Media Transparency

Citizens for a Sound Economy Foundation

Washington, DC

The CSE has now merged with Empower America to form a new organization called FreedomWorks (read the MT story about the merger here). CSE was/ is a Washington-based think tank founded by David and Charles Koch. Charles Koch also co-founded the Cato Institute.

Current Chairman (July 2004) is Dick Armey, former Republican House Majority Leader.


"...Based in Washington, D.C., CSE describes itself as an organization of "grassroots citizens dedicated to free markets and limited government." However, it is commonly known as what Public Relations Quarterly has called a "corporate front group." The publication explained that "the use of such 'front groups' enables corporations to take part in public debates and government hearings behind a cover of community concern [in order to] oppose environmental regulations, and to introduce policies that enhance corporate profitability."

Starting in March 1997, CSE launched a radio blitz attacking the proposed [EPA air quality] standards, running advertisements on 80 stations in 20 markets. The CSE campaign was costing a "healthy" six figures per week, CSE communications director Brent N. Bahler told National Journal.

Although CSE describes itself as "an army of activists committed to improving the well-being of American consumers through common-sense economic policies," most of its money comes from corporations with a vested interest in the outcome. For example, The Washington Post reported that soon after CSE began opposing an Army Corps of Engineers plan to restore thousands of acres of the Florida Everglades, it received $700,000 in contributions from Florida's three biggest sugar enterprises, which stood to lose lands on which they were growing cane. The Post continued:

"The sugar contributions were never disclosed publicly but were outlined in internal CSE documents that detail how various corporate interests donated millions to the group to bankroll its efforts on issues of direct interest to them, from global warming to Florida tort reform. Along with those earmarked contributions, from companies such as Exxon Corp. and Hertz Corp., the organization received more than $ 1 million from Philip Morris Cos.at a time when CSE was opposing cigarette taxes. Phone company U S West Inc. gave $ 1 million as CSE pushed deregulation that would let U S West offer long-distance service."

[C. Boyden] Gray [co] chair[s] CSE's board of directors, so it is not surprising that the organization committed itself wholeheartedly to upending the EPA proposals. From April 1997 to May 1999, Citizens for a Sound Economy issued 18 publications on the environment, eight of which were devoted to EPA's proposed standards. CSE was registered during this period to lobby on "clean air standards," and it did, although nowhere on CSE's registration does it identify its chairman, Gray, as a lobbyist. This was only the tip of the iceberg of CSE involvement in this issue, however. As the organization boasted:

"Over the past three years, CSE activists throughout the country worked to defeat the Clinton-Gore power grab. More than 14,000 CSE members wrote letters, made phone calls to and showed up at town hall meetings of targeted policy makers. CSE Foundation briefing papers forced EPA to twice revise its claims about the health benefits of the new regulations, and advanced the case that the EPA had not relied on sound science. CSE Chairman Gray participated in a nationally televised debate over the EPA's rules with EPA Administrator Carol Browner."

...Four days after the [Appeals Court] decision was announced, the Foundation posted a document taking credit, saying "Boyden Gray's brief was funded in part by CSE's education affiliate CSE Foundation."


From NCRP:

Though perhaps less known to many, another major foundation grantee, Citizens for a Sound Economy, is no less active as a policy actor in Washington and in many states. Founded in 1984, it openly and aggressively advocates market-based solutions to the nation's economic and social problems. [co] Chaired by C. Boyden Gray, former counsel to President Bush, CSE's self-described mission is "to fight for less government, lower taxes, and less regulation." It has been heavily supported for its efforts, receiving $3.8 million over the 1992-1994 study period. Following the 1994 Congressional elections, CSE's budget expanded dramatically. The organization reported spending just under $17 million to advance its policy objectives in 1995.38 What that money has bought is impressive.

In 1995, CSE produced more than 130 policy papers, with each distributed to every office on Capitol Hill. It also conducted 50 different advertising campaigns, distributed 8000 pieces of mail, appeared on over 175 radio and television news shows, placed a total of 235 published op-ed articles, received coverage of CSE positions and activities in more than 4000 news articles around the nation, released periodic "scorecards" grading the fiscal restraint of key Congressional committees and subcommittees, generated more than 42,000 telephone calls from CSE members to elected officials,distributed dozens of faxes summarizing research on the budget, and co-chaired two grassroots coalitions supporting tax relief and a balanced budget.

In addition, focus group research has helped CSE "create effective advertising products," propaganda used to develop grassroots and communications tools to promote flat tax proposals. CSE also maintains a sophisticated data base of 37,000 "super activists" to whom the organization can appeal in the larger fight for "free enterprise" and has hired 19 field directors across the country to build strategic alliances" in 17 states.

CSE has also entered the fight on social security privatization. Nancy Mitchell, Vice President for Public Policy, reported in 1996 that the organization plans to spend $2 million "trying to make the political climate more friendly" to privatization, paying particular attention to shaping the views of older people, women and the twenty-something generation. CSE plans to maximize impact by focusing "on states represented in Congress by members who sit on the Senate Finance Committee and the House Ways & Means Committee, both of which have jurisdiction over Social Security. The campaign, which should be in full swing sometime in 1997, will include newspaper, radio, and TV ads, and the distribution of anti-Social Security tracts."39

Footnotes

39. Dreyfus, Robert, "The End of Social Security as We Know it?" Mother Jones (November/December, 1996): p. 57.


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Media Transparency
May 19, 1997

Conservative Philanthropy supported institutions involved in the attack on Open Source

* Competitive Enterprise Institute
* Washington Legal Foundation
* Defenders of Property Rights
* Pacific Research Institute
* Citizens for a Sound Economy
* Institute for Policy Innovation
* Alexis de Tocqueville Institute

Institute for Public Accuracy
July 12, 2004

Dick Armey's Forces: On the March for the Nader Campaign

http://www.accuracy.org/press_releases/PR071304.htm

Citizens for a Sound Economy ... is widening its efforts to help presidential candidate Ralph Nader get on the ballot in pivotal states.

Bill Berkowitz
MediaTransparency.org
June 30, 2004

FreedomWorks Challenges Progressive Organizations

story.php?storyID=40

CSE merges with Empower America to form new organization, FreedomWorks

Will the newly established conservative organization, stocked with old-line right wing warriors, impact Election 2004?

Daily Kos
June 24, 2004

CSE Working to get Nader on Ballot in Oregon

http://www.dailykos.com/story/2004/6/25/101933/449

Two conservative groups have been phoning people around Oregon this week, urging them to attend Ralph Nader's convention Saturday in hopes of putting Nader's name on Oregon's presidential ballot.

The groups make no bones about their goal -- to draw votes away from Democrat John Kerry and help President Bush win this battleground state in November.

"We disagree with Ralph Nader's politics, but we'd love to see him make the ballot," said Russ Walker of Citizens for a Sound Economy...

Tim Lambert
June 22, 2004

When Think Tanks Attack

http://timlambert.org/2004/06#tanks

Think tanks vs Open Source

The Alexis de Tocqueville Institute’s attack on Linux is just the latest in a series of attacks on Open Source by think tanks:

Also see:

San Francisco Chronicle
February 15, 2000

Corporate Funding of Think Tanks Raises Question of Credibility Critics call them `mercenaries' for big business

http://www.sfgate.com/cgi-bin/article.cgi?f=/chronicle/archive/2000/02/16/MN100835.DTL&type=printable

...Internal CSE documents detail how various corporate interests donated millions to the group to bankroll its efforts on issues of direct interest to them, from global warming to Florida tort reform.

Media Transparency
May 19, 1987

Corporate Funders include:

Philip Morris
(>$1 million),
US West
($1 million),
Hertz
($25,000),
DaimlerChrysler AG
($25,000),
Exxon
($175,000),
U.S. Sugar Corp
($280,000),
Florida Crystals
(sugar industry; $280,000),
Sugar Cane Growers Cooperative of Florida
($140,000),
Microsoft
($380,000).
(Wash Post, 1-29-00)

Data from the Center for Science in the Public Interest

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