Opinions

Charles Koch: This is the one issue where Bernie Sanders is right

By Charles G. Koch

February 18, 2016 at 5:44 PM

Charles G. Koch is chairman and chief executive of Koch Industries.

As he campaigns for the Democratic nomination for president, Vermont Sen. Bernie Sanders (I) often sounds like he’s running as much against me as he is the other candidates. I have never met the senator, but I know from listening to him that we disagree on plenty when it comes to public policy.

Even so, I see benefits in searching for common ground and greater civility during this overly negative campaign season. That’s why, in spite of the fact that he often misrepresents where I stand on issues, the senator should know that we do agree on at least one — an issue that resonates with people who feel that hard work and making a contribution will no longer enable them to succeed.

The senator is upset with a political and economic system that is often rigged to help the privileged few at the expense of everyone else, particularly the least advantaged. He believes that we have a two-tiered society that increasingly dooms millions of our fellow citizens to lives of poverty and hopelessness. He thinks many corporations seek and benefit from corporate welfare while ordinary citizens are denied opportunities and a level playing field.

I agree with him.

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During a speech on economic reform, Sen. Bernie Sanders (I-Vt.), who is running for the Democratic nomination for president, drew applause when he said his campaign is about a movement unifying people of many different backgrounds. (Reuters)

Democrats and Republicans have too often favored policies and regulations that pick winners and losers. This helps perpetuate a cycle of control, dependency, cronyism and poverty in the United States. These are complicated issues, but it’s not enough to say that government alone is to blame. Large portions of the business community have actively pushed for these policies.

Consider the regulations, handouts, mandates, subsidies and other forms of largesse our elected officials dole out to the wealthy and well-connected. The tax code alone contains $1.5 trillion in exemptions and special-interest carve-outs. Anti-competitive regulations cost businesses an additional $1.9 trillion every year. Perversely, this regulatory burden falls hardest on small companies, innovators and the poor, while benefitting many large companies like ours. This unfairly benefits established firms and penalizes new entrants, contributing to a two-tiered society.

Whenever we allow government to pick winners and losers, we impede progress and move further away from a society of mutual benefit. This pits individuals and groups against each other and corrupts the business community, which inevitably becomes less focused on creating value for customers. That’s why Koch Industries opposes all forms of corporate welfare — even those that benefit us. (The government’s ethanol mandate is a good example. We oppose that mandate, even though we are the fifth-largest ethanol producer in the United States.)

It may surprise the senator to learn that our framework in deciding whether to support or oppose a policy is not determined by its effect on our bottom line (or by which party sponsors the legislation), but by whether it will make people’s lives better or worse.

With this in mind, the United States’ next president must be willing to rethink decades of misguided policies enacted by both parties that are creating a permanent underclass.

Our criminal justice system, which is in dire need of reform, is another issue where the senator shares some of my concerns. Families and entire communities are being ripped apart by laws that unjustly destroy the lives of low-level and nonviolent offenders.

Democratic presidential candidate Bernie Sanders addresses an overflow crowd during a campaign rally at the University of Illinois at Urbana-Champaign. (Shannon Stapleton/Reuters)
Supporters listen to Bernie Sanders at the University of Illinois at Urbana-Champaign. (Shannon Stapleton/Reuters)
Supporters wait to enter the Sanders rally. (Charles Ledford/Getty Images)
Sanders speaks at the University of Illinois at Urbana-Champaign. (Shannon Stapleton/Reuters)
Sanders waves to supporters after addressing the rally. (Shannon Stapleton/Reuters)
Sanders waves to a crowd as he arrives at the Rainbow Push Coalition in Chicago. (Nam Y. Huh/AP)
A Sanders supporter cheers the Democratic presidential candidate at the Rainbow Push Coalition, a group headed by the Rev. Jesse Jackson. (Nam Y. Huh/AP)
The Rev. Jesse Jackson, right, listens as Sanders speaks at the Rainbow Push forum in Chicago. (Tannen Maury/EPA)
Sanders, center, greets members of the crowd at the Rainbow Push Coalition after sitting for an interview with the Rev. Jesse Jackson in Chicago. (Scott Olson/Getty Images)
Democratic presidential candidate Bernie Sanders addresses a rally at Macomb Community College in Warren, Mich. (Geoff Robins/Agence France-Presse via Getty Images)
Sanders supporters cheer during a rally at Macomb Community College in Warren, Mich. (Geoff Robins/Agence France-Presse via Getty Images)
Sanders laughs as he arrives to speak to his supporters during a Super Tuesday rally at the Champlain Valley Exposition in Essex Junction, Vt. (Ricky Carioti/The Washington Post)
Supporters listen as Sanders speaks to them during a rally in Essex Junction, Vt. (Ricky Carioti/The Washington Post)
Sanders raises his fist after his speech to supporters at the Champlain Valley Exposition. (Ricky Carioti/The Washington Post)
Sen. Bernie Sanders, center, waves as he arrives to speak at a campaign event at Chicago State University in Chicago. (Tannen Maury/European Pressphoto Agency)
A supporter of Sen. Bernie Sanders waits for him to arrive at a community forum at Woodside Church in Flint, Mich. The forum focused on the water crisis in Flint. (Bill Pugliano/Getty Images)
Bernie Sanders speaks during a rally at Bon Secours Wellness Arena in Greenville, S.C. (Cassi Alexandra/For The Washington Post)
Bernie Sanders speaks during a rally at Bon Secours Wellness Arena in Greenville, S.C. (Cassi Alexandra/For The Washington Post)
Supporters wait to hear Bernie Sanders speak during a rally at Bon Secours Wellness Arena in Greenville, S.C. (Cassi Alexandra/For The Washington Post)
Someone holds up a Bernie Sanders T-shirt before the candidate speaks at a rally at Bon Secours Wellness Arena in Greenville, S.C. (Cassi Alexandra/For The Washington Post)
Bernie Sanders waves to his supporters before delivering his concession speech at the Henderson Pavilion in Henderson, Nev. (Ricky Carioti/The Washington Post)
Sanders delivers a speech to a packed Memminger Auditorium in Charleston, S.C. (Alex Holt/For The Washington Post)
Sanders speaks in Charleston. (Alex Holt/For The Washington Post)
Supporters give Sanders a standing ovation during a town hall in Charleston. (Alex Holt/For The Washington Post)
Sanders is joins Rev. Al Sharpton for a meeting at Sylvia's Restaurant in the Harlem neighborhood of New York. (Andrew Renneisen/Getty Images)
A crowd gathers to see Sanders arrive at Sylvias. (Andrew Renneisen/Getty Images)
Sharpton talks with Sanders as they sit down for a breakfast meeting at Sylvias. (Richard Drew/AP)
Sanders chats with host Stephen Colbert during a taping of The Late Show With Stephen Colbert" in New York. (Jeffrey R. Staab, CBS/AP)
Bernie Sanders greets his supporters with his wife, Jane OMeara Sanders, at Concord High School after winning New Hampshire. (Lucian Perkins/for The Washington Post)
Bernie Sanders supporters shout in excitement as he prepares to come out onstage after winning New Hampshire. (Lucian Perkins/for The Washington Post)
From left: Kat Wright, Brett Hughes and Dwight Ritchie, all from Burlington, sing This Land Is Your Land at the Ward 5 polling place at the Green Street Community Center in Concord, N.H. (Lucian Perkins/for The Washington Post)
Bernie Sanders decides to take a walk around the block after walking through a group of supporters and camera crews when he briefly visited the Ward 5 polling place at the Green Street Community Center in Concord, N.H. (Lucian Perkins/for The Washington Post)
Bernie Sanderss supporters wait in excitement for his arrival at Ward 5 polling place at the Green Street Community Center in Concord, N.H. (Lucian Perkins/for The Washington Post)
A supporter holds a sign for Sanders during his speech at the Whittemore Center arena. (Lucian Perkins/For The Washington Post)
Supporters listen to Sanders at the arena. (Lucian Perkins/For The Washington Post)
Sanders comes to the aid of one of his supporters who passed out after standing behind him during his talk at Pinkerton Academy Stockbridge Theatre in Derry, N.H. (Lucian Perkins/for The Washington Post)
Sanders works the crowd after speaking in Portsmouth. (Lucian Perkins/for The Washington Post)
Sanders takes the stage to speak at a campaign rally in Rindge, N.H. (Charles Ommanney/The Washington Post)
Voters cheer Sanders at a New Hampshire Democrats gathering entitled 2016 McIntyre Shaheen 100 Club Celebration in Manchester, N.H. (Melina Mara/The Washington Post)
Supporters listen to Sanders speak at a rally in Exeter, N.H. (Charles Ommanney/The Washington Post)
Photo Gallery: Highlights from Bernie Sanders’s campaign, in pictures

Today, if you’re poor and get caught possessing and selling pot, you could end up in jail. Your conviction will hold you back from many opportunities in life. However, if you are well-connected and have ample financial resources, the rules change dramatically. Where is the justice in that?

Arbitrary restrictions limit the ability of ex-offenders to get housing, student or business loans, credit cards, a meaningful job or even to vote. Public policy must change if people are to have the chance to succeed after making amends for their transgressions. At Koch Industries we’re practicing our principles by “banning the box.” We have voluntarily removed the question about prior criminal convictions from our job application.

At this point you may be asking yourself, “Is Charles Koch feeling the Bern?”

Hardly.

I applaud the senator for giving a voice to many Americans struggling to get ahead in a system too often stacked in favor of the haves, but I disagree with his desire to expand the federal government’s control over people’s lives. This is what built so many barriers to opportunity in the first place.

Consider America’s War on Poverty. Since its launch under President Lyndon Johnson in 1964, we have spent roughly $22 trillion, yet our poverty rate remains at 14.8 percent. Instead of preventing, curing and relieving the causes and symptoms of poverty (the goals of the program when it began), too many communities have been torn apart and remain in peril while even more tax dollars pour into this broken system.

It is results, not intentions, that matter. History has proven that a bigger, more controlling, more complex and costlier federal government leaves the disadvantaged less likely to improve their lives.

When it comes to electing our next president, we should reward those candidates, Democrat or Republican, most committed to the principles of a free society. Those principles start with the right to live your life as you see fit as long as you don’t infringe on the ability of others to do the same. They include equality before the law, free speech and free markets and treating people with dignity, respect and tolerance. In a society governed by such principles, people succeed by helping others improve their lives.

I don’t expect to agree with every position a candidate holds, but all Americans deserve a president who, on balance, can demonstrate a commitment to a set of ideas and values that will lead to peace, civility and well-being rather than conflict, contempt and division. When such a candidate emerges, he or she will have my enthusiastic support.

Read more on this topic:

Tom Hamburger: The Koch brothers’ impact on the American political system

The Post’s View: Bernie Sanders isn’t as progressive as you think

E.J. Dionne Jr.: Capitalists should listen to Bernie Sanders

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