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Things go Negative with Koch

It is going to be a bitter, nasty presidential election. This weekend a secretive 3-day long fundraising conference hosted by the Koch brothers netted $100 million in pledges to fund efforts to defeat Obama in the 2012 election. Most of this money will be funneled through super PACs to get around campaign financing restrictions, something that wasn’t possible in 2008.

The GOP primary is just a preview of how this money will be used, with record amounts of money being spent on unprecedented numbers of negative personal attack ads. During the South Carolina primary, some television stations even ran out of air time in which to run these ads.

Unfortunately, negative ads are very effective, and it doesn’t even matter if their accusations are even remotely true. Jerry Della Femina — the famous ad agency executive who was part of the team that created the campaign to elect Ronald Reagan in 1984, and the inspiration for the TV series “Mad Men” — says “Sad to say, negative advertising really works.

It is no secret that the oil billionaire Koch (pronounced “coke”) brothers are driving an anti-Obama hate machine. According to Charles Koch, it is imperative that conservative CEOs join together “to combat what is now the greatest threat to American freedom and prosperity in our lifetimes” — the administration of Barack Obama.

The Koch brothers were also major sources of funding for the Tea Party, and efforts to discredit man-made climate change. They have been holding these fundraising events for nine years. According to one person who attended last weekend’s conference, these events used to be about formulating strategy and building a conservative movement, but now they are primarily an “alpha male” spectacle centered on just raising lots and lots of money; money that will be used to attack Obama.

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Halftime in America

Clint Eastwood in a stirring commercial aired by Chrysler during the Superbowl:

Ironically, Eastwood is a libertarian-leaning Republican who endorsed John McCain in the 2008 presidential election.

UPDATE: Think this ad is political? Then you should read this. Why aren’t you complaining about the Skechers ad that is clearly a metaphor for Newt Gingrich’s campaign against Mitt Romney? Not to mention that blatantly political ad about vampires.

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Late Night Political Humor

“I don’t know whether Mitt Romney or Newt Gingrich won but we do know one thing for certain: tomorrow both of them can go back to ignoring Latinos.” – Stephen Colbert

“Despite his big loss in Florida Newt Gingrich vows to stay in the GOP race. And we all know when Newt takes a vow he really sticks with it.” – Jay Leno

“Newt Gingrich wants to build a colony on the Moon. OK, you say, but why? Well, he wants to be the first American to get divorced on the Moon.” – David Letterman

“Rick Santorum says Newt Gingrich is too hot, Mitt Romney is too cold, but he’s the ‘Goldilocks candidate.’ Yes, nothing gets voters excited like comparing yourself to tepid porridge.” – Craig Ferguson

“Mitt Romney went to a McDonald’s and ordered burgers and fries and apparently everything was going well until Romney asked the cashier if she could break a $1 million bill.” – Conan O’Brien

“Studies are showing that Republican candidates are buying a lot of their ad time on the Weather Channel. You can tell because last night, the weatherman blamed the cold front on immigration and gay marriage.” – Conan O’Brien

“A lot of people want Gingrich and Romney to continue their attacks on each other all the way to the convention. These people are called Democrats.” – Craig Ferguson

“After he wowed the crowd at the Apollo Theater with his singing voice, producers at ‘American Idol’ have invited President Obama to sing on their show this season. Not to be outdone, Ron Paul’s book will be appraised on the next edition of ‘Antiques Roadshow.'” – Jay Leno

“An Illinois woman is auctioning President Obama’s 2005 Chrysler. You can tell it’s his because it starts off fast, then stalls for the next three years.” – Jimmy Fallon

“President Obama has been working on a new plan to boost tourism in America by making it easier for foreigners to get into the United States. We have that already. It’s called Mexico.” – Jay Leno

“The government may be legally required to release the video of Osama bin Laden’s killing. President Obama said this would be unhelpful, inflammatory, and ‘Could you please release it two days before the election?'” – Conan O’Brien

“The Associated Press reports that China is greatly expanding its state television station. This is really good news for China’s No. 1 reality TV show, ‘Toddlers Making Tiaras.'” – Conan O’Brien

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The Candidate


© Clay Bennett

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What’s good for the goose


© Chan Lowe

Mitt Romney has a personal wealth that is larger than the most recent eight presidents (Nixon to Obama) combined. Times two.

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Actual Voter Fraud

Republicans have repeatedly made a big deal out of voter registration fraud, but actual voter fraud (illegal votes rather than just registration) is relatively rare. But it seems like Republicans are working to change that too.

The top elections official in Indiana, Secretary of State Charlie White, was convicted of six felony charges related to voter fraud on Saturday.

And lest there are any accusations of a politically motivated witch hunt, special prosecutor John Dowd is also a Republican.

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Late Night Political Humor

“Over the weekend, Herman Cain announced that he is endorsing Newt Gingrich. Well sure, adulterers like to stick together. You never know when you need an alibi. You cover for me, I’ll cover for you.” – Jay Leno

“Newt Gingrich picked up an endorsement from Herman Cain. It’s not unlike getting Carrot Top’s endorsement for an Academy Award.” – Jimmy Kimmel

“Now, Senator John McCain has gotten into the act; McCain says that the Republican debates have turned into mud wrestling. To which Herman Cain said, “I knew I got out too soon!” – Jay Leno

“Sarah Palin has also been supportive of Gingrich but she hasn’t made an official endorsement yet. Her husband endorsed Gingrich but he’s a snowmobiler, so nobody cares.” – Jimmy Kimmel

“Yesterday, Newt Gingrich accused Mitt Romney of running a dishonest campaign. Oh shut up! These are politicians. It’s like Willie Nelson yelling at Snoop Dogg for smoking dope. Shut up!” – Jay Leno

“Today, Snoop Dog endorsed Ron Paul for president. Snoop said he likes Paul’s positions on everything from legalizing pot … to legalizing pot.” ” – Conan O’Brien

“Ron Paul was not in Florida, he was campaigning up in Maine. They think he was afraid that if he went to Florida, they’d grab him and put him in an old folks home.” – Jay Leno

“Newt Gingrich has been attacking Mitt Romney for being wealthy and having money in bank accounts in the Cayman Islands. See, that’s when you know you’re part of the top 1 percent, when your bank’s address has the word ‘island’ in it.” – Jay Leno

“But, Romney says he is not a creature of Washington. He has lived in the real streets of America. I believe it’s Easy Street, if I’m not mistaken.” – Jay Leno

“In fact, when Mitt Romney was young, he and his gang controlled their hood’s hedge fund.” – Jay Leno

“A newspaper study shows that Republican candidates are buying a lot of ad time on the Weather Channel. … In fact, whenever the forecast calls for rain, they pay the weathermen to say, ‘Thanks a lot, Obama.’” – Conan O’Brien

“Obama goes for the youth vote answering young peoples’ questions on YouTube today. As result, Obama’s new poll numbers are 55% ‘LOL’ and 45% ‘Totally Gay.’” – Conan O’Brien

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The Cure Caves

I’m sure most of you have heard all about the recent kerfuffle between the Susan G. Komen for the Cure foundation and Planned Parenthood. This episode will likely be used in business schools in the future as an example of how not to do something. But there are a couple of take-home messages for all of us in this:

  • All tax-exempt organizations, particularly churches and charities, should stay the hell out of politics. Don’t bite the hand that feeds you.
  • If you make a blatantly political move, don’t then lie and claim that it isn’t political at all, especially when there are former employees around who resigned over the move. Or incriminating evidence on the internet.
  • The real “mama grizzlies” are the millions of American women (and men) who spend most of their time dealing with real issues and don’t tend to pay much attention to politics until it directly affects them. Too many people have a close friend or family member affected by breast cancer to let Komen get away with pulling a fast one.
  • Charities as big business is a bad idea. Large scale charities in this country are just too temping a target for being taken over by greedy or ideology-driven individuals or organizations. They are the televangelists of this decade.
  • The only reason the conservative far-right doesn’t completely own this country is that they are generally shallow-minded people with delusions of competence (e.g., George W Bush, Sarah Palin) or completely self centered, borderline sociopathic egomaniacs (e.g., Donald Trump, Newt Gingrich) — or both.

UPDATE: It is not clear whether or not Komen is still trying to pull a fast one.

UPDATE 2: It also appears that this is not the first time that Komen has bowed to right-wing pressure. Not only do they not like Planned Parenthood, they don’t like embryonic stem cell research, another conservative hot button.

UPDATE 3: A great rant about Komen, Pinkwashing, and how cancer is big business.

UPDATE 4:


© Nick Anderson

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Bob’s Your Uncle


© Ted Rall

In the future, the only campaigning politicians will do is asking large corporate donors for money.

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Truth in Advertising?

Last week, new guidelines from the US Department of Transportation went into effect regarding advertising of airfares. The guidelines are designed to get rid of widespread deceptive practices in the transportation industry, most notably the practice of advertising impossibly cheap airfares and then tacking on huge mandatory fees just before you pay. It had gotten so bad that in some cases the fees were larger than the advertised price.

The new rules also require airlines to give customers 24 hours after purchase to change or cancel a flight reservation without paying a fee (as long as the trip does not start within seven days). Airlines must also disclose baggage fees at the time of purchase, and must notify passengers promptly about flight cancelations, diversions, or delays greater than 30 minutes. So no more sitting around in an airport wondering what happened to your flight that was supposed to leave two hours ago.

As someone who travels frequently, this is wonderful. It used to drive me crazy shopping for flights, since advertised prices often bore little relationship to the actual cost of the ticket and it was a lot of work to compare prices from different airlines. Even the Wall Street Journal applauded the new regulations, saying they give “a bit more common sense and consumer fairness” in the air-travel industry.

But that didn’t stop Congressman Tom Graves (R-GA) from announcing plans to introduce a bill to overturn the new rules. His reason? He claims the new rules limit the consumers’ ability to see how much they are getting taxed. Of course, that is a complete fabrication, since the rules do not limit in any way an airline’s ability to break down the advertised (total) price. In fact, most airlines already do that. And just how is the old practice of advertising prices that do not include any taxes or fees help consumers see those taxes? Pure BS.

And at least one airline is upset about the new rules. Spirit Airlines posted a banner on their main web page that says “Warning: New government regulations require us to HIDE taxes in your fares.” Again, pure BS, since Spirit already breaks out those taxes. Spirit is also contesting the new rules in court. Of course, Spirit was one of the worst with deceptive practices. They would advertise very low ticket prices, but the ticket did not even include a seat, which cost more (and was required — no standing in the aisles!). They also charged a $5 fee to print a boarding pass, $40 for a carry-on bag, charged for all drinks (including water) and snacks, and at one time was even considering a charge to use the bathroom.

For example, Spirit used to advertise a price of $71 for a flight from Fort Lauderdale, FL, to Las Vegas, which works out to $142 round trip, but the actual cost was $219.18 (that’s $77.18 more in taxes and fees, which is more than the original advertised price). Now, they will have to advertise the flight for $219.18.

In response, Spirit has now tacked on a new $2 fee to every ticket, which they call the “Department of Transportation Unintended Consequences Fee“. Which is ironic, since they claim that the government is hiding taxes in the advertised prices, but they don’t mention how they hide their ridiculous fees.

Personally, I’d like to see rules like this expanded to other businesses. How many of you have tried to buy a concert or play ticket from Ticketmaster recently, and been hit with a barrage of mandatory “convenience” and other expensive fees? I’d like to see a “truth in pricing” law that requires advertised prices to reflect the true end cost of all products.

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Late Night Political Humor

“Everyone got what they wanted this week; liberals got a home run State of the Union from their President of the United States and conservatives got Heidi Klum back from Seal.” – Bill Maher

“There was another Republican debate in Florida tonight. What is left to know about these candidates? Is someone going to confess to a murder?” – Jimmy Kimmel

“These debates have jumped the shark because last night the Republicans talked about three things: deporting Mexican grandmothers, building a colony on the moon that could become the 51st state, and how Obama is out of touch.” – Bill Maher

“Fortunately, tonight’s debate was the last one we’re going to see. The candidates are going to take a break, spending more time attacking the morals of their families.” – Jimmy Kimmel

“Newt Gingrich — this is guy is clinical. He thinks he’s some sort of intergalactic ruler. He said by the end of my second term as president, we will have a colony on the moon, and if there are enough people there, it can petition to be the 51st state. We’ll call it Lunarchusetts.” – Bill Maher

“Newt may be toast already. The Republican establishment have the knives out for him. Tom Delay said Newt Gingrich was the most despicable human being he has seen since shaving this morning.” – Bill Maher

“According to new polls that just came out, Mitt Romney does very well with Republican voters who make more than $200,000. Or as Romney calls them, ‘trailer trash.’” – Conan O’Brien

“Mitt Romney said he loves Florida. All the sunshine and sandy beaches reminds him of the country where he keeps his money.” – Bill Maher

“Yes, Mitt finally released his tax returns for one year. It turns out he keeps a lot of his money in the Cayman Islands, in Bermuda, Luxembourg, a Swiss bank account. And he said he’s not trying to evade paying taxes by keeping his money in these places. That’s like saying I got caught with meth and crack, but it wasn’t because I was trying to get high.” – Bill Maher

“Look at that [image of Arizona Gov. Jan Brewer’s finger in Obama’s face]. Right to the President of the United States. Now, Jan Brewer says she regrets the confrontation, but these are the kind of problems that arise when we permit negroes to read.” – Bill Maher

“She also said, I swear to God, this is the quote — yesterday she was interviewed about this, she said she felt a ‘little bit threatened.’ Really? On the tarmac in broad daylight? By the — what was he going to do, deck her? Or buy the house next door? I mean, wow. Lord help this woman if she ever runs into a really scary black guy like Wayne Brady or Urkel.” – Bill Maher

“President Obama spent last night in Las Vegas. This morning he woke up on his hotel room floor trying to figure out what to do about a tiger, baby and 9 percent unemployment.” – Conan O’Brien

“Hillary Clinton said this week she’s gonna quit if Obama wins a second term. She said she’s tired… she just wants to do nothing. And Joe Biden said ‘I’m still not giving you my job.’” – Bill Maher

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Simplified Tax Form


© Ed Stein

[plus commentary from Ed Stein]

In F. Scott Fitzgerald’s “The Great Gatsby,” Nick Carraway observes that “the rich are different from you and me.” Mitt Romney’s tax returns confirm it. The rich have access to deductions, evasions, loopholes and favorable rates we working stiffs can only dream of. The absurd truth is that the wages earned by those of us who get paychecks from employers are taxed at the highest rate of any income. The lucky stiffs who run hedge funds and private equity firms get to take income as carried interest, whatever that means. In tax terms, it means they get to make lots of money for investing other people’s money and have it taxed at obscenely low rates compared to what we working stiffs pay. Then there are the Cayman Islands accounts and Swiss banks. Show of hands, please. How many of you have Swiss bank accounts? I don’t resent wealth; like most Americans, I aspire to it. What I deeply resent is a political system that jiggers tax law to favor the rich over the rest of us, feeding the income inequality that destroys opportunity and stagnates growth. The wealth disparity in America already rivals that of many Third World countries and our storied social mobility is rapidly becoming a fondly remembered relic of bygone days.

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The Story Behind the Gaffe

Some of you may have noticed that I haven’t said anything about Mitt Romney’s recent gaffe, where he said he didn’t care about the poor. That’s because despite his rather poor choice of words (pun intended), what he was really trying to say was that it is the middle class he really cares about.

The media fascination with gaffes is annoying and trivializes our political discourse.

Case in point — while everyone is piling on about this gaffe, hardly anyone is pointing out the hypocrisy of Romney’s larger point, which is Romney claiming that he cares about the middle class. I mean, seriously?

According to an analysis by the Washington Post:

A quarter of the money amassed by Romney’s campaign and an allied super PAC has come from just 41 people, each of whom has given more than $100,000, according to a Washington Post analysis of disclosure data. Nearly a dozen of the donors have contributed $1 million or more.

Who are these donors? Besides executives who (like Romney) got rich at Bain Capital, there are bankers at Goldman Sachs, and — worst of all — a hedge fund mogul who made money on the housing crash.

These are the people who are supporting Mitt Romney, and to whom he will be beholden if he is elected president. And he claims his real concern is the middle class? Don’t make me laugh.

Indeed, Romney’s policies are designed to help the very richest, like his strong support for lower tax rates for “carried interest”, which is how companies like Bain Capital made most of their money — not from any investment, but from a tax loophole. How bad is this loophole? A recent survey from Bloomberg News showed that “two-thirds of money managers consider the low tax treatment for carried interest unjustified.” And that’s just the people who benefit from the loophole.

Romney supports loopholes that benefit the richest of the rich, while screwing everyone else. If he wants me to believe that he cares about the middle class, he’s going to have to do a lot more than just pretend to care. Perhaps the main significance of his “gaffe” is that maybe it shows that even he doesn’t believe what he is saying.

UPDATE: But let it not be said that Mitt Romney doesn’t care. In 1996, Romney basically shut down Bain Capital and had all the employees help find the missing daughter of one of the partners.

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Diebold accidentally releases 2012 election results

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Is This The End of the Health Insurance Industry?

An interesting opinion piece in the New York Times predicts that a little known provision of the health care reform act will mean that American health insurance companies will go the way of the dinosaurs by the year 2020.

The provision in question sets up Accountable Care Organizations (ACOs), which are paid not for preforming procedures and tests like our current insurance reimbursed doctors and hospitals, but for keeping patients healthy.

It sounds like a good idea. In fact, such a good idea that it already exists in Health Maintenance Organizations (HMOs). Aware of this, the article devotes a paragraph to explaining how ACOs are not the same thing as HMOs.

I want to believe, but I’m not sure.

It isn’t that I disagree with the article’s basic premise — that the health insurance industry is already largely superfluous. In fact, it is hardly providing insurance at all. Sixty percent of people with employer-provided health insurance work for companies that are self-insured, where the company assumes the risk of providing the insurance part of the equation. In this case, which is most of the time, health insurance companies are acting as glorified billing claim processors. And that doesn’t even include all the people who are on Medicare or Medicaid.

For individuals and small business, health insurance companies do actually assume the risk, but again they are not acting as providers of true insurance where risks are spread out evenly over a population since they cherry-pick healthy people to insure and exclude unhealthy people from coverage.

And they aren’t even very good at processing health care claims. They are not only expensive themselves, but they increase costs for doctors, hospitals, patients, and also often stand in the way of treating people for simple health problems that later become expensive problems. No wonder our health care system is so expensive and has such poor results.

So, will ACOs actually solve this problem? Or will they fall prey to the same issues that plagued HMOs?

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