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Club for Growth

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Follow the money in the Koch wiki.

Club for Growth is a right-wing political group established in 1999 by Stephen Moore that endorses and raises money for candidates. According to a February 22, 2011 article by John Nichols in The Nation, the Washington D.C. based Club for Growth is "an organization funded by extremely wealthy conservatives to carry out their budget-stripping goals," and that "has been a key player in Republican Governor Scott Walker's move to take out the state's organized workers." Nichols writes that the Club for Growth is part of a "national strategy" to get "newly elected Republican governors" to destroy labor and unions.[1] R.J. Johnson, who served as a political strategist for Walker's campaign, is a key adviser to the Club for Growth.[2] Johnson has refused to disclose where the Club for Growth gets its funding.[3] The Minneapolis-St. Paul Star Tribune in a February 26, 2011 editorial described the Club for Growth as an "ultra-rich special interest itself."[4] As of September 13th, 2012, OpenSecrets estimates that Club for Growth has spent $13 million influencing federal elections.[5]

See the Wisconsin Club for Growth entry for information about the group involved in Wisconsin's John Doe investigation

Koch Wiki

The Koch brothers -- David and Charles -- are the right-wing billionaire co-owners of Koch Industries. As two of the richest people in the world, they are key funders of the right-wing infrastructure, including the American Legislative Exchange Council (ALEC) and the State Policy Network (SPN). In SourceWatch, key articles on the Kochs include: Koch Brothers, Koch Industries, Americans for Prosperity, American Encore, and Freedom Partners.

Organization and Strategy

Club for Growth conducts its activities through its 527 Political Action Committee (deemed a "super PAC" by the Washington Post), and its 501(c)(4) Club for Growth Action committee, focusing on issues including reducing the income tax, budget reform, a flat tax, tort reform, school choice and deregulation.[6] At the outset of the 2010 midterm election, Club for Growth indicated that it intended to take advantage of the U.S. Supreme Court's Citizens United decision and raise unlimited funds from corporations and other deep-pocket donors.[7] The Club accomplishes its mission by raising money through its political action committee and donating it to candidates that adhere to this vision. It also solidifies its clout through independent expenditures through a separate 527 committee. The Club’s PAC also acts as a conduit for federal candidates by accepting and transmitting earmarked contributions from the club’s many members to federal candidates.

Despite being allowed to raise unlimited funds, Club for Growth's 501(c)(4) wing is not required to disclose its donors. Club for Growth's PAC, Club for Growth Action, is supported by ultra-rich right-wing donors like Peter Thiel (their largest donor), leverage-buyout specialist John Childs and New Jersey investor Virginia James, who have both given the Club $1 million donations.[8][9]

The Koch network was one of the biggest political operations in 2012 and worked largely outside the campaign finance system, raising at least $407 million. Source: Robert Maguire with the Center for Responsive Politics.

Club for Growth was a recipient of funding from the Koch network in 2012 (see graphic at right).

The group supports far-right Republican candidates, spending money to not only oppose Democrats, but also moderate Republicans they term "RINOs" (an acronym for Republican In Name Only). Some within the Republican party dislike the Club; Mike Huckabee, former Arkansas Governor and Republican Presidential Candidate (and current FOX News host), says the group should be called the "Club for Greed."[10][11]

Recent Activities

2011-2012 Spending to Defend Walker and in Recall Races

With in days of Scott Walker introducing the budget repair bill to end collective bargaining in Wisconsin on February 11, 2011 Wisconsin Club for Growth was up on TV with ads defending the measure like this one posted on You Tube February 14, 2011. Or this one posted on You Tube February 22, 2011. RJ Reynolds was named Scott Walker's "top political adviser" in his 2013 book "Undaunted," at the same time that he was a long time political adviser to Club for Growth.

On February 18, 2011, Wisconsin State Representative Gordon Hintz (D-54th) stated in floor debate that he heard a radio ad paid for by the Club for Growth prior to the budget repair bill even being distributed to members for vote. This marked the beginning of the Club for Growth's involvement into state level anti-union activities.

Club for Growth ran ads throughout the 15 Wisconsin recalls that took place between 2011-2012s, arguing in favor of Walker's anti-union agenda and against the recall process itself. In total, the Club spent at least $10 million influencing the recalls, though the exact number is not known. This money was mostly spent in the summer and fall of 2011, in order to influence the Senate recalls.[12][13]

2011-2012 Arizona Senate Races

Club for Growth endorsed Jeff Flake for the Arizona Senate Primary over his self-financed opponent Will Cardon. Club for Growth spent at least $1 million influencing the GOP Senate primary, $600,000 through their PAC and another $400,000 through their nonprofit arm.[14] Club for Growth's ads began in June, and attacked Cardon for being "an impostor" and not a true conservative. Other ads attacked him for being a member of the (purportedly liberal) Urban Land Institute.[15] With the Club for Growth's help, Jeff Flake was able to defeat his challenger.

Tax

2011-2012 Wisconsin Senate Races

In addition to opposing the Walker Recall, the Club for Growth also ran ads against contenders for Wisconsin's open Senate seat, slated to be filled in the 2012 election cycle. The club's action committee ran ads opposing former Governor Tommy Thompson, and billionaire hedge fund manager Eric Hovde, both Republicans. The Club announced their official endorsement for Mark Neumann in July of 2012. Their ad buy against both Thompson and Hovde cost about $700,000. [16] Neumann eventually lost to Thompson, who entered the Senate race against Madison Representative Tammy Baldwin.

Champion of Obamacare
Only Worse

2011-2012 Texas Senate Races

The 2012 Senate Republican Primary in Texas was one of the Club's largest investments, the Club spent over $5 million in support of Ted Cruz, in order to unseat moderate Republican David Dewhurst. Club for Growth's ads attacked Dewhurst for being recognized as a moderate by every major newspaper in Texas, and praised Cruz for being a true conservative.[17]

2012 Attacks on Dick Lugar and Other Moderate Republicans

The Club for Growth has made a national strategy of attacking moderate state-level republicans from the Right. Their two biggest success stories in 2012 were Former Indiana Senator Dick Lugar and Nebraska Attorney General Jim Bruning. The Club spent about $2.2 million to unseat Lugar in favor of Indiana Treasurer Richard Mourdock.[18] Club for Growth spent about $700,000 to unseat Bruning, and succeeded, though their preferred candidate finished in 3rd place.[19]

Prior Activities

2010 Midterm Elections

Club for Growth invested in a variety of campaigns in the 2010 midterm election season. The group has also established local spinoff political groups so their anonymous donors can direct their funds towards specific races.[20] For example, Club for Growth has established a Wisconsin chapter to support Republican Congressional and Gubernatorial candidates. See 2010 expenditures below for more.

"Privatize Social Security? Hell Yeah!"

One of the Club's campaigns focuses on privatizing Social Security, an issue that alienates many Republicans. Democrats have tried to capitalize on the issue. Club For Growth spent $6 million in the 2010 midterm elections, calling for Social Security privatization. Their pitch for privatizing Social Security was entitled "Social Security Privatization? Hell Yeah!"[21] [22]

2006 Republican primaries

On September 14, Toomey sent out a club bulletin summing up its activities in the Republican primaries:[23]

"...the Club's PAC racked up 9 wins against just 4 losses. It's a record we're proud of, especially given that our endorsed candidates competed in races with nearly 50 major opponents. In most cases our candidate was the underdog, as in yesterday's Rhode Island race. The Washington Post reported yesterday that the Club's PAC "had an extremely successful run so far this cycle."

"And the Club's PAC scored its first-ever knockout of an incumbent when Tim Walberg defeated Rep. Joe Schwarz in the Michigan Republican primary. We accomplished something vitally important in Rhode Island despite the vote tally.

"Politicians are risk-adverse [sic]. Every Republican in Congress knows what we did in Rhode Island. They realize that Club members donated an incredible $725,000 to Chafee's challenger. They know that the Club for Growth PAC spent an additional $515,000, mostly on TV ads, and took a challenger from being down 2 to 1 in the polls to the edge of an upset. As senators cast their votes on key bills, wavering Republicans will have to wonder if they could withstand the same punishment.

"National Review wrote that Laffey's "loss was by no means an exercise in futility: Sometimes it's better to fight and lose than not to fight at all. Two years ago, Pat Toomey nearly defeated Sen. Arlen Specter in Pennsylvania's GOP primary. Yesterday, Laffey gave Chafee a genuine scare. Both Toomey and Laffey received crucial support from the Club for Growth [PAC]. Senators are a notoriously risk-averse crowd. And now, for the second election cycle in a row, Republican senators have received a sharp reminder that if they behave too much like liberals, they may not be senators for long."

The breakdown of club member support for the nine candidates according to the group's website was as follows:

  • Steve Laffey (RI)--no financial information listed.
  • Sharron Angle (NV)--"Club members contributed over $605,000..."[24]
  • Tim Walberg (MICH)--won over the incumbent with over $600,000 in donations from club members[25]
  • Doug Lamborn (CO)--won with over $200,000.[26]
  • Phil Krinkie (MN)-- withdrew, as pledged, when he didn't receive the party's endorsement. Received over $154,000.[27]
  • Jim Jordon (OH)--won and received over $92,000.[28]
  • Henry Cueller (TX)--won and received over $170,000[29]
  • John Campbell (CA)--won in 2005 and received over $118,000.

2005 FEC Lawsuit

In September 2005, the Federal Election Commission filed a lawsuit "against the Club for Growth, the first case of its kind to arise from high-dollar fundraising during the 2004 elections. The pro-Republican group spent at least $21 million in the 2003-2004 election cycle. ... The FEC contends the club spent enough in federal races to require it to file with the commission as a political committee and to follow contribution and spending limits. It wants the court to fine the group and order it to comply with campaign finance rules."[30]

In September, 2007 the Club for Growth agreed to pay $350,000 in civil penalties and criticized the FEC for the lawsuit.[31]

History and Background

According to the Washington Post, Club for Growth "grew out of the Political Club for Growth," a group that had been founded by stockbroker Richard Gilder. Gilder founded Gilder Gagnon Howe & Company, a private investment fund, in the 1960s, and had also invested in the Texas Rangers in the 1970s alongside George W. Bush.[32] With the Political Club for Growth, Gilder "hosted private fundraising salons at his Manhattan brokerage firm in the 1980s and 1990s for GOP stalwarts such as Newt Gingrich and Steve Forbes."[33] The group included around two dozen businessmen who "interviewed candidates for office, testing their conservative bona fides on fiscal issues and rewarding acceptable political hopefuls with a pocketful of checks," according to Washington Monthly. The New York Observer described the Political Club for Growth as "a group of supply-side Wall Street Republicans that started to funnel money in a targeted fashion to Washington" and that "has used contributions to get elected officials to adopt specific legislation." Gilder's pet issues included lowering income taxes, privatizing Social Security, and using voucher programs to increase the number of charter schools around the country.[32]

Stephen Moore had been involved in the Political Club for Growth from its beginning, but by the 1990s wanted to take on a leadership role in order to turn the group into a more powerful influence in Washington. At the time, Moore was a fellow at the Cato Institute.[34] Club for Growth was "founded in 1999 by Moore (now a member of the Wall Street Journal editorial board); National Review president Dusty Rhodes; Cato Institute president Ed Crane; stockbroker Richard Gilder; and Larry Kudlow, a former Reagan adviser and co-host of CNBC's Kudlow & Cramer," and other like-minded people. (Former president Pat Toomey is now the junior senator representing Pennsylvania).[35]

The new Club for Growth immediately became more directly involved in primary campaign spending, attacking "politicians who did not share their fiscal policy of tax cuts, balanced budgets, and more tax cuts." According to Washington Monthly, "Moore's team was more responsible than any other group for the Republican purge of party moderates that [drove] much of GOP politics during the Bush years."[34] $2.4 million in campaign contributions from the Club for Growth helped elect 10 new Republicans to Congress in 2000. "The Club for Growth has grown six-fold since the 2000 election cycle and the Club and its members raised or donated over $10 million to help elect seventeen new Members of Congress in the 2002 election cycle."[36]

In the run up to the 2004 Democratic caucuses in Iowa, the PAC arm of Club for Growth ran advertisments attacking Presidential candidate Howard Dean. The advertisements characterized Howard Dean and his supporters as a "tax-hiking, government-expanding, latte-drinking, sushi-eating, Volvo-driving, New York Times-reading, body-piercing, Hollywood-loving, left-wing freak show."[37]

Not even George Walker Bush as President was immune from Club for Growth criticism. After Bush unveiled new programs costing billions of dollars in the 2004 State of the Union Address, then-Club president Stephen Moore criticized George Walker Bush as a "big government Republican."[38]

"The group, which in the past has challenged moderate Republicans it considers big spenders, is running television spots targeting three GOP lawmakers who are undecided about private accounts: Sen. Lincoln Chafee of Rhode Island, Rep. Joe Schwarz of Michigan and Rep. Sherwood Boehlert of New York," the Houston Chronicle reports. "The Club also plans to hire a full-time lobbyist to promote the private account plan on Capitol Hill."[39]

Club for Growth PAC Endorsed Candidates

  • David Harmer (CA-11)
  • Keith Rothfus (PA-04)
  • Andy Harris (MD-01)
  • Nan Hayworth (NY-19)
  • Jesse Kelly (AZ-08)
  • David Schweikert (AZ-05)
  • Joe Miller (AK-Sen)
  • Tim Griffin (AR-02)
  • Todd Young (IN-09)
  • Stephen Fincher (TN-08)
  • Ken Buck (CO-Sen)
  • Mick Mulvaney (SC-05)
  • Rand Paul (KY-Sen)
  • Ron Johnson (WI-Sen)
  • Sharron Angle (NV-Sen)
  • Justin Amash (MI-03)
  • Mike Pompeo (KS-04)
  • Tim Huelskamp (KS-01)
  • Tim Scott (SC-01)
  • Jeff Duncan (SC-03)
  • Tom Graves (GA-09)
  • Pat Toomey (PA-Sen)
  • Marco Rubio (FL-Sen)
  • Mike Lee (UT-Sen)
  • Jim DeMint (SC-Sen)
  • Tom Coburn (OK-Sen)

2010 Expenditures

Independent Expenditures

As of September 2010:[40]

Race       Candidate         Party     Support/Oppose  Expenditures
GA-9           Tom Graves          R       Support         $9,621.00
GA-9        Lee Hawkins         R       Oppose          $114,131.00
KS-1        James A. Barnett    R       Oppose          $110,662.00
KY-Senate   Rand Paul           R       Support         $11,115.00
MI-3        Justin Amash        R       Support         $7,908.00
MI-3        Bill Hardiman       R       Oppose          $125,727.00
NV-Senate   Sharron E. Angle    R       Support         $247,218.00
NV-Senate   Sue Lowden          R       Oppose          $238,458.00
NY-23       Doug Hoffman        3       Support         $340,450.00
NY-23       Bill Owens          D       Oppose          $137,818.00
NY-23       Dierdre Scozzafava  R       Oppose          $167,016.00
OK-5        Kevin Calvey        R       Support         $160,163.00
PA-Senate   Pat Toomey          R       Support         $12,639.00
PA-Senate   Arlen Specter       D       Oppose          $159.00
SC-1        Tim Scott           R       Support         $54,233.00
SC-1        Paul Thurmond       R       Oppose          $52,327.00
SC-3        Jeff Duncan         R       Support         $220,234.00
TN-3        Robin Smith         R       Support         $51,865.00
TN-3        Charles Fleischmann R       Oppose          $58,541.00
UT-Senate   Robert F. Bennett   R       Oppose          $186,309.00
WI-Senate   Ron Johnson         R       Support         $12,162.00

Club for Growth Action Expenditures

As of September 2010:[41]

Race           Candidate         Party Support/Oppose  Expenditures
CO-Senate          Ken Buck          (R)   Support         $12,500.00
CO-Senate       Michael F. Bennet (D)   Oppose          $299,739.00
FL-Senate       Marco Rubio       (R)   Support         $35,366.00
FL-Senate       Kendrick B. Meek  (D)   Oppose          $1,572.00
FL-Senate       Charlie Crist     (I)   Oppose          $280,151.00
KY-Senate       Rand Paul         (R)   Support         $12,500.00
NV-Senate       Sharron E. Angle  (R)   Support         $35,366.00
NV-Senate       Harry Reid        (D)   Oppose          $211,894.00
PA-Senate       Pat Toomey        (R)   Support         $15,626.00
PA-Senate       Joe Sestak, Jr    (D)   Oppose          $770,317.00
WI-Senate       Russ Feingold     (D)   Oppose          $183,205.00
WI-Senate       Ron Johnson       (R)   Support         $14,866.00

Directors & Staff

Board of Directors

The group was formerly led by Pat Toomey.

Staff


Former Staff

Leadership Council

Contact Information

Club for Growth
2001 L Street, NW, Suite 600
Washington, DC 20036
Telephone: 202-955-5500
Fax: 202-955-9466
Website: http://www.clubforgrowth.org

Articles and References

Related SourceWatch Articles

External Links

References

  1. John Nichols Is Governor Scott Walker a Puppet? The Nation, February 22, 2011.
  2. Jason Stein, Patrick Marley Layoff deadline looms as some movement is made on breaking stalemat Milwaukee Journal Sentinel, March 4, 2011.
  3. Don Walker Wisconsin Club for Growth plans to stay active, Milwaukee Journal Sentinel, February 22, 2011.
  4. Jill Burcum Will Wisconsin be the GOP's 'overreach' moment?, Editorial/commentary, Febuary 26, 2011.
  5. Opensecrets Profile: Club for Growth Accessed September 13th, 2012.
  6. Dan Eggen and T.W. Farnam, New 'Super Pacs' bringing millions into campaigns, The Washington Post, September 28, 2010.
  7. Sunlight Foundation, Club for Growth Action intent to accept unlimited donations, accessed September 30, 2010.
  8. Brendan Fischer, Club for Growth Flexing Muscle in Races Across the Country, with Help from Big Donors, PRWatch.org, August 31st, 2012.
  9. Center for Responsive Politics, Thiel, Peter, OpenSecrets political contributions database, accessed September 12th, 2012.
  10. Naftali Bendavid, Club for Growth Wears on Some Republicans, Wall Street Journal, May 19, 2009, accessed October 1, 2010.
  11. Transcript: Mike Huckabee on Fox News Sunday, Fox News, November 19, 2007, accessed October 1, 2010.
  12. Brendan Fischer, Newspapers Create False Equivalency in Recall Spending, PRWatch.org, May 24th, 2012.
  13. Sarah Jerving, Front Groups Dive into Wisconsin Recall Elections, PRWatch.org, August 4, 2011.
  14. Brendan Fischer, http://www.prwatch.org/news/2012/08/11729/club-growth-flexing-muscle-races-across-country-help-big-donors Club for Growth Flexing Muscle in Races Across the Country, with Help from Big Donors], PRWatch.org, August 31st, 2012
  15. Josh Lederman: Club for Growth to spend $500,000 attacking Rep. Flake's GOP Challenger, The Hill, June 4th, 2012.
  16. William Dooling: Club for Growth Attacks Thompson and Hovde, PRWatch.org, July 18th, 2012.
  17. Will Dooling, Dueling Right-Wing SuperPACs Battle for the Future of the Republican Party, PRWatch.org, July 31st, 2012.
  18. Keenan Steiner, Club for Growth led Rightwing Spending that Unseated Indiana's Lugar, Alternet, May 10th, 2012.
  19. David Catanese, Orrin Hatch Likely to dodge Club for Growth, Politico, May 22, 2012.
  20. Alexander Bolton, Club for Growth eyes new political fund for expenditures in Nevada, other states, The Hill June 3, 2010.
  21. Brian Beutler, Dems Seize On Club For Growth's "Hell Yeah!" Push For Social Security Privatization, Talking Points Memo, September 22, 2010.
  22. Andrew Roth, Privatize Social Security? Hell Yeah!, Club For Growth blog, September 21, 2010.
  23. Club for Growth, Join (subscription required), organizational bulletin, September 14, 2006.
  24. Club for Growth, NV02 Primary Election Results, organizational website (link since changed), accessed September 2006.
  25. Club for Growth, Tim Wahlberg Wins in Michigan 07, organizational website (link since changed), accessed September 2006.
  26. Club for Growth, Doug Lamborn Wins in Colorado 05,
    • Kevin Calvey (OK)--came in fourth after over $249,000. [1], organizational website (link since changed), accessed September 2006.
  27. Club for Growth, Minnesota 06 Convention Results, organizational website (link since changed), accessed September 2006.
  28. Club for Growth, Ohio 04 Primary Election Results, organizational website (link since changed), accessed September 2006.
  29. Club for Growth, Texas 28 Primary Election Results, organizational website (link since changed), accessed September 2006.
  30. United States Federal Election Commission, FEC Files Suit Against Club For Growth, FEC website, Sept 19, 2005.
  31. Citizens Club for Growth to pay fine, USA Today, September 5, 2007.
  32. 32.0 32.1 Deobrah Netbum and Tom McGeveran, "Who Paid $15 Million for Richard Gilder’s 927 Fifth Co-op?," New York Observer, May 28, 2001, accessed November 18, 2014.
  33. Dan Eggen, "Club for Growth's electoral tactics causing headaches for GOP," The Washington Post, May 19, 2010, accessed November 18, 2014.
  34. 34.0 34.1 Chris Cillizza, "Out of the Club: Why a conservative powerhouse booted its founder," Washington Monthly, May 2005, accessed November 18, 2014.
  35. Will Evans, Profile: Club for Growth, National Public Radio, August 4, 2008.
  36. Susan Jones, Tax-Cut Group Launching Anti-Dean TV Ads, CNS News, July 7, 2008.
  37. Club for Growth, Famous Club for Growth PAC TV Ad About Howard Dean, YouTube, uploaded August 27, 2006, accessed May 21, 2013.
  38. Proposals push spending beyond budget, The Washington Times editorial, January 21, 2004.
  39. Bennett Roth, Public is target of Social Security lobbying, The Houston Chronicle, February 14, 2005.
  40. Sunlight Foundation, Club for Growth Independent Expenditures, accessed September 30, 2010.
  41. Sunlight Foundation, Club for Growth Action expenditures, accessed September 30, 2010.