Sunday, March 06, 2011

[UPDATED] State by State: Assessing The Koch Influence

Scroll down for UPDATE: additional information regarding RIMS Multipliers as explained and offered for order and sale by the US Dept of Commerce Bureau of Economic Analysis.

To understand the connections and alliances Charles and David Koch have established across the United States through their so-called philanthropic work – for, if in the world of “Freedom” and “Free Enterprise” there is for the Laborer “no such thing as a Free Lunch”, then, there is no such thing as a Gift, either – we need to be aware first of the business presence and activities of Koch Industries, Inc. across the nation.

In a Koch Industries, Inc. October 2010 Press Release issued by Harrah Analytics and titled, Koch Companies Creating Jobs Nationwide the number of individual Laborers and Workers employed by Koch Companies is documented. See, Page 1 [emphasis supplied by me because Koch Companies may view these employments as “jobs”, but, in fact, each employment is an agreement between a Koch Company and an individual man or woman who is, quite probably, a father or mother as well, and certainly the son or daughter of a Senior Citizen, and possibly the brother or sister of someone who is unemployed for some reason...they are not “jobs”.]

On page three of this Press Release, the presence and identity of Koch Companies as of October 2010 in the United States is documented, at which time Koch Companies were present and doing business in all but five states in the Union: Maine, Vermont, South Dakota, Idaho and Utah. Today, Koch Companies are present and doing business in Utah also. As one reviews the Press Release, maps are available that show the number of jobs created in each state of the Union; the Koch Companies doing business in each state – and, one should note that there are almost always more than three companies actively engaged - ; and, finally, there is on pages 5 and 6 a chart that documents the number of persons “directly” employed by Koch Companies, and then, “the number of jobs created indirectly” by Koch Companies. Currently, the website of Koch Industries, Inc. claims that over 50,000 people are employed directly in 46 states and the District of Columbia by Koch Companies, while a total of some 203,000 people are employed indirectly.

By any measure, this is an extraordinary business presence.

Around the Globe the Companies of Koch Industries, Inc. have a pervasive presence as well: in Canada, Central and South America, Europe, Africa and the Middle East, Asia, including the Pacific Rim, and Australia. The global map found at the link, which is interactive, appear to have the most current information available to the public concerning Koch Companies in The States.

Keeping in mind The Koch Calculus and the only role advocated by The Koch Brothers in a (perfect) world of privatized goods, services and commodities around the world, the slush fund of Cash Payments that Koch Companies make to employees and, presumably, anyone else who will never become an owner of the company but may be persuaded by the offer of a “Cash Bonus” to produce like one, together with the business presence of Koch Companies in all but four states in the Union, we can begin our assessment of The Koch Brothers and their Worldview on America and Her People.

Let’s begin with a brief review of the Honors and Awards received by Charles Koch, “As a reflection of Mr. Koch’s business leadership and community involvement....” For starters, Charles is the recipient of The Adam Smith Award from the American Legislative Exchange Council. Otherwise known as ALEC, the Federalism-promoting, Regulatory-trashing, Free-Market venerating fellowship of state legislators and corporate honchos, this is its stated Mission:
...to advance the Jeffersonian principles of free markets, limited government, federalism, and individual liberty, through a nonpartisan public-private partnership of America's state legislators, members of the private sector, the federal government, and general public.

...to promote these principles by developing policies that ensure the powers of government are derived from, and assigned to, first the People, then the States, and finally, the Federal Government.

...to enlist state legislators from all parties and members of the private sector who share ALEC's mission.

...to conduct a policy making program that unites members of the public and private sectors in a dynamic partnership to support research, policy development, and dissemination activities.

...to prepare the next generation of political leadership through educational programs that promote the principles of Jeffersonian democracy, which are necessary for a free society.
Leaving to the prolific and wickedly brilliant Joshua Holland the task of skewering the “Mission” description of nearly all things “Jeffersonian”, we’ll move to the question, Any chance Charles Koch influences or controls this group?

Consider first the Membership of The Board of Directors – all State Legislators - , then its Leadership – more State Legislators - and with each the inescapable association he or she has with Koch Industries, Inc.:
Sen. Curt Bramble, Utah: Koch Companies: Georgia-Pacific; Persons Employed Directly: Less than 250, or 117; “Total Jobs”*** in Utah: 307

Rep. Steve McDaniel, Tennessee: Koch Companies: Georgia-Pacific, Koch Chemical and INVISTA; Persons Employed Directly: 500 –1499, or 905; “Total Jobs” in Tennessee: 3626

Rep. Harold Brubaker, North Carolina: Koch Companies: Georgia-Pacific, Koch Fertilizer/Nitrogen, Flint Hills and INVISTA; Persons Employed Directly: 1500 – 2499, or 1691; “Total Jobs” in North Carolina: 6529

Rep. Ray Merrick, Kansas: Koch Companies: Koch Industries, Inc., Koch Pipeline, Koch Chemical, Georgia-Pacific, Flint Hills, INVISTA, Koch Supply & Trading, Koch Minerals, Koch Fertilizer; Persons Employed Directly: 2500 or more, or 2501; “Total Jobs” in Kansas: 5727.

Sen. Jim Buck, Indiana: Koch Companies: Koch Minerals, Koch Chemical, Georgia-Pacific; Persons Employed Directly: 250 – 499, or 388; “Total Jobs” in Indiana: 1222.

Sen. Bill Raggio, Nevada: Koch Companies: Georgia-Pacific and Koch Chemical; Persons Employed Directly: Less than 250 (per 2010 data) or 124; “Total Jobs” in Nevada: 311.

Sen. Kent Cravens, New Mexico: Koch Companies: Georgia-Pacific and Koch Minerals; Persons Employed Directly: Less than 250 (per 2010 data) or 147; “Total Jobs” in New Mexico: 147.

Sen. Dean Rhoads, Nevada: Koch Companies: Georgia-Pacific and Koch Chemical; Persons Employed Directly: Less than 250 (per 2010 data) or 124; “Total Jobs” in Nevada: 311.

Rep. Jim Ellington, Mississippi: Koch Companies: Georgia-Pacific; Persons Employed Directly: 1500 – 2499, or 1888; “Total Jobs” in Mississippi: 7570.

Sen. Chip Rogers, Georgia: Koch Companies: Georgia-Pacific, Koch Chemical, INVISTA and Flint Hills; Persons Employed Directly: More than 2500, or 8020; “Total Jobs” in Georgia: 32,349.

Sen. Billy Hewes III, Mississippi: Koch Companies: Georgia-Pacific; Persons Employed Directly: 1500 – 2499, or 1888; “Total Jobs” in Mississippi: 7570.

Sen. William Seitz, Ohio: Koch Companies: Koch Chemical and Georgia-Pacific; Persons Employed Directly: 25 – 499, or 493; “Total Jobs” in Ohio: 1777.

Spkr. Bill Howell, Virginia: Koch Companies: Georgia-Pacific, INVISTA, Koch Fertilizer, Koch Mineral, Flint Hills; Persons Employed Directly: 1763; Total Jobs” in Virginia: 6219.

Rep. Curry Todd, Tennessee: Koch Companies: Georgia-Pacific, Koch Chemical and INVISTA; Persons Employed Directly: 500 –1499, or 905; “Total Jobs” in Tennessee: 3626.

Sen. Owen Johnson, New York: Koch Companies: Georgia-Pacific, Koch Chemical, INVISTA, Koch Supply & Trading, Koch Industries, Inc.; Persons Employed Directly: 25 – 499, or 367; “Total Jobs” in New York: 899.

Sen. Susan Wagle, Kansas: Koch Companies: Koch Industries, Inc., Koch Pipeline, Koch Chemical, Georgia-Pacific, Flint Hills, INVISTA, Koch Supply & Trading, Koch Minerals, Koch Fertilizer; Persons Employed Directly: 2500 or more, or 2501; “Total Jobs” in Kansas: 5,727.

Sen. Michael Lamoureux, Arkansas: Koch Companies: Georgia-Pacific and Koch Chemical; Persons Employed Directly: Persons Employed Directly: 2500 or more, or 3122; “Total Jobs” in Arkansas: 12,200.

National Chairman, Rep. Noble Ellington, Louisiana; Koch Companies: Koch Chemical, Koch Fertilizer, Flint Hills and Georgia-Pacific; Persons Employed Directly: 500 – 1499, or 1279; “Total Jobs” in Lousiana: 5,541.

Second Vice Chairman
Rep. Dave Frizzell, Indiana: Koch Companies: Koch Minerals, Koch Chemical, Georgia-Pacific; Persons Employed Directly: 250 – 499, or 388; “Total Jobs” in Indiana: 1,222.

Rep. John Piscopo, Connecticut: Koch Companies: Koch Chemical; Persons Employed Directly: Less that 250, or 19; “Total Jobs” in Connecticut: 45.

Secretary
Rep. Linda Upmeyer, Iowa: Koch Companies: Georgia-Pacific, Flint Hills, Koch Pipeline and Koch Fertilizer; Persons Employed Directly: 250 – 499, or 326; “Total Jobs” in Iowa: 944.

Rep. Liston Barfield, South Carolina: Georgia-Pacific, INVISTA and Koch Chemical; Persons Employed Directly: More than 2500, or 2,680; “Total Jobs” in South Carolina: 11,283.

Immediate Past Chairman, Rep. Tom Craddick, Texas: Koch Companies: Matador Cattle Company, Koch Pipeline, Koch Minerals, Koch Chemical, Georgia-Pascific, Koch Supply & Trading, Flint Hills, Koch Fertilizer, INVISTA; Persons Employed Directly: More than 2500, or 5,625; “Total Jobs” in Texas: 32,964.
*** Harrah Analytics provides the following information in its description of Analysis Methodology and Further Information: The Direct employment numbers were supplied by Koch Industries, Inc. for each U.S. facility. The employment at each facility was assigned a Bureau of Economic analysis industry code. Direct employment was multiplied by the industry direct effects employment multiplier. Multipliers were obtained from the U.S. Department of Commerce, Bureau of Economic Analysis, RIMS II (regional Industrial Multiplier System).

UPDATE:Regarding the use of RIMS Multipliers by Harrah Analytics to obtain figures concerning "Total Jobs", the following questions need to be asked and answered:
1. In 2010 and 2011 when these analyses were each conducted, for which "Regions" were RIMS Multipliers ordered?
2. What method was used to create or determine each Region?
3. Was a Benchmark series or Annual Series ordered?
4. What was the total cost for each RIMS order placed by Region, and, by Industry?
5. If RIMS II Multipliers were used in each analysis, how is the term "employee" defined by Koch Industries, Inc.? Does it include independent contractors? What method did Koch Industries, Inc. use, in fact, to determine the number of persons it "directly employs" in any given industry, in any given state, and in any given region?
The Koch Industries, Inc. website does not document when Charles Koch received The Adam Smith Award from ALEC. Suffice to say that if he received it in 2010, he would have been responsible as Chairman of the Board and CEO of Koch Industries, Inc. for employing some 31,400 people directly through Koch Companies.

Now, to the question: Would this fact influence any one or some of the members of ALEC?

More: Might any one of these State Legislators be the recipient of a Koch Company “Cash Bonus”?

Beyond ALEC’s Board of Directors and its Leadership, ALEC is governed as well by The Private Enterprise Board, where Mike Morgan, of Koch Industries, Inc. is a member:
National Chairman Mr. W. Preston Baldwin, Centerpoint360

First Vice Chairman
Mr. W. Preston Baldwin, Centerpoint360

Second Vice Chairman
Mr. Pat Thomas, UPS

Treasurer
Ms. Sandy Oliver, Bayer Corporation

Secretary
Mr. John Del Giorno, GlaxoSmithKline

Board Members
Ms. Sano Blocker, Energy Future Holdings
Mr. Don Bohn, Johnson & Johnson
Mr. Jeff Bond, PhRMA
Mr. Bill Carmichael, American Bail Coalition
Mr. Derek Crawford, Kraft Foods, Inc.
Mr. Matt Echols, The Coca-Cola Company
Mr. Michael Hubert, Pfizer Inc
Ms. Teresa Jennings, Reed Elsvier
Mr. Ken Lane, DIAGEO
Mr. Kelly Mader, Peabody Energy
Mr. Bernie McKay, Intuit, Inc.
Mr. Mike Morgan, Koch Industries, Inc.
Mr. Kevin Murphy, ExxonMobil
Mr. David Powers, Reynolds American Inc.
Ms. Maggie Sans, Wal-Mart Stores, Inc.
Mr. Ron Scheberle, Chairman Emeritus
Mr. Russell Smoldon, Salt River Project
Mr. Toby Spangler, Altria Client Services, Inc.
Now, besides “jobs created” in the 46 states in which Koch Companies are present and doing business, we have begun a Roster of the Corporate Cousins, Friends and Allies of Koch Industries, Inc. No doubt we will add to this Roster, but for now, it is revelatory in and of itself for two reasons: the Corporate entities themselves, and the Board of Directors for each. Obviously, we’ll want to know how many Directors sit on the Boards of more than one of these corporate “persons”, and specifically how many Boards of Directors Mike Morgan, or someone else from Koch, sits on.

More details in my next.

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