another great resource. I find it particularly useful for tracking Californian politicians, my home state. Here are some of the things that I can find using MAPLight.
Influence Tracker

Influence Tracker is a fun tool courtesy of Wired Magazine, MAPLight, and OpenSecrets.org. Enter the name of a federal-level politician, last name first. It then creates a web page showing the contributions to the politician and (my personal favorite), a NASCAR-like shirt with the logos of the largest contributors.

The text box in the lower left corner includes code so that you can embed the result in your own website. Here's an example screen capture for Harry Reid, who is running for U.S. Senate in Nevada.


Don't confuse Influence Tracker with Influence Explorer listed above.

National Institute on Money in State Politics

FollowTheMoney.org is another good site that is very complementary to OpenSecrets.org, which focuses primarily on national races.

CampaignMoney.com

I find the CampaignMoney.com site itself difficult, but it often comes up during Google searches. It only shows contributions to a campaign, and not spending with a PAC or a 527 committee.

I find it easiest to enter a search string directly in the browser address field. For example, here is a search for George Soros spending during the current election cycle. This gives you the general pattern.


ElectionTrack.com

ElectionTrack.com is a great resource for tracking campaign spending in California. It's fairly simplistic, but timely and easy.

For example, I used the specific page on those funding Yes on Proposition 27 to write a recent article revealing how the donors supporting Proposition 27 are well-connected to a single political party. It's easy to search for a specific donor or amount.

Federal Election Commission (FEC)

The Federal Election Commission web site is the ultimate resource for tracking federal elections spending, including PACs and 572s.
Internal Revenue Service
California Secretary of State

The ultimate resource for tracking campaign spending in California is the Secretary of State's office. Likely, there are similar sites for other states.

For example, I needed historical data on those funding opposition to 2005's Proposition 77, a previous attempt at redistricting reform.

FundRace

The Huffington Post FundRace tool is another tracking tool for campaign donations. It has some relatively good top-level tracking tools on where money is going by occupation and city.

NPR

Here's an oldie but goodie from NPR dated from 2008. NPR has had some good journalism about "shadow money" (examples here and here), but I do have some concerns about possible corrupting influence going forward due to the Soros/Open Society Foundation investment.

Monday, October 18, 2010

A Fake Tea Party Group Appears in Nevada

[updated 24-OCT-2010]

While listening to The Jerry Doyle Show via the web from a Las Vegas radio station KDWN, I heard a political advertisement from a supposed Tea Party group against Nevada Senate candidate Sharron Angle and supporting another candidate named Scott Ashjian. The group called themselves The Patriot Majority PAC, which certainly sounds like a Tea Party organization. According to the Las Vegas Review-Journal, The Patriot Majority has spent over $831,000 against Sharron Angle as of October 15, 2010.

Here is an audio clip of the ad, although this one is slightly different than the one that I heard. This is the raw feed, including the preamble information probably used by the radio station.

Having never heard of the group, I searched for them on OpenSecrets.org. I found little available yet, except for a blog post, describing the organization (look for the group's logo). OpenSecrets.org also lists the independent expenditures so far. There is a well-funded 527 organization with a similar name with significant contributions in 2010 and 2008 from AFSCME and SEIU.

Okay, so now it's off to the Federal Elections Commission (FEC) web site.

According to required financial disclosures, The Patriot Majority PAC received nearly $2 million as of 23-OCT-2010.

Looking through the FEC disclosures, I find the following major contributors of $10,000 or more.

3. Guy David Gundlach: $300,000
4. MGM Resorts and MGM Mirage: $300,000
9. Carpenter's Legislative Improvement Committee, United Brotherhood of Carpenters and Joiners: $60,000
10. San Pablo Lytton Casino (San Pablo, CA): $50,000
11. Laborers' International Union of North America (LIUNA) PAC: $20,000

According to FEC filings, The Patriot Majority PAC "committee will not use those funds to make contributions, whether direct, in-kind, or via coordinated communications, to federal candidates or committees." It's funny how everybody aware of the system knows that this is baloney.

Let's look again at the major donors. More than a few are associated with major labor unions that are listed on the OpenSecrets.org list of major political donors, known as the Heavy Hitters list. Here are a few examples.
  • Service Employees International Union (SEIU) is #11 on the Heavy Hitters list with 95% of their contributions going to Democrats.
  • American Federation of Teachers (AFT) is #13 on the Heavy Hitters list with 98% of their contributions going to Democrats.
  • American Association for Justice (AAJ) is #6 on the Heavy Hitters list with 90% of their contributions going to Democrats.
  • United Brotherhood of Carpenters and Joiners is #12 on the Heavy Hitters list with 89% of their contributions going to Democrats.
What about individual donors? Do they primarily donate to Democrats?
  • According to OpenSecrets.org, Guy David Gundlach, who gave $300,000 to The Patriot Majority, also gave $2,400 to Harry Reid's campaign (the maximum legally allowed) and $10,000 to the Democratic Party of Nevada. Harry Reid is the incumbent Senator in Nevada running against Sharron Angle. A person of the same name also gave $2,400 to Nevada Congresswoman Shelley Berkley, a Democrat, but the donation was from a California address. Likewise, Guy David Gundlach also gave $12,400 to the Reid Nevada Fund (see page 28, first contributor).
  • According to OpenSecrets.org, VoteVets.org gives exclusively to Democrats in 2010 and primarily to Democrats in 2008.
  • According to Influence Explorer, Clean Energy Fuels Corporation gives primarily to Republicans, but has supported Harry Reid.
  • According to Influence Explorer, Harrah's Entertainment, which may be different than Harrah's Operating Company, is a major contributor to Harry Reid.
  • According to Influence Explorer, MGM Mirage was a major donor to both Senator Harry Reid and Congresswoman Shelley Berkley, although their political contributions were fairly evenly balanced between parties.
  • One strange member of the list is the San Pablo Lytton Casino in California, which is apparently part of the Lytton Rancheria Of California. I'm not sure what interest they have in this fight other than the casino owners obviously have connections to Nevada casinos.
I also looked up to see who owns the web domain for The Patriot Majority.

The site is registered to "Craig Varoga" with an "independentstrategies.com" E-mail address. Craig Varoga is also the Treasurers name for the FEC filings. Who is Craig Varoga? According to the Independent Strategies web site ...

Craig Varoga is a national political strategist whose presidential experience includes managing former Iowa Governor Tom Vilsack’s campaign for president, serving as national field director for retired Four Star General Wesley Clark, managing the Texas Truth Squad in 2000 and running the state-research program for the Clinton-Gore re-election. ... During the 1990s, Varoga served as communications director to Senator Harry Reid .... Partner at Varoga & Associates and founder of the Patriot Majority, Varoga writes a monthly column ("Ask the Campaign Doctor") for Campaigns & Elections magazine.
But still, who is Craig Varoga? According to a Michelle Malkin post from April, 2010.
Before them, it was Craig Varoga--a shady Democrat political operative and overseer of a convoluted, money-shuffling web of 527s. He launched TheTeaPartyisOver.org in January to target Republicans who supported the Tea Party movement and to prevent the "radical" and "dangerous" fiscal accountability agenda from "gaining legislative traction."
Joseph Abrams also wrote about Craig Varoga and friends back in February, 2010.
Here's how it works: What appears like a local groundswell is in fact the creation of two men -- Craig Varoga and George Rakis, Democratic Party strategists who have set up a number of so-called 527 groups, the non-profit election organizations that hammer on contentious issues (think Swift Boats, for example).

Varoga and Rakis keep a central mailing address in Washington, pulling in soft money contributions from unions and other well-padded sources to engage in what amounts to a legal laundering system. The money -- tens of millions of dollars -- gets circulated around to different states by the 527s, which pay for TV ads, Internet campaigns and lobbyist salaries, all while keeping the hands of the unions clean -- for the most part.
...
And this whitewash is entirely legal, say election law experts, who told FoxNews.com that this arrangement more or less the norm in Washington.

"It's not illegal but it is, I think, dishonest on the part of the organizations," said Paul Ryan, a legal counsel at the Campaign Legal Center. "And there's a reason they do it: they know voters don't like outsiders coming in to sway the vote."
...
Outside of that firm, the center of their activity appears to be a single office in Southeast D.C. -- 300 M Street, Suite 1102 -- which plays host to a sprawling political shell game they have established.

Public records show at least seven political shops listed in Suite 1102, most of which are essentially clones of one another, but all of which have offered money -- from measly thousands to game-changing millions -- in state-level elections across the country:
The APPC, which developed the anti-tea party ads, has gotten all of its money for 2010 from Patriot Majority and from Citizens for Progress, which is also called Patriot Majority West.
The 300 M Street, Suite 1102, Washington DC address appears to be the current address for political law firm Sandler Reiff & Young and for business law and litigation firm Shapiro Sher Guinot & Sandler. The "Sandler" in both firms are cousins Paul Mark Sandler of Shapiro Sher Guinot & Sandler and Joseph E. Sandler of Sandler Reiff & Young. Paul Mark Rosen of Shapiro Sher Guinot & Sandler has been involved in high-profile campaign law cases.

USA Today: "Feds probe for Clinton campaign violations", October, 2004.

Talk about Astroturf, I'm calling this one TOTALLY BUSTED! on The Patriot Majority. By all measures, this is a sham Tea Party group and is purposefully deceptive. Anybody from The Patriot Majority care to refute these findings? For you Sarah Palin fans, refute means refudiate. :-)

Source Data
See also ...

NEW: OpenSecrets.org, "Shape-Shifting by Liberal Dark Money Groups Seems Meant to Confuse"

Center for Public Integrity, "Craig Varoga"








Las Vegas Review-Journal, "Reid, Angle even on campaign cash"


MSNBC (30-MAR-2010)





SF Weekly, "Jackpot: How four tiny Indian tribes, with help from powerful gambling interests, are trying to transform the Bay Area into a slot machine Mecca," October 27, 2004. Article about the Lytton Casino and Indian gaming in California.


Craig Varoga, Varoga & Associates: This site looks nearly identical to the Independent Strategies web site.