Blog

Supreme Court justices don’t strike me as a fun-loving bunch. I mean, would you really want to waste your down-time with the perpetually petulant Clarence Thomas, or kick back with the supercilious Antonin Scalia?

Yet, they and three other up-tight and far-right Supremes snuck a whoopee cushion into our elections when they rendered their Citizens United decision two years ago. With a straight face, the five jokesters decreed that corporations and the super-rich can dump unlimited money into political action committees, as long as – get this – these so-called SuperPACs do not explicitly coordinate with the candidates they’re backing.

What a hoot! I’ll bet these smart lawyers laughed themselves slap-happy over this non-coordination rule, knowing that it had a built-in loophole bigger than Newt Gingrich’s ego. Sure enough, every presidential candidate this year has one of the Court’s supposedly independent SuperPACs backing them with unprecedented levels of corporate cash. And every candidate solemnly declares that in no way are they coordinating or even talking to those running these money funnels. The punch line, of course, is that the SuperPACs are – whoopee! – brother-in-law deals, set up and run by the candidates’ cronies and business partners. (more…)

If you are concerned about the collapse of the middle class, you should be concerned about how American campaigns are financed. If you wonder why the United States is the only country in the industrialized world not to have a national health care program, if you’re asking why we pay the highest price in the world for prescription drugs, or why we spend more money on the military than the rest of the world combined, you are talking about campaign finance. You are talking about the unbelievable power that big-money interests have over every legislative decision.

An already horrendous situation was made much worse two years ago this month when the Supreme Court ruled in Citizens United v. the Federal Elections Commission that multinational corporations have a constitutional right to spend whatever they want to influence election outcomes. A bare 5-4 majority lowered the floodgates on unchecked, unlimited, unaccountable corporate cash in political campaigns. Corporations were equated with people. A century of laws regulating business spending on elections were upended. In one fell swoop, five justices fantasized for corporations a right never conceived by the founders whose preamble to our Constitution begins with the words, “We the people…”

The ruling not only poisoned our political process. It contaminated the legislative process. It cast a permanent chill over all policymaking. Will the merits or the money tip the balance when an issue comes before Congress? What do you think? If the question is on breaking up huge banks, for example, every member of the Senate and the House, in the back of their minds, will ask themselves what the personal price would be for taking on Wall Street. Am I going to be punished? Will a huge amount of money be unleashed in my state? They’re going to think twice about how to cast that vote. Not to put too fine a point on it, you will see politicians being adopted by corporations and becoming wholly owned subsidiaries of corporate entities.

We already have seen what kind of damage Citizens United can cause. In the first election after the decision was handed down, corporations in 2010 poured hundreds of millions of dollars into independent organizations not formally affiliated with parties or candidates. About half of the $300 million spent by independent organizations came from undisclosed sources. In 60 of the 75 congressional races in which power changed hands, the unaccountable outside groups backed the winners. They spent freely and overwhelmingly on negative ads. The early phases of this year’s elections bear witness to projections that the Citizens United effect will be much worse. Karl Rove has announced plans to raise $240 million. The Koch brothers promise to spend $200 million. It’s fair to assume the Chamber of Commerce will spend at least as much. The Super PAC supporting President Obama, Priorities USA Action, aims to play in the same league. Hundreds of millions more will be in play. (more…)

A corporation is not a person. U.S. Sen. Bernie Sanders, the independent from Vermont, seeks a constitutional amendment to reverse the U.S. Supreme Court ruling in the Citizens United case asserting that corporations have the rights of humans.

Los Angeles City Council votes to support an amendment to the U.S. Constitution making it clear that corporations are not people and do not have the rights of people.

Labor Day is traditionally a time for picnics and parades. But this year is no picnic for American workers, and a protest march would be more appropriate than a parade.

Not only are 25 million unemployed or underemployed, but American companies continue to cut wages and benefits. The median wage is still dropping, adjusted for inflation. High unemployment has given employers extra bargaining leverage to wring out wage concessions.

All told, it’s been the worst decade for American workers in a century. According to Commerce Department data, private-sector wage gains over the last decade have even lagged behind wage gains during the decade of the Great Depression (4 percent over the last ten years, adjusted for inflation, versus 5 percent from 1929 to 1939).

Big American corporations are making more money, and creating more jobs, outside the United States than in it. If corporations are people, as the Supreme Court’s twisted logic now insists, most of the big ones headquartered here are rapidly losing their American identity. (more…)

The U.S. Supreme Court in the Citizens United case gave corporations First Amendment rights, as if they were human beings. This enables corporations to make unlimited secret contributions to political campaigns, threatening the U.S. democracy. Passing an amendment to the U.S. Constitution stopping this travesty is crucial to the survival of the American democracy of people, by people and for people.

By Jon Geenen
International Vice President, United Steelworkers

By now anyone who had not yet heard of the Koch brothers has been introduced to them. Every major newspaper and magazine has run an article about the brothers who until recently lived largely under the radar while advancing a political vision via political action committees and think tanks funded by their fortunes.

In the advent of the Supreme Court’s decision in the Citizens United case, journalists and others have made a clear connection between the Koch brothers and their role and influence in the advancement of the agenda of the far political right. Indeed, it is important, in fact essential, that Americans know who is driving the agenda and what the agenda is about, although the Citizens United decision and federal law allow the Koch brothers and other wealthy funders of the far right to donate in secret.

The groups that generally operate in the middle and to the left of the center of the political spectrum who identify themselves as moderate, progressives, trade unionists and other like-minded people are outraged by this dirty little secret. It has led to a progressive uprising in some areas, with protests that are said to eclipse the anti-war protests of the 1960s. These groups have also launched various efforts to pressure the financiers and architects of this agenda into rethinking their positions.

Therein lies at least one problem.

A number of organizations are advocating a boycott of the products that come from companies owned by the Koch family. This is problematic for a number of reasons, not the least of which is that it could potentially hurt the wrong people.

The Koch brothers own Georgia Pacific. It is an American consumer goods company that makes everyday products like facial tissue, napkins, paper towels, paper cups and the like. Their plants are great examples of American advanced manufacturing. Incidentally,

GP makes most of its products here in America. The company’s workforce is highly unionized. In fact, 80 percent of its mills are under contract with one or more labor union.  It is not inaccurate to say that these are among the best-paid manufacturing jobs in America.

This presents a dilemma and a paradox. While the Koch brothers are credited with advocating an agenda and groups that are clearly hostile to labor and labor’s agenda, the brothers’ company in practice and in general has positive and productive collective bargaining relationships with its unions.

While some companies are running from investment in American jobs, The Koch brothers’ Georgia Pacific just reached agreements with its primary union in the paper industry to invest more than a half a billion dollars in capital to essentially create two state-of-the-art machines that conserve fiber and energy at two separate union mills.

While certainly there are disagreements from time to time on what the right pension program is, or right wage increases and incentives, or the right formula for health care cost sharing, ultimately we end up with negotiated solutions.

So the problem for the advocates of a boycott against Koch is that it can only marginally hurt Koch, and the workers who are the epitome of what advanced manufacturing jobs in the United States ought to look like, would be the first casualties of a boycott. Of course, this will eventually drive a wedge between groups that are otherwise in political alignment.

If consumers pick alternate products (because people will still use toilet paper), in many cases, the substitute will be from a company with a track record that is much less friendly to the values of the workers who would, as a result of the boycott, become the collateral damage. The Koch brothers’ lifestyle will not dramatically change; there are no shareholders that will become concerned; the company is privately owned. The stock won’t plummet either — there is none.

To be sure, I personally have grave concerns about the agenda and influence being wielded by private wealth into our political system. Who doesn’t? I too agree that the Koch brothers are an ideal example of a very broken system.  They undoubtedly know that many see them as pariahs, and undoubtedly they don’t care — no more than I care if someone attaches a label to me for my political views.

So the question is: Can you hurt the Koch brothers through this kind of boycott? Or are you inadvertently becoming the bully that is kicking the Koch dog. There is no doubt that the events in my home state of Wisconsin and elsewhere have become an ignition point for action, and thank God that they have.

Arguably we have been rescued from the social hospice overseeing our demise. It is fair to keep the Koch brothers at the center of the debate. There have been fewer clear examples in our lifetime of the corruption of our system. If “Citizens United” gave corporations First Amendment rights, then too it gives them First Amendment responsibility and accountability. It is fair to find a way to make the Koch brothers responsible for promoting an agenda that ultimately hurts workers, but we should not make union workers collateral damage in this contest with Koch.

***

Jon Geenen is responsible for USW paper bargaining. He began his career in 1977 as an industrial apprentice at the International Paper mill in Kaukauna, Wis. There he joined Local 20 of the United Paperworkers International Union (PACE) and served as bargaining committee chair, vice president and president. During the nine-year period he was active in his local, he assisted in the development of the union’s IP strategic bargaining program. After he was appointed to an international representative position for a Pace region in 1993, Mr. Geenen serviced numerous paper facilities and organized workers at CBC Coating in Appleton, Wis. and  Stora Enso in Wisconsin Rapids, Wis. From 2003 to 2005, Mr. Geenen served as the national director of paper bargaining and head of the PACE Rapid Response Education Network. He helped set in motion coordinated bargaining within the paper industry and organized the first National Paper Bargaining conference in 2004. After the merger of PACE and the USW, the USW executive board appointed him to serve as Region 2 Director in July of 2005.

This short animation by Story of Stuff explains the history of corporations, the U.S. Supreme Court’s Citizens United decision that gave corporations the ability to shovel unlimited money into political campaigns, and the path to reversing that decision to preserve democracy for people — a constitutional amendment.

By Robert Reich
Former U.S. Secretary of Labor, Professor at Berkeley

The Republican strategy is to split the vast middle and working class – pitting unionized workers against non-unionized, public-sector workers against non-public, older workers within sight of Medicare and Social Security against younger workers who don’t believe these programs will be there for them, and the poor against the working middle class.

By splitting working America along these lines, Republicans want Americans to believe that we can no longer afford to do what we need to do as a nation. They hope to deflect attention from the increasing share of total income and wealth going to the richest 1 percent while the jobs and wages of everyone else languish.

Republicans would rather no one notice their campaign to shrink the pie even further with additional tax cuts for the rich – making the Bush tax cuts permanent, further reducing the estate tax, and allowing the wealthy to shift ever more of their income into capital gains taxed at 15 percent.

The strategy has three parts. (more…)

By Leo W. Gerard
USW International President

Not the wars. Not greenhouse gasses. Not even the deficit. The issue most important to Americans is jobs.

Despite that, jobs failed to make an appearance in the State of the Union address.

The talk was all about business. Business was doing better. Business needed taxpayers to help pay for research and innovation. Business will get government help to eliminate pesky regulations. Business must have lower taxes.

The most telling statement was this:

“We have to make America the best place on Earth to do business.”

Especially because it wasn’t matched by a companion:

“We have to make America the best place on Earth to work.”

The speech expressed a policy in which business is the focus of government, taking precedence over workers.  The American colonists created a government for their own benefit; they did not constitute an agent to serve business. A policy giving corporations primacy is risky for American workers.

The state of the union noted that happy days are here again for corporations and banks:

“Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.”

Never mentioned, however, were the 14.5 million unemployed Americans, the sustained record rate of foreclosure, and the increasing poverty and food bank reliance among citizens of the richest nation in the world.

The state of the union outlined a plan under which the government will coddle corporations, essentially proving companies government welfare using American workers’ tax dollars. If businesses create jobs for workers as a result, fine. If they don’t, there’s no plan to exact a penalty.

For example, under the policy described in the speech, American workers will fork over tax dollars to pay for research and development for businesses that are sitting on a record $1.8 trillion in cash reserves — hoarding it rather than creating jobs.

The president said:

“Two years ago, I said that we needed to reach a level of research and development we haven’t seen since the height of the Space Race. And in a few weeks, I will be sending a budget to Congress that helps us meet that goal. We’ll invest in biomedical research, information technology, and especially clean energy technology — an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.”

Maybe it will create new jobs. Hopefully. But no guarantees were offered. Mentioned as a business success story in the speech was a Michigan company, Luma Resources, which began manufacturing solar shingles with the help of a $500,000 government grant. It created 20 jobs, $25,000 a job.  American taxpayers might think that’s a little pricey, but what’s worse is the potential for Luma Resources to go the way of Evergreen Solar, squandering the corporate welfare.

Evergreen, the third largest maker of solar panels in the U.S. and recipient of at least $43 million in corporate welfare, announced earlier this month it would close its main American factory in Massachusetts and move manufacturing to China. Eight hundred Americans will lose their Evergreen jobs by April.

Evergreen officials said China will give the company even higher amounts of corporate welfare, which, of course, makes sense since China is not a capitalist country. Its economy is government controlled. And that government routinely violates international trade regulations – by providing banned subsidies to industries and by deliberately devaluing its currency.

No matter how better educated American workers get. No matter how much more innovative. No matter how much more productive. No matter how many tax dollars the government spends on research and development, if the corporations that benefit move manufacturing overseas, the American workers who paid for it will suffer.

In fact, it’s more than suffering; it’s betrayal by their government that provided tax benefits to companies for off-shoring jobs. It is betrayal by their government that fails to stop violations of trade laws by countries like China that lure away firms like Evergreen.

At the end of the State of the Union speech, the president said:

“From the earliest days of our founding, America has been the story of ordinary people who dare to dream.”

An ordinary American dreams of a family-supporting job, owning a home, saving enough to pay for a child’s college education, helping to build a safe community. Corporations aren’t Americans, no matter how often the U.S. Supreme Court grants them rights that the U.S. Constitution guarantees to human beings. Businesses aren’t citizens. Their allegiance isn’t to America. It’s to profits. They dream only of dollars. They concede no responsibility to family, community or country.

They were not included when the president said:

“Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater — something more consequential than party or political preference.  We are part of the American family.”

The top priority of the American government must be making America the best place on Earth for Americans.  If that’s good for corporations, great. The government must never place American citizens second.

***

Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama recently appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of the Apollo Alliance, Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union.