Tag Archives: Koch Industries

Criminal justice reform: Why it matters

Mark Holden, Senior Vice President and General Counsel at Koch Industries, Inc., speaks about criminal justice reform initiatives Koch is encouraging in and why they’re important from moral, constitutional and fiscal perspectives. Holden spoke at a luncheon of the Wichita Pachyderm Club on September 18, 2015. View below, or click here to view in high definition at YouTube. Videography by Paul Soutar.

More information about this topic is at The Overcriminalization of America.

Government creates obstacles to progress

“Overcoming obstacles can be a difficult challenge even on a level playing field. We need to change the rigged system that favors the politically connected over the hardworking, honest citizen,” writes Charles Koch in a recent edition of Perspectives.

Overcoming Obstacles

By Charles Koch
July 13, 2015

America’s founding fathers had a unique vision for the United States. As the Declaration of Independence famously put it, this country was conceived as a place where people could enjoy “unalienable Rights,” including “Life, Liberty and the pursuit of Happiness.”

These concepts are much more than just words to me. I believe the greatest gift we can receive or pass on is the opportunity to find and pursue our passion, and, in doing so, make a difference by helping others improve their lives.

It seems to me we’re now losing much of the vision our founders fought so hard to establish. Time and time again, government policies have made it tougher for people to realize their potential.

This change creates some serious consequences, especially for the least-advantaged Americans, who now face more obstacles than ever in their struggle to develop and apply their unique talents and abilities.

To remove these obstacles, we need to revise poverty-creating regulations and abolish corporate welfare, reform our approach to education and enact criminal justice reform.

OVERCOMING OBSTACLES

Consider the challenges of starting a small business. Most would be entrepreneurs have very little capital. To raise money, many will pledge or mortgage whatever assets they have; others will ask for a small business loan.

In the past, community banks usually made such loans. But the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, put a particular burden on local lenders.

Community banks now face higher compliance costs, more complicated regulations and some strong disincentives to make traditional loans. As Forbes bluntly put it: “Dodd-Frank is killing community banks.”

When small borrowers have no local options, they are forced to turn to bigger banks for help, where they have even less of a chance of getting a loan.

Regressive and anti-competitive regulations are also stalling progress. In particular, licensure requirements (especially at the state and local level) have become a huge obstacle.

Millions are now denied jobs in more than 100 lower-income occupations because of unnecessary licensing requirements, months of mandated training and unaffordable fees.

At the corporate level, excessive permitting requirements (such as a decade-long approval process for a new facility) are very anticompetitive. Such requirements not only prevent the creation of jobs, they protect existing businesses from competition and keep out new entrants, which is a form of corporate welfare.

CORPORATE WELFARE

Even as the little guy is getting stiff-armed, the government has opened its arms to corporate cronyism by subsidizing big banks and corporations through the tax code, mandates, protective tariffs and so on.

I believe this corporate welfare has created a two-tier system with far more “have-nots” than “haves.”

Too many CEOs owe their profits to government “gimmes” rather than the creation of real value by helping others improve their lives. This is the major cause of so much profit being bad rather than good (the subject of my upcoming book).

Speaking of books, another troubling area is education, which should be a path for overcoming obstacles.

Having an effective education that imparts the skills and values needed to make a contribution in society is essential for success.

But that doesn’t mean we should try to push almost all high school graduates into a four-year liberal arts program where they may collect a lot of debt without getting any usable skills.

Educational choices should reflect aptitude. Many kids with mechanical aptitudes will be much more successful by learning a skilled trade or craft.

RENEWED VISION

America should be a place that encourages and enables people to find opportunities to contribute and succeed, and have meaning and fulfillment in their lives.

Instead, it appears that America has become a two-tiered system, in which those with political connections get favors while obstacles are placed in front of those who are left behind.

A great nation does not treat people according to some group classification, whether it be race, religion, gender or age, instead of on their individual merits.

We need to reform our legal and regulatory system so that it treats everyone equally and doesn’t discriminate against the least-advantaged in our society.

Overcoming obstacles can be a difficult challenge even on a level playing field. We need to change the rigged system that favors the politically connected over the hardworking, honest citizen.

KU records request seen as political attack

A request for correspondence belonging to a Kansas University faculty member is a blatant attempt to squelch academic freedom and free speech.

When conservative groups seek records of correspondence of liberal university professors, the American Association of University Professors defends its withholding based on academic freedom. That is, until the subject of a records request is a Kansas University professor who believes in free markets and receives funding from the Left’s favorite target, Charles and David Koch. Then, the local chapter of AAUP flips its position. It will even contribute money against the ideal of academic freedom.

In 2011 Republicans in Wisconsin requested the correspondence of a professor who was critical of American Legislative Exchange Council, a free market advocacy group. AAUP argued against releasing the records, writing:

We believe that disclosure of Professor Cronon’s e-mail correspondence will inevitably produce a chilling effect not only on Professor Cronon’s academic freedom but also on the academic freedom of his faculty colleagues and of faculty members throughout the University of Wisconsin system, with potentially deleterious effects on the quality of research and teaching. We urge you to do what you can to resist complying with this outrageous request. (source here)

In defense of a professor at the University of Virginia whose correspondence was sought by a conservative group, AAUP also defended academic freedom:

The AAUP and the Union of Concerned Scientists (UCS) filed a joint amicus brief in support of UVA and Professor Mann, urging that “in evaluating disclosure under FOIA, the public’s right to know must be balanced against the significant risk of chilling academic freedom that FOIA requests may pose.” ATI’s request, the brief stated, “strikes at the heart of academic freedom and debate.” … The AAUPUCS brief argued, however, that “in the FOIA context, the public’s right to information is not absolute and courts can and do employ a balancing test to weigh the interest of the public’s right to know against the equally important interests of academic freedom.” (source here)

When a student group requested correspondence of a Kansas University professor, the local chapter of AAUP flipped its stance regarding academic freedom. It even contributed money towards the costs of the records request.

The political motivation of AAUP and the student group that filed the request cannot be overlooked. The primary subject of the request for correspondence is Dr. Arthur P. Hall. He is a lecturer in the KU School of Business and Director of its Center for Applied Economics. He believes in free markets and economic freedom. He won an award for his teaching of MBA students this year. He testifies to the Kansas Legislature against rent-seeking and crony capitalism. Hall and the Center also receive funding from the Fred and Mary Koch Foundation.

It’s the latter that probably stirs up suspicion and opposition. It doesn’t matter that around the world we’ve found that free markets and economic freedom create better living conditions for everyone. It doesn’t matter that disclosure of e-mail correspondence “will inevitably produce a chilling effect” on academic freedom. As long as a political attack on Koch Industries can be advanced, anything is fair game. Principles no longer apply.

A political attack

The request for Hall’s correspondence was made by Schuyler Kraus, who is president of the student group Students for a Sustainable Future. Members of SSF have ties to groups like Greenpeace, the Sierra Club, and PowerShift. SSF advertises that members will have networking opportunities with these groups and “Forecast the Future, Kansas Interfaith Power & Light, etc.” These groups have mounted political attacks on Charles and David Koch for years.

SFF also listed as an advisor Manny Abarca, who is Recycling Operations Coordinator for KU as well as Community Affairs Liaison for Emanuel Cleaver, the Democratic Congressman from Kansas City, Missouri. Prior to that he worked for U.S. Senator Claire McCaskill.

On August 3, the Kansas chapter of AAUP contributed $1,000 to SFF.
On August 3, the Kansas chapter of AAUP contributed $1,000 to SFF. Click for larger version.
When KU said the request for Hall’s records would cost $1,800, SFF was able to raise that amount quickly, aided by $1,000 from the Kansas chapter of AAUP. That’s the local chapter of the national group that opposes release of the correspondence of liberal professors. (For a student group, SSF seems to have access to funds, offering to pay students $12.50 per hour for political work.)

Students for a Sustainable Future Facebook post. Click for larger version.
Students for a Sustainable Future Facebook post. Click for larger version.
Why would the Kansas chapter of AAUP attack academic freedom in the case of Hall’s correspondence, while at the national level AAUP defends academic freedom? As Hall wrote in an op-ed, “With the odd exception of the Kansas chapter (which reportedly provided funding to the student group seeking my private documents), the AAUP has consistently stood by professors and researchers in shielding their private correspondence from over-reaching records requests, acknowledging the threat that this kind of activity poses to academic freedom.”

This episode shows that the Left views “academic freedom” much like it does “free speech.” The Left will defend free speech and academic freedom at any cost — as long as they agree with what is being said and taught. The Left can’t tolerate the marketplace of ideas that Charles and David Koch support, even when it’s just one faculty member of a large university school.

That, quite simply, is the reason for the requests made to KU for Hall’s correspondence. By harassing certain faculty and the university, the Left thinks it can shut down speech. While promoting free speech and open scientific and economic inquiry, the Left mounts attacks like this on those who don’t conform to the liberal orthodoxy present at most universities.

In a message to fellow School of Business faculty, Hall explained that he has nothing to hide regarding his correspondence. He expressed concern, however, that political opponents might “cherry-pick language from hundreds of emails to weave a story.” That sword cuts both ways. The university should not acquiesce quietly to this attempt to silence one of its faculty. It should not set a precedent that conservatives might justifiably cite when requesting correspondence of liberal faculty members.

For Tiahrt, economic freedom is not a good thing, it seems

Kansas congressional candidate Todd Tiahrt has criticized Charles Koch and Americans for Prosperity, leading us to wonder if Tiahrt understands or embraces the principles of economic freedom and free markets.

In a recent speech, candidate for United States House of Representatives Todd Tiahrt criticized Americans for Prosperity and Charles Koch, telling an audience “in general, they try to fight programs that they think are not good for Koch Industries.”

He also said that for Mike Pompeo, Tiahrt’s election opponent who is supported by Americans for Prosperity, they “think it’s all about the money.”

These allegations are contrary to positions and actions that Charles and David Koch have taken throughout their lives. As an example, in April of this year Charles Koch penned an op-ed for the Wall Street Journal. In the article, Koch explains his involvement in public affairs:

Far from trying to rig the system, I have spent decades opposing cronyism and all political favors, including mandates, subsidies and protective tariffs — even when we benefit from them. I believe that cronyism is nothing more than welfare for the rich and powerful, and should be abolished.

Koch Industries was the only major producer in the ethanol industry to argue for the demise of the ethanol tax credit in 2011. That government handout (which cost taxpayers billions) needlessly drove up food and fuel prices as well as other costs for consumers — many of whom were poor or otherwise disadvantaged. Now the mandate needs to go, so that consumers and the marketplace are the ones who decide the future of ethanol. (Charles Koch: I’m Fighting to Restore a Free Society)

In an earlier Journal op-ed Koch wrote “Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want.”

If it was “all about the money” as Tiahrt contends, Koch Industries would join the majority of American business firms that seek to rig the system in their favor. But Charles and David Koch, along with Americans for Prosperity, do not do that. Instead, they advocate for reform.

It’s not a recent conversion, either. Charles and David Koch have promoted free markets and economic freedom for many decades. Charles Koch and others founded what became the Cato Institute in 1977, almost four decades ago. Cato has been consistent in its advocacy of economic freedom.

Even earlier that that: An issue of Koch Industries Discovery newsletter contains a story titled “Don’t subsidize me.” Here’s an excerpt describing an event that must have taken place about 50 years ago:

When Charles Koch was in his 20s, he attended a business function hosted by his father. At that event, Fred Koch introduced Charles to a local oilman. When the independent oilman politely asked about the young man’s interests, Charles began talking about all he was doing to promote economic freedom. “Wow!” said the oilman, who was so impressed he wanted to introduce the young bachelor to his eligible daughter. But when Charles mentioned he was in favor of eliminating the government’s oil import quota, which subsidized domestic producers, the oilman exploded in rage. “Your father ought to lock you in a cell!” he yelled, jabbing his finger into Charles’ chest. “You’re worse than a Communist!”

It seems the oilman was all for the concept of free markets — unless it meant he had to compete on equal terms.

Under oath

For more than 50 years, Charles Koch has consistently promoted economic freedom, even when it was not in the company’s immediate financial interest. In the 1960s, Koch was willing to testify before a powerful Congressional committee that he was against the oil import quota — a very popular political measure at the time. “I think it’s fair to say my audience was less than receptive,” recalls Koch.

Years later, Koch warned an independent energy association about the dangers of subsidies and mandates. “We avoid the short-run temptation to impose regulatory burdens on competitors. We don’t lobby for subsidies that penalize taxpayers for our benefit. “This is our philosophy because we believe this will produce the most favorable conditions in the long run,” Koch said.

It seems that candidate Tiahrt doesn’t share these principles.

Following is a transcript provided to me of remarks by Todd Tiahrt on July 25, 2014.

The Americans for Prosperity is an organization that is primarily funded by Koch Industries and, in general, they try to fight programs that they think are not good for Koch Industries. And now they’re trying to support President, excuse me, they’re trying to support Mr. Pompeo. So, I guess because Mr. Pompeo is a Harvard lawyer and President Obama is a Harvard lawyer, sometimes I accidentally slip when I say “President Obama” when I really meant to say “Mr. Pompeo,” because they’re both Harvard lawyers.

Americans for Prosperity have done some good things in the past, but today they’re on the wrong side of the truth. … Mr. Pompeo and Koch Industries think it’s all about the money. You can out-vote Charles Koch if you get one other person to vote with you. Right here we have enough people to out-vote all of the billionaires in Kansas. Right here we have enough people to out-vote most of the millionaires, but they think that they can sway the outcome of this election by just putting more and more money into it. And forget about you! … They, in Washington, are all about the money, and it’s playing out right here in the Fourth District of Kansas.

WichitaLiberty.TV: Kansas school finance and reform, Charles Koch on why he fights for liberty

In this episode of WichitaLiberty.TV: The Kansas legislature passed a school finance bill that contains reform measures that the education establishment doesn’t want. In response, our state’s newspapers uniformly support the system rather than Kansas schoolchildren. Then, in the Wall Street Journal Charles Koch explains why liberty is important, and why he’s fighting for that. Episode 39, broadcast April 20, 2014. View below, or click here to view at YouTube.

Cronyism is welfare for rich and powerful, writes Charles G. Koch

“The central belief and fatal conceit of the current administration is that you are incapable of running your own life, but those in power are capable of running it for you. This is the essence of big government and collectivism.”

That’s Charles G. Koch writing in the Wall Street Journal. The article is Charles Koch: I’m Fighting to Restore a Free Society, and is available to read without subscription or payment. In the article, Koch explains his involvement in public affairs:

Far from trying to rig the system, I have spent decades opposing cronyism and all political favors, including mandates, subsidies and protective tariffs — even when we benefit from them. I believe that cronyism is nothing more than welfare for the rich and powerful, and should be abolished.

Koch Industries was the only major producer in the ethanol industry to argue for the demise of the ethanol tax credit in 2011. That government handout (which cost taxpayers billions) needlessly drove up food and fuel prices as well as other costs for consumers — many of whom were poor or otherwise disadvantaged. Now the mandate needs to go, so that consumers and the marketplace are the ones who decide the future of ethanol.

There, Charles Koch explains a big problem with the insidious nature of government. Even those who are opposed to government interventions in markets find themselves forced to participate in government subsidy programs. When they do, they are often labeled as hypocrites for accepting benefits from the government programs they oppose. Koch Industries, as a manufacturer of gasoline, blends ethanol with the gasoline it produces. Federal law requires that. Even though Koch Industries opposed subsidies for ethanol, the company accepted the payments. A company newsletter explained: “Once a law is enacted, we are not going to place our company and our employees at a competitive disadvantage by not participating in programs that are available to our competitors.” (As Koch explains in the current article, the subsidy program for ethanol has ended, but there is still the mandate requiring its use in gasoline.)

Learn how economic freedom creates prosperity and improves lives throughout the world.
Learn how economic freedom creates prosperity and improves lives throughout the world.
Walter Williams, as he often does, explains the core of the problem using his characteristically blunt imagery: “Once legalized theft begins, it pays for everybody to participate.” Williams says not only does it pay to participate, the reality is that it is often necessary to participate in order to stay in business. This is part of the treacherous nature of government interventionism: A business can be humming along, earning a profit by meeting the needs of its customers, when government radically alters the landscape. Perhaps government backs a competitor, or forces changes to business methods that have been working satisfactorily and harming no one. What is the existing business to do in response? Consent to be driven out of business, just to prove a point?

Existing firms, then, are usually compelled to participate in the government program — accepting subsidies, conforming to mandates, letting government pull the strings. This creates an environment where government intervention spirals, growing by feeding on itself. It’s what we have today.

It happens not only at the federal level, but at state and local levels. Referring to a City of Wichita incentive program for commercial real estate, Wichita developer Steve Clark said: “Once you condition the market to accept these incentives, there’s nothing someone else can do to remain competitive but accept them yourself. Like the things we’re working on with the city, now we have to accept incentives or we’re out of business.”

In Kansas, there are state income tax credit programs that award credits (economically equivalent to cash payments) to companies that meet certain requirements that were established by the legislature and are administered by bureaucrats. These corporate welfare programs, which represent cronyism, are more valuable than lower tax rates, at least to influential Kansas businesses.

All this leads to a country whose government stifles the potential of its people — or even worse, as Koch explains — causes actual and severe harm:

Instead of fostering a system that enables people to help themselves, America is now saddled with a system that destroys value, raises costs, hinders innovation and relegates millions of citizens to a life of poverty, dependency and hopelessness. This is what happens when elected officials believe that people’s lives are better run by politicians and regulators than by the people themselves. Those in power fail to see that more government means less liberty, and liberty is the essence of what it means to be American. Love of liberty is the American ideal.

Charles Koch: I’m Fighting to Restore a Free Society

Instead of welcoming free debate, collectivists engage in character assassination.

By Charles G. Koch

I have devoted most of my life to understanding the principles that enable people to improve their lives. It is those principles — the principles of a free society — that have shaped my life, my family, our company and America itself.

Unfortunately, the fundamental concepts of dignity, respect, equality before the law and personal freedom are under attack by the nation’s own government. That’s why, if we want to restore a free society and create greater well-being and opportunity for all Americans, we have no choice but to fight for those principles. I have been doing so for more than 50 years, primarily through educational efforts. It was only in the past decade that I realized the need to also engage in the political process.

Continue reading at Wall Street Journal (subscription not required). More about Koch Industries, including an interview with Charles Koch that covers some of these topics, is available in a recent issue of Wichita Business Journal. Click here for free access.

Washington Post out on a limb, again

John Philip Sousa wrote a march honoring the Washington Post newspaper.
John Philip Sousa wrote a march honoring the Washington Post newspaper.
It’s really astonishing to see John Hinderaker of Powerline take apart the Washington Post. I wonder if Jeff Bezos of Amazon.com is aware of what he bought last year for $250 million?

The background of the story is that the Washington Post has published an article that is demonstrably false, and for political reasons. As to why the Post has walked out on a limb too far, he writes:

Let me offer an alternative explanation of why the Washington Post published their Keystone/Koch smear:

1) The Washington Post in general, and Mufson and Eilperin in particular, are agents of the Left, the environmental movement and the Democratic Party.
2) The Keystone Pipeline is a problem for the Democratic Party because 60% of voters want the pipeline built, while the party’s left-wing base insists that it not be approved.
3) The Keystone Pipeline is popular because it would broadly benefit the American people by creating large numbers of jobs, making gasoline more plentiful and bringing down the cost of energy.
4) Therefore, the Democratic Party tries to distract from the real issues surrounding the pipeline by claiming, falsely, that its proponents are merely tools of the billionaire Koch brothers–who, in fact, have nothing to do with Keystone one way or the other.
5) The Post published its article to assist the Democratic Party with its anti-Keystone talking points.

Hinderaker also introduces to the curious story of billionaire Tom Steyer. It’s worth reading. Summing up, he concludes:

You can’t separate the reporters from the activists from the Obama administration officials from the billionaire cronies. Often, as in this instance, the same people wear two or more of those hats simultaneously. However bad you think the corruption and cronyism in Washington are, they are worse than you imagine. And if you think the Washington Post is part of a free and independent press, think again.

Continue reading at The Washington Post responds to me, and I reply to the Post.

Why would the Washington Post do this?

Keystone XL pipeline map
Keystone XL pipeline map
John Hinderaker of Powerline reports on “sheer misinformation” found in a Washington Post newspaper story concerning Koch Industries, Canadian oil sands, and the Keystone pipeline. The article, The biggest lease holder in Canada’s oil sands isn’t Exxon Mobil or Chevron. It’s the Koch brothers, is authored by Steven Mufson and Juliet Eilperin. Hinderaker concludes:

Why would the Washington Post embarrass itself by republishing a thoroughly discredited attempt to link the Koch brothers to the Keystone Pipeline? Because that is a Democratic Party talking point, and the Post is a Democratic Party newspaper. But the truth is a little worse than that.

Who is Post reporter Juliet Eilperin? Among other things, she is married to Andrew Light, who writes on climate policy for the Center for American Progress. The Center for American Progress is an Obama administration front group headed by John Podesta, who is a “special advisor” to the Obama administration. CAP’s web site, Think Progress, has carried out a years-long vendetta against the Koch brothers that has focused largely on the environment. Ms. Eilperin’s conflict in writing about environmental issues has already been a subject of controversy at the Post. The paper’s ombudsman should examine this latest example of Ms. Eilperin throwing facts to the winds in her eagerness to promote her (and her husband’s) far-left agenda.

Continue reading at Washington Post falls for left-wing fraud, embarrasses itself.

Lashing out at Charles and David Koch, falsely

From The Patriot Post:

Democrats have escalated their attacks on Charles and David Koch, who donate a significant amount of their accumulated capital to conservative groups. The charge is led by Sen. Harry Reid (D-NV), who now routinely takes to the Senate floor to angrily denounce these two private citizens. “I’m not afraid of the Koch brothers,” he thundered. “None of us should be afraid of the Koch brothers. These two multi-billionaires may spend hundreds of millions of dollars rigging the political process for their own benefit. And they may believe that whoever has the most money gets the most free speech. But I will do whatever it takes to expose their campaign to rig the American political system to benefit the wealthy at the expense of the middle class.”

A Democrat ad also recently demonized the brothers, accusing them of having an agenda to “protect tax cuts for companies that ship our jobs overseas.” That was too much even for The Washington Post’s “fact checker,” Glenn Kessler, who gave the charge a full Four Pinocchios. Specifically, Kessler says, “The ad not only mischaracterizes an ordinary tax deduction as a special ‘tax cut’ but then it falsely asserts that ‘protecting’ this tax break is part of the Koch agenda. It turns out this claim is based on a tenuous link to an organization that never even took a position on the legislation in question.” The truth didn’t stop Reid from repeating the same “tax breaks” lie.

This attack campaign is a clear sign that Democrats are very worried about November, and they’re lashing out at anyone who’s bankrolling the opposition.

More at The Democrats’ Dishonest Koch Habit and Democrats claim the Koch brothers want to “protect tax cuts for companies that ship our jobs overseas.”

Wichita Business Journal remodels, features Charles Koch interview

wichita-business-journal-cover-2014-02-28The Wichita Business Journal has, it its own words, “reinvented” itself, and starts its new life with features on Koch Industries and an extended interview with Charles Koch.

To get started, the weekly newspaper has made its complete digital edition available to read at no charge. Click here for access.

The interview with Koch is wide-ranging, covering the business interests of Koch Industries and Koch’s political involvement, detailing his relationship with Americans for Prosperity. An example quote: “When you start attacking cronyism and people’s political interests, it gets nasty.”

Pompeo responds to Washington’s attacks on Koch Industries

From the office of U.S. Representative Mike Pompeo.

Statement from Congressman Mike Pompeo on Washington’s Attacks on Koch Industries

WASHINGTON — Congressman Mike Pompeo issued the following statement on the unwarranted attacks on Koch Industries in light of the efforts to reform the Internal Revenue Service:

“The IRS’s targeting of individuals demonstrates the administration’s lawlessness at its worst. Public officials have a responsibility to uphold the Constitution and use their office to protect the rights of Americans, rather than attack them for their political advocacy. Silencing critics through government muscle, as the IRS has done, runs counter to every founding principle of the United States of America.

“Yet opponents of the House’s effort to hold the IRS accountable have doubled down and continued to attack two private citizens, Charles and David Koch, as deserving of such government abuse. Senator Reid’s attacks today from the Senate floor are reprehensible.  This cannot be tolerated — not for these two great men or for any individual who disagrees with those in power.

“The Kochs’ Wichita-based company employs close to 60,000 people in manufacturing jobs. These predominantly middle-class employees live in nearly all 50 states and are a benefit to the communities they work and live in. They are good people and good neighbors, my neighbors, and deserve protection under the law that is equal to those lawmakers who seek to marginalize them.

“The jobs created by this company are a far greater benefit to the middle class than any wasteful Washington program. We should be taking lessons from hardworking Americans in the private sector instead of continuing to play politics with people’s lives.”

Earlier today, Senate Majority Leader Harry Reid accused the Kochs of funding ads critical of the Affordable Care Act’s disastrous implementation that he claims are “completely untrue,” a claim that contradicts the thrust of most news coverage of the rollout.

For more information, contact:
JP Freire | Director of Communications and Speechwriter
Office of Congressman Mike Pompeo (R-Kansas)
107 Cannon HOB| Washington, D.C. 20515
Office (202) 225-6216 | Fax (202) 225-3489
JP.Freire@mail.house.gov

A letter to the U.S. Senate regarding the federal government shutdown

From KochFacts.com.

Dear Senator,

A great deal of what you read and hear about Koch Industries is erroneous or misleading. Indeed, there was false information presented about Koch on the Senate floor by Senate Majority Leader Reid, who claimed yesterday that Koch was behind the shutdown of the federal government in an effort to defund the Affordable Care Act or “Obamacare.” Because several of you have asked what our position is on this issue, we want to set the record straight and correct this misinformation.

Koch believes that Obamacare will increase deficits, lead to an overall lowering of standards of health care in America, and raise taxes. However, Koch has not taken a position on the legislative tactic of tying the continuing resolution to defunding Obamacare nor have we lobbied on legislative provisions defunding Obamacare.

Instead, Koch has focused on educating the public about reducing our nation’s debt and controlling runaway government spending. We believe that Congress should, at a minimum, keep to sequester-level spending guidelines, and develop a plan for more significant and widespread spending reductions in the future. We also believe that Congress should work to rein-in rampant government spending so that it becomes no longer necessary to continually raise the debt ceiling.

Congress should focus on these efforts: balancing the budget, tightening and cutting government spending, curbing cronyism, and eliminating market-distorting subsidies and mandates.

We are hopeful this sets the record straight and that in the future Senator Reid and other politicians will stop misrepresenting and distorting Koch’s positions.

Sincerely,
Philip Ellender
President, Government & Public Affairs
Koch Companies Public Sector, LLC

Cronyism is harmful to our standard of living

“The effects on government are equally distorting — and corrupting. Instead of protecting our liberty and property, government officials are determining where to send resources based on the political influence of their cronies. In the process, government gains even more power and the ranks of bureaucrats continue to swell.”

An editorial in Wall Street Journal last year written by Charles G. Koch, chairman of the board and CEO of Wichita-based Koch Industries contains many powerful arguments against the rise of cronyism. The argument above is just one of many.

Did you know that the Washington metropolitan area is one of the most prosperous? Here’s why:

Trouble begins whenever businesses take their eyes off the needs and wants of consumers—and instead cast longing glances on government and the favors it can bestow. When currying favor with Washington is seen as a much easier way to make money, businesses inevitably begin to compete with rivals in securing government largess, rather than in winning customers. … There are now businesses and entire industries that exist solely as a result of federal patronage. Profiting from government instead of earning profits in the economy, such businesses can continue to succeed even if they are squandering resources and making products that people wouldn’t ordinarily buy.

In the article, Koch makes an important observation when he defines cronyism: “We have a term for this kind of collusion between business and government. It used to be known as rent-seeking. Now we call it cronyism. Rampant cronyism threatens the economic foundations that have made this the most prosperous country in the world.”

“Rent-seeking” was always a difficult term to use and understand. It had meaning mostly to economists. But “cronyism” — everyone knows what that means. It is a harsh word, offensive to many elected officials. But we need a harsh term to accurately describe the harm caused, as Koch writes: “This growing partnership between business and government is a destructive force, undermining not just our economy and our political system, but the very foundations of our culture.”

The entire article is available at the Wall Street Journal. Koch has also contributed other articles on this topic, see Charles G. Koch: Why Koch Industries is speaking out and Charles Koch: The importance of economic freedom.

Charles G. Koch: Corporate Cronyism Harms America

When businesses feed at the federal trough, they threaten public support for business and free markets.

By Charles G. Koch

“We didn’t build this business — somebody else did.”

So reads a sign outside a small roadside craft store in Utah. The message is clearly tongue-in-cheek. But if it hung next to the corporate offices of some of our nation’s big financial institutions or auto makers, there would be no irony in the message at all.

It shouldn’t surprise us that the role of American business is increasingly vilified or viewed with skepticism. In a Rasmussen poll conducted this year, 68% of voters said they “believe government and big business work together against the rest of us.”

Businesses have failed to make the case that government policy — not business greed — has caused many of our current problems. To understand the dreadful condition of our economy, look no further than mandates such as the Fannie Mae and Freddie Mac “affordable housing” quotas, directives such as the Community Reinvestment Act, and the Federal Reserve’s artificial, below-market interest-rate policy.

Far too many businesses have been all too eager to lobby for maintaining and increasing subsidies and mandates paid by taxpayers and consumers. This growing partnership between business and government is a destructive force, undermining not just our economy and our political system, but the very foundations of our culture.

With partisan rhetoric on the rise this election season, it’s important to remind ourselves of what the role of business in a free society really is — and even more important, what it is not.

The role of business is to provide products and services that make people’s lives better — while using fewer resources — and to act lawfully and with integrity. Businesses that do this through voluntary exchanges not only benefit through increased profits, they bring better and more competitively priced goods and services to market. This creates a win-win situation for customers and companies alike.

Only societies with a system of economic freedom create widespread prosperity. Studies show that the poorest people in the most-free societies are 10 times better off than the poorest in the least-free. Free societies also bring about greatly improved outcomes in life expectancy, literacy, health, the environment and other important dimensions.

Continue reading at The Wall Street Journal (subscription not required)

Economic freedom ads debut in Wichita

This week the Wichita Eagle reports that Charles Koch, chairman of the board and CEO of Wichita-based Koch Industries, is starting a local campaign to educate people on the benefits of economic freedom and the harm of government overreach. (Charles Koch launching Wichita campaign about economic freedom, government overreach, July 9, 2013)

So far one video advertisement is available, shown at the end of this article.

In announcing this effort, a statement at the Charles Koch Foundation reads:

“We believe the best way to promote progress and societal well-being is through free societies,” said CKF founder Charles G. Koch. “The spot was developed as part of our ongoing work to support the kind of scholarship and analysis that examines how to ensure opportunities for earned success while sharing compassion for the vulnerable.”

Koch is not shying away from important issues related to economic freedom such as the minimum wage. The common belief, fiercely held and believed by those who say they want to help the poor, is that a high minimum wage is needed. In a video on another site sponsored by the Charles Koch foundation, it is argued that “And among the least skilled, least educated workers, increases in the minimum wage significantly increase unemployment. The minimum wage may be a well-intentioned policy, but it often hurts the very workers who are in most need of our help.” The video is Does the minimum wage hurt workers? at the site Economic Freedom.

Recently Koch has contributed several articles on the importance of economic freedom and the harm of cronyism, including Charles Koch: The importance of economic freedom, and in the Wall Street Journal, Charles G. Koch: Why Koch Industries is speaking out.

An IRS political timeline

Internal Revenue Service IRS logo

In the summer of 2010 President Barack Obama and his allies warned of conservative groups with “harmless-sounding names like Americans for Prosperity.” At the time, supporters of AFP like myself were concerned, but AFP saw the president’s attacks as evidence of the group’s influence.

This week Kim Strassel of the Wall Street Journal looks back at the summer three years ago in light of what we’re just starting to learn about the Internal Revenue Service under the Obama Administration. Strassel writes: “We know that it was August 2010 when the IRS issued its first ‘Be On the Lookout’ list, flagging applications containing key conservative words and issues.”

Strassel presents a timeline of events from that time. Here’s an entry that should concern everyone:

Aug. 27: White House economist Austan Goolsbee, in a background briefing with reporters, accuses Koch industries of being a pass-through entity that does “not pay corporate income tax.” The Treasury inspector general investigates how it is that Mr. Goolsbee might have confidential tax information. The report has never been released.

This same week, the Democratic Party files a complaint with the IRS claiming the Americans for Prosperity Foundation is violating its tax-exempt status.

Somehow, I’m not surprised that the Obama-controlled Treasury Department is slow in investigating allegations of misdeeds by an Obama economic adviser, even though Goolsbee hasn’t worked for Obama for some time.

In conclusion, Strassel ties it all together and links the current IRS scandal to Washington:

These were not off-the-cuff remarks. They were repeated by the White House and echoed by its allies in campaign events, emails, social media and TV ads. The president of the United States spent months warning the country that “shadowy,” conservative “front” groups — “posing” as tax-exempt entities and illegally controlled by “foreign” players — were engaged in “unsupervised” spending that posed a “threat” to democracy. Yet we are to believe that a few rogue IRS employees just happened during that time to begin systematically targeting conservative groups? A mere coincidence that among the things the IRS demanded of these groups were “copies of any contracts with and training materials provided by Americans for Prosperity”?

This newspaper reported Thursday that Cincinnati IRS employees are now telling investigators that they took their orders from Washington. For anyone with a memory of 2010 politics, that was obvious from the start.

It’s evident that we’re just starting to uncover what’s been happening to freedom and liberty under the Obama Administration (and past presidents, too). We don’t know where this will lead, but we need to be thankful for organizations like Americans for Prosperity and others that haven’t backed down.

An IRS Political Timeline

President Obama spent months in 2010 warning Americans about the ‘threat’ to democracy posed by conservative groups, right at the time the IRS began targeting these groups.

By Kimberly A. Strassel

Perhaps the only useful part of the inspector general’s audit of the IRS was its timeline. We know that it was August 2010 when the IRS issued its first “Be On the Lookout” list, flagging applications containing key conservative words and issues. The criteria would expand in the months to come.

What else was happening in the summer and fall of 2010? The Obama administration and its allies continue to suggest the IRS was working in some political vacuum. What they’d rather everyone forget is that the IRS’s first BOLO list coincided with their own attack against “shadowy” or “front” conservative groups that they claimed were rigging the electoral system.

Below is a more relevant timeline, a political one, which seeks to remind readers of the context in which the IRS targeting happened.

Continue reading at the Wall Street Journal (subscription not required).

Charles Koch profiled in Forbes

The new issue of Forbes features a cover story on Charles and David Koch. It is very interesting and seems a balanced and fair article, but there are a few things that stand out. (Inside The Koch Empire: How The Brothers Plan To Reshape America.)

An example: “Both Kochs innately understand that — unlike the populist appeal of their fellow midwestern billionaire Warren Buffett and his tax-the-rich advocacy — their message of pure, raw capitalism is a much tougher sell, even among capitalists.”

I think the author should have written “even among business executives” rather than capitalists. That’s because Charles Koch has been outspoken about business cronyism, in September writing in The Wall Street Journal: “Far too many businesses have been all too eager to lobby for maintaining and increasing subsidies and mandates paid by taxpayers and consumers. This growing partnership between business and government is a destructive force, undermining not just our economy and our political system, but the very foundations of our culture.”

I would imagine that most of the business leaders seeking government subsidies and mandates consider themselves capitalists. That’s a problem.

Then: the description of “pure” capitalism as raw. I think we’re starting to realize just how raw politics and government have become. Capitalism, however, is a system based on respect for property and peaceful, beneficial exchange. Tom G. Palmer in the introduction to The Morality of Capitalism explains: “Far from being an amoral arena for the clash of interests, as capitalism is often portrayed by those who seek to undermine or destroy it, capitalist interaction is highly structured by ethical norms and rules. Indeed, capitalism rests on a rejection of the ethics of loot and grab, the means by which most wealth enjoyed by the wealthy has been acquired in other economic and political systems. … It’s only under conditions of capitalism that people commonly become wealthy without being criminals.”

Often corporations are criticized by liberals as being too focused on short-term gains, that corporate raiders buy firms, gut them, chop them up, sell off assets, lay off employees, pile on debt — you know the story as used against Mitt Romney. But look at how Koch Industries operates:

Charles spent $6 billion upfront to buy Georgia-Pacific, and rather than satisfy quarterly earnings estimates or dividend-hungry investors, he immediately directed the new division’s cash flow toward paying down the $15 billion in liabilities that it inherited. …

The Koch long-game strategy is absolute: If it makes sense to them, the Kochs stay with the plan, no matter how burdensome or how long it takes. “We buy something not to milk it but to build it, to take its capabilities and add to them, and build new businesses,” [Charles] Koch says.

That sounds like a business strategy the left should embrace, not vilify.

Another curious statement by the author: “Given their strict adherence to the principals of transparent free markets, the Kochs’ secrecy seems hypocritical.” This is curious because transparency is an attribute not often associated with advocacy for free markets. Transparency is more associated with government as a desirable goal. Charles and David Koch are private citizens, not agents of government.

There’s good news near the end of the article:

The brothers’ new political emphasis in the coming year? Fighting corporate welfare.

While Obama talks about getting rid of lobbyists, Charles says, the “only way he can achieve that stated objective is to get government out of the business of giving goodies. That’s like flies to honey,” he adds. “The first thing we’ve got to get rid of is business welfare and entitlements.”

There’s much more in the article, available at Inside The Koch Empire: How The Brothers Plan To Reshape America.

Refuting the attacks on Koch

From KochFactsTV:

What do big government politicians mean when they say, “Koch?”

Nancy Pfotenhauer of Koch Industries explains that when big government politicians say “Koch,” they’re not talking about the successful American company that employs more than 50,000 people nationwide. They’re really attacking the principles of economic freedom that Koch has advocated for more than 50 years regardless of what political party holds power.

Economic freedom means property rights protected by an impartial rule of law, the freedom to trade and exchange goods and services, sound money, and a government that promotes prosperity rather than undermine it. Economic freedom also empowers individuals not governments. That’s why entrenched politicians will rarely say the words “economic freedom.” They’d rather say, “Koch.”

But with all the pressing issues challenging our nation, shouldn’t the big government advocates in Washington be talking about something else besides us?

Koch articles draw critics, but few factual

Two large articles in the Wichita Eagle regarding Charles and David Koch of Wichita-based Koch Industries have attracted many comments, and many are not based on facts.

The two articles are The Kochs’ quest to save America and Charles Koch relentless in pursuing his goals.

A curious irony is the claim by many comment writers that Charles and David Koch want to buy America, while at the same time they are running it into the ground: “The koch bros. are funding the conversion of OUR COUNTRY into another third world country.”

Even if it was possible to buy America — whatever that means — why would someone destroy it first?

Another common thread in the comments is that Charles and David Koch didn’t complain about government spending, subsidy, regulation, etc. before President Barack Obama was elected. In fact, they have been working to promote free markets and economic freedom for many decades. Charles Koch and two others founded what became the Cato Institute in 1974, nearly four decades ago. Even earlier: A recent issue of Koch Industries Discovery newsletter contains a story titled “Don’t subsidize me.” Here’s an excerpt:

When Charles Koch was in his 20s, he attended a business function hosted by his father. At that event, Fred Koch introduced Charles to a local oilman.

When the independent oilman politely asked about the young man’s interests, Charles began talking about all he was doing to promote economic freedom.

“Wow!” said the oilman, who was so impressed he wanted to introduce the young bachelor to his eligible daughter.

But when Charles mentioned he was in favor of eliminating the government’s oil import quota, which subsidized domestic producers, the oilman exploded in rage.

“Your father ought to lock you in a cell!” he yelled, jabbing his finger into Charles’ chest. “You’re worse than a Communist!”

It seems the oilman was all for the concept of free markets — unless it meant he had to compete on equal terms.

Under oath

For more than 50 years, Charles Koch has consistently promoted economic freedom, even when it was not in the company’s immediate financial interest.

In the 1960s, Koch was willing to testify before a powerful Congressional committee that he was against the oil import quota — a very popular political measure at the time.

“I think it’s fair to say my audience was less than receptive,” recalls Koch.

Years later, Koch warned an independent energy association about the dangers of subsidies and mandates.

“We avoid the short-run temptation to impose regulatory burdens on competitors. We don’t lobby for subsidies that penalize taxpayers for our benefit.

“This is our philosophy because we believe this will produce the most favorable conditions in the long run,” Koch said.

Many comments take the company to task for accepting oil and ethanol subsidies. Koch Industries, as a refiner of oil, blends ethanol with the gasoline it produces in order to meet federal mandates that require ethanol usage. Even though Koch opposed subsidies for ethanol — as it opposes all subsidies — Koch accepted the subsidies. A company newsletter explained “Once a law is enacted, we are not going to place our company and our employees at a competitive disadvantage by not participating in programs that are available to our competitors.” (The tax credit subsidy program for ethanol has ended, but there is still the mandate for its use in gasoline.)

Regarding oil subsidies, the programs that are most commonly cited (percentage depletion and expensing of intangible drilling costs) apply to producers of oil — the companies that drill holes and pump up oil. Koch Industries doesn’t do that. The company doesn’t benefit from these programs.

Other comments charge that Koch Industries wants to end regulation so that it can pollute as much as it wants. This is another ridiculous charge not based on facts.

A statement on the KochFacts website states “recent critics have also claimed that Koch is one of the nation’s top 10 polluters. This study confuses pollution with permitted emissions, which are carefully regulated by the U.S. EPA and other agencies. The index labels as ‘polluters’ Ford Motor, General Motors, GE, Pfizer, Eastman Kodak, Sony, Honeywell, Berkshire Hathaway, Kimberly Clark, Anheuser Busch and Goodyear — corporations, like Koch companies, with significant manufacturing in the U.S. Emissions, a necessary by-product of manufacturing, are strictly monitored and legally permitted by federal, state and local governments.”

Say: Didn’t the U.S. government take over General Motors, and continues to hold a large stake in the company? And GE and Berkshire Hathaway: Aren’t those run by personal friends of Barack Obama?

The reality is that manufacturing has become much more efficient with regards to emissions, and Koch Industries companies have lead the way. One report from the company illustrates such progress: “Over the last three years, Koch Carbon has spent $10 million to enhance environmental performance, including $5 million for dust abatement at one of its petroleum coke handling facilities. These investments have paid off. In 2008, Koch Carbon’s reportable emissions were 6.5 percent less than in 2000, while throughput increased 10.4 percent.”

Even when Koch Industries does not agree with the need for specific regulations, the company, nonetheless, complies. Writing about an increase in regulation in the 2007 book The Science of Success: How Market-Based Management Built the World’s Largest Private Company, Charles Koch explained the importance of regulatory compliance: “This reality required is to make a cultural change. We needed to be uncompromising, to expect 100 percent of our employees to comply 100 percent of the time with complex and ever-changing government mandates. Striving to comply with every law does not mean agreeing with every law. But, even when faced with laws we think are counter-productive, we must first comply. Only then, from a credible position, can we enter into a dialogue with regulatory agencies to determine alternatives that are more beneficial. If these efforts fail, we can then join with others in using education and/or political efforts to change the law.”

Koch companies have taken leadership roles in environmental compliance, explains another KochFacts page: “In 2000, EPA recognized Koch Petroleum Group for being ‘the first petroleum company to step forward’ to reach a comprehensive Clean Air Act agreement involving EPA and state regulatory agencies in Minnesota and Texas. Despite fundamental policy disagreements, then-EPA Administrator Carol Browner acknowledged Koch’s cooperation. She characterized the agreement as ‘innovative and comprehensive’ and praised the ‘unprecedented cooperation’ of Koch in stepping forward ahead of its industry peers.” Browner was no friend of industry, and had a “record as a strict enforcer of environmental laws during the Clinton years,” according to the New York Times.

What may really gall liberals and Koch critics is this: They believe that a powerful and expansive government is good for the country. But what we have is a complicated machine that a company like General Electric can exploit for huge profits, all without creating things that consumers value. Charles Koch calls for an end to this, as he wrote last year in the Wall Street Journal: “Government spending on business only aggravates the problem. Too many businesses have successfully lobbied for special favors and treatment by seeking mandates for their products, subsidies (in the form of cash payments from the government), and regulations or tariffs to keep more efficient competitors at bay. Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want.”

The political Left just can’t believe that anyone would write that and really mean it.

What’s wrong with Charles and David Koch?

In a column on his website, Fran Tarkenton wonders why Charles and David Koch are the targets of so much criticism. He writes: “So why do we vilify people who represent the greatness of America? Is it just because they have different political beliefs? It’s time to stop demonizing people who do things the right way and generate tremendous wealth — and value to all Americans. Those are the people we should celebrate, whether you agree with their politics or not! If we want to preserve America as the great place it is, we need more entrepreneurs, more innovators — and a free market to foster them.”

Tarkenton writes of “how poisonous our political atmosphere is.” Here’s an example: A common complaint by leftists is that Wall Street is overly focused on short-term results — the quarterly profit numbers — rather than on long-term investment and growth. Koch Industries, however, is privately held, and in a recent Wichita Eagle article, a company official said “[private ownership] allows us to focus on the long term as opposed to quarter to quarter.” You’d think liberals would be happy with a company that can afford to ignore the short term and focus on the long term, but instead they criticize Koch for not being public, wondering what it is the company has to hide.

By the way, this focus on the long term may be why since 1960 the value of Koch Industries has increased faster than the value of the broad-based S&P index of the 500 largest U.S. Companies, by a factor of 16 times.

Tarkenton several times mentions Charles and David Koch’s fight against cronyism. Contrast this with General Electric, a company headed by a friend of President Obama. A report from ProPublica shows some of the lengths that GE goes to avoid paying taxes: “General Electric’s tax department is famous for inventing ways to pay Uncle Sam less. So it should come as no surprise that its CEO, Jeff Immelt, is in the crosshairs as the new chairman of the President’s Council on Jobs and Competitiveness. … GE’s tax department is well known for its size, skill and hiring of former government officials. About 20 years ago, GE’s tax employees totaled a few hundred and were decentralized. Today, there are almost 1,000. The department’s strong suit? Reducing the taxes GE reports for earnings purposes.”

A New York Times article explains the lengths that GE went to to protect a tax loophole that it benefited from. The tax system is a major vehicle for the implementation of cronyism.

The shelters are so crucial to G.E.’s bottom line that when Congress threatened to let the most lucrative one expire in 2008, the company came out in full force. G.E. officials worked with dozens of financial companies to send letters to Congress and hired a bevy of outside lobbyists.

The head of its tax team, Mr. Samuels, met with Representative Charles B. Rangel, then chairman of the Ways and Means Committee, which would decide the fate of the tax break. As he sat with the committee’s staff members outside Mr. Rangel’s office, Mr. Samuels dropped to his knee and pretended to beg for the provision to be extended — a flourish made in jest, he said through a spokeswoman.

That day, Mr. Rangel reversed his opposition to the tax break, according to other Democrats on the committee.

The following month, Mr. Rangel and Mr. Immelt stood together at St. Nicholas Park in Harlem as G.E. announced that its foundation had awarded $30 million to New York City schools, including $11 million to benefit various schools in Mr. Rangel’s district.

Other companies that are revered by the political left play the game too. A report from the Urban-Brookings Tax Policy Center explained how Starbucks manipulated the tax system to its benefit: “By shifting paper profits among divisions, firms can reduce their overall tax liability. Such efforts will lead to unnecessary accounting and compliance costs for firms and unnecessary enforcement costs for the IRS. For example, The New York Times reported that Starbucks successfully added a provision to the bill that deems coffee roasting, but not coffee preparation, a manufacturing activity. This provision gives Starbucks a tax incentive to increase the bean prices charged to its retail outlets, making the roasting part of the business more profitable and the retail part of the business less profitable. Such efforts could decrease Starbucks’s tax bill, but serve no other discernable public policy purpose.”

What’s Wrong with the Koch Brothers?
By Fran Tarkenton

To succeed in football and in business, I worked with a lot of people. I learned how to figure out who the great people were, people who were doing the right thing, people with great ethics who I could trust and learn a lot from. I also learned how to identify people who weren’t trying to do the right thing.

It’s very important in business to be able to tell the difference, because a great mentor like Sam Walton, Bernie Marcus, or Robert Woodruff can have a monumental impact, but a bad influence can cause big problems.

This political season, there has been one business name that has been demonized and vilified above all others: the Koch brothers, Charles and David Koch of Koch Industries. They have been demonized as right-wing zealots, and I’ve even seen the work of scholars dismissed just because their organization has some connection to the Koch brothers.

The kneejerk attacks and venom that comes out whenever their names are even mentioned really bothers me, and it’s a sign of just how poisonous our political atmosphere is. I don’t know the Koch brothers personally, but I know people who do, and who know them well. And I’ve also been able to observe the things they do, and the way they conduct themselves publicly. Everything I’m seeing and hearing tells me that these are exemplary business leaders who we should be celebrating, not attacking.

Start by looking at how Koch Industries grew to become the juggernaut it is today. The family patriarch, Fred Koch, built the company on an innovative process he developed in the oil business. Then his sons grew the company the right way. They didn’t cozy up to the government for subsidies, handouts, or preferential treatment. Instead, they came up with great ideas that solved problems in the lives of people, ideas that provided real value. Their business empire was built on innovation, reinvention, and hard work, not cronyism. I greatly admire that! And they’ve donated millions to medical research and the arts, among other causes.

Now, the Koch brothers are more known for the money they spend on political activities. They fund a variety of think tanks and organizations, all dedicated to promoting free market practices and small government. And that is where they are demonized and tarred and feathered by their political opponents. But from everything I have ever seen, what is remarkable is that none of their political activities are dedicated to cronyism, setting their company up for a big windfall if it wins the debate. Rather, they are advocating for more competition, reduced barriers to entry for new players, and less connection between the board room and the DC halls of power, not a special place at the table.

The only reason for doing that is because they really believe in it. Why should we demonize people who deeply believe in something and do whatever they can to promote it? If the Koch brothers spent millions of dollars on politicians who would subsidize their products and outlaw their competitors, that would be wrong. But instead, they advocate for an end to market distortions, government interventions in the private sector, and cronyism in general. They’re not trying to get more of the government pie; they just really believe they have a vision to help America, because they love this country and the values it stands for.

The truth is that everything we have in this country is because of entrepreneurs, large and small. From the corner store up to the most successful business people — whether conservatives like the Koch brothers, liberals like Steve Jobs at Apple, or libertarians like Jeff Bezos of Amazon — the great wealth of this country comes from people helping other people by creating value. Without value, when businesspeople are just in it for themselves and don’t care about value, only about accruing benefits to themselves, everything falls apart — including the business itself! Those who do create value are the reason we have the great society we have. Since their business began, the Koch brothers have been part of the value-creating class, not the crony class of business owners.

So why do we vilify people who represent the greatness of America? Is it just because they have different political beliefs? It’s time to stop demonizing people who do things the right way and generate tremendous wealth — and value to all Americans. Those are the people we should celebrate, whether you agree with their politics or not!

If we want to preserve America as the great place it is, we need more entrepreneurs, more innovators — and a free market to foster them.

And in case you’re wondering, the Koch brothers did not approve this message.