Are the Koch’s and Bill Gates really that different? Oligopoly, the ultimate game of power and control.

I’m sure many people would contest that comparing the Koch brothers who deal in fossils fuels with Bill Gates who provides vaccines in Africa a bit of a stretch. However, I’m going to suggest that they have much more in common than we’d like to admit. If we observe their methods and ultimately what is achieved, there are some striking similarities. Sure, conservatives like the DeVos’s and the Koch’s morally conduct their affairs differently to Zuckerberg or Gates, but are they really so distinct? You could sensibly propose that Bill Gates’s life is more virtuous than the Koch’s. This indeed is a compelling argument. But is it true? When we consider the two groups; right wing neoliberal oligarchs and philanthrocapitalists (also oligarchs), apart from obscene amounts of money, both sects share their unquestionable desire for power and control.

I will offer that power and control are intrinsically linked. Some semblance of control over your own group, rival factions or even the general populace is required to gain power. That said, to control certainly on an external level, requires some exertion of power, either through elections, coercion or even physical force. The extent and methods required depends on your resources and who you intend to control to obtain power or conversely who you will overpower to wrestle control. At this stage it would be sensible to lay out what these seemingly opposing tribes, both morally and politically have in common and of course how they differ. To finish I will argue that the overall goals of oligarchs regardless of their flavour are strikingly similar.

By the very existence of their extreme wealth, I think it’s safe to assume that all oligarch’s share a strong, deep conviction towards the ‘free market’. Each side fully subscribes to the idea of utilising their wealth to shape the world, often at the expense of democratic processes. Unsurprisingly, many would argue that the Koch’s and Bill Gates share nothing in common, concluding that one wants to continue extracting fossil fuels at the expense of the planet, while the other tries to save lives.

But, if the outcome is all that matters rather than the process, surely we must ask ourselves hard questions regarding the importance of democracy. This dilemma arises due to billionaires not being democratically elected and yet able to use considerable influence to effect major changes, good, bad or indifferent. It has been offered by philosophers and social psychologists alike that huge wealth generates social distance or “ethical independence”. Put simply the rich have no need to cooperate or partake in democracy to get what they require.

Neoliberal leaders often fit into the more recognisable guise of bombastic, power hungry CEO’s, trampling on all that resembles competition. There’s no doubt that these individuals exist, see Jeff Bezos for details. Worse still, the system justifies their behaviour by spinning yarns of ‘homo economicus’, ‘trickle down’ economics and picturing them as ‘job creators’. However, in our midst are those who present as an arguably more agreeable face of power and control. They appear on Ted Talks, are promoted by the mainstream media and portrayed as modern day saviours. These are the neoliberal ‘left’ or philanthrocapitalists and their influence on society is as pervasive as the Koch brothers. Carefully crafted characters such as Gates and Zuckerberg are considered to be oracles of the 21st century. They mould our world from a position of exclusivity that is only experienced by a handful of people and yet we so easily defer to their perceived wisdom.

FAvH
Friedrich Hayek

Historically speaking, the stage that allowed these actors on both sides to perform so freely is neoliberalism. This was first conceived by among others, Friedrich Hayek and Ludwig von Mises in the late 1930’s, but failed to gain much traction in the west. This all changed when Keynesian economics started to falter in the mid 1970’s. When the time arose, the objective for Thatcher (UK), Reagan (US) and Roger Douglas in New Zealand was to change the moral and political record. A collective society based on human capital, full employment and relative equality was abruptly abandoned, for competition, individualism and the idea that wealth is virtuous. Out of the rubble of a dismantled social democratic society, rose a small number of individuals who were uniquely positioned to capitalise on increased privatisation, laxed trade regulations and an ever financialised world.

This accumulation of capital is rarely reinvested in society and the people within it, but used to create a system that accrues ever more wealth, power and influence. The elite are in a position to apply pressure at the governmental level for maximum effect, with some tactics being cruder than others. Neoliberalism provides the means that ensures money is sucked out from underneath the mattresses of the poor to the heavily guarded vaults of the rich. These mechanisms are the ‘nucleotides’ of the neoliberal DNA; international trade agreements, decreased market regulations, low taxation, privatisation and reduced government spending are just a few examples.

For decades this ideology of neoliberalism has been supported by the likes of International Monetary Fund and the World Bank. These institutions have been instrumental in forcing desperate sovereign nations to adopt strict austerity measures to reduce debt, by offering an all strings attached bailout package, as witnessed in Greece. In effect these loans had nothing to do with Greece’s economic problem. These were purely constructed to pay off their debts to French and German banks. It has since been recorded less than 10% of the cash borrowed was actually used to reform the economy and to help the Greek people.

As if the world’s oligarchs don’t have enough systemic advantages, many invest heavily in ‘think tanks’ and varying institutions solely to persuade government’s to tip the scales further in their favour. One such right wing funding source are the previously mentioned Koch brothers. Charles and David Koch are co-owners of Koch Industries the largest privately owned energy company in the US. The Koch’s favourite past-time is trying to discredit climate change science and policy solutions. In this arena they have spent a massive $127 million funding 92 organisations between 1997 and 2017. The Koch’s claim to be Libertarians, supporting; drastically lower corporate and personal taxes, minimal public services and a massive reduction in regulations.

Koch brothers

Their undeniable self interest doesn’t stop at muddying the waters regarding climate change. The Koch’s fund a group called the American Legislative Exchange Council (ALEC), aimed at making it more difficult to prosecute corporations for violations of environmental and financial law. It’s important to realise that the Koch’s do not do all this in isolation, rallying 100’s of wealthy conservative families in an effort to preserve and promote their privileged way of life. Groups such as Americans for Prosperity are a huge and rich organisation, designed to battle against the Democrats, supporting ultra conservative Republicans, espousing ideological policies, while blocking anything in Congress that may oppose the Koch’s best interests.

They are the masters of organising ‘astroturf’ groups. These are alleged grassroot citizen organisations or coalitions. Groups such as ‘Americans for Prosperity’, the ‘Heartland Institute’ and the ’60 plus association’ support entities such as the Competitive Enterprise Institute and their fight for free speech. Which of course is nothing of the sort, it is a mere cover up for anti-science rhetoric, supported by 47 groups all affiliated to the Koch’s. Further to this, the Koch’s spend millions each election cycle and helped fund the Tea Party, spending upwards of $45 million. The Koch’s also donate millions each year to candidates that suit their ideology, this includes past presidential candidate Mitt Romney. Interestingly, despite spending roughly $900 million during the 2016 election cycle, the Koch’s have already declared that they will not be funding Trump next time around.

In contrast to the Brothers Grim, power and control can also be acquired through more insidious mechanisms such as philanthrocapitalism. Many of these characters involved in this practice are labelled by the right wing media as lefties. This theory seriously suggests that these rich, well connected, privileged people who attended top universities, while using capitalism to rake in huge profits support politics of the left. Just to clarify the Democrats and the left are not synonymous with each other. Politics in the US like much of the west provides nothing more than varying shades of neoliberalism. For the CEO class such as Mark Zuckerberg, Bill Gates, Warren Buffett and Richard Branson, the question is, how can philanthropy be used to reinforce a flawed political and economic system such as capitalism.

Supposedly charitable acts, as seen by Bill Gates are conceptualised using market based solutions, looking at costs and benefits. It’s fair to say that philanthrocapitalism is no more than the social justice arm of a destructive global free market. Gates has certainly taken advantage of his huge giving-power to influence global health policies, including the World Health Organisation, where he is their top donor. The Gates Foundation has spent over $1 billion on policy and advocacy, even investing in training programs for journalists at major media organisations. Further to this, the foundation has heavily funded research which has later gone on to be published in scientific journals. These types of activities must be seen as a threat to global democratic decision making. The Gates Foundation also sits on the board of H8, a self appointed group of 8 health related organisations, who have been instrumental in setting up the health agenda for the G8, a group of self important, self selected nations.

Bill Gates
Bill Gates

Both the pretend left and right wing oligarchs, share another mission, that is to pay as little tax as humanly possible. The Koch’s do this rather bluntly by using ‘astroturf’ groups and lobbyists to coerce the government into lowering tax levels and provide tax breaks. The ‘smarmy’ army to ‘their’ left in contrast use charm offensives. In 2015 Mark Zuckerberg and his wife Priscilla Chan, to much fanfare, proclaimed that they would donate 99% of their shares in Facebook (valued at the time at $45 billion) to the “mission” of “advancing human potential and promoting equality”. Which all sounds very nice, I’m sure you’ll agree. Here’s the catch, Zuckerberg did not set up a charitable foundation which would have automatically held a non-profit status. Instead of this Zuckerberg established limited liability company (LLC). The mainstream media unsurprisingly failed to mention this, instead they continued to gush over this blockbusting moment of perceived altruism.

Unlike a charitable foundation a LLC  allows someone to make investments in a for-profit company, while also permitting the owner to make political donations. Within this framework Zuckerberg is free to lobby for changes within the law and can do whatever he desires with his money. You may ask, “what’s the problem, it’s his money’? Indeed, but is this really the actions of a charity? Zuckerberg can also cunningly use this method to avoid tax. This can be achieved by donating the appreciated shares to charity, which would generate a deduction at fair market value of the stock without triggering any tax. Clever huh?

In a nutshell this means Zuckerberg has made a ridiculous amount of money, for which he is unlikely ever to pay tax on. As a society, do we really want people like Mark Zuckerberg or Bill Gates deciding the direction of our societal needs? All governments have flaws, but at least there are checks and balances deciding where the money is required, with more than one person making the call. These oligarchs could have quite easily aided society by paying tax just like everybody else, but of course this does not afford them the power or control that they feel they deserve.

So, what have we learnt apart from, don’t trust rich people? Well, we know billionaires span the entire (neoliberal) political spectrum from; George Soros to Sheldon Adelson, from the Koch’s to Michael Bloomberg and from Tom Steyer to Robert Mercer. Many of whom remain hidden like puppeteers, but some use public recognition to their advantage, such as Gates and Zuckerberg. We really shouldn’t be remotely surprised that billionaires manipulate governments and society to benefit themselves in some way. I am aware that much of this article is US centric, however, this is not something that is unique to the States. Similar patterns of oligarchic control can be witnessed all over the world, but particularly within the ‘anglosphere’.

All acceptable politics and political parties within the west are shoehorned into a narrow corridor of neoliberalism, with only minor differences separating them. Parties and the politicians from which they belong are criticised and held to intense scrutiny, but rarely is this kind of ferocious attention applied to the primary problem. This being a political/economic system that is thoroughly in chaos, held together by outdated concepts, some questionable politicians and billionaires who desperately fight to maintain the status quo. It’s the same system that assures the elite of ever increasing bank balances, thus securing more power and control over our ailing planet

Lets be honest, this is not a system for you, me or billions of others like us. In many ways capitalism is no different to feudalism, both possess hierarchies, each system serves the chosen few and neither has any interest in the rest of society. I suspect it’s about time we constructed something anew, outside of this tired and repetitive dynamic. How about we construct a society that works for everybody, oh and we need to do this quickly because the world’s a bit screwed up. No pressure!                                                                                                                                                                                                    

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