Dark Money

1. The Koch brothers built a powerful political network to advance their libertarian agenda

"If we're going to give a lot of money, we'll make darn sure they spend it in a way that goes along with our intent. And if they make a wrong turn and start doing things we don't agree with, we withdraw funding."

Origins and growth. Charles and David Koch, heirs to an oil fortune, began building their political network in the 1970s. Guided by libertarian ideals, they funded think tanks, academic programs, and advocacy groups to promote free-market economics and limited government. Their efforts accelerated after 2000, as they hosted secretive donor summits and channeled hundreds of millions into political causes.

Key components:

• Americans for Prosperity - grassroots advocacy organization
• Cato Institute - libertarian think tank
• Mercatus Center at George Mason University - academic research center
• State Policy Network - coalition of state-level conservative think tanks

The Kochs' network became known as the "Kochtopus" for its far-reaching influence across politics, media, academia, and business. By 2010, it rivaled the Republican Party in size and scope, allowing the Kochs to exert outsized influence on American politics despite being largely unknown to the public.

2. Dark money from wealthy donors reshaped American politics after Citizens United

"It gave rich people more or less free rein to spend as much as they want in support of their favored candidates."

New era of campaign finance. The 2010 Citizens United Supreme Court decision removed limits on corporate and union spending in elections, opening the floodgates for "dark money" - political spending by nonprofits that don't have to disclose their donors. This allowed wealthy individuals and corporations to pour unprecedented sums into elections while remaining anonymous.

Key impacts:

• Rise of super PACs able to raise and spend unlimited funds
• Proliferation of 501(c)(4) "social welfare" groups as political vehicles
• Shift in power from political parties to outside groups and donors
• Increased polarization as donors pushed candidates toward ideological extremes

The influx of dark money reshaped American politics, giving wealthy donors like the Kochs far more influence over elections and policy. By 2012, outside spending had exploded to over $1 billion, much of it from undisclosed sources.

3. The Tea Party movement was largely funded and orchestrated by conservative billionaires

"It was not a new strain" in American politics. "The scale was unusual, but history had shown that similar reactionary forces had attacked virtually every Democratic president since Franklin Roosevelt."

Astroturf origins. While portrayed as a grassroots uprising, the Tea Party movement was largely orchestrated and funded by conservative billionaires like the Kochs. Groups like Americans for Prosperity provided logistical support, messaging, and funding for Tea Party rallies and candidates. This allowed wealthy donors to harness popular discontent to advance their own agenda of tax cuts and deregulation.

Key components:

• FreedomWorks - provided training and resources to activists
• Tea Party Patriots - national coordinating group
• Tea Party Express - conservative PAC organizing bus tours and rallies
• Local Tea Party groups - often supported by national organizations

The movement's anti-government, anti-tax message aligned closely with the Kochs' libertarian views. By channeling populist anger, conservative donors were able to push the Republican Party further to the right and obstruct Obama's agenda.

4. Think tanks and advocacy groups became key weapons in the ideological war

"These efforts have been instrumental in challenging the campus left—or more specifically, the problem of radical activists' gaining control of America's colleges and universities."

Weaponizing philanthropy. Conservative donors like the Kochs, Scaife, and Olin families poured hundreds of millions into think tanks, academic centers, and advocacy groups to promote free-market ideology. This created an intellectual and political infrastructure to counter liberal dominance in academia and policy circles.

Key strategies:

• Funding academic centers and professorships at elite universities
• Creating conservative alternatives to mainstream media
• Training young conservatives through internships and fellowships
• Producing a steady stream of policy papers and op-eds

Organizations like the Heritage Foundation, Cato Institute, and Federalist Society became influential in shaping policy debates and judicial nominations. This "idea production line" allowed conservatives to reframe issues and shift the Overton window of acceptable policy options to the right.

5. Climate change denial was strategically promoted by fossil fuel interests

"We study the idea of the Boston Tea Party as an example of nonviolent social change. We learned we needed boots on the ground to sell ideas, not candidates."

Manufacturing doubt. Fossil fuel companies and their allies waged a concerted campaign to sow doubt about climate science and block action on global warming. Think tanks and advocacy groups funded by the Kochs and other oil interests produced a steady stream of contrarian research and commentary questioning climate change.

Key tactics:

• Funding skeptical scientists and amplifying their views
• Creating front groups like the "Cooler Heads Coalition"
• Lobbying against environmental regulations and international agreements
• Pressuring media to give equal time to climate skeptics

This effort succeeded in polarizing public opinion on climate change along partisan lines, despite the scientific consensus. It allowed fossil fuel companies to delay regulations and continue profiting from carbon-intensive energy sources.

6. Aggressive tactics were used to discredit critics and shape public opinion

"Dirt, dirt, dirt" is what the source later told me they were digging for in my life. "If they couldn't find it, they'd create it."

Bare-knuckle politics. The Kochs and their allies employed aggressive tactics to discredit critics and shape public opinion. This included hiring private investigators, creating fake grassroots groups, and using social media manipulation. Critics of the Kochs often found themselves targeted by coordinated smear campaigns.

Examples:

• Attacks on climate scientists like Michael Mann
• Efforts to discredit journalists investigating the Kochs
• Creation of astroturf groups to oppose environmental regulations
• Use of opposition research to target political opponents

These bare-knuckle tactics went beyond normal political combat, creating an atmosphere of intimidation around those who challenged powerful donors. It demonstrated the willingness of some wealthy activists to use their resources to manipulate public discourse.

7. Tax policy became a key battleground for advancing wealthy donors' interests

"When oligarchs control the levers of government, they get the spoils. It's litigated through tax policy."

Rewriting the tax code. Wealthy donors like the Kochs made tax cuts a top priority, pushing for policies that disproportionately benefited the rich. This included lowering top income tax rates, reducing capital gains taxes, and eliminating the estate tax. Conservative think tanks produced a steady stream of research arguing that such cuts would boost economic growth.

Key initiatives:

• Bush-era tax cuts of 2001 and 2003
• Push to eliminate the "death tax" (estate tax)
• Opposition to closing carried interest loophole
• Promotion of flat tax proposals

The focus on tax cuts aligned the interests of wealthy donors with the Republican Party's anti-tax ideology. It also contributed to growing income inequality and declining government revenues.

8. Paul Ryan's budget plan exemplified the influence of conservative donors

"It was not about developing policy, it was about selling it."

Donor-driven policy. Representative Paul Ryan's 2011 budget plan, "The Path to Prosperity," embodied the policy priorities of conservative donors like the Kochs. It called for deep cuts to social programs, partial privatization of Medicare, and large tax cuts for the wealthy. The plan was developed with input from conservative think tanks and tested through donor-funded polling and focus groups.

Key elements:

• Transforming Medicare into a voucher program
• Block-granting Medicaid to states
• Reducing top tax rates to 25%
• Deep cuts to food stamps and other anti-poverty programs

While politically risky, Ryan's plan aligned closely with the small-government ideology promoted by the Koch network. It demonstrated how donor influence could shape the Republican policy agenda, even when at odds with public opinion.

9. The debt ceiling crisis revealed the growing power of radical Republicans

"We led. They reacted to us."

Brinksmanship politics. The 2011 debt ceiling crisis highlighted the growing influence of Tea Party-aligned Republicans backed by conservative donors. Despite the risk of economic catastrophe, they were willing to push the country to the brink of default to extract spending cuts and block tax increases. This reflected the outsized influence of ideological donors over more pragmatic business interests within the GOP.

Key factors:

• Rise of the Tea Party caucus in Congress
• Pressure from groups like Americans for Prosperity
• Internal Republican leadership struggles
• Obama administration's initial misreading of the situation

The crisis demonstrated how donor-backed ideological extremism was reshaping Republican politics. It foreshadowed further partisan gridlock and brinksmanship in the years to come, as donor priorities often diverged from both public opinion and traditional business interests.

Last updated: August 25, 2024