Voice For Liberty

Tag: Koch Industries

  • A look at a David Dennis campaign finance report

    A look at a David Dennis campaign finance report

    It’s interesting to look at campaign finance reports. Following, a few highlights on a report from the David Dennis campaign. He’s a candidate for Sedgwick County Commission in the August Republican Party primary election. The report was filed July 25, 2016, covering the period from January 1, 2016 through July 21, 2016. These reports are available online at the Sedgwick County Election Office website.

    Keith Stevens, $200
    A longtime Democrat community activist, always on the side of higher taxes and more government spending.

    Suzanne F. Ahlstrand, $250
    Gary & Cathy Schmitt, $100
    Jon E. Rosell, $100
    Charlie Chandler, Maria Chandler, $1,000 total
    Al and Judy Higdon, $500
    James & Vera Bothner, $250
    Lyndon O. & Marty Wells, $500
    All are, or have been, affiliated with the Wichita Metro Chamber of Commerce in various roles, including paid staff and leadership. At one time local chambers of commerce were dedicated to pro-growth economic policies and free markets. But no longer. The Wichita Chamber regularly advocates for more taxes (the 2014 Wichita sales tax campaign was run by the Wichita Chamber), more spending, more cronyism, and less economic freedom. It campaigns against fiscally conservative candidates when the alternative is a candidate in favor of more taxes. The Chamber says it does all this in the name of providing jobs in Wichita. If you’re wondering who ground down the Wichita economy over the past few decades, look no further than the Wichita Chamber of Commerce and its affiliates who have run Wichita’s economic development bureaucracy.

    Harvey Sorensen, $500
    Sorensen was one of the drivers behind the 2014 one cent per dollar Wichita city sales tax proposal, serving as co-chair of Yes Wichita, the primary group campaigning for the tax. In a public forum Sorensen said, “Koch Industries is going to spend a million dollars to try to kill the future of our community.”1 Wichita voters rejected that sales tax, with 62 percent of voters voting “No.”2 Since the election, we’ve learned that we can satisfy our water future needs by spending much less than Sorensen recommended, at least $100 million less.3 Part of the Wichita Metro Chamber of Commerce cabal, Sorensen has played both sides of the street, having donated $500 to Jeff Longwell and the same amount to his opponent Sam Williams in the 2015 Wichita mayoral election. We might be led to wonder if Sorenson makes contributions based on sincerely held beliefs regarding public policy, or simply for access to officeholders.

    Jon, Lauren, David, and Barbara Rolph, $2,000 total
    Jon Rolph was another co-chair of Yes Wichita, the primary group campaigning for the 2014 Wichita city sales tax. Since then he’s floated the idea of trying again for a city sales tax.

    Plumbers & Pipefitters Local Union No. 441 Political Action Committee, $500
    Labor unions rarely — very rarely — make campaign contributions to Republicans. Except for David Dennis.

    Bryan K & Sheila R Frye, $50
    Bryan Frye is a newly-elected Wichita City Council member who has quickly found a home among the other big-taxing, big-spending council members. He’d very much like a county commissioner who is compliant with more taxes and more spending — like David Dennis.

    Lynn W. & Kristine L. Rogers, $50
    Lynn Rogers is a Republican-turned-Democrat. As a member of the Wichita public schools board, he is an advocate for more school spending, less school accountability, and no school choice.

    Alan J. & Sharon K. Fearey, $100
    A Democrat, Sharon Fearey served two terms on the Wichita City Council. She was always an advocate for more taxes and spending, even scolding the Wichita Eagle when it thwarted her spending plans.

    Foley Equipment, $500
    Ann Konecny, $500
    Foley was an advocate for the 2014 Wichita city sales tax, contributing $5,000 to the campaign. The next year, Foley asked for an exemption from property taxes and the sales tax that it campaigned for.4 Foley wanted poor people in Wichita to pay more sales tax on groceries, but didn’t want to pay that same sales tax itself.

    BF Wichita, L.L.C., $500
    A company affiliated with George Laham. He’s a partner in the taxpayer-subsidized River Vista Apartment project on the west bank of the Arkansas River north of Douglas Avenue. Rumor is that the apartment project will be abandoned in favor of selling the land as the site for an office building.

    Automation Plus, $500
    Sheryl Wohlford, Vice President, is a longtime progressive activist, a member of Wichita Downtown Vision Team. In short, someone who knows how to spend your money better than you.

    Steven E. Cox, Janis E. Cox, $1,000 total
    Owners of Cox Machine, this company regularly applies for and receives taxpayer-funded incentives, including the forgiveness of paying sales tax. Yet, this company contributed $2,000 to the campaign for the 2014 Wichita city sales tax.

    Leon or Karen Lungwitz, $500
    Owner of company where Wichita mayor Jeff Longwell once worked.

    Slawson Commercial Properties, LLC, $500
    Socora Homes, Inc., $500
    New Market 1, LLC, $500
    Buildings 22-23-24, LLC, $500
    All are Slawson companies, advocates of and beneficiaries of taxpayer-funded subsidies.

    Carl & Cathy Brewer, $200
    The Democrat former mayor of Wichita. Enough said about that.

    Tom Winters, $250
    Winters is emblematic of the big-taxing, big-spending Republican officeholder who believes he knows how to spend your money better than you. Karl Peterjohn defeated Winters in the August 2008 primary election.

    Timothy R. Austin, $150
    We might label Austin as “engineer for the cronies” based on his frequent appearances before governmental bodies advocating for taxpayer-funded subsidy for his clients.

    —
    Notes

    1. Ryan, Kelsey. Comment on Koch involvement in sales tax heats up debate. Wichita Eagle, October 29, 2014. Available at www.kansas.com/news/local/article3456024.html. ↩
    2. Sedgwick County Election Office. November 4th, 2014 General Election Official Results — Sedgwick County. Available at www.sedgwickcounty.org/elections/election_results/Gen14/index.html. ↩
    3. Weeks, Bob. In Wichita, the phased approach to water supply can save a bundle. wichitaliberty.org/wichita-government/wichita-phased-approach-water-supply-can-save-bundle/. ↩
    4. Weeks, Bob. In Wichita, campaigning for a tax, then asking for exemption from paying. Available at wichitaliberty.org/wichita-government/campaigning-for-tax-then-asking-for-exemption-from-paying/. ↩
  • The unprecedented campaign against free speech

    The unprecedented campaign against free speech

    The political left’s campaign to silence opponents and reorder society in accordance with their personal beliefs is in many ways the single greatest threat to America’s experiment in self-governance, writes Mark Holden.

    The unprecedented campaign against free speech

    By Mark Holden. Originally published in The Hill.

    The liberal Supreme Court Justice Oliver Wendell Holmes once warned of the biggest danger facing free speech: “If you have no doubt of your premises or your power, and want a certain result with all your heart, you naturally express your wishes in law, and sweep away all opposition.”

    Yet many lawmakers today are mistaking his wise warning as an invitation to restrict the First Amendment. At nearly every level of government, freedom of speech is under unprecedented attack. Many on the political left now seek to silence their opponents and reorder society in accordance with their personal beliefs. This is in many ways the single greatest threat to America’s experiment in self-governance.

    This coordinated campaign has been underway for years. Its creation can be traced to the Supreme Court’s 2010 decision in Citizens United v. Federal Election Commission, when the court refused to accept the Obama administration’s argument that it could ban books, mailers, advertisements or anything else that contained a political message during an election campaign. This simple ruling ensured that Americans retained the fundamental right to use free speech to praise or criticize a candidate running for office.

    However, that is the very core of free speech itself. If Americans — individually or acting together through nonprofits, businesses or labor unions — cannot voice their views on public policy and elected officials, then the democratic process as we know it is dead. The result is a system that makes those already in power even more powerful; incumbents need not fear having those pesky voters learn about their statements, views and voting records.

    In fact, liberal politicians and activists swiftly made opposition to Citizens United a defining part of their platform from the moment the Supreme Court issued its decision. By 2014, no fewer than 54 U.S. Senators — all Democrats or Democratic allies such as current presidential candidate Sen. Bernie Sanders (Vt.) — supported a constitutional amendment essentially rewriting the First Amendment so that the federal government could regulate and criminalize free speech. Congressional Democrats are once again preparing to make a push to roll back the court’s decision and stifle free speech.

    Not to be outdone, leading Democratic presidential candidate Hillary Clinton has declared that she would only appoint judges who promise to overturn Citizens United and permit the censorship of political speech.

    At the same time, lawmakers and their allies have found other ways to stifle their opponents’ speech. Americans learned in 2013 that the IRS had systematically singled out conservative nonprofits in the build-up to the 2012 election. The agency harassed many applicants and kneecapped others by refusing to grant them tax-exempt status, restricting their members and supporters from exercising their rights to free speech and free association.

    Sadly, this abuse of power still occurs. The federal courts recently learned that multiple nonprofits still haven’t received IRS approval.

    Even more attacks on free speech are happening at the state level. For example, New York and California are both demanding that some nonprofits hand over lists of donors to the state. Although the government invariably promises to not release this legally confidential information, California has “accidentally” posted at least 1,400 supporter lists online.

    This fact, and ongoing harassment by California Attorney General Kamala Harris, led a federal judge to permanently stop her from obtaining the donor list of one organization, the Americans for Prosperity Foundation. (Full disclosure: I am a director of the related Americans for Prosperity.) However, the IRS has done something similar, conveniently disclosing confidential taxpayer information for several of the Obama administration’s political opponents.

    And then there are the demands that government investigate organizations that hold unpopular or controversial views. Over a dozen state attorneys general (all of them Democrats), recently announced that they will go after companies such as Exxon Mobil that disagree with their views on climate change. The prosecutors’ goal is to intimidate these groups to change their position or else face criminal prosecution.

    Federal lawmakers are in on the action, too. The Department of Justice has asked the FBI to begin similar investigations of major energy companies. Sen. Sheldon Whitehouse (D-R.I.) has even called for organizations that disagree with him to be prosecuted under the federal law banning racketeering — a law originally meant to target mobsters and drug kingpins.

    This coordinated campaign is antithetical to the First Amendment’s guarantee of free speech. In our system of self-government, when someone finds other people’s ideas and opinions disagreeable or even reprehensible, the solution is more speech, not less. Yet instead of persuading others to see their point of view, many in today’s society would rather use government’s power to bully their opponents into silence instead.

    Thankfully, Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Paul Ryan (R-Wis.) have tried to combat this assault on free speech. They have championed a number of reforms to protect the First Amendment and prevent elected officials and the administrative state from stifling Americans’ right to free speech.

    Their leadership should be praised, but much more needs to be done. This fundamental right won’t truly be protected until Americans of all political persuasions heed Justice Holmes’s wise words.

    Holden is senior vice president and general counsel of Koch Industries, Inc. and a director of Americans for Prosperity. (The chairman of the Americans for Prosperity Foundation, David Koch, is also executive vice president and director of Koch Industries.)

  • Small and weak government?

    Small and weak government?

    Do corporations prefer the marketplace or a large and powerful government?

    A letter in the Wichita Eagle criticized the marketplace and the power that corporations purportedly hold over it. (Government needed, February 28, 2016). This letter refers to an op-ed by Charles Koch (Charles G. Koch: Sanders and I agree on a few issues, February 19, 2016, originally published in the Washington Post)

    A few remarks:

    The letter-writer states: “It was also no surprise to read that his solution is very small and weak government.” Reading the Koch op-ed to which the letter-writer refers, I didn’t see a call for weak government. Generally, libertarians favor a limited government that is strong in protecting our rights and liberties and exercising the enumerated powers outlined in the Constitution. A limited government is very different from a weak government.

    The letter-writer states: “The very, very rich people and corporations do not check themselves. The marketplace system they embrace as the sole solution encourages the accumulation of more and more wealth and power — and using that power to accumulate more wealth.” With a few exceptions, corporations do not embrace the marketplace, if by marketplace the writer means a system of free markets. Instead, as Charles Koch correctly notes, most corporations seek to constrain and limit the power of free markets. Milton Friedman diagnosed the situation correctly: “The great virtue of free enterprise is that it forces existing businesses to meet the test of the market continuously, to produce products that meet consumer demands at lowest cost, or else be driven from the market. It is a profit-and-loss system. Naturally, existing businesses generally prefer to keep out competitors in other ways. That is why the business community, despite its rhetoric, has so often been a major enemy of truly free enterprise.”

    It’s difficult to do the things that Friedman says business must do in a market economy — innovate, be customer-focused, and be efficient. It’s far easier to hire lobbyists at the federal, state, and local levels to gain an advantage over your competitors. The harm of this system of cronyism is explained by Koch: “Perversely, this regulatory burden falls hardest on small companies, innovators and the poor, while benefiting many large companies like ours. This unfairly benefits established firms and penalizes new entrants, contributing to a two-tiered society.” It is government, not markets, that are creating two tiers of society.

    Another complaint of the writer is that the rich “fund the multitude of foundations and university professors to pitch their philosophy attacking public schools and other public services.” Well, some rich people do, and thank goodness for them. If not for the generosity of Koch and a few others in founding organizations like The Cato Institute, there might be few sources of information besides a self-serving government or those who benefit from an expansive, meddling government. The latter are the corporations that the letter-writer complains use the marketplace to gain more wealth and power, but in reality are using government to do this.

    As far as funding university professors, this serves as a useful and valuable check to the multitudes of taxpayer-funded public university professors who indoctrinate and condition students to embrace more government. Shouldn’t college students be exposed to a variety of views? That doesn’t seem to be what students are receiving: “Academics, on average, lean to the left. A survey being released today suggests that they are moving even more in that direction. Among full-time faculty members at four-year colleges and universities, the percentage identifying as ‘far left’ or liberal has increased notably in the last three years, while the percentage identifying in three other political categories has declined.” (Moving Further to the Left, Inside Higher Ed, October 24, 2012)

  • Criminal justice reform: Why it matters

    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

    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

    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

    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

    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

    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.