Gingrich’s list, presidential book contracts, and job accounting

December 13, 2011

1. Gingrich’s Profits From His “Personal” Mailing List:

The Washington Post’s Dan Eggen did a terrific story last week detailing how former House Speaker Newt Gingrich accumulated large debts early on in his presidential campaign by, among other things, staying in pricey hotels and using hundreds of thousands of dollars’ worth of private jets. Much of the debt has still not been repaid, Eggen reported. One great nugget that caught my eye could use some follow-up. The Post found that $42,000 of the debt had already been paid – to “Gingrich himself” – for the purchase by his campaign of his “personal” donor and friends mailing list. Handing over a copy of a mailing list involves zero cost, which means that Gingrich – who could legally have given the list to his campaign as an in-kind contribution, according to the Post – apparently pocketed $42,000 in profit from his campaign donors and did so before paying off third-party creditors. I’d love to see a follow-up in which voters, not to mention donors, are asked how they feel about Gingrich pocketing the equivalent of more than 80 percent of the average household income of the voters he is courting.

Oh, and another thing: It has to have been one of Gingrich’s political organizations that paid for the solicitations and other work involved in compiling and maintaining the list, not the former Speaker himself. So, assuming the Post is correct that the money was paid to him personally, how did he get personal ownership of a list that is worth $42,000 every time it is loaned out – and, when he did, did he pay income tax on his receipt of this valuable asset?

2. The Candidates’ Book Deals:

I wonder if any of the Republican presidential candidates who have current books on the market – Herman Cain, Michelle Bachmann, Rick Perry, Mitt Romney – have any provisions in their publishing contracts giving them higher advances provided that they stay in the race for a certain period of time. It seems especially possible that this could be a factor in why Cain only suspended his campaign and why Bachmann is hanging on.

3. Inside Standard & Poor’s:

After ratings agency Standard & Poor’s caused a firestorm this summer by downgrading the United States’ credit rating, I kept waiting for a story about how S&P works and how much its rarely-mentioned parent company – McGraw-Hill, the education publishing and financial services giant – is involved in running S&P. Now that S&P has rocked the world economy again by issuing a credit watch on the creditworthiness of 15 European countries, I’m still waiting. Who makes these decisions? What kind of sign-off, or at least heads-up, if any, do they give the bosses at McGraw-Hill? What relationship, if any, is there between S&P’s newly-found aggressiveness – compared to its lapdog approach to rating derivatives and other toxic credit instruments leading up to the 2008/2009 crash – and McGraw-Hill’s recently announced plan to split the company into two entities?  With that in mind, this story should also provide an update on the status of the billions of dollars in suits pending against S&P and McGraw-Hill brought by plaintiffs who claim to have relied on S&P’s seal of approval when they got stuck with all that junk debt.

4. One Up, One Down:

Let’s actually learn something about “job creators” and “job killers.” Any local or national news outlet could do a weekly series profiling a person who just got a new job (as opposed to replacing someone in a position that already existed) and a person who just lost a job and who is not being replaced. In both cases, why did it happen? Did any of President Obama’s tax breaks or any aspect of the stimulus spending have any effect at all on creating the new job? Did trade policies, taxes, or regulations help kill the eliminated job? This series should painstakingly trace the chain reaction of events that boosted the fortunes of one person and reversed them for another. For example, if a plant closing caused a nearby food stand to lay off a cook, what caused the plant to close? It’s the kind of reporting that could turn the amorphous theory and rhetoric of economics into personal stories that everyone can identify with.

PHOTO: U.S. Republican presidential candidate and former Speaker of the House Newt Gingrich speaks at the Veterans for a Strong America Presidential Forum in Des Moines, Iowa, December 10, 2011. REUTERS/Jim Young


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RE: #4
Good idea, but most of the country would prefer to be oblivious to reality because it’s dramatically more complex than the memes of the party’s propaganda machines. The fact is that no one really wants the truth; they only want to believe what their preferred political party has sold them on.

Posted by TheDagger | Report as abusive

Good Points. I think Newt deserves Newt, but the citizens of this country do not deserve another con man. As far as the stimulus is concerned, the plan for a controlled world economy with a two class system is alive and well. We in the US are busy putting the plan into being. The best thing the unions could do is to found a new party that would be out in the open. The reason you can’t tell what is going on in DC is because Congress and the President are acting dead and just have not been buried yet.

Posted by fred5407 | Report as abusive

I think it is unfair to suggest that Gingrich is embezzling money from his own donors. That is a very cynical take on this. Rather, he is serving as a historian for the Gingrich campaign. He is entitled to pocket the money…. as a historian. And really, he’s just getting started. So give him time. the historian will also sell to the campaign a pair of backup shoe laces for $120,000 and a list of favorite Gingrich morning beverages for $822,000.

GOP, please nominate this guy. Romney would have been tough to beat in the general election. But Mitt reliably defeats himself.

Posted by AlkalineState | Report as abusive

Ref #1: This is just a variation of everyday Chicago/Illinois/Combine politics. For the latest examples see former ILL. Governors Ryan & Blagojevich. Or, if you want to go national, check out the ties between Anthony Rezko and Illinois’ former Senator, I forgot his name but I think he lives in the DC area these days.

Posted by ru500 | Report as abusive

Compared to Gingrich lawyers are honorable people.

Posted by borisjimbo | Report as abusive

US politicians have started looking more and more like the corrupt politicians of China, India, Pakistan, Afghanisatan, etc. At least in those countries everyone knows that every politician without exception is corrupt; only to which degree is debatable. But here where the media is so vigilant and information is so freely available, it is surprising they are able to avoid any stigma. Anybody voting for Gingrich should have his head examined. He seem to be one who would take a cut, before signing on the budget!

Posted by nirmasuma | Report as abusive

An active commentary on money and politics – an especially good idea, but do those news agencies who would do the reporting participate in or rely upon the money strings tying politics into knots?

Posted by OFA7 | Report as abusive