Archives for category: Billionaires

Gene Glass has written one of the most brilliant, most perceptive commentaries on the billionaires’ reform movement that I have ever read.

He gives a witty, well-sourced analysis of the familiar corporate reform narrative and punches giant holes in it.

Here is the opening sentence:

“A democratically run public education system in America is under siege. It is being attacked by greedy, union-hating corporations and billionaire boys whose success in business has proven to them that their circle of competence knows no bounds.”

Glass is one of our nation’s most celebrated and honored researchers. He called VAM “stupid” back in 1998. Unlike many ivory-tower academics, he is taking sides: he is on the side of public education, democracy, and truth.

If you don’t read this, shame on you.

Please tweet it, post it on Facebook, share it with your friends and your elected officials.

Edward F. Berger is a champion for children and public schools in Arizona. He writes in this essay that the state is controlled by a tiny claque of very wealthy people who want to starve the public sector. This small minority is well-organized and well-funded. Berger compares them to the Robber Barons of the 19th century whose goals were money and power.

 

Berger writes:

 

Arizona is run by a well-organized minority. They work to undermine and control representative democracy, elected boards and officials, public schools, environmental regulations, any law that limits the powers of corporations, and interference in their affairs by The People. They believe in the right to rape, rip and run for personal gain while demanding free and unregulated access to natural and national resources. They attack workers’ organizations, associations and unions, taxes on individual wealth, and laws that hold individuals responsible for activities that damage others, the planet, and a sustainable future….

 

Fred Koch, father of the infamous Koch brothers, created a powerful empire. He had an ideology of freedom from government intervention that his sons inherited.

 

Berger writes:

 

Fred was a founder of the John Birch Society, a movement based on:The destruction of public education, the privatization (control) of prisons, racial inequality, and denial of workers’ rights to organize. He was able to inculcate two of his sons (Charles and David Koch) to believe that they are the rightful heirs of his mission and will determine the future of America.

 

When the John Birch Society gained disrepute, they dropped that name and formed dozens of subversive* organizations. The largest in the US and Arizona is the American Legislative Executive Council (ALEC). If your elected representative is a member of ALEC, be afraid and get them gone! Another is the Goldwater Institute. The corporate leadership of Arizona Public Service (APS) and its holding company, Pinnacle West Capital corporation, is deeply involved with the Koch-ALEC-Goldwater Institute politicians. One can not underestimate the subversive work of the Goldwater Institute (a false 501 (c) (3) nonprofit organization) with a purely political agenda. Through its minions, the legislators and governors placed in office by the power of this minority, they were recently able to place a Goldwater Institute lawyer on the Supreme Court of Arizona. As an example of their reach, in 2015 the Goldwater Institute filed suit in far off Massachusetts to challenge that state’s ban on corporate contributions to political candidates. A stated goal of the Goldwater Institute is to support charter schools and vouchers. They lead the pack of active and disruptive organizations working in the state sowing, cultural division, anti-teacher, anti-education, anti-unions, and pro-corporations movements….

 

Most of the members of the state legislature are in the Koch-ALEC-Goldwater Institute pocket , or they are forced to cooperate with the extreme right to keep from being ostracized and rendered ineffective for their constituents. Voters are discouraged from voting. It looks like Governor Doug Ducey is being groomed to take on the work of Scott Walker of Wisconsin, who followed the Koch dictates to his ruin. The governors and legislators in many states are being placed by the Koch-ALEC machine. They have used gerrymandering and control of the primaries to ensure that key members of the republican right do not have to fear re-election. The Koch-ALEC machine has made inroads into the US Chamber Of Commerce, and the United States Supreme Court, forcing rulings like Citizens United….

 

Public education in the state of Arizona is being systematically dis-mantled.The budget is being used to starve and destroy public schools, and to privatize every aspect of government to gain access to, and profit from, our tax dollars. Public school financing, and thus education programs, have been arbitrarily cut and then reinstated at a fraction of what they need to operate. Governor Ducey plays a game of ‘cut deep and then give a little back,’ so he can brag about his support, while starving and destroying the state’s public schools, universities, and service sectors. His agenda is not for the children and families of Arizona, it is for a small, well-organized minority. He is trying to prove to his masters that he can be the new Scott Walker or Rick Snyder and he can make Arizona go the way of Wisconsin and Michigan.

 

This is not what the people of Arizona want, writes Berger, but the grip of the plutocracy is so tight that people have given up the power of democracy. Less than 40% turn out to vote.

 

Berger remains hopeful. He thinks the time is approaching when the people of Arizona elect a government that serves them, not the Robber Barons.

 

 

 

 

Los Angeles blogger Karen Wolfe started the inquiry about the ethics of the Los Angeles Times accepting a subsidy from billionaire Eli Broad for its education coverage even as he is one of the major figures covered. She posted a statement by distinguished journalist Paul Sussman, who literally wrote the book on ethics in journalism; Sussman said the Times has “a massive conflict of interest” by accepting money from a person it covers on the issue he is engaged in.
Blogger Alexander Russo, who is funded by the AFT and Education Post (which is funded by Broad, among others) contends that the issue is more complex than it seems. He draws attention to many other major media that are subsidized by the wealthy.

 

 

Yes, others do it too. Last year, investigative reporter David Sirota caused PBS to return a multimillion dollar grant from the John Arnold Foundation. The program was going to reveal the”pension crisis,” a subject that Arnold feels strongly about. PBS was embarrassed by the appearance of a conflict of interest.

 

 

The he larger problem behinds these skirmishes is whether we have a free press, one that will dare to expose the misdeeds of the mighty. This will be hard to do if they are subsidized by the mighty.
Blogger Anthony Cody assesses the matter and, as usual, brings clarity to it.

 

 

“I want to add one additional point, which I made at some length in this earlier post. It is not “neutral” or “objective” to expand coverage of “innovation” in education. It is not “neutral” or “objective” to have sections of a publication focused on “what is working” in education. The Gates Foundation has made clear that they are very interested in promoting the idea that technology is of tremendous educational value. Stories that trumpet success in this arena are not neutral. They advance the agenda of those selling technological solutions to human problems in education. The act of “focusing on success” sidelines serious criticism of this approach. Journalism that focuses primarily on success misses one of the crucial roles that true journalists must play.

 

 

“Solutions to this may be, as Russo suggests, “unlikely or unworkable.” Undoing the corporate influence on the newsrooms of America is not going to be easy. But acknowledging we have a serious problem would be a valuable first step. An important second step would be to recognize independent bloggers as a critical part of the field of education journalism.”

John Thompson, historian and teacher in Oklahoma, writes here about a growing awareness in the mainstream media of the infusion of Big Money into education. The New York Review of Books is a major influence among highly educated people and has a reach far beyond professional educators.

 

 

The New York Review of Book’s Michael Massing, in “Reimagining Journalism: The Story of the One Percent,” proposes a new journalism to document and explain the effects of secretive corporate elites on our diverse social institutions. He basically calls for a very well-funded version of the Diane Ravitch blog.

 
O.K., it’s more complicated than that. Massing notes that “Education is but one area of American life that is being transformed by Big Money.” He wants a website that is staffed by top investigative journalists, and experts in the fields that are being taken over by “billionaires [who] are shaping policy, influencing opinion, promoting favorite causes, polishing their images—and carefully shielding themselves from scrutiny.”

 
Massing proposes a site, complete with reporters, editors, and “digital whizzes,” who “could burrow deep into the world of the one percent and document the remarkable impact they are having on so many areas of American life.” Similar to Ravitch’s blog, its purpose would be “tracking the major participants, showing the links between them, assessing their influence and impact, and analyzing the evidence on the performance of both public and charter schools.”

 
Moreover, Massing wants a site that:

 
Could also serve as a sounding board for people in the field, encouraging principals, teachers, parents, and grantees to send in comments about their dealings with these institutions. The most thoughtful could be edited and posted on the site, providing a bottom-up perspective that rarely gets aired.

 
Massing explains that “even amid the outpouring of coverage of rising income inequality … the richest Americans have remained largely hidden from view.” And, “journalists have largely let them get away with it.” We need sites that will cover more than education, but Massing, who has been influenced by the work of Mohammad Khan, Zephyr Teachout, and Ravitch, uses their work as a model for the 21st century journalism we need.

 

His website would:

 
Produce an ongoing record of the activities of the foundations and private donors trying to affect education policy. The political and lobbying efforts of the teachers’ unions and their allies would be included as well, showing how much money and influence they are able to mobilize in elections and for what candidates.

 

In the first of two articles, Massing describes Paul Singer, the CEO of the hedge fund Elliott Management as an example of “the ability of today’s ultrarich to amass tremendous power while remaining out of the limelight.” Singer is not merely a key funder of the blood-in-the-eye, anti-union StudentsFirst NY, but also the test, sort, reward and punish policies pushed by Joel Klein, Michelle Rhee, and other corporate school reformers. The billionaire is the single largest donor to the Republican Party; a backer of Marco Rubio and many Tea Party candidates; a funder of the Swift Boat Veterans for Truth, which attacked John Kerry’s war record; a donor to Karl Rove’s American Crossroads and the anti-tax group, Club for Growth; and the Foundation for Defense of Democracies, “which has worked tirelessly to isolate and sanction Iran.”
To illustrate the secretive and far-reaching influence of the One Percent, Massing draws upon the Washington Park Project, and Kahn’s and Teachout’s “Corruption in Education: Hedge Funds and the Takeover of New York’s Schools.” 

 

They offered:

 
An eye-opening look at the large sums being spent by what it called “a tiny group of powerful hedge fund executives” seeking to “take over education policy” in the state. This “lightning war on public education,” they wrote, was “hasty and secretive” and “driven by unaccountable private individuals. It represents a new form of political power, and therefore requires a new kind of political oversight.”

 
Massing then praises the online Hechinger Report and Diane Ravitch who have sharply analyzed the record of the Billionaires Boy’s Club and education reform movement. He explains the need to further document the activities of the Gates, Broad, and Walton foundations, as well as analyze their real world effects on schools.

 
Yes, America needs websites for examining the structure of money and influence on all of our institutions. Ravitch and her contributors, commenters, and readers should all feel proud of our bottom-up efforts. Massing is correct; our nation needs to produce Diane Ravitchs to lead similar grassroots efforts in health, finance, economics, and politics. I bet it will happen.

The Chicago Sun-Times published an article with astonishing news. The Chicago Teachers Union gives money to groups that support public education, including the Network for Public Education.

 

NPE has used the contribution from CTU to give scholarships to parents, students, and educators to attend our annual national conferences, as well as to fund the development of a state-by-state report card that will be released on February 10, evaluating the states by their support for their public schools.

 

I pointed out to the reporter that CTU’s support for allies of public education must be seen in the context of billionaires who allot hundreds of millions of dollars every single year to privatize public education. It is not a fair fight, to be sure.

 

I wish the teachers’ unions and other civic-minded groups had many millions more to invest in pushing back against privatization, union busting, and high-stakes testing and fighting for early childhood education, equitable funding, smaller classes, and well-prepared teachers.

This week, the Supreme Court will hear a case called Friedrichs vs. California Teachers Association. The plaintiffs represent teachers who not want to pay union dues. They say that the requirement to pay dues violates their free speech rights. Friedrichs is backed by political, financial, and ideological groups who hope to cripple the last bastion of organized labor. If the plaintiffs win, labor’s resources and political clout will be severely reduced. This case will be a milestone in the survival or destruction of public sector unions.

 

In the article linked above, Richard Kahlenberg argues that diminishing the power of public sector unions diminishes our democracy. In our society, money buys political influence and voice. If labor’s voice is stilled, only the rich will have political power. There will be no organized countervailing voice to prevent them from controlling everything.

 

Friedrichs is a teacher who objects to paying dues to the CTA. However, she is not required to pay for political activities, because of an earlier Supreme Court decision called Abood.

 

The current legal framework in which courts weigh cases such as Friedrichs is narrowly constrained, balancing the free speech rights of dissenting union members against the state’s interests in promoting stable labor relations with its public employees.
In the 1977 case of Abood v. Detroit Board of Education, the U.S. Supreme Court reached a sensible compromise that properly balanced these two sets of interests by splitting union dues into two categories: those that support political speech, and those that support bread–and-butter collective bargaining. Because the First Amendment’s free speech clause provides a right to not be compelled by the state to subsidize speech with which one disagrees, dissenting public employees cannot be required by the state to join a union, or to subsidize the union’s political and lobbying efforts to promote certain positions of public concern….

 

According to the counsel for Friedrichs, annual dues to the CTA amount to approximately $1,000 per teacher, of which nonmembers receive a refund of roughly $350 to $400 for expenses unrelated to collective bargaining. In other words, Friedrichs is happy to accept increases in wages and benefits the union negotiates hard to win, but does not want to pay the $600 to $650 per year that other members contribute in order to make those wage gains possible. Will she give back her raises, forgo health care benefits, give up the right to pursue grievances, and agree to teach larger classes that the union negotiated? The amicus brief of the American Federation of Teachers and the American Association of University Professors put it well: there is no “constitutional right to a free ride.”

 

Kahlenberg notes:

 

All unions—including, and perhaps especially, public sector unions—also contribute to one of the most important foundational interests of the state: democracy. And they do this in many different ways. Unions are critical civic organizations that serve as a check on government power. They are important players in promoting a strong middle class, upon which democracy depends. They serve as schools of democracy for workers. And teacher unions, in particular, help ensure that our educational system is sufficiently funded to teach children to become thoughtful and enlightened citizens in our self-governing democracy….

 

Strong unions helped build the middle class in America after the Great Depression, and continue to have a positive effect on ameliorating extreme inequalities of wealth. By bargaining for fair wages and benefits, unions in the public and private sector help foster broadly shared prosperity. Research finds, for example, that unions compress wage differences between management and labor. According to one study, “controlling for variation in human resource practices, unionized establishments have an average of 23.2 percentage point lower management-to-worker pay ratio relative to non-union workplaces.”

 

Kahlenberg documents that the decline in union membership parallels the decline in the middle class.  Extremes of wealth and poverty are not good for democracy.

 

This is an excellent overview of the potential damage that this Supreme Court decision might do to unions and to democracy. It occurs to me as I read it that the contentious battle over school choice, funded amply by billionaires, is intended to divert attention from crucial economic issues. Billionaires would have us believe that they are advancing the economic opportunities for black and Hispanic children even as they use their political clout to destroy the jobs and economic security of their families, as well as the economic prospects for the “scholars” in their charter schools.

 

 

Michael Massing, former executive editor of the Columbia Journalism Review, has a fabulous article in the current Néw York Review of Books about the media’s failure to cover the political activities of the 1%.

In the middle of the article, he goes into detail about the millions of dollars that billionaires and hedge fund managers have poured into charter schools and into the campaigns of politicians who support charter schools.

Massing chides the media for its failure to follow the money.

It is great is to see the issues we are familiar with getting attention in a highly respected national publication.

Joanne Barkan has written powerful articles in Dissent about the power wielded by billionaires to control and direct public education. (See here.)

 

Now she has written an article in The Guardian about the Zuckerbergs’ pledge to place 99% of their Facebook stock (value: about $45-46 billion) in a limited liability corporation, which they will use to influence public policy. Her article has the title “Wealthy Philanthropists Should Not Impose Their Idea of the Common Good on Us.”

 

She writes:

 

There’s a strong argument to be made that the private tax-exempt foundation doesn’t fit well in a functioning democracy. As the eminent US jurist Richard Posner wrote: “A perpetual charitable foundation, however, is a completely irresponsible institution, answerable to nobody. It competes neither in capital markets nor in product markets … and, unlike a hereditary monarch whom such a foundation otherwise resembles, it is subject to no political controls either.”

 

Although the Chan Zuckerberg Initiative isn’t a foundation and will pay taxes, nothing about their project changes the fundamental contradiction of mega philanthropy: the wealthy have the power to impose their personal visions of the common good on everyone else while calling it charity. In the tug-of-war between government by the people and social engineering by multibillionaire philanthropists, Chan and Zuckerberg pull on the side of the powerful social engineers.

 

However, in the New Yorker, James Surowiecki writes “In Defense of Philanthocapitalism,” a spirited defense of the Zuckerbergs, the Gates, and the other billionaires who are willing to try bold new approaches that government is too timid to try. So I assume he includes the Koch brothers, who use their wealth to reshape the economy to benefit the 1%, and Art Pope, who has used his wealth to hand the state of North Carolina over to the Tea Party, and the Waltons, who use their billions to stamp out unions and public schools.

 

He writes:

 

In an ideal world, big foundations might be superfluous. But in the real world they are vital, because they are adept at targeting problems that both the private sector and the government often neglect. The classic mission of nonprofits is investing in what economists call public goods—things that have benefits for everyone, even people who haven’t paid for them. Public health is a prime example: we would all benefit from the eradication of malaria and tuberculosis (diseases that Bill Gates’s foundation has spent billions fighting). But, since the benefits of public goods are widely enjoyed, it’s hard to get anyone in particular to foot the bill.

 

Ah, yes, what would we do without the Koch brothers, the Walton Family Foundation, and other billionaire foundations that do not believe in the public sector? What would educators do if they didn’t have the Gates Foundation to tell them how to evaluate teachers and how to turn public assets over the unaccountable charter schools and how to teach reading and mathematics? What would Los Angeles do if it didn’t have Eli Broad picking its superintendent and deciding to take control of half the children in the public schools and hand them over to privately managed charters and at the same time underwriting coverage of education in the Los Angeles Times? What would Philadelphia do if it didn’t have local foundations deciding to privatize its public schools? How many other cities have private foundations that have decided to lead the charge for school privatization? How many rightwing think tanks would shrivel and die without the support of the same billionaires and their foundations?

 

Who should shape the public good? The philanthrocapitalists or the public? Who holds the foundations accountable when they make a mistake? To whom are they accountable? No one. How can they preach accountability to everyone else but not for themselves?

 

Please read and comment.

EduShyster was alerted by a confidential tip to the possibility that Jim Peyser, the State Secretary of  Education, remains a director of an organization that lobbies for more charter schools.

 

She checked public records and learned that Peyser is still listed as a director of “Families for Excellent Schools.” This is an organization of hedge fund managers, millionaires, and billionaires who lobby for privately managed charter schools.

 

“The Secretary of Education, Jim Peyser sets education policy for the state and also votes on said policy. And as a director for the charter school advocacy group Families for Excellent Schools, and its 501 (c) (4) lobbying arm, Peyser is seeking to influence the very state policy that he is then voting upon. In other words, he is lobbying himself.As the Secretary of Education, Jim Peyser sets education policy for the state and also votes on said policy. And as a director for the charter school advocacy group Families for Excellent Schools, and its 501 (c) (4) lobbying arm, Peyser is seeking to influence the very state policy that he is then voting upon. In other words, he is lobbying himself….

 

 

“But wait, there’s more
“If it sounds like our Secretary of Education has his hands full, both lobbying and being lobbied, consider that Father Peyser wears yet another cap these days. He is also the defendant in a class-action lawsuit vs. the state’s charter cap, defending the very cap that he is working feverishly, whilst wearing one of his other caps, to lift. The obvious question: how does he do it all? Followed by: what size hat does Peyser wear? Followed by: doesn’t Massachusetts have some kind, ANY kind of, conflict of interest law? Alas, I’m informed that its nearly as toothless as our public records law.”


 

 

 

 

 

 

 

 

 

 

Massachusetts Jobs with Justice released a well-documented report on the dark money behind a shadowy group called “Families for Excellent Schools.” FES is leading the campaign for more charter schools in Massachusetts. Of course, FES flies under a fake flag, because the “families” are not representing the families of Boston or the families that need excellent schools. FES is a gross deception. They are representing hedge fund managers and other wealthy individuals. Their idea of “excellent schools” is Exeter, Andover, Deerfield Academy, Groton, Sidwell Friends, and other elite schools that their own children attend. But these are not the excellent schools they want for the children of Massachusetts; they prefer no-excuses schools, where discipline and uniformity produces higher test scores. In the battle between Eva Moskowitz and Mayor de Blasio over the expansion of the charter sector, FES came up with nearly $10 million to beat the mayor. That’s not the kind of money that one gathers in needy communities, but it is the kind of money one collects with a few phone calls to Wall Street movers and shakers.

 

The JwJ report tears the veil away from FES, revealing where the money comes from. Up until now, it had pretended to be just another grassroots group working for “excellent” schools, and not a hedge fund-front group pushing privatization.

 

The report also revealed that one of the directors of FES is James Peyser, the Massachusetts State Superintendent of Education. This was another shocker. Why should the public official responsible for the maintenance and improvement of public schools serve on the board of an organization dedicated to privatizing public schools. Peyser holds the same position as Horace Mann. He should be embarrassed and the people of Massachusetts should be outraged.

 

Just bear in mind that the push for privatization is occurring in the state that is far and away the best performing state school system in the United States. The expansion of the charter sector will undermine public education and divide communities. FES should be ashamed. Why don’t they take their millions and open health clinics for poor children?