Charles and David Koch: hardline libertarians, Tea Party sponsors, Climate Change deniers*, and all round nice guys, I'd imagine.
Koch Industries is the second largest privately held company in North America. Based in Wichita, Kansas, the company began life as an oil-refining venture in 1940. Today, Koch Industries employs 80,000 people worldwide and has subsidiaries in trading and investment, manufacturing, and other energy industries. They own Lycra.
Fred Koch – who, as a student at MIT, developed an improved method of converting crude oil into gasoline on which the original company was based – diversified the firm during the 1960s, investing in refineries in Minnesota and Oklahoma and ranching opportunities in the Midwest. On his death in 1967, the company passed into the hands of his two sons, Charles and David Koch, who run the company to this day.
The Kochs have always been politically active, throwing their considerable influence and wealth behind causes deemed worthy. Unsurprisingly, the Kochs’ political views “dovetail” (in the uncharacteristically neutral parlance of New Yorker columnist Jane Mayer, whose excellent article on this subject is here) neatly with their corporate interests. Since the foundation of the company in the New Deal Era, the Koch family have lobbied for a libertarian America: low (or preferably non-existent) corporate and personal taxes, minimal social security provision, and less federal oversight of industry. The Kochs have been, in Mayer’s words, “the primary underwriters of hard-line libertarian politics in America.”
Fred was a founder member of the John Birch Society, a libertarian group which, amongst other things, claimed that Dwight Eisenhower was an agent of the Soviet Union and bundled Barry Goldwater towards the presidency in 1964. In 1980, David stood for president on the Libertarian Party ticket, running to the right of Ronald Reagan. His platform pledges included the abolition of the FBI and the CIA, the scrapping of Social Security, and an end to federal regulation of business. In 1963, Fred gave a speech in which he claimed that “the Communists have infiltrated both the Democrat and Republican parties.” In time, he went on to say, Communists would “infiltrate the highest offices of government in the US until the President is a Communist, unknown to the rest of us.”
Sound familiar?
That’s right. Fred Koch’s rhetoric could easily have been lifted from any of the Tea Party rallies that have come to dominate the political narrative in the run up to November’s midterm elections. And that’s no coincidence: to say that the Kochs have their grubby fingers in the Tea Party pie would be a gross understatement.
Many of the organisations that make up the Tea Party were cast in the Koch furnace. Citizens for a Sound Economy (CSE) – which now operates under the moniker ‘FreedomWorks’ – was founded by David Koch in 1984 to act as a political lobbying organisation. Masquerading as a grassroots movement, CSE owes it history of activism and current prominence to nothing more than the Kochs’ generosity. Koch Industries provided over $8 million in the early 1990s, allowing CSE to effectively become the family’s Washington arm in the battle against Clinton-era reforms. The Kochs also fund conservative think tanks such as the Cato Institute and Reason Foundation. In total, Mayer estimates, the Koch brothers have given over $100 million to conservative causes.
As the 2010 midterms approach, David Koch has pledged $45 million to Americans for Prosperity, another libertarian non-government organisation that splintered from CSE during the Bush years. Reflecting upon the unexpected political salience of the Tea Party, David Axelrod – Obama’s Senior Political Adviser – quipped “What they don’t say, in part, is that this is a grassroots citizens’ movement brought to you by a bunch of oil billionaires.”
Of course, oil billionaires pushing a libertarian agenda is nothing new – the Kochs themselves have been at it for years. What is new, however, is the receptiveness of American voters to that agenda. As the primary successes of candidates such as Rand Paul, Sharron Angle, and Christine O’Donnell have shown, anti-government sentiment has gained a remarkable credibility in a political climate forged in the crucible of global recession, national decline, subconscious racism, and residual anti-intellectualism. For all the accusations of astro-turfing, the genuine sentiment behind certain aspects of the Tea Party is undeniable.
In her New Yorker article, Mayer quotes the conservative economist Bruce Bartlett at length. “The problem with the whole libertarian movement is that it’s been all chiefs and no Indians,” Bartlett says. However, with the ascendance of the Tea Party, “everyone suddenly sees that for the first time there are Indians out there – people who can provide real ideological power.” More so than at any other time in America’s recent political history, men such as David Koch have a receptive electorate onto which to push their self-serving, socially-damaging agenda. The Kochs, Bartlett writes, “are trying to shape and control and channel the populist uprising into their own policies.”
Yet, no matter how hard the chiefs try to hide the fact, they are not from the same tribe as the Indians. The Kochs’ libertarianism, which shapes everything from signs at Tea Party rallies to Senate platforms, exists first and foremost to further the interests of business. The Kochs don’t give a damn about the fate of middle America, the job market, or stagnating urban centres. Yet, the con is on. Along with the Kochs, the Tea Party’s biggest donor is good old Rupert Murdoch who, with Glenn Beck and Sarah Palin on the payroll, uses Fox News to push Indians towards the conclusions the chiefs want them to reach.
For her article, Mayer interviewed Gus diZerega, a former friend of Charles Koch. Reflecting on the Kochs’ libertarianism, diZerega speculates: “perhaps [they have] confused making money with freedom.” I’d wager they haven’t. Freedom is the name of the Kochs’ game because it facilitates the making of money. In a damning Rolling Stone article, Matt Taibbi predicts that the Tea Party agenda will be “whittled down until the only things left are those that the GOP’s campaign contributors want anyway: top-bracket tax breaks, free trade, and financial deregulation.” Soon, Taibbi writes, the “revolutionary causes” will be reduced to “voting down taxes for Goldman Sachs executives.”
The real worry as we approach November’s midterms is surely not that the Kochs have confused making money with freedom, but that American voters will confuse freedom with making money.
*Greenpeace have described Koch Industries as "the kingpin of climate change denial."
*Greenpeace have described Koch Industries as "the kingpin of climate change denial."


