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View Full Version : Cato vs Koch Bros. - Libertarian Hostile Takeover


Blart
03-10-2012, 02:47 AM
For the uninformed, The Cato Institute (http://en.wikipedia.org/wiki/Cato_Institute) is Libertarian, and also one of the largest, best funded, and most-cited think tanks in the USA.

The Koch Brothers control 50% of Cato, but they want more. They want it so bad they're suing a widow for her dead husband's stake (http://wonkette.com/465419/koch-brothers-sue-their-own-crown-jewel-think-tank) in the organization.

According to the Cato people, the Kochs are seeking to,
“transform Cato into an intellectual ammo-shop for American for Prosperity and other allied (presumably, Koch-controlled) organizations.”

The result? All the libertarians are resigning from Cato.

For the past few years, the Kochs have been quietly stacking the Cato board with conservative wingnuts (anti-gay/pro-war types, fox news junkies, and other Koch suckers) to replace the honest libertarians they're dismissing. Here's a new Koch appointed senior fellow at Cato, for example:

John Hinderaker of the Powerline blog, whose firm counts Koch Industries as a client. Hinderaker has written, “It must be very strange to be President Bush. A man of extraordinary vision and brilliance approaching to genius, he can’t get anyone to notice. He is like a great painter or musician who is ahead of his time, and who unveils one masterpiece after another to a reception that, when not bored, is hostile.” Hinderaker supports the Patriot Act and the Iraq War and calls himself a neocon.

Here's a rant from a Senior Fellow at Cato threatening to resign,
Koch: We seek no ‘takeover,’ and this is not a hostile action.

This is at odds with both the words and deeds of the Koch brothers of late. Last year, they used their shares to place two of their operatives – Kevin Gentry and Nancy Pfotenhauer – on our board against the wishes of every single board member save for David Koch. Last Thursday, they used their shares to force another four new board members on us (the most that their shares would allow at any given meeting); Charles Koch, Ted Olson (hired council for Koch Industries), Preston Marshall (the largest shareholder of Koch Industries save for Charles and David), and Andrew Napolitano (a frequent speaker at Koch-sponsored events). Those four – who had not previously been involved with Cato either financially or organizationally – were likewise opposed by every member of our board save for Gentry, Pfotenhauer, and David Koch. To make room for these Koch operatives, we were forced to remove four long-time, active board members, two of whom were our biggest donors. At this moment, the Kochs now control seven of our 16 board seats, two short of outright control.

Why are they forcing out Cato board members, all strong, principled libertarians who have been heavily involved with Cato – financially and organizationally – for years? The answer was given in early November of last year when David Koch, Richard Fink (he of many Koch hats), and Kevin Gentry met with Cato board chairman Bob Levy. They told Bob that they intended to use their board majority to remove Ed Crane from Cato and transform our Institute into an intellectual ammo-shop for American for Prosperity and other allied (presumably, Koch-controlled) organizations. That statement of intent is certainly consistent with what we’ve been hearing from both Kevin Gentry and Nancy Pfotenauer. They’ve frequently complained during their short time on our board that Cato wasn’t doing enough to defeat President Obama in November and that we weren’t working closely enough with grass roots activists like those at AFP.The rest of the Cato fellow's rant, which further describes the nutballs the Kochs are hiring:
http://volokh.com/2012/03/03/koch-v-cato-a-view-from-cato/

This all really tickles me. It's fitting that Libertarian's intellectual stronghold is being destroyed by the billionaires they helped create.

Anyway, everyone is blogging about it:

http://www.slate.com/articles/news_and_politics/politics/2012/03/the_kochs_brothers_are_trying_to_seize_control_of_ the_libertarian_think_tank_cato_.single.html

http://reason.com/blog/2012/03/07/more-details-on-the-increasinly-bitter-k

http://www.washingtonpost.com/blogs/ezra-klein/post/why-would-the-koch-brothers-want-to-refine-cato-institute/2012/03/09/gIQAxKWe1R_blog.html

That One Guy
03-10-2012, 07:43 AM
That's the price they pay for enjoying all that money they got for selling half.

Now they should pool some funds and start a new one.

mosca
03-10-2012, 08:05 AM
No surprises here - seeing as the Cato Institute was originally founded by one of the Koch Bros. and actually was named the "Charles Koch Foundation" for its first two years of existence.

W*GS
03-10-2012, 08:13 AM
<a href="http://noahpinionblog.blogspot.com/2012/03/libertarians-only-now-at-end-do-you.html">Libertarians: Only now, at the end, do you understand...</a>

Blart
03-11-2012, 09:52 PM
No surprises here - seeing as the Cato Institute was originally founded by one of the Koch Bros. and actually was named the "Charles Koch Foundation" for its first two years of existence.

But what's left? What think-tanks do Libertarians still hold that aren't being poisoned by the Kochs? Certainly none with the funding or mainstream presence as Cato.

Cato would publish damaging statistics about the policies of Bush, McCain, Kerry, and Obama. They spared no one. Until recently, that is.

Charles Koch, by the way, left the board after 2 years because the academic libertarians were a little too zany (anti-war! pro-marijuana!) for his taste.

<a href="http://noahpinionblog.blogspot.com/2012/03/libertarians-only-now-at-end-do-you.html">Libertarians: Only now, at the end, do you understand...</a>


Fantastic link. And it has great links to libertarians blogs as well.

What does Cato say that no other think tank says? Militarism is… the worst foreign policy for a free market. The War on Drugs is not only unnecessary in a free market, but ending it would be a straightforward implementation of free market principles. And the freedom to buy and sell is a sick joke without robust civil liberties for all. Conversely, most people want their civil liberties partly so that they can earn a living and enjoy economic opportunities. That is what Cato is about. That is also apparently why the Kochs are trying to destroy it.

I guess it is kind of sad. Look at all the sad Libertarians,

http://cafehayek.com/2012/03/cato-and-the-kochs.html

http://charlesrowley.wordpress.com/2012/03/05/koch-versus-cato-unravelling-the-riddle/

http://www.theamericanconservative.com/dreher/2012/03/05/cato-from-libertarian-to-republican/?utm_source=rss&utm_medium=rss&utm_campaign=cato-from-libertarian-to-republican

http://andrewsullivan.thedailybeast.com/2012/03/strange-things-at-the-cato-institute.html

http://www.jacobgrier.com/blog/archives/5287.html


http://ordinary-gentlemen.com/blog/2012/03/04/koch-v-cato-some-further-thoughts/
I’ve worked at Cato for five and a half years. In that time I have never seen a single decision made in consideration of the Koch brothers’ wishes. Cato has always appeared to be run by two people: its president, Ed Crane, and its executive vice president, David Boaz. It was like that when I was hired, and it’s like that now.

http://www.chicagotribune.com/news/opinion/chapman/chi-the-battle-for-the-cato-institute-20120302,0,2666070.story

http://blanksslate.blogspot.com/2012/03/on-kochcato-fight.html
Most readers know that I am a Cato employee and have been since August 2007. Just prior to that, I was a Charles G. Koch Summer Fellow at reason magazine. As you have probably heard, the Koch brothers are attempting to gain control of the Cato Institute in order to turn the world's leading libertarian think tank into a right wing hack factory. This schism is sort of like a falling out between your dad and a rich uncle that paid for your senior trip.

http://www.theamericanconservative.com/blog/2012/03/02/the-cato-putsch/


"Academic" Lolbertarians rely heavily on funding from large corporations since they're practically shunned from universities (with some exceptions.) It's a movement that was born in the era of conservative think tanks (1970's) and stayed with think tanks. To lose Cato to the Kochs would be devastating, perhaps enough to end the party. But perhaps the Koch's have that right, since they practically created the movement.