Guest Voz - Economist Robert Reich: The Secret Big-Money Takeover of America

As I've long time reported, the Koch brothers funded the creation of the Tea Parties and Glenn Beck's 912 rallies and now, the campaigns of several Republican candidates. They hate President Obama and the Democrats because they are spoiling their plans to DESTROY THE MIDDLE CLASS!!! The Teabaggers may have been fooled by them, but these FAT CAT BIG BUSINESS BULLIES are finally being outed!
Guest Voz - Economist Robert Reich:
Not only is income and wealth in America more concentrated in fewer hands than it's been in 80 years, but those hands are buying our democracy as never before -- and they're doing it behind closed doors. Hundreds of millions of secret dollars are pouring into congressional and state races in this election cycle. The Koch brothers (whose personal fortunes grew by $5 billion last year) appear to be behind some of it, Karl Rove has rounded up other multimillionaires to fund right-wing candidates, the U.S. Chamber of Commerce is funneling corporate dollars from around the world into congressional races, and Rupert Murdoch is evidently spending heavily.

No one knows for sure where this flood of money is coming from because it's all secret. But you can safely assume its purpose is not to help America's stranded middle class, working class, and poor. It's to pad the nests of the rich, stop all reform, and deregulate big corporations and Wall Street -- already more powerful than since the late 19th century when the lackeys of robber barons literally deposited sacks of cash on the desks of friendly legislators. Credit the Supreme Court's grotesque decision in Citizens United vs. the Federal Election Commission, which opened the floodgates. (Even though 8 of 9 members of the Court also held disclosure laws constitutional, the decision invited the creation of shadowy "nonprofits" that don't have to reveal anything.) According to FEC data, only 32 percent of groups paying for election ads are disclosing the names of their donors. By comparison, in the 2006 midterm, 97 percent disclosed; in 2008, almost half disclosed.

Last week, when the Senate considered a bill to force such disclosure, every single Republican voted against it -- thereby revealing the GOP's true colors, and presumed benefactors. (To understand how far the GOP has come, nearly ten years ago campaign disclosure was supported by 48 of 54 Republican senators.)
Maybe the Disclose Bill can get passed in lame-duck session. Maybe the IRS will make sure Karl Rove's and other supposed nonprofits aren't sham political units. Maybe pigs will learn to fly. In the meantime we face an election that marks an even sharper turn toward plutocratic capitalism than before -- a government by and for the rich and big corporations -- and away from democratic capitalism.

As income and wealth has moved to the top, so has political power. That's why, for example, it's been impossible to close the absurd tax loophole that allows hedge-fund and private-equity managers to treat much of their income as capital gains, subject to a 15 percent tax (even though they're earning tens or hundreds of millions a year, and the top 15 hedge-fund managers earned an average of $1 billion last year). Why it proved impossible to fund expanded health care by limiting the tax deductions of the very rich. Why it's so difficult even to extend George Bush's tax cuts for the bottom 98 percent of Americans without also extending them for the top 2 percent - even though the top won't spend the money and create jobs, but will blow a $36 billion hole in the federal budget next year. The good news is average Americans are beginning to understand that when the rich secretly flood our democracy with money, the rest of us drown. Wall Street executives and top CEOs get bailed out while under-water homeowners and jobless workers sink.

A Quinnipiac poll earlier this year found overwhelming support for a millionaire tax. But what the public wants means nothing if our democracy is secretly corrupted by big money. Right now we're headed for a perfect storm: An unprecedented concentration of income and wealth at the top, a record amount of secret money flooding our democracy, and a public in the aftershock of the Great Recession becoming increasingly angry and cynical about government. The three are obviously related.

We must act. We need a movement to take back our democracy. (If tea partiers were true to their principles, they'd join it.) As Martin Luther King once said, the greatest tragedy is "not the strident clamor of the bad people, but the appalling silence of the good people."

What can you do?
1. Read Justice Steven's dissent in the Citizens United case, so you're fully informed about the majority's pernicious illogic.
2. Use every opportunity to speak out against this decision, and embarrass and condemn the right-wing Justices who supported it.
3. In this and subsequent elections, back candidates for congress and president who vow to put Justices on the Court who will reverse it.
4. Demand that the IRS enforce the law and pull the plug on Karl Rove and other sham nonprofits.
5. If you have a Republican senator, insist that he or she support the Disclose Act. If they won't, campaign against them.
6. Support public financing of elections.
7. Join an organization like Common Cause, that's committed to doing all this and getting big money out of politics. (Personal note: I'm so outraged at what's happening that I just became chairman of Common Cause.)
8. Send this post to your friends (including any tea partiers you may know).

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

Top Compensated CEO's have Highest Rate of Lay-Offs and Outsource Jobs Overseas

The companies that Lay Off the most Americans also pay their CEOs the highest compensation and many of them outsource off-shore (those highlighted in Red). They are all Global Companies entrenched in the Global Economy.

The 10 Highest-Paid CEOs Who Laid Off The Most Workers: Institute For Policy Studies
A grim fact of the recession is that it pays to lay people off. The CEOs who laid off the most employees during the recession are also the CEOs who took home the biggest pay checks, according to a study released last week.

CEOs of the 50 U.S. firms that slashed the most jobs between November 2008 and April 2010 took in 42 percent more than the average CEO at an S&P 500 firm, according to the 17th annual Executive Excess study by the Institute for Policy Studies, a progressive Washington think tank.

The study (PDF) also found that 36 of the 50 layoff leaders "announced their mass layoffs at a time of positive earnings reports," suggesting a trend of "squeezing workers to boost profits and maintain high CEO pay." The 10 "highest-paid CEO layoff leaders" ranked in the report include the CEO of Hewlett-Packard, Mark Hurd, who earned $24.2 million in 2009 as the company laid off 6,400 workers and Walmart CEO Michael Duke, who earned $19.2 million as the company laid off 13,350 workers. No Wall Street banks were included in this list, but three banks -- Citigroup, Bank Of America and JP Morgan -- showed up on the study's list of the 50 firms that laid off the most employees.

Overall, the study found that executive pay remains astronomically high compared to previous decades. "After adjusting for inflation, CEO pay in 2009 more than doubled the CEO pay average for the decade of the 1990s, more than quadrupled the CEO pay average for the 1980s, and ran approximately eight times the CEO average for all the decades of the mid-20th century," the study says. Currently, CEOs of major U.S. companies average 263 times the average compensation of American workers, the study claims.