Posts Tagged ‘Koch Brothers’

The Thinker

Greed is a terrible sickness

In the 1987 movie Wall Street, the corporate raider Gordon Gekko (played by Michael Douglas) informed us that greed is good. His character fit in well with the Reagan years, because this was essentially the mantra of Ronald Reagan and the Republican Party. If anything since then the Republican Party has become even more extreme on the issue. Not only is greed good, but also by implication being poor is bad and a personal failure. Poor people are just not trying hard enough, which they view as something of a crime.

According to Merriam-Webster, greed is “a selfish and excessive desire for more of something (such as money) than is needed”. “Than is needed” is of course somewhat relative. However, if you have or take more in the way of resources than you need almost by definition someone else gets less than they might otherwise have. Since Reagan was elected, the only constant is that more of our wealth has gone to the richest while the income for the rest of us has at best stayed the same but has generally declined.

It’s clear to me that greed is a terrible sickness, and not something that should be celebrated. It sure appears that those who are truly greedy are never satisfied. They always want more. Since they believe greed is good, they look on greediness as a kind of religion. Witness our president and most of his cabinet of very wealthy people and who seem to have no scruples. Government is for pillaging, which is why last year they gave themselves a tax cut and threw a few scraps out to the rest of us. Their reputed rationale was that tax cuts would pay for themselves, something that has never proven true. I don’t for a minute believe that they believe it. What they do believe is that if you have power then you should use it to enrich yourself, so they did, worsening income inequality and greatly adding to our national debt to line their pockets now.

Greed is bad and should be treated as a mental illness. A truly greedy person should be seeing psychologists to figure out what is the matter with them. There is something very wrong with our president, who clearly subscribes to the religion of greed. To see how greed perturbs someone, look at our EPA secretary Scott Pruitt. The “greed is good” mantra has him so captivated that he has no problem turning the EPA into the Environmental Destruction Agency. Entitlement is assumed. He has a round-the-clock staff of thirty to protect him, flies first class everywhere and built a soundproof booth in his office.

Being wealthy does not necessarily mean that you are greedy. Berkshire Hathaway head Warren Buffet seems to be one of these types: a billionaire many times over who otherwise lives modestly. To be greedy you need to flaunt it and be consumed by the need to become ever richer, and not always through entirely fair means. At its core, greed denies reality. It suggests for example that you will never die because it’s hard to actually spend and enjoy all the money you accumulate. I suspect Warren Buffet enjoys investing because he finds it personally interesting.

Then there are people like the Koch Brothers who are consumed by greed, so much so that they have no problem if their industries create their profits by foisting their pollution costs on the rest of us. That’s how much greed has perturbed their thinking. It’s not like there is another planet nearby that eight billion of us can go and populate. They either can’t see this reality or more likely simply don’t care. These people are very sick people indeed.

For much of my life, I pursued wealth. I wasn’t a fanatic about it but I wanted to be comfortable, particularly in retirement. It was a long and arduous struggle that I eventually achieved. To me, it meant feeling confident that I could maintain my standard of living until I died, that I would never go hungry or be impoverished again and that I no longer had to work to survive. It’s true that much of my wealth is dependent upon a well-earned federal pension, and I still don’t entirely trust that the oligarchy won’t take it away at some point to feed their insatiable greed. But I feel confident enough about it that I don’t worry about it anymore. In any event, I have a comfortable portfolio and plenty of cash assets set aside to handle future expenses. We have no mortgage payment nipping at our heels every month anymore, no college expenses to juggle and little in the way of electricity bills with the solar panels on our roof.

It’s reached the point where our relative wealth feels sort of surreal. What I don’t feel at all is the need to obsessively acquire more wealth. I feel no particular pull to buy a fancy car, for example. I take no particular pleasure in driving and see it as a chore. In January we took a 19-day vacation, 16 days of it on a cruise ship. It was nice but I don’t particularly feel the need for a more lavish vacation or more days dining on gourmet food in Holland America’s dining room. My needs and wants are pretty much satisfied. My financial anxieties are calmed. At my stage of life, people like me should simply enjoy life.

Today the things that give me the most satisfaction are the most prosaic: daily “constitutionals” around my community, doing the crossword puzzle in the paper, having a cat nearby that I can reach out and pet and having a spouse who I love and who loves me. And yet despite the ups and downs in the stock market, our portfolio keeps increasing. To the extent I still work through teaching and consulting (both very part time) it’s for enjoyment and to spread my knowledge to those who might benefit from it. This income is mostly saved, but occasionally it buys some nice stuff. We are planning a New York City trip next and hope to see some popular Broadway shows.

All these rich people could simply enjoy their wealth if they wanted to, rather than suffer from the psychosis that they must ruthlessly acquire more of it through pretty much any means available. A lot of our spare income now is given away to charitable causes. I feel not just a need but also a natural desire to share our wealth. I try to put it toward causes that I believe are productive uses. It goes to places like the Nature Conservancy, so it can buy up natural space for future generations. It goes to Planned Parenthood, so women in particular can make choices over their own bodies and get health care services at affordable prices. It goes to the Food Bank of Western Massachusetts, so fewer of the people I see holding cardboard signs at intersections have to go hungry. It goes to a local spouse abuse shelter, so mostly women can have a softer landing after from suffering domestic abuse. And increasingly a lot of it goes to arguably non-charitable causes: campaigns of people who seem to be sincere progressives who will work to reduce misery and straighten out the major problems with our politics most of which were caused by the greed is good falsehood.

For the truly greedy, to quote Mr. T., “I pity the fools”. They might want to read some Charles Dickens, particularly A Christmas Carol. Whether overtly or innocently, what they are doing to our planet and the rest of us is intensively evil.

 
The Thinker

If you care about the environment, choose your realtor with care

The Koch Brothers have been much in the news lately, at least if you follow political news. The two brothers own Koch Industries, which itself is a holding company for a lot of other companies it owns. The brothers are Charles and David Koch, but Koch Industries was actually built up by their father Fred, who long ago went to his reward.

Aside from their obscene wealth, the Koch Brothers have been known for their extremely conservative views. Moreover, they have not been afraid to put their money where their mouths are. Their money helped elect Scott Walker as Wisconsin’s governor. Together their political action committee, KochPAC, spent huge amounts of money on the 2012 elections, to little effect. As an investment, it was an unwise one, but its magnitude was stunning: over $400M. Their PACs alone spent nearly three times more in the 2012 election than the top ten labor unions combined.

Koch Industries is into lots of industries, principally industrial in nature. Their profits depend on getting natural resources cheaply to market. It’s not surprising then that Charles and David are premier anti-environmentalists, who vehemently deny that global warming is a problem and are trying to keep their industries from being impacted by pesky and costly pollution laws. Koch Carbon has created a lot of petroleum coke as a byproduct from refining oil shipped from Canadian tar sands. The product, called petcoke, has been piled up many stories high along parts of the Great Lakes. A huge noxious cloud of dust from a petcoke pile was captured on video last year. Its presence doesn’t bother the Koch Brothers, who don’t have to breathe the stuff, but it was of great concern to residents of Detroit and Windsor, Ontario, who were on the receiving end of these polluted dust clouds.

While primarily into industrial activities, the Koch Brothers have influence in some surprising areas. One thing the Koch Brothers do well is create PACs and network related companies to contribute toward these PACs to achieve common goals. For the Koch Brothers, this is principally electing conservatives with an anti-environmental bent.

Many parts of the country are controlled by a handful of national realtor firms. Ever hear of Realogy? I hadn’t. There is a good chance you have heard some of these real estate firm names: Coldwell Banker, Century 21, Southbys, ERA and Better Homes and Gardens RE. It just so happens that Realogy gives heavily to Koch Brothers-related PACs. And Koch Brothers PACs give money principally to candidates that are anti-environmental, not to mention anti-union.

Real estate commissions are quite profitable, typically six percent of a house’s purchase price. A house selling for $250,000 actually costs $265,000, when you add in the typical real estate commissions. (It’s more than that, of course, when you add in all those other fees that come with buying a house.) Often the fee is split between two realtors: the seller’s agent and the buyer’s agent. If you consider how many houses are sold across the country annually, you can see that real estate commissions amount to a huge amount of money. Of course the individual agents keep a lot of it: it amounts to their salary. However, they also kick back a lot of it to their companies. Companies like Coldwell Banker ship their profits back to Realogy. Realogy’s in turn uses some of those profits to fund Koch-related PACs. It helps explain why the Koch Brothers-related PACs can find more than $400M to spend influencing elections in 2012 alone. For a company this big, $400M amounts to the change found under the family’s sofa cushions.

Curiously, most of the agents who work for these companies have no idea where these profits go. It’s likely that many of them are like me: environmentalists. They would probably be aghast to learn a substantial amount of this money is spent to help elect politicians who will be anti-environmentalist. I’m not a realtor, but I am a likely home seller and buyer in the next year or so. I would have known none of this had I not spoken to a realtor, who shall remain anonymous, with progressive leanings, who gave me the inside dope on all this.

What this means for us home sellers and purchasers is that unless we are very careful we are indirectly contributing to the destruction of our planet. If next year when I expect to put our house on the market I choose a realtor who works for a company controlled by Realogy, I could be indirectly contributing to PACs controlled by the Koch brothers, which will go principally to electing people who will further harm the planet.

I am so glad to get this insider information. If you are an environmentalist and in the housing market, then you should be glad to be reading this post too. In fact, I hope you will take a moment to “like” it or hit one of the share buttons for this post, and broadcast it to your friends. Perhaps, before listing your house, you should choose a realtor firm not associated with Realogy. Among the national firms not part of Realogy are ReMax and Keller Williams. Perhaps, before hiring a buyer agent, you should do the same. That does not necessarily mean that ReMax and Keller Williams may not be channeling some of their profits into these anti-environmentalist causes. But it seems less likely that they are.

Deciding who to hire as your realtor or buyer agent of course is a complex decision. Typically you are more interested in the agent than the company they are affiliated with, and his or her track record. If you are an environmentalist, you can look for good agents that simply aren’t associated with these firms. You can also choose small, local and independent realtor firms. These firms don’t have to send their profits to a national office. They can keep the money in their community instead. And that sounds environmentally friendly.

You can bet that before I sign a contract with a realtor, I’ll be assured that my money will not indirectly support any Koch Brothers PAC, or any anti-environmental cause. I hope you will do the same.

Updated 3/9/14 – I initially published this with some incorrect information. I had suggested that Realogy was owned by the Koch Empire. This is not true, however Realogy does give heavily to the Koch Brothers’ related and approved PACs. The full extent is hard to determine, since individuals working for Realogy can make contributions to any organization they choose under their own name. As for the official Realogy PAC, you can see how it spent its money here. As you can see, a lot of it went to the Madison PAC, whose Facebook page indicates its purpose is to get conservatives elected to Congress.

 

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