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Election

Dick Armey’s Biggest Failures Over His Decade With FreedomWorks

Former House Republican Leader Dick Armey

Former House Republican Leader Dick Armey

Former House Republican Leader Richard “Dick” Armey (R-TX) confirmed Monday that he has left his position as chairman of FreedomWorks in what appears to be an acrimonious break from the right-wing group he has lead for nearly a decade. Mother Jones reports he told the Tea Party-linked astroturfing group, in a letter, “I expect that Freedom Works shall remove my name, image, and signature from all its letters, print media, postings, web sites, videos, testimonials, endorsements, fund raising materials, and social media, including but not limited to Facebook and Twitter.” An AP report Tuesday noted that Armey will receive $8 million in severance pay, over 20 years, from a wealthy board member.

Armey, who left Congress in 2003 and became a corporate lobbyist. He also joined the Koch-backed Citizens for a Sound Economy. In 2004, the group split into two: Armey’s FreedomWorks and David Koch’s Americans for Prosperity Foundation. Armey served as chairman of FreedomWorks from 2004 to November 30, 2012, receiving a $500,000 annual salary from the group and its affiliates.

While Armey and FreedomWorks have received a great deal of credit of incubating the Tea Party movement, Armey’s tenure was largely defined by a series of failures:

1. Despite spending millions on independent expenditures, the group failed to elect almost any of its favored candidates in 2012. FreedomWorks and its related entities spent at least $19 million on the 2012 elections. They spent at least $500,000 per race to defeat Sen. Bill Nelson (D-FL), Rep.-Elect Tammy Duckworth (D-IL), Sen. Sherrod Brown (D-OH), Sen. Bob Casey (D-PA), Sen.-Elect Tim Kaine (D-VA), and President Obama. All won. They spent more than $2.5 million in Indiana’s Senate race to replace conservative Republican Sen. Dick Lugar with an even more conservative Republican; while their favored candidate won the primary, he was defeated by Democrat Joe Donnelly by more than 5 points in the general. And a nearly $1 million effort to defeat not-conservative-enough Republican Sen. Orrin Hatch in Utah also proved a huge disappointment: Hatch won his primary with two-thirds of the vote. Among the group’s beefs with Hatch: he voted for many of the same-debt limit increases that Armey backed during his House tenure.

2. Armey unsuccessful pushed for an end to federal funding for higher education. FreedomWorks believes the “size and scope of government must be returned to a level that the nation can afford.” In 2010, Armey told CNN that that size and scope should not include any support for higher education. Asked if he would prefer wanted federal funding at all, he said, “No. I don’t think the federal government’s involvement in education has benefited the students of America.” The statement ignored the billions of dollars in federally subsidized loans and grants that enable tens of millions of Americans students to be able to afford to go to college — and the proposal was not embraced by Republicans or Democrats.

3. FreedomWorks unsuccessfully proposed eliminating Medicare and Social Security as we know them. On the FreedomWorks website, the group says the “only true path to reform” on Social Security, Medicare, and entitlements, “is to greatly increase recipients’ ownership and control.”
In a 2010 interview, Armey — who has called Social Security a “corrupt Ponzi scheme” — explained that this means we should make these programs “voluntary.” Such a move would undoubtedly destroy the nation’s vital social safety net. The vast majority of Americans support these programs and have rejected proposals to make less radical changes. Armey even failed in his own bizarre attempt to have federal courts to rule him ineligible for Medicare.

4. FreedomWorks unsuccessfully sought to block the Recovery Act. As part of its opposition to the 2009 American Recovery and Reinvestment Act, the group joined with other conservative organizations to launch ReadTheStimulus.org. The site encouraged people to read the bill, saying “$850 Billion, 1588 pages, and counting… somebody needs to read it!” Armey later conceded that he never read the bill himself. But this wasn’t entirely a failure for Armey — while the bill became law and saved or created hundreds of thousands of jobs, he was able to make money as a lobbyist helping corporate clients seeking stimulus funds.

5. FreedomWorks unsuccessfully tried to protect the right of insurance companies to discriminate against patients based on preexisting conditions. FreedomWorks strongly opposed Obamacare and continues to call the law’s individual mandate unconstitutional even after the Supreme Court rejected that claim. But more surprising was Armey’s argument against the provisions in the bill banning discrimination by insurers against people with pre-existing medical conditions. In a 2009 interview, he said that if people have “diabetes because they eat like a pig,” the government should not force companies to insure them. The wildly popular pre-existing conditions ban is one of the few pieces of Obamacare that even House Republican Leader Eric Cantor (VA) wants to keep.

Explaining his departure, Armey told the AP his “differences with FreedomWorks are a matter of principle.”

Election

The Six Worst SuperPAC Congressional Race Investments

Super PACs and other outside groups poured more than $1 billion into the 2012 elections, according to the Center for Public Integrity. But not all of that money proved to be wisely spent.

Here are six of the worst investments right-wing groups made:

– $29,836,729 in the Virginia Senate race (lost by 4.8 points): Karl Rove’s Crossroads GPS and American Crossroads ($11,287,908 combined), the U.S. Chamber of Commerce ($4,494,618), and Independence Virginia PAC ($4,921,410) majorly backed former Sen. George Allen (R-VA) in his race against former Gov. Tim Kaine (D). Independence Virginia PAC, formed especially to elect Allen, received at least $1.5 million in contributions from billionaire casino mogul Sheldon Adelson. Allen lost the same seat six years ago after his infamous bullying of an Indian-American campaign tracker who he called “macaca.” This time around, he spent much of the campaign complaining about the national debt he helped run up in his first term and advocating for pro-polluter policies to benefit the companies he worked for as an energy consultant. As President Obama won Ohio by 3 points, Kaine beat Allen by a 4.8 point spread (52.4 to 47.6).

– $22,143,479 in the Ohio Senate race (lost by 5.2 points): Karl Rove’s Crossroads GPS ($6,363,714), the U.S. Chamber of Commerce ($4,392,434), former Rep. Dick Armey’s FreedomWorks for America ($2,246,409), and the controversial Government Integrity Fund ($1,300,000) were among the biggest investors in support of Ohio Treasurer Josh Mandel (R) in his challenge to Sen. Sherrod Brown (D). Mandel refused to tell voters his position on the automobile bailout that saved thousands of Ohio jobs and advocated for fracking in National Forests. As President Obama won Ohio by less than 2 points, Mandel apparently lost 50.3 to 45.1.

– $15,316,062 in the Florida Senate race (lost by 12.8 points): Karl Rove’s American Crossroads ($4,022,607), former Rep. Dick Armey’s FreedomWorks for America ($2,883,893), and the U.S. Chamber of Commerce ($3,846,303) all invested millions in support of Rep. Connie Mack IV (R-FL) in his challenge to Sen. Bill Nelson (D). Though the seat was previously held by Mack’s father, former Sen. Connie Mack III (R), the younger Mack’s campaign was forced to contend with headlines about his history of bar fights and was mocked as the “Charlie Sheen of Florida politics.” Mack apparently lost 55.1 to 42.3.

– $5,879,939 in the Illinois 8th District race (lost by 9.4 points): Former Rep. Dick Armey’s FreedomWorks for America ($2,164,046) and Now or Never PAC ($2,789,614) spent big to try to re-elect controversial Tea Party freshman Rep. Joe Walsh (R-IL). A leading opponent of raising the debt ceiling, Walsh generated controversy when he said President Obama only won because he is “a black man who was articulate,” yelled at his constituents at a local bar, and he belittled his opponent’s war record and injuries. Though Walsh claimed she was not a “true hero,” Tammy Duckworth, a double amputee who lost both her legs in Iraq when insurgents hit her helicopter with an RPG in 2004, easily beat him Tuesday. Walsh apparently lost 51.5 to 42.9.

– $4,177,208 in the Illinois 12th District race (lost by 8.6 points): Grover Norquist’s Americans for Tax Reform ($472,053), Karl Rove’s Crossroads GPS ($586,103), and the YG Action Fund and YG Network ($1,184,259 combined) all spent heavily in support of candidate Jason Plummer (R). Plummer, whose painful interview as a 2010 Lieutenant Governor candidate went viral, lost an open seat race to former Illinois National Guard Adjutant General Bill Enyart (D). Plummer apparently lost 51.5 to 42.9.

– $918,789 in the New Jersey 9th District race (lost by more than 48 points): Patriot Prosperity PAC made a massive investment in support of Rabbi Shmuel “Shmuley” Boteach (R) — the host of TLC’s Shalom in the Home — in his challenge to Rep. Bill Pascrell (D). The super PAC was funded almost entirely by $1 million in contributions from billionaire casino mogul Sheldon Adelson and his wife Miriam. Pascrell’s lone outside support came in the form of a $10 expenditure by the Sierra Club. Even with this massive 91,878-to-1 advantage on outside spending, Boteach lost in a landslide: he apparently lost 73.6 to 25.4 percent.

NEWS FLASH

Despite Nearly $1M FreedomWorks Smear Campaign, Hatch Wins Primary In Landslide | FreedomWorks for America, the super PAC for former Rep. Dick Armey’s (R-TX) FreedomWorks USA, invested more than $942,000 on independent expenditures aimed at defeating Utah Sen. Orrin Hatch (R) and instead nominating former state senator Dan Liljenquist for his seat. In Tuesday’s Utah Republican primary, Hatch won renomination, winning by a two-to-one landslide. The party backed Hatch for a seventh term, despite FreedomWorks for America’s attack ads smearing Hatch for his votes for the same debt limit increases that Armey himself had supported.

Election

IN Sen. Candidate Mourdock Fueled With Contributions From Oil & Gas Industry, Investors, And ‘Slumlord’

Richard Mourdock and Dick Lugar

Richard Mourdock and Dick Lugar (AP Photo/Darron Cummings, Pool)

Federal election law requires candidates to disclose not just the names and addresses of all donors contributing more than $200 to a candidate, but also (where possible) the donor’s employer and occupation. Of the more than 750 donations received by Richard Mourdock’s primary campaign for Indiana Senate to date, one stands out. Earl Pendleton Holt, whose three reported contributions to Mourdock total $1,000, identifies himself as a self-employed “slumlord.”

Holt’s candor — be it serious or self-deprecating — is refreshing. Indeed, he has listed the same occupation on contributions this cycle to Senate hopeful Ted Cruz (R-TX), Congressional hopeful and former Rep. Charles Djou (R-HI), and unsuccessful Presidential hopeful Rep. Michele Bachmann (R-MN). But the interests of scores of other donors to Mourdock’s campaign — and its “independent” supporters — may be less obvious.

Tuesday’s closely watched Indiana Senate Republican primary will not just determine whether six-term Sen. Dick Lugar or state Treasurer Mourdock will face Rep. Joe Donnelly (D) this November. It will also mean the end of a $4.4 million independent expenditure war between a wide array of Super PACs and 501(c)(4)s — the largest amount of any non-presidential race so far this cycle. Though Lugar’s campaign, at of the last reporting period, had outspent Mourdock’s $6.6 million to $2 million, Murdock’s haul fundraising is impressive for a primary challenger and the gap has been partially made up by the $2.6 million to $1.8 million advantage he’s enjoyed in outside group spending.

Among the biggest forces backing Mourdock:

  • The Club for Growth — led by former Rep. Chris Chocola (R-IN), the Club’s 501(c)(4), traditional PAC, and its Club for Growth Action Super PAC have spent at least $1.6 million on ads backing Mourdock and blasting Lugar. The group calls Lugar a “R.I.N.O.” (Republican In Name Only) despite his 63 percent lifetime record of voting with the group’s anti-government agenda.
  • FreedomWorks for America — former Rep. Dick Armey’s (R-TX) “astroturf” group has done mailings and run ads saying Lugar has “lost touch with Indiana values,” spending over $545,000.
  • Gun rights groups — The National Rifle Association has spent more than $322,000 on independent expenditures, criticizing Lugar’s votes to confirm President Obama’s Supreme Court appointments. A trio of pro-gun political action committees have donated about $10,000 to Mourdock’s campaign.
  • The financial sector — although Lugar voted against the Dodd-Frank Wall Street Reform bill, political action committees for banks and related interests contributed over $17,500 to Moudorck’s campaign and individuals listed as working in the industry kicked in another $35,000-plus.
  • Wealthy investors — About $20,000 of Mourdock’s donations came from wealthy investors and investment management executives.
  • Big polluters — Mourock, himself a former coal company executive, got $5,000 from Murray Energy’s PAC (representing the nation’s largest privately-owned coal company) and more than $18,000 in individual contributions from employees and executives at Murray and other coal, oil, and gas companies.

With one of the key pro-Lugar groups pulling its ads over the weekend, it is quite possible that the man tied with Sen. Orrin Hatch (R-UT) for the longest tenure of any current Senate Republican may see his political career ended by the man backed by those groups — and a self-described “slumlord.”

Election

FreedomWorks Backs Tea Party Republican Who Wants To Eliminate Key Security Programs

House Candidate Evan Feinberg (R-PA)

House Candidate Evan Feinberg (R-PA)

Evan Feinberg, a 28-year-old former aide to Sens. Tom Coburn (R-OK) and Rand Paul (R-KY), is challenging Rep. Tim Murphy (R-PA) in the April 24 Republican primary. Although Murphy is a fifth-term incumbent, Feinberg has received significant support from Tea Party groups and the far-right wing on the Republican Party.

Yesterday, former Rep. Dick Armey’s (R-TX) FreedomWorks for America Super PAC reported that it has spent $26,500 on a media buy in support of Feinberg. The group has endorsed him, calling him a “strong supporter of a smaller, limited, and more fiscally responsible government,” and labeling the occasionally moderate incumbent as “big government Republican Tim Murphy.”

But an examination of Feinberg’s 23-page fiscal proposal, “Turning the Lights Back On: Restoring the Shining City,” reveals a candidate who not only wants to eliminate the Departments of Energy and Education, but also wants to do away with some of the most important federal programs to our nation’s security.

Some of his controversial policies show how the anti-government Tea Party agenda’s goes:

  • Complete elimination of the Strategic Peteroleum Reserve. As part of his plan to eliminate the entire Department of Energy, he proposes we eliminate the emergency supply of crude oil stocked by the nation to protect our energy supply in a time of crisis. Without this supply, foreign countries could exert unimaginable influence over our by threatening to disrupt the supply of crude oil — or actually doing so.
  • Elimination of several key parts of the Department of Homeland Security. Among the things he wants to eliminate: the Emergency Operation Centers, the Office of Bombing Prevention, and the Domestic Nuclear Detection Office.
  • Elimination of federal anti-gang efforts from the Department of Justice. He proposes to eliminate National Gang Intelligence Center and the National Gang Targeting, Enforcement, and Coordination Center.
  • Feinberg’s more than $9 trillion in proposed cuts, over ten years, would not only decimate the federal government as we know it, they would destroy vital programs needed to keep America safe and secure.

    Economy

    Dick Armey’s FreedomWorks Super PAC Blasts Orrin Hatch For Debt Limit Increases Armey Voted For

    FreedomWorks for America's anti-Hatch publication

    FreedomWorks for America's anti-Hatch publication

    FreedomWorks for America, the super PAC for former Rep. Dick Armey’s (R-TX) FreedomWorks USA, just released new radio and TV ads urging the defeat of longtime Sen. Orrin Hatch (R-UT). The spots are the latest in a series of attacks by the group against the six-term senator, who is facing a challenge from the right in this year’s renomination process.

    The new commercials note that Hatch “voted 16 times” to raise the debt limit, allowing for $7.5 trillion of the national debt. Both ads say that it’s “time to retire” the man who “wracked up half of our nation’s debt.” Watch the spots:

    The group helpfully documents these 16 votes in a report available on its website. The list includes 16 votes from between February 1981 and September 2007.

    Prior to joining FreedomWorks in 2003, chairman Dick Armey served nine terms in Congress. Six of those debt-limit votes took place between the time Armey was elected to the House in 1984 and his retirement at the beginning of 2003. Armey voted for at least five of those six:

  • $179.9 billion in December 1985 (House roll call #454, 99th Congress)
  • $448 billion in September 1987 (House roll call #330, 100th Congress)
  • $600 billion in March 1996 (House roll call #102, 104th Congress)
  • $450 billion in July 1997 (House roll call #241, 105th Congress)
  • $450 billion in June 2002 (House roll call #279, 107th Congress)
  • Before the 2002 debt limit increase (which passed by a 215 to 214 margin — making Armey the deciding vote, arguably), Armey gave an impassioned floor speech urging colleagues to “do what is good for America” and back the bill.

    And like Hatch, Armey helped run up the debt that necessitated those increases. In 2001, Armey helped push through a $1.35-trillion tax cut and in 2010, he urged Congress to renew this and other Bush-era tax cuts. He even argued that the 2001 tax cut wasn’t big enough. Hatch also voted for both the original tax cuts and the 2010 extension.

    Put another way, FreedomWorks for America has invested about $500,000 into attacking Hatch for having a record that is not very different from Armey’s own.

    Politics

    The ‘Legislative Wall’: Dick Armey’s Top Five Tea Party Republican Candidates

    Former House Republican Leader Dick Armey

    Former House Republican Leader Dick Armey (R-TX)

    As most independent groups focus on the presidential nomination contest, FreedomWorks for America is focused on electing far-right Republicans to the U.S. Senate. The independent-expenditure-only super PAC is part of the FreedomWorks astroturf network of former U.S. House Republican Leader Dick Armey (R-TX).

    Yesterday on CNN’s State of the Union, Armey said his groups aim to elect tea party-minded conservatives to Congress to force the White House on a far-right path. “We’ll build a legislative wall… We’ll either be walling a Republican president in, or walling a Democratic president out.”

    Here are the bricks they aim to put in their wall:

    A not-yet-determined Republican primary challenger to Utah Sen. Orrin Hatch (R) ($237,065 in independent expenditures to date). Hatch has veered sharply to the right since the 2010 defeat of Sen. Bob Bennett (R) by conservative activists and earned a 100 percent rating from the American Conservative Union for 2010. But FreedomWorks wants Hatch out of the senate too, given his past support for crazy things like the Departments of Education and Housing and Urban Development.

    Former Texas Texas Solicitor General Ted Cruz (R), a candidate for Sen. Kay Bailey Hutchison (R)’s open senate seat ($71,647 in independent expenditures to date). Cruz has offered an unconstitutional proposal for a backdoor method of state nullification of federal laws and the Affordable Care Act and co-authored a white paper advocating a radical reading of the Constitution that would lead to Medicaid and most federal education programs being declared unconstitutional.

    Indiana State Treasurer Richard Mourdock (R), who is challenging Sen. Dick Lugar (R) in a primary ($47,180 in pro-Mourdock independent expenditures to date and another $12,378 against Lugar). Critics say Mourdock wasted $2 million in state funds in his unsuccessful legal challenges to the 2009 Chrysler reorganization and federal bailout. And in a September 12, 2009 speech to the FreedomWorks “Taxpayer March on Washington,” Mourdock warned that “through obvious, brutal, criminal acts of tyranny or through subtle, creeping
    incremental-ism, governments corrupt the ideal of individual freedom into statism, economic slavery, and governmental dependency, and dependency is the opposite of liberty.”

    Nebraska State Treasurer Don Stenberg (R), a former state attorney general and candidate for Sen. Ben Nelson (D)’s open senate seat ($33,230 in independent expenditures to date). He has endorsed an extreme proposal to cripple our system of federal regulation by requiring that Congress approve every single major rule or regulation before it takes effect. In its endorsement, FreedomWorks for America said “Nebraskans described Stenberg to us as ‘tea party-minded before we had tea parties.’”

    Former Florida House Majority Leader Adam Hasner, a former senatorial candidate who recently dropped out of the race to defeat Sen. Bill Nelson (D) ($12,378 in independent expenditures to date). The outspoken conservative is now a candidate for U.S. House. He supports a national anti-union “right to work” law and a freeze on any new regulation that might have a “substantial economic impact on job creators.”

    If Armey and his allies succeed in electing these and other far-right conservatives to Congress, the legislative wall would continue to block progress.

    Politics

    99 Percenter Rebukes Corporate Fronts Like FreedomWorks, But Welcomes Regular Tea Party People

    Occupy Sacramento demonstrator

    This week, the 99 Percent Movement arrived in Sacramento as crowds gathered in Cesar Chavez Park. Dubbed OccupySacramento, the rally swelled to several hundred in a scene reminiscent of recent events from as far as Orlando, Boston, and Wichita.

    ThinkProgress spoke to several participants at the OccupySacramento rally. Mark Bradley, a local resident holding a sign condemning the Koch brothers and former Republican Majority Leader Dick Armey, explained that he joined the movement because of his concern about the influence of corporate money over government. He also invited rank-in-file Tea Party members to the OccupySacramento event, claiming that he’s already been in conversations with a few. Bradley, however, said “corporate shills” like Armey’s FreedomWorks are unwelcome:

    BRADLEY: With the Citizens United case that the Supreme Court approved, there’s now no limit on the amount of money that can be used for lobbying purposes and influencing elections. And we want, we the 99 Percent, are looking for our voice to be heard. Not just the voice of the one percent, but the ninety-nine percent. It’s people over money. [...] Charles and David Koch are representing their own interests. Dick Armey represents the interests of plenty of other large corporations. [...]

    BRADLEY: What I have advised my fellow protesters out here is to not shut the door on Tea Party members if they want to become involved in this. They can make common cause with us; we can make common cause with them. We’re talking about the actual grassroots Tea Party people, I’ve talked to several of them and I’ve blogged with some of them. They’re perfectly welcome. We don’t intend to be co-opted by any outside group, especially FreedomWorks or some corporate shill organization.

    Watch:

    Bradley is right about FreedomWorks being a front group that shills for corporate interests. The organization, run by longtime corporate lobbyist Dick Armey, generates quasi-grassroots events to promote big business priorities. For instance, a lobbying consortium that represents companies like Chevron, Shell Oil, BP and Consol Energy, organized “EnergyCitizen” rallies to kill clean energy reforms last year. According to reports, Armey’s group mobilized Tea Parties participation for the EnergyCitizen rallies. The astroturfing for the polluter has continued, with FreedomWorks recently generating Tea Party support for a bill that allows polluters to release more mercury, carcinogenic dioxins, and soot into the air. The same fossil fuel lobbying association involved in the EnergyCitizen rallies and the push to deregulate air pollutants has given FreedomWorks at least $130,000 in donations.

    The same dynamic happened with Bush’s push for privatizing Social Security. While Wall Street firms paid Armey’s corporate lobbying salary, Armey’s FreedomWorks group planted questions in town halls to support of the Bush plan. Even though polls show roughly half of Tea Partiers want the government to do more to crack down on outrageous banker bonuses, FreedomWorks expressed support for bailed out banks to use taxpayer money to for six and seven figure rewards atop their regular salary. Whether its whipping up Tea Party support for repealing the few financial reforms that made it passed the corporate-filibuster or allowing bankers to gamble with America’s retirement savings, FreedomWorks promotes the corporate interest over the public interest.

    Although FreedomWorks is now urging demonstrators to ignore the big banks, the group’s influence may be waning.

    Politics

    Bank Lobbyist-Run Front Group ‘FreedomWorks’ Tries To Trick Protesters Into Only Protesting Federal Reserve

    In a post titled “Wall Street Protesters Should Instead Focus on the Federal Reserve,” a staffer for the group FreedomWorks claims:

    The Occupy Wall Street website—which surely does not represent the views of all the protesters—has released a 13-point list of pro-government demands. OccupyWallSt.org demonstrates their economic illiteracy by demanding free college education for all, one trillion dollars in infrastructure and ecological spending. One little detail is missing: who is going to pay for all of this?

    FreedomWorks is a front group used by Wall Street lobbyists to concoct bank-friendly schemes. FreedomWorks is playing its usual role: masquerading as a grassroots group to confuse activists and help big corporations. Even the Wall Street Journal has mocked the organization for its astroturf campaigns, which often include “amateur-looking” websites to promote the lobbying interests of FreedomWork’s leaders. Here’s a short run-down of how FreedomWorks manipulates people to promote their Wall Street donors:

    FreedomWorks is run by super lobbyist Dick Armey. Armey left his lobbying firm after ThinkProgress first revealed his long history of orchestrating fake grassroots efforts on behalf of his corporate lobbying clients. Still, Armey has a history of influence-peddling as a registered lobbyist for the Royal Bank of Scotland, Citizens Bank, the Investment Company Institute, and many other banks. His longtime firm DLA Piper represented AIG, Lehman Brothers, and Merrill Lynch during the bank bailouts.

    FreedomWorks has pushed a myriad of bank-friendly policies to benefit Armey’s lobbying clients and other FreedomWorks board members. The biggest example would be FreedomWork’s central role in promoting President Bush’s attempt to privatize Social Security. In 2005, FreedomWorks literally paid people to attend rallies to support Bush’s event. The New York Times caught a FreedomWorks operative pretending to be a regular town hall citizen standing up to support Bush’s plan. In more recent history, FreedomWorks has instructed Tea Party members to oppose financial reforms designed to clean up corruption on Wall Street, regulate predatory bank practices, and limit risky behavior that has systemic implications for the economy.

    FreedomWorks is headed by a group of Wall Street investors and bank lobbyists: FreedomWorks board member C. Boyden Gray is a longtime DC lobbyist whose firm Grey and Shmitz represents the trade association for Goldman Sachs, AIG and JP Morgan — the U.S. Chamber of Commerce. Other board members include James Burnley, a corporate lobbyist for a firm that represents ING Bank, right-wing bank apologist Steve Forbes, as well as investors Frank Sands and Robert Lansing.

    The demand that protesters avoid big banks and instead picket the Federal Reserve is typical FreedomWorks misdirection. As Matt Yglesias notes, the Federal Reserve is not inherently the problem; the Federal Reserve not doing enough to promote fiscal and monetary stimulus to encourage jobs growth is the issue.

    Health

    Rubio Regurgitates FreedomWorks’ Medicare Memo, Claims Democrats Don’t Have A Plan To ‘Save’ The Program

    On Tuesday, the Huffington Post’s Amanda Terkel reported about a Medicare messaging memo distributed to freshman Republicans in Congress by FreedomWorks, the astroturf tea party group headed by Dick Armey. FreedomWorks urges members to “dispel the myth that if we leave Medicare alone it will stay the same. It won’t. By reforming them we are saving and strengthening these programs for the current and future generations.” “Communicate that Democrats do not have a plan of their own. Hold up a blank piece of paper as a powerful image of their do-nothing approach,” FreedomWorks advised.

    This morning during an appearance on Fox News, Sen. Marco Rubio (R-FL) followed the messaging points to a T, fear mongering about Medicare’s imminent demise and claiming that Democrats don’t have a plan to “save” the program:

    RUBIO: And unfortunately, Washington is full of people that have no alternative plan. If you’re sincere about saving Medicare, don’t just go around criticizing the Ryan plan, offer your own plan. And right now, nobody in Washington has a plan — it’s the only plan out there that saves Medicare, that doesn’t hurt seniors currently on the plan, and that doesn’t hurt economic growth by raising taxes. If Democrats have a better way to do it, if President Obama has a better way to do it, they should offer it. What are they waiting for?

    Watch it:

    Stories about Medicare’s impending demise have been greatly exaggerated. As HealthBeat’s Maggie Mahar points out, according to the trustees, by 2024 — the so-called doomsday conservatives are now quoting — the Hospital Insurance (HI) won’t be exhausted. “It will be ‘insolvent’ which simply means that dedicated revenues will not be sufficient to pay all of its bills. But in 2024, as the Trustees make clear, the hospital fund will still be able to meet ’90 percent’ of its commitments. In the years that follow, the Trustees project that the shortfall will slowly widen and then contract, so that in 2085, it will be able to meet 88 percent of its obligations.” As Mahar notes, pundits have long warned of Medicare’s demise:

    JULY 2, 1969: “The Medicare hospital trust fund faces bankruptcy by 1976 and taxes must either be raised or benefits reduced the senate finance committee was told today.” [Chicago Tribune]

    APRIL 1, 1986: “The Medicare hospital insurance program faces bankruptcy by 1996, two years earlier than projected last year.” [Washington Post]

    JANUARY 20, 1985: In the last few years, when it appeared that the Medicare trust fund would run out of money in 1987-89… But the need seemed less urgent after the Congressional Budget Office issued new estimates last September indicating that the Medicare trust fund would not go bankrupt until 1994. [New York Times]

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