Category Archives: Government Ethics

The NEA Con-Call; There’s Not Much “There” There

On August 10th, a conference call occurred, including folks from the White House, the National Endowment for the Arts, and the arts community. The purpose of the call was to “rally the troops” of artists who had spent time working for the Obama campaign, enlisting their help to push national service initiatives. The revelation of this call was the follow-up by Andrew Breitbart to the ACORN scandal, and as a fellow contributor to his “Big Hollywood” site put it, was pretty damning.

Monday, we have the NEA under the microscope. The Obama Administration was caught red-handed (is that “racist”?) funneling tax payer dollars into an official propaganda department. I can’t wait to see what the excuse will be this time.

Yeah, that’s pretty damning — if true. If there are taxpayer dollars being funneled into the arts community as a walking campaign for Barack Obama, there’s definitely something to be concerned about.

Thankfully, though, this is the internet age. Some anti-government crank in California like me can look at the transcript of the call (available here, courtesy of the very same Andrew Breitbart site), and piece together exactly what happened and what this means.

Because this is going to be a long post, let me set my thesis up front. I don’t like this call. I don’t like what it means. I view what occurred on this call as more properly being the domain of the DNC than the NEA or White House. But I don’t think any laws were broken, I don’t think this is really a walking Barack Obama campaign ad, and what was discussed on the call is not outside the mandate of the NEA.

So let’s look at the call:

Main Participants:
Mike Skolnic: Organizer of call. Independent filmmaker now Political Director for Russell Simmons, asked by United We Serve to arrange this call due to his extensive contacts within the art community.
Buffy Wicks: White House Office of Public Engagement (actual title not disclosed)
Nell Abernathy: Outreach Director for United We Serve
Yosi Sargent: Director of Communications, National Endowment For the Arts
Various artists: Mainly artists already engaged in Democratic activism, some who worked for Obama campaign.

Purpose of Call:
United We Serve is an initiative managed by the White House and the Corporation for National & Community Service, a federal agency formed in 1993 (as an outgrowth of existing agencies) to administer programs like SeniorCorps and AmeriCorps, and expanded in 2002 by George W. Bush to include USA Freedom Corps. United We Serve is an initiative looking to publicize and coordinate community and volunteer service through their Serve.gov web site. The conference call was intended to publicize this site and the United We Serve initiative to influential artists to help them further this in their communities. As such, the call was directed at furthering United We Serve primarily (although assuredly benefiting Barack Obama is a secondary benefit for the White House).

Potential Issues Raised by the Call:
There are several things that could be improper about this call, some of which I will accept and some of which I hope to dispel.

  • Using the National Endowment for the Arts, a funding arm for art and art education, in the furtherance of partisan goals of Barack Obama.
  • Similar to the above, the use of taxpayer funds for the same.
  • Direct influence of the White House Office of Public Engagement on the NEA.

So, again, we need to look at the transcript of the call to hash a lot of this out, because looking at the purpose of the call as I state it above compared to the potential issues raised by the call leaves a lot of room for subtlety and nuance. So if you didn’t click over already, I suggest you read the transcript itself. The advantage of the internet tends to be great access to primary sources, and you do well to make yourself familiar with them before forming a full opinion.

So let’s dispel a few things right up front.

Are taxpayer funds being used?
As far as I can tell, no. There was never a single mention that I could find in the transcript of offer or even discussion of the NEA providing grants or funds for these programs. It was rather one-sided, inasmuch the artists were pretty much told “you’ve shown previously that you care about X, here are some ways that YOU can help make X happen in your community and how Serve.gov will help you do so.”

Is this about partisan legislative efforts and Barack Obama’s agenda?
Again, no. The topic of the call was community service and volunteerism, and the furtherance of Serve.gov rather than legislation. A question was asked by one of the artists at the very end of the call regarding Organizing for America, and Nell Abernathy on the call very expressly stated that the two groups are different, unrelated, and that United We Serve has no intention of using the assistance of the artists for anything other than the furthering of community service and volunteerism. It was left by Nell along the lines of ‘the most I can do is tell you who to contact at OFA, but that’s a ball they need to run with.’

Alternatively, the language from Mike Skolnic (who, as he points out, is not employed by the government) was a bit more open. But I think it was clear that he was speaking not as a voice of United We Serve, the NEA, or the Office of Public Engagement when he made his statements in this manner.

Is the White House exerting partisan pressure on the NEA?
This, again, I don’t really see. It is clear that the NEA is signing up to help United We Serve, but the implications of that are far more interesting.

This is an excerpt (some portions cut to remove unnecessary language) from Yosi Sargent’s portion of the talk. It immediately suggested to me that the NEA was overreaching its mandate to further the arts and art education. The language here is arguably the most objectionable of the entire call (emphasis added):

This is what we fought for. We fought for a chance to be at the table and not only at the table but we’re setting the table. And now the official rule of National Endowment for the Arts, as director of communication and say, We here at the NEA are extremely proud to participate in the president’s United We Serve initiative.

This is a chance for us to partner with the White House and the corporation for national community service along the arts community in immediately affecting some change in our communities.

Really I want to emphasize, and I know that other people have brought it up already, but I want to just hearken back to it really quickly in that this is just the beginning. This is the first telephone call of a brand new conversation. We are just now learning how to really bring this community together to speak with the government. What that looks like legally, we’re still trying to figure out the laws of putting government Web sites on Facebook and the use of Twitter.

This is all being sorted out. We are participating in history as it’s being made. So bear with us as we learn the language so that we can speak to each other safely and we can really work together to move the needle and to get stuff done.

He is quite clearly saying that the NEA is excited to be joining in a partnership with United We Serve and the Corporation for National & Community Service. He is clearly saying that the NEA will be working not just to promote the arts, but to promote actual Federal government programs outside the arts.

Now, this seems to go beyond the NEA’s mandate as explained in their “About Us” page:

The National Endowment for the Arts is a public agency dedicated to supporting excellence in the arts, both new and established; bringing the arts to all Americans; and providing leadership in arts education. Established by Congress in 1965 as an independent agency of the federal government, the Endowment is the nation’s largest annual funder of the arts, bringing great art to all 50 states, including rural areas, inner cities, and military bases.

You see, nothing there says that they should be serving the government’s agenda. Their mandate, according to this very short blurb, is to promote the ARTS, not the government. So, on its face, it appears that the NEA will be going too far…

…but that doesn’t take into account the legislation forming the NEA (PDF), and what mission it was truly tasked with. From Title 20 U.S.C. § 954:

(o) Correlation and development of endowment programs with other Federal and non-Federal programs; expenditure of appropriations. The Chairperson shall correlate the programs of the National Endowment for the Arts insofar as practicable, with existing Federal programs and with those undertaken by other public agencies or private groups, and shall develop the programs of the Endowment with due regard to the contribution to the objectives of this Act which can be made by other Federal agencies under existing programs. The Chairperson may enter into interagency agreements to promote or assist with the arts-related activities of other Federal agencies, on a reimbursable or nonreimbursable basis, and may use funds authorized to be appropriated for the purposes of subsection (c) for the costs of such activities.

What does this mean? The Corporation for National & Community Service is a federal agency, and United We Serve is a portion of that agency that may need arts-related activities. Thus, the National Endowment of the Arts, per the actual founding legislation created by Congress, is well within its authority to use its power, through funding or without funding, to help United We Serve achieve its goals. The NEA is not overstepping its bounds here. Those bounds may be farther out than we realized, but there’s nothing I see that suggests they cannot be doing this.

Now, as a libertarian, I don’t expect myself or most conservatives to like what was discussed on this call. There are reasons to object, largely based on the appearance of impropriety and the fact that the government views these artists as vessels to promote its agenda. There’s a fundamental view of the relationship between the government and its citizens that I believe gets confused. This administration seems to see a path to self-actualization for all Americans through collectivism organized by government. But I don’t see this as anything different, new, or particularly “damning” knowing what we already know about this administration. This is certainly less of a “gotcha” than the ACORN tapes, in factual terms, but I suspect that if you listen to the Glenn Becks of the world, they’ll make a mountain out of a molehill.

Obama Repeals NAFTA

Okay, that’s probably a bit of an overstatement… But I don’t think that starting a trade war with the Americans who say “eh” and “aboot” Canadians is a really good idea. Via co-blogger Jason Pye at his personal blog:

Canada’s six NHL teams are scrambling to find alternative travel arrangements south of the border after the U.S. Department of Transportation banned Air Canada’s charter fleet from flying between U.S. cities.

In a furious exchange with the Obama administration over the mid-August ruling, Canada has launched its own investigation and will soon close its skies to U.S. sports team charters in retaliation, warns Transport Minister John Baird.

The sticking point is an eight-year-old exemption that had allowed sports and celebrity charters to make several pit stops in American cities. Under existing open skies agreements, regular Canadian airline flights can only visit one U.S. city before returning.

The ruling also side-swipes musicians and other artists on tour.

The matter was pushed by the U.S. Air Line Pilots Association. It had demanded an investigation of passenger lists on the NHL flights, which found a few examples of injured players, personal trainers and team owners boarding the charter south of the border and departing at another U.S. city in a technical violation of the agreement.

Emphasis added to point out — as Jason does — that this is more about appeasing a union than anything else. This isn’t about safety. This isn’t about the NHL or Canada. This is about protecting an American union from competition. And if economic inefficiency is the result, so be it. If trade retaliation is the result, so be it. Campaigns don’t finance themselves, people! Ya gotta take care of your friends.

UAW = Unions Accepting Welfare

Hmm, I guess we can see once again that our Congress is not in any way trying to manage our car companies (and their unions) for political gain:

The latest example is the $10 billion taxpayers will be asked to shell out to prop up the United Auto Workers’ retiree health insurance program.

That provision is tucked deep into the bill passed by the House.

In effect, it would ask every taxpayer, regardless of whether they’ll have health insurance coverage themselves after they retire — and most won’t — to chip in to maintain the UAW’s coverage, which even after the union’s givebacks is still better than what the average American worker receives.

The helping hand is a recognition by Congress that the union’s volunteer employee benefit association, or VEBA, can’t possibly stay solvent if it is asked to cover all of the union workers taking early buyouts from the Detroit automakers.

So the union’s supporters added language to the House’s gargantuan health care bill that requires the federal government to pick up most of the cost of catastrophic claims for union retirees age 55 to 64.

The biggest beneficiary would be the UAW, which got $60 billion from the Big Three in exchange for taking on the obligation for retiree health care.

I don’t suppose I’ll be getting a gift basket from the UAW thanking me for my generosity. I’ll bet quite a few Congressmen will, though.

Hat Tip: John Stossel

Reelection Is More Important Than Legislation

In the health care debate, the question has somewhat changed within the Democratic party from “what do we want?” to “what can we actually pass?” Because they’re relatively sure there’ll be no help from Republicans, this puts them in an awkward spot, and as Bruce of QandO points out, highlights a point showing how all politicians are duplicitous self-serving assholes (emphasis added):

But the exclusion of Republicans doesn’t mean smooth sailing for Democrats. Numbers-wise they certainly have the majorities they need in both houses to pass legislation. This particular legislation, however, has become fraught with political danger. Many Democrats are very wary of it because of the demonstrated unhappiness of their constituencies and the probable 2010 impact that may have. This is especially true of more conservative Democrats, even those is primarily Democratic districts. And “Blue Dogs” who managed to win in historically red districts are terrified.

That sets up the conflict of political interests the Democrats face. They believe, now that they’ve brought it up and the president has made it one of his signature issues, that unless they pass it (or something they can call “health care reform”) they’ll have set him up for failure. However, they are also coming to realize that passing something now despite a majority of Americans saying slow down and start over could be hazardous to their political health – and majorities.

I’d say that a majority of both Democrats and Republicans believe that they know better what is good for us mere citizens than we do. It’s clear that Democrats have been waiting for the opportunity to vote for health care ever since 1994, and I’d say that sentiment likely extends to many of these Blue Dogs. In fact, I’d go one step further and suggest that there’s more than a handful of Republicans in the House and Senate who’d like to join them, because megalomania knows no party lines.

So I think it goes without saying that likely a majority of House and probably a supermajority of the Senate (when counting Snowe, Collins, etc) support health care reform, and when pressed probably including a public option.

So why is it faltering? Because these politicians who speak of the selfless sacrifice they make for the nation are too afraid to make a vote that might get them tossed from office. Getting reelected is more important than doing what they think is right.

Cocontributor Doug Mataconis posted at his home blog, Below The Beltway, a quote from Eric Massa (D-NY) speaking of the voters in his district that I have to at least respect his honesty:

Massa: I will vote against their opinion if I actually believe it will help them.

He’s blatantly admitting that he thinks he knows better than us, and that he intends to live up to that promise. That’s admitting to his megalomania, and as we all know, the first step to recovery is admitting you have a problem.

But how cowardly is it to see a politician who honestly believes he knows what’s right for you but lacks the stones to vote for it? If you believe, as far too many in this country do, in delegating the power to run your life to a ruling elite, don’t you at least expect that ruling elite to follow their convictions? Congress holds themselves up as philosopher-kings whose job is to make everything in this nation better, and yet they’re so wedded to power that they won’t even vote for their own prescriptions.

I’m sure I’ve made it clear from my many writings that I don’t support gov’t healthcare, and that I don’t believe any of the fools who inhabit the Capitol Building are qualified to make my decisions. I am, for better for worse, an individual and I take full ownership of the decisions I make in my life — and the consequences thereof.

But not our politicians. They talk during their campaigns about how they’ll make tough decisions, and use words like sacrifice and service to describe what they do in Washington. They talk about their principles and their ideals. They prominently display a platform of platitudes on their web sites. But when that tough decision comes, when that principled vote that might anger some of their constituents is laid at their feet, they fold. They show that their only principle is staying in Washington, and no promise or ideal will ever rise above that one single purpose.

These are the cowards that you have elected to “represent” you. They’ve built fiefdoms of staffers and interest groups around them to protect themselves from your disapproval, and constantly shovel pork-barrel spending into their district to buy whatever votes are for sale. And when they’re actually faced with doing what you elect them to do, they fail. And what happens if you finally get fed up with them? You fools replace the R or D you have with the same mealy-mouthed sycophant, but who represents the opposite letter. And you actually expect things to change.

America’s been long headed down the road to serfdom. I guess I should only be happy, then, that our government has the top speed of a snail and is prone to breakdowns. Someday I hope that we can realize that rather than riding that jalopy to the end, we should all get out and walk — all in our own direction. But I doubt it, we’ll keep throwing on new used parts and inch along until the whole structure collapses. Then, instead of considering the folly of the destination, we’ll simply hit the used car lot to continue the same tired journey.

The Nuance Of Medical Marijuana Raids In California

One of Obama’s campaign promises was to stop federal raids on medical marijuana dispensaries which were allowed by state law. Many pundits (myself included) have been lambasting him for not living up to that promise based upon stories like these:

Police raids on medical marijuana dispensaries continue–and continue with federal help, despite an Obama promise to end federal raids on state-legal medical pot dealers.

Of course, Obama gave his Justice Department a loophole, with Attorney General Eric Holder saying back in March that his DEA’s resources would “go after those people who violate both federal and state law….Given the limited resources that we have, our focus will be on people, organizations that are growing, cultivating substantial amounts of marijuana and doing so in a way that’s inconsistent with federal and state law.” This was a way to live up to Obama’s promise that federal raids on people who were not violating their own state’s law regarding medical marijuana would cease.

Unfortunately, so far it’s hard to know how serious to take this promise in relation to these latest L.A. raids, since the federal agents’ role in the raids on two Westside pot dispensaries (and their owners’ private homes) is still unexplained as of this writing. As the San Jose Mercury News reports.

Authorities are not saying why they raided two medical marijuana clinics and arrested the operator at his Los Angeles home. Jeffrey Joseph was free on bail Thursday, one day after local and federal agents searched his home and the dispensaries in Los Angeles and Culver City. Agents seized 450 plants and hundreds of pounds of marijuana products.

Spokespeople for the Drug Enforcement Administration, Los Angeles police, and the U.S. attorney say they don’t know what Joseph was book on. County prosecutors released no details.

Distributing medical pot is legal under California law but it’s a federal crime. However, the U.S. attorney general has said he wouldn’t target distributors unless state and federal laws were broken. County prosecutors say the task force was acting on a state warrant.

There’s a little history here. Medical Marijuana dispensaries have become much more common in Los Angeles over the last few years due to several loopholes and exemptions that made it possible for them to open quickly. The city council has been trying recently to cut down on these loopholes in order to reduce the number of operating dispensaries, but their own legal exemptions are making it very hard to do this quickly.

So how to close these shops without having to go through arduous examinations of dispensaries’ “hardship exemption” applications? Simple, prove they’ve been doing something else to break the guidelines. On the bright side, they can then call in the big guns at the DEA to lend a hand! It’s win-win for the City Council and the Feds (and a big LOSE for the dispensary owners and their customers, of course).

Sadly, many of the dispensaries are making the job easy on the city. A personal acquaintance of mine is a CPA and runs the books for several of these dispensaries, and this is his take on the matter:

The more I interact within this industry the more I realize how illegal most of these operations are. The state attorney general set up specific guidelines, as did the state board of equalization, that would allow an owner to operate freely without fear of raids & prosecution. The key issue in these operations is transparency, which most dispensaries fail to realize. Those operations that have their doors and books open to state and city regulators are never harassed. The clubs that operate outside of the guidelines are always targeted. And from a accounting and tax standpoint, it’s extremely simple to figure out who is operating by the book and who’s not.

I tell all my new clients to always be aware of the fact that the board of equalization is keeping a close eye on the industry to ensure that every sale is taxed and that every penny is sent to the state. The state BOE is in bed with the Feds and have no problem calling for the leg-breakers (the IRS) when they feel they’re being ripped off; which in most cases they are.

These raids are a violent and disruptive elucidation of one critical aspect of business in our government-dominated world — your business exists at the pleasure of the state. If they want to find a reason to come after you, they will find a reason to come after you, or manufacture one. There are a lot of regulations attached to any business, and even more to the medical marijuana industry. If they’re watching, they’ll catch you breaking one of them:

The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
-Ayn Rand

This is the modern equivalent to catching Al Capone on tax evasion, when there wasn’t enough to bust him on the charges of bootlegging (and everything else he was involved in). Obama’s not technically breaking his promise here, but he’s still offering to bring in the big guns and prosecute pot dispensaries if they violate tax laws. He’s violating the spirit of the promise.

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