Archives for category: Billionaires

This is a sad but instructive story of a billionaire, Joe Ricketts, who closed down his two popular news websites out of spite. He was angry because his workers voted to unionize.

Maybe it meant that his staff would be paid more. But the owner could afford it. He was angry because he didn’t want a union. Period.

Hamilton Nolan explains what happened:

“Joe Ricketts, the founder of TD Ameritrade whose family owns the Chicago Cubs, is worth more than $2 billion. He is the owner of DNAinfo, a local news site that covered New York City and Chicago with unparalleled skill, as well as Gothamist, a network of city-oriented websites that DNAinfo bought this year. He is also a major right-wing political donor of rather flexible morality. During the last presidential primaries, Mr. Ricketts spent millions of dollars funding ads that portrayed Donald Trump as an untrustworthy, dangerous misogynist. Once Mr. Trump secured the nomination, Mr. Ricketts spent a million dollars to support him.

“One might think that such flexibility would allow Mr. Ricketts to bend but not break when faced with every plutocrat’s worst nightmare: a few dozen modestly paid employees who collectively bargain for better working conditions.

“Alas, no.

“Six months ago, reporters and editors at DNAinfo-Gothamist announced their intent to join the Writers Guild of America, East. This is the union that my colleagues and I at Gawker Media joined in 2015, and the union that has organized major online media companies like HuffPost, Vice Media, Slate and Thrillist in the past two years. In that short amount of time, unionized “new media” workers have won substantial raises, editorial protections and other improvements that writers at more mature companies take for granted. In defiance of the conventional wisdom that unions are outdated, this young, high-tech industry has been one of the most visible recent successes for organized labor in America.

“The DNAinfo-Gothamist announcement sparked a zealous anti-union campaign: Management threatened employees by saying that Joe Ricketts might shut the whole place down if it unionized. Nevertheless, employees last week voted 25-2 in favor of unionization. And on Thursday, Mr. Ricketts abruptly shut the whole place down…”

Ricketts did not try to sell his news sites.

“Instead of bargaining with 27 unionized employees in New York City, he chose to lay off 115 people across America. And, as a final thumb in the eye, he initially pulled the entire site’s archives down (they are now back up), so his newly unemployed workers lost access to their published work. Then, presumably, he went to bed in his $29 million apartment…

“Labor unions have done more for the average American than all the rich industrialists put together. Unions are a legal right and the single most powerful tool that regular working people have to improve their lot. DNAinfo and Gothamist employees, who did the fundamentally important work of telling us all what is happening in our cities, were punished for exercising their rights.

“The business of journalism has always been fickle and grim. It is an industry full of idealist workers scrambling to cobble together a living at publications owned by a shifting group of cutthroat capitalists and incompetent rich dilettantes. The careers of most journalists feature constant uncertainty and heartbreak, interspersed with periods of life-affirming work that you hope make it all worthwhile. That uncertainty is why The Los Angeles Times, whose owners have been famously anti-union for more than 100 years, is now in the midst of its own union organizing campaign.

“The union movement in media is incredibly important beyond what it means to hundreds of employees at more than a dozen sites. Digital media workers have unionized because they understand how they are being exploited at work, and how to fix it. The visibility of their union campaigns can serve as an example to workers in other job sectors, where organized labor has grown nearly invisible, to the detriment of all.

“Just as the newspaper industry unionized in the 1930s to balance out the outlandish power of the publishers, so too will the online news industry unionize whether the bosses like it or not. Mr. Ricketts and other publishers will continue to fight back, framing their opposition to unions as an informed business decision. But it is an ideological one.“

Peter Greene says that people are mistaken to think that Betsy DeVos is a dope. She is not. She knows what she wants, and she is single-minded in pursuing her goals.

Just today, Peter posted an analysis of a long article in Politico about DeVos, in which the writer fails to mention her religious zealotry, and in which she blames her handlers for not preparing her for her confirmation hearings. What we learn from the Politico article is that Jeb Bush promoted her for Education Secretary. Bush, as events show, is a choice zealot, who like every kind of school except public schools. Actually, Bush recommended her to his friend Mike Pence, who ran the transgression. Both are anti-public school me. The article is more sympathetic to Betsy than most, and claims that she can’t do much damage and is constantly frustrated by the bureaucracy. We are reminded that this billionaire heiress never before worked in a large organization and is accustomed to unquestioning obedience.

Public opinion seems to have formed two impressions of DeVos: one, she is the most unpopular member of the Trump cabinet (I attribute that to the “billionaire smirk”). The other is that she is a dope.

Peter writes about the second impression:

“From the grizzly bear jokes of her confirmation hearing, to late night television lampoons, to satire from the Onion and Borowitz, DeVos has become an easy mark. Everyone’s in on the joke. Do the budget numbers not add up? It’s that wacky Betsy DeVos having trouble with math.

“I’ve said this before– it’s a huge mistake to think Betsy DeVos is a dope. She is something else ay more dangerous. I’ve been reading her word and a ton of words about her for a year (and you can, too– I’ve included an exhaustive reading list at the end of this piece), and while any game of armchair psycho-analysis has to come with huge caveats (like “I could be completely full of bovine fecal matter”), DeVos seems very much of a type that I’ve known my whole life, and it makes her both familiar and scary.”

He explains why, and he concludes his post with a valuable list of articles about her. She is a dangerous person, not a dope. She uses her wealth to buy politicians. She doesn’t trust democracy. She has the most important education job in government, yet she despises public schools.

Politico reports that the Koch Brothers are promoting School Choice to Hispanic families in 11 states with an organization called the Libre Initiative.

The Kochs and their political action group Americans for Prosperity are relentless in trying to replace public schools with charters and vouchers and eliminate unions.

“While the Koch network has long been involved in school choice battles, the push by Libre represents a new front in the fight by targeting Hispanic families — and a recognition that with Congress gridlocked, it’s on the ground at the state level where the network can disrupt the educational status quo. The Koch message on schools is shared by Education Secretary Betsy DeVos, a longtime ally.

“Across the [Koch] network, there’s a greater commitment to advancing this because we do see it as critical to advancing a free and open society,” Libre’s Executive Director Jorge Lima told POLITICO.

“The group has had some initial success — for instance, helping to thwart a moratorium on charter school expansion in New Mexico. But it’s also created bitter divisions in the Latino community and led to accusations the Kochs are trying to undermine public education — and even in some cases, to subvert the Democratic process.

“Don’t let so-called Hispanic organizations such as the Libre Initiative deceive you …” Geoconda Arguello-Kline, secretary-treasurer of the Culinary Union, wrote last year in a guest column published in the Las Vegas Sun. “Libre is not looking out for Nevadans’ best interest; it is working to benefit its billionaire Koch funders.”

“Despite such criticism, the group is hunkering down for the long haul in states it views as ripe for change even as it eyes new states for expansion. Lima says it’s on track to make contact with more than 100,000 Hispanic households this year on school choice.

“Besides Nevada and New Mexico, Libre is organizing in Arizona, Colorado, Virginia, Florida, North Carolina, Ohio, Pennsylvania, Texas and Wisconsin. Its recent efforts, with other Koch-backed groups, include:

— A planned “six-figure” spend in Nevada on “deep canvassing” in Hispanic neighborhoods to build support for educational savings accounts, which enable families to use state tax dollars to pay for private school. Although such a program was passed by the Nevada Legislature in 2015, it never took effect after the funding mechanism was ruled unconstitutional.

— A lawsuit brought by Americans for Prosperity, among others, aimed at stopping a 2018 Arizona referendum asking voters whether they want to keep a school choice law passed earlier this year. The law would expand the availability of education savings accounts to more than 30,000 families — a move that public school supporters fear would divert millions of dollars from financially stretched public schools.

— A “six-figure” Libre and Americans for Prosperity campaign in Colorado this summer to promote charter schools and education savings accounts and another ahead of a Nov. 7 school board race by the Americans for Prosperity Foundation to push choice-friendly issues.

— A seven-figure investment In Virginia’s gubernatorial race by Americans for Prosperity that includes a video criticizing Virginia Lt. Gov. Ralph Northam, a Democrat, for his opposition to education savings accounts.”

Americans for Prosperity opposes all government programs. Its primary purpose is to protect the Koch billions from taxation to pay for any programs that benefit others. If it was up to the Koch Brothers, they would eliminate Social Security, Medicare, and every other social programs. They are rabid libertarians who oppose taxation and government. Their interest is protecting the Koch billions, not anyone else.

Why they suing to block a referendum in Arizona? They know they will lose. Their strategy is to block democracy.

Will they fool Hispanic families into supporting the billionaires’ self-interest?

David Safier writes in the Tucson Weekly about well-funded efforts by the billionaire Koch Brothers to promote their anti-government, free-market libertarian views into local high schools.

“The course was created by the University of Arizona’s Center for the Philosophy of Freedom, which designed the curriculum, wrote the textbook and offers workshops for high school teachers instructing them on how to teach the class. The Freedom Center, which has been at UA since 2011, gets a majority of its funding from the Koch Brothers and a wealthy Arizona donor couple who are big contributors to and play an influential part in the Koch network.

“The course is also being offered in the Amphitheater, Vail and Sahuarita school districts and at least seven private and charter schools in Pima and Maricopa counties.

“The Center for the Philosophy of Freedom at the UA and similar centers at ASU are the latest in a continuing effort by the Koch Brothers to infuse institutions of higher education with their libertarian-fueled philosophy. The Koch’s long term goal is for their economic and political views to filter down from the university into mainstream public opinion, and to use their influence with politicians to create legislation favorable to their ideological and economic interests.

“A part of that effort is to create curriculum, class materials and entire courses to be used in high schools around the country.

“In the 1980s, the Koch Brothers began buying their way into universities by setting up departments and think tanks. The Koch-funded centers lend scholarly credibility to the brothers’ libertarian philosophy by teaching courses, writing papers for academic journals and conducting seminars for like-minded academics. The first serious funding venture began in the mid-1980s at Virginia’s George Mason University. At the time the university wasn’t known for the quantity or quality of its scholarship. Since then, it has grown, due to the Koch’s money and influence, into the largest research university in the state.

“Ground zero for the Koch’s efforts at George Mason University is the Mercatus Center. The Washington Post described it as a “staunchly anti-regulatory center funded largely by Koch Industries Inc.” A fellow at the Cato Institute, which was founded and funded by the Koch Brothers, referred to it as a “libertarian mecca.”

“Over the years, the Koch Brothers expanded their academic reach until they were subsidizing programs at more than 300 institutes of learning. From 2005 to 2015 alone, the Koch Foundation gave $145 million to universities, including $95 million to George Mason University and the Mercatus Center. Unlike most major university donors, the Kochs often maintain direct or indirect control over the departments their money creates and the professors they hire.

“Scholarly work tends to be too detailed and complex for public consumption, so the Koch Brothers also fund institutes and organizations outside of universities to shape the academic material into more easily digestible form (the Cato Institute and the Heritage Foundation are two well known examples). Members of their staff generate position papers, write articles for magazines and newspapers, and appear on television news programs. They also work with sympathetic politicians to formulate and draft legislation.

“University of Arizona’s Center for the Philosophy of Freedom began in 2011. The Koch Brothers put in a million dollars to help start the center, though the largest portion of the funding came from Ken and Randy Kendrick, as well as another donor who remains anonymous. Ken Kendrick is the owner of the Arizona Diamondbacks. Randy Kendrick is a lawyer who is deeply involved in right wing causes. Because of their million-dollar-plus donations to the Koch’s donor network, including support for the Mercatus Center, the Kendricks are charter members and influential players in the Koch network.

“From its inception in 2011, UA’s Freedom Center had its eye on Arizona’s high schools. That year David Schmidtz, the founding director of the Center, spoke of his plans with Tim Vanderpool of the Tucson Weekly: “Schmidtz says the center plans to offer a degree program in economic instruction for high school teachers, and to generate texts for K-12 education. ‘We aim not only to produce the teachers, but the materials that are getting taught.'”

“Schmidtz is one of the three co-authors of ‘Ethics, Economy, and Entrepreneurship’, the textbook used in the high school course.

“The Koch Brothers began their efforts to make inroads into high school education with Youth Entrepreneurs, which was founded by Charles Koch and his wife Elizabeth in 1991 as a program to teach basic business skills to young people. It expanded its mission in 2009 when it created what the organization referred to as “a high school free market and liberty-based course,” complete with course materials and training for teachers. By 2014, more than 1,000 students were taking the course in Kansas and Missouri. YE has expanded into other states as well. It has a regional office in Phoenix.”

The goal of the Koch brothers is to install their free-market ideology in high schools across the country.

Nonprofit Quarterly is concerned about a sudden surge of corporate spending in the Seattle Mayor’s race, wit Amazon leading the big funders, presumably in a bid to keep taxes and wages low.

“With nonprofits promoting increased civic engagement among their members and the public, the prospect of Amazon’s civic engagement in the Seattle mayoral race must raise some eyebrows.

“This week, it was revealed that the marketing behemoth was a contributor to a political action committee (PAC) supporting Jenny Durkan against Cary Moon in the race for the Seattle mayor’s office. The article, “Seattle mayor’s race picks up $590K in late-money surge,” reveals how ten big name corporations, including Comcast, the Washington Association of Realtors, AT&T, Expedia, Starbucks, and Boeing donated at least $10,000 each to the Civic Alliance for a Sound Economy (CASE), which is the political action arm of the Seattle Metropolitan Chamber of Commerce. The Seattle Times calls out Amazon in particular for “adding $100,000 on October 12th to the $250,000 it gave in July.”

“In the Times article, a spokesperson for the Moon campaign suggests that some of the companies supporting the CASE PAC have in the past opposed taxes on the incomes of wealthy households, increasing minimum wages for workers, and the creation of a publicly owned broadband service for Seattle. In response to the CASE PAC, Moon has vowed to use her inherited resources to maintain her campaign.

“What can a nonprofit with a mission of civic engagement to do in the face of massive campaign spending in a local election by national corporations? For years, community-based organizations have followed Saul Alinsky’s first rule: “Power is derived from two main sources—money and people. ‘Have-Nots’ must build power from flesh and blood.” In many cities, business interests have figured out that huge amounts of money in a local election can scare off the best opponents, co-opt the grassroots, and dominate the messaging. The result is a crisis of civic engagement that looks like voter apathy, but is actually voter disengagement.“

That last paragraph caught my eye. We face the same issues in our struggle to prevent the privatization of public education.

Big corporations that use their money to cut wages and services sacrifice civic duty and community. Those who undermine workers and public institutions are bad citizens.

We must build power from “flesh and blood.”

Join the Network for Public Education. Donate whatever you can.

The Network for Public Education just held its fourth annual conference in Oakland, California, on October 14-15.

It was a fabulous conference, with great speakers, roundtables, panels, and camaraderie.

I opened the conference on October 14. I introduced our wonderful board and staff (we have 1.5 staff members and hundreds of amazing volunteers).

I described what we are for and what we oppose.

If you agree with us, please join, donate whatever you can, and help us continue our grassroots efforts to strengthen and support public education.

In the days ahead, I will post all the keynote addresses. They were fantastic.

If you knew how inspiring these two days were, you will want to join us next year. I can’t give the location yet, but we will meet in the Midwest.

The arch-conservative billionaire Koch Brothers have unleashed campaign ads against Lt. Governor Ralph Northam in the Virginia governor’s race.

The Washington Post reported that the Koch Brothers have spent nearly $3 Million Against Northam.

“Americans for Prosperity, the heart of the billionaire Koch Brothers’ conservative political network, plans to ramp up its campaign against Ralph Northam, the Democrat in Virginia’s governor’s race.

“The conservative group announced Friday that it would spend at least $1 million on mailers and digital ads targeting Northam’s record on taxes, education and economic development.

“It follows at least $1.8 million in anti-Northam television commercials and mailers to date, according to data collected by the nonpartisan Virginia Public Access Project. The group also says it has contacted hundreds of thousands of Virginia voters through its phone-banking and canvassing efforts…

“Americans for Prosperity is also launching a digital video featuring a charter school administrator criticizing Northam for voting against a bill to establish “educational savings accounts” that allow parents who remove children from public schools to receive 90 percent of the state funding that would have been spent on their child. They would be able to use the funds for private-school tuition, tutoring, books and other educational costs. Critics say such accounts are similar to vouchers in that they drain resources from public schools.”

The Koch Brothers despise public education and are eager to elect a governor who will promote the DeVos agenda of school privatization via charters and vouchers.

If you live in Virginia and you love your local public school, get active in the campaign for Ralph Northam.

Susan Ochshorn founded ECE PolicyWorks to advocate for high-quality education for young children.

In this post, she analyzes the pernicious influence of financiers and hedge fund managers on decisions about the fate of young children, as they figure out how to make a profit with “Social impact bonds.”

Everyone loves the idea of early childhoood education. But unfortunately the financiers have figured out how to make it pay—for them.

Ochshorn shows how Goldman Sachs and other investors saw a path to profit and how public officials fell in love with metrics. The children? Not so much.

She gives the background of the social impact bond.

And she concludes that commodifying children is a very bad idea:

“By last summer, the U.S. Department of Education had gotten on board. Under the aegis of John King, former education commissioner of New York, they launched a Pay for Success grant competition, $2.8 million available for state, local, and tribal governments interested in exploring the investment vehicle’s feasibility. Early this year, as Betsy DeVos replaced King in the top job, the department distributed funding ranging from $300 to $400 million to 8 recipients. Rigorous evaluation, as the Urban Institute’s “Pay for Success Early Childhood Education Toolkit,” makes clear, is the sine qua non of the transaction, precise metrics and data collection essential for determining the venture’s outcome.

“To quantify is to have the illusion of mastery over all that defies our control, yet the metrics fall short, the ends perverted: they cannot capture children’s unique capacities, or the uneven trajectory of their development—as messy and challenging as it gets.

“Three- and four-year-olds are not commodities. They have had the grave misfortune of entering the academic arena in a period of measurement gone berserk. What young children need most is time, and sustained support for experiences that nourish their bodies, minds, and spirits—their due, according to the Convention on the Rights of the Child, which the U.S has not yet ratified more than 25 years after the resolution was adopted by the U.N. General Assembly.

“The benchmarks and assessments of the Common Core violate this right—especially for our youngest students. So do social impact bonds. If the payback is contingent upon a particular timetable, and the desired outcomes are not forthcoming, where does that leave the kids?

“Those who have made their millions and billions in private equity, investment banking, and hedge funds see themselves as the saviors of our most vulnerable children. Yet their fancy models are putting our youngest learners at greater risk—along with democracy and the public good.”

After two high-profile failures that he acknowledges, and one high-profile failure that he does not acknowledge, Bill Gates is ready to start reforming the schools of America again.

Valerie Strauss reports on his announcement here.

He jumped into school reform in 2000 with his plan to break up the nation’s high schools into small schools. He promised dramatic test score gains. It wasn’t a terrible idea, but it did not get the score gains he wanted, and he gathered the creme de la creme to his digs in Seattle in 2008 to announce that he was abandoning small schools. Valerie says he dumped $650 Million into that, but my own Research says it was $2 Billion.

His next obsession was evaluating teachers by the test scores of their teachers. He partnered with Arne Duncan on that; Arne made it a condition of Race to the Top funding. The ratings were criticized by the American Statistical Association, the National Academy of Education, AERA, and many individual scholars. But Duncan and Gates plowed ahead. The Los Angeles Times and the New York Post published the ratings of individual teachers. Duncan congratulated them for doing so. A teacher in Los Angeles committed suicide after his ratings were published. Gates gave out hundreds of millions to districts that adopted his evaluations. Hillsborough County, Florida, won $100 Million to apply Gates’ ideas about teaching, and the district exhausted its reserves and abandoned the plan. Gates paid up only $80 Million, and the district was left holding the bag.

Now Gates has given up on that idea, although many states are still sticking with it. Thousands of teachers and principals have been fired based on the ideas sold by Gates and Duncan, but that’s not of any interest to him.

The failure that Gates does not yet admit is the Common Core. He paid hundreds of millions for its development and promotion, and he still loves the idea of standardizing education. He refuses to accept that it’s dead man walking.

So what’s his new idea? I’m not really sure, so I will quote Valerie. My hunch is that he is still pushing Common Core, but it is not clear.

He said 85% of the money will go to public schools and the rest to charter schools. Knowing that Gates is a charter zealot, one must wonder what medicine (or poison) he is offering.

“He said most of the new money — about 60 percent — will be used to develop new curriculums and “networks of schools” that work together to identify local problems and solutions, using data to drive “continuous improvement.” He said that over the next several years, about 30 such networks would be supported, though he didn’t describe exactly what they are. The first grants will go to high-needs schools and districts in six to eight states, which went unnamed.

“Though there wasn’t a lot of detail on exactly how the money would be spent, Gates, a believer in using big data to solve problems, repeatedly said foundation grants given to schools as part of this new effort would be driven by data. “Each [school] network will be backed by a team of education experts skilled in continuous improvement, coaching and data collection and analysis,” he said, an emphasis that is bound to worry critics already concerned about the amount of student data already collected and the way it is used for high-stakes decisions.”

What is he up to? Big data? Common Core? Data mining?

I have often said and written that if he really wanted to help children, he would open health clinics in their schools. He would provide doctors to supply good maternal care to pregnant women. He would not tell teachers how to teach or get involved in evaluating teachers or writing curriculum. He would stop pretending he knows how to reform education and do something that is actually needed.

After 17 years of failure, has he learned nothing?

Penny Pritzker is an heir to the Hyatt Hotel fortune.

Rahm Emanuel appointed her to the Chicago Board of Education.

Obama appointed her as Secretary of Commerce.

Politico reported that she has been invited to join the board of directors of Microsoft. Board members have light duties and are paid $325,000 a year.

Please watch this video, where Chicago public school parent Matt Farmer put Penny Pritzker on trial in absentia for her indifference to the children of Chicago.