Underdog Kucinich campaigns philosophy: `anything is possible'

[redqueen]

Twenty-six years ago Dennis Kucinich was a rising star. In 1978 the national spotlight shone brightly on the media-dubbed "Boy Mayor," who was sworn in at age 31 as mayor of Cleveland. He was one of the youngest people ever to lead a major city. But as quickly as he rose, the political meteor that was Kucinich crashed and burned.

The media lights turned harsh as Cleveland slipped into default, the direct result of Kucinich's constant battles with the city's major banks and business interests. It was Kucinich's staunch refusal to sell Cleveland's municipal light system to a private company that led to his downfall.

Within a few months of his election, Kucinich and Cleveland had become national jokes. Rechristened "Dennis the Menace," he became the target of public outrage, political vendettas and, according to an FBI report, a Mafia hit man. (...)

In the 1990s, Muny Light (now Cleveland Public Power) was still city-owned, and it had expanded. The utility had saved its customers more than $200 million over the years, compared with what they would have spent had the power company fallen into private hands. Kucinich was honored in 1998 by the Cleveland City Council for "having the courage and foresight to refuse to sell the city's municipal electric system."

edited to add a link
--------

Great article that actually gets the MUNY Light story right! Amazing!

[Hep]

1. How cute!

It should have been Reach For The Stars!

[redqueen]

2. Or it could be: "You can actually serve the people well

if your real motivation isn't money and power!"

[Zomby Woof]

18. please read your sig line again

[Nederland]

3. Too bad

...the estimated 200 million that was saved doesn't make up for the billions of dollars the default cost Cleveland in lost jobs, program cuts and higher borrowing costs for the city. No matter how DK tries to spin it, the default was a disaster for Cleveland.

[redqueen]

4. Yes, he should have played ball like nice, good republicans

This makes me sick.

You're saying that because the powerful elites have the power to punish Cleveland, Kucinich should have just sold them out.

:puke:

[Rainbowreflect]

5. He campaigned saying he would save MUNY and he did.

The fact that a bunch of repubs wanted bigger profits and did not care who got screwed is not the fault of Dennis, who did the right thing.

[OhioStateProgressive]

6. incorrect

it was a 40 million dollar loan that was defaulted

the businesses that lost jobs and Money were the ones who were taken off of Muny Light Grid...a little known fact is that Voinovich, as one of his first acts, was to have the City Businesses put back on the Muny Grid, at the lower rates...it is what led to the development of Cleveland thru the late eighties and early nineties

the fact is that Voinovich carried out Dennis's redevelopment plan for Cleveland, and the city of Cleveland realized that

Ohio politics is defined in many ways by Dennis...the last two Mayors of Cleveland are former Kucinich people, Hagan had good support against Taft for Governor last election too

[redqueen]

7. Thanks for these important details! n/t

:thumbsup:

[Karmadillo]

8. Facts!? You dare defend Kucinich with facts!? Outrageous.

Next thing you know, you'll be suggesting the media should discuss universal health care instead of the Crocodile Hunter's adventures in child-rearing. Crazy, man.

[Nederland]

9. You want facts? Here they are:

When you understand everything surrounding the city's default, you realize that the whole MUNY light story is merely the end game of a series of mistakes made by Kucinich. He never would have been in the position of being blackmailed by the banks if he had engaged in fiscally prudent spending. Kucinich used funds gathered from Water Bonds to pay for operational expenses--a practice that has since been made illegal. In July of 1978, $50 million in bonds were "unaccounted for" and bond-rating agencies downgraded the city's credit rating. This forced the city to borrow 15.5 million dollars in short term debt from local banks.

It was after all this that the MUNY light affair happened. The only reason that the banks were able to pressure Kucinich to sell MUNY light to CEI was because he had fucked up earlier. If he hadn't gotten the city into a financial mess that it was in before the whole MUNY light issue came to a head, he would have been able to make his "principled" stand against selling off the utility company without fear of the banks blackmailing him. His earlier errors put him in a lousy bargaining position, and even though he held a losing hand, he bet the house. The banks called his bluff and the city fell into default.

The result of the default and the refusal to sell MUNY light caused the following:

1) The city was forced to raise income taxes by 50%.
2) The city could no longer borrow money to fund capital projects.
3) The city had to prop up the public utility with a 50 million dollar cash infusion.

If you want to truly account for the cost of Kucinich's actions, you must add up the cost of all of these things. You can't simply add up the amount of money saved by lower utility bills and claim Kucinich saved the city 200 million dollars. You have to take into account that that the utility was subsidized by tax payer money, that taxes increased an enormous amount, and that the entire city suffered from increased borrowing costs for many many years afterwards. If you are honest about it, you'll realize that Kucinich cost the citizens of Cleveland far far more that he saved them.

[redqueen]

10. Source? Someone's not being entirely honest here

Your implication is that the City of Cleveland was under no pressure to privatize the utility before Kucinich was elected.

Other sources state he was elected on a promise not to sell it.

So how can it be that "the MUNY light affair happened" after he f***ed up (as you so delicately put it)? Are you referring to a decision he made as a City Council member?

Please, share some details.

Starting with the source for that, please.

[Nederland]

12. Link

http://ech.cwru.edu/

Look at the sections on the City's default, the Administration of Kucinich and Voinovich.

To clarify, I never stated that the City of Cleveland was under no pressure to privatize the utility before Kucinich was elected. Rather, what I said was that Kucinich would have been able to fight the privatization without throwing the city into default if he hadn't already been in dire financial straights. If you re-read my post I think you'll see this clearly.

[Nadienne]

20. Conflicting info from different sources, perhaps

From Wikipedia:

In 1977, Kucinich, at the age of 31, became the mayor of Cleveland, Ohio, the youngest mayor of a major US city, after running on a ticket promising to cancel the sale of the city's publicly owned electric company, Muny Light to a private electric company, the Cleveland Electric Illuminating Company (CEI). CEI had been responsible for numerous violations of federal antitrust law in its attempt to put Muny Light out of business. The Atomic Safety and Licensing Board of the Nuclear Regulatory Commission determined that CEI blocked Muny Light from making repairs to its generator by lobbying the Cleveland City Council to place restrictive conditions on Muny Light Bonds. Because of the delay in repairs, Muny Light had to purchase power. CEI then worked behind the scenes to block Muny Light from purchasing power from other power companies. CEI became the only power company Muny Light could buy from. At that point, CEI sharply increased and sometimes tripled the cost of power to Muny Light. As a result, Muny Light began to lose money. The mayor of Cleveland then agreed to sell Muny Light to CEI, but after Kucinich won the election, he canceled the sale.

CEI went to court to demand that Muny Light pay $15 million for power it had purchased. The previous mayor had intended to pay that light bill by selling the light system, simultaneously disposing of a $325-million-dollar antitrust damage suit. Kucinich's election not only stopped the sale, but kept the lawsuit alive. CEI went to federal court to get an order attaching city equipment. Kucinich moved quickly to pay the bill by cutting city spending. On December 15, 1978, Ohio's largest bank, Cleveland Trust, told Kucinich that they would not renew the city's credit on $15 million of loans taken out by the previous administration unless Kucinich would agree to sell.

Also, interestingly enough, CEI was later acquired by First Energy. You'll remember from the blackouts in New England, First Energy was one of the power companies that contributed to the disaster.

Link

[Nederland]

22. No conflict

What are you talking about? There is nothing in there that conflicts with my post.

[Nadienne]

21. Uh, heh

I got "Service Unavailable"...

[OhioStateProgressive]

11. these aren't facts, it's nearly plagiarized from Cleveland Magazine

the fact is that Cleveland was in disrepair from teh 1960's onward, and Dennis was left to juggle all of it, he did have some failings with the bonds, and he did raise taxes, but Clevelanders voted for that tax increase 2-1, they KNEW IT WAS ESSENTIAL

no no, Dennis administration started the sequence which led to Clevelands rebirth

[Nederland]

13. Wrong

As I indicated above, my source was not Cleveland magazine.

As for the DK administration starting the sequence that led to Cleveland's rebirth, that sorta reminds me of Freeper claims that 12 years of Reagan/Bush laid the foundation for 8 years of prosperity under Clinton. In other words, its bullshit.

Like Clinton, DK inherited a mess. Unlike Clinton, who recognized the need to raise revenue and increase taxes, DK tried to cover up the mess by transferring funds meant for Water projects into the general operating fund. It was only after the city fell into default and this type of fiscal sleight of hand became impossible that the tax increase was put to the ballot.

And yes, the citizens voted to increase taxes--because they had no other choice.

[OhioStateProgressive]

14. well, since what you posted isn't what I said, i don't agree

and i will now go get the Cleveland magazine article that it came from

[Nederland]

15. Have at it (nt)

[goodhue]

16. The Complete Kucinich

The Cleveland Magazine articles re Dennis can be found here:

http://www.clevelandmagazine.com/editorial/thismonth_features.asp?docid=361

[OhioStateProgressive]

17. i already know this:)

i didn't say it was copied word for word, but it is very nearly the same thing, and it is obvious that Cleveland Encyclopedia or whatever used stuff from Cleveland Magazine in its articles

[goodhue]

19. I tend to agree

that Encyclopedia accounts similar to Cleveland articles but poking around the Encyclopedia of Cleveland web site, I did come across this citation:

Marschall, Dan, ed. The Battle of Cleveland: Public Interest Challenges Corporate Power (1979).

Anyone read this book? It was written so close after the default I wonder about how it holds up over time.

[Nederland]

23. What's more important?

The source of the information or its veracity?

I'm just curious why you expend so much effort determining the source of my information and so little to determine whether or not its true. It seems to me that if anything I've said was incorrect, the sensible thing would be to point out the error. The fact that you have refused to do so and instead concentrate on the irrelevant question where the information comes from leads me to believe that you are completely uninterested in determining the facts. If I wrong I am wrong--but you need to prove it first.

[OhioStateProgressive]

24. i have lived "near" Cleveland the entirety of my life

and "in" Cleveland for a good chunk of it

that's how I know what you said is substantially right wing press about Kucinich

[Nederland]

25. Again

If the facts I presented are wrong, prove it.

[OhioStateProgressive]

26. your facts are slanted

Dennis came into Mayor with a plan to save the city from Finacial Ruin, part of it was thru Bonds, which did go bad...he put a Tax on the City, they voted for it...the people knew he had a plan

Dennis refused the sale of Muny Light, which resulted in a 40 million dollar loan being defaulted, the DEfAULT WAS POLITICAL, THE BANK HAD NO REASON TO DO IT.

You are saying that Dennis created the problem, and I am saying the problem created Dennis

The end result, is that since Cleveland still had cheap power (because of Dennis) it allowed the city wide rebuilding of the inner city, which you see in Cleveland today

[Nederland]

27. Slanted?

How about if you cut and paste a factual line out of my original post and tell me its wrong. Let me help you. Here's a list:

1) Kucinich used funds gathered from Water Bonds to pay for operational expenses--a practice that has since been made illegal.

2) In July of 1978, $50 million in bonds were "unaccounted for" and bond-rating agencies downgraded the city's credit rating.

3) This forced the city to borrow 15.5 million dollars in short term debt from local banks.

4) The city was forced to raise income taxes by 50%.

5) The city could no longer borrow money to fund capital projects.

6) The city had to prop up the public utility with a 50 million dollar cash infusion.


These are the hard facts I presented. The rest of the post is merely conclusions drawn from these facts. You can quibble about whether or not my conclusions are correct or not, but let's start with the facts and move on from there. If any of the items above are incorrect, I'd love to here about it from you. Cheers.

[OhioStateProgressive]

28. ok

"1) Kucinich used funds gathered from Water Bonds to pay for operational expenses--a practice that has since been made illegal."...yes, he worked within the system that was in place...it was common, that was how many cities gained revenue

"2) In July of 1978, $50 million in bonds were "unaccounted for" and bond-rating agencies downgraded the city's credit rating."...unnaccounted for by an audit paid for by the bank that held the credit...since they were corrupt, then i guess it didn't mean much

"3) This forced the city to borrow 15.5 million dollars in short term debt from local banks."...Yes, Kucinich took action to correct the lack of cash problem

"4) The city was forced to raise income taxes by 50%."...yes, taxes become a necessity, the city of Cleveland had actually been paying too low of taxes and brought about alot of the finacial problems, taxes are essential

"5) The city could no longer borrow money to fund capital projects."...again, the same banks that were in bed with CEI would not loan money...it is convenient to blame Kucinich instead of the Monopolizing bank/utility I suppose

"6) The city had to prop up the public utility with a 50 million dollar cash infusion."...NO, the City of Cleveland protected Muny Light with a 50 Million dollar investment

[Nadienne]

30. And we KNOW the banks would have a reason for bias

(regarding #2)

After all, Kucinich's campaign promise was to cancel the sale of Muny Lights.

[OhioStateProgressive]

32. exactly(nt)

[Nederland]

33. Excellent

We are finally making progress.

Its seems that you and I agree on items #1, #3, #4, and #6. Your comments indicate that we disagree about what one can conclude from these facts, but you did agree that they were all accurate. With item #6 you didn't deny that there was a 50 million dollar investment, you merely objected to my use of the term "prop up" which is completely fair. Adding such a biased term was an error on my part. It is sufficient to point out that the utility received 50 million dollars in tax payer money.

Regarding #2, you are making an unproven assertion. You claim that the bond-rating agencies downgraded the city's credit rating as a result of an audit paid for by corrupt banks. I request proof of this--both the fact that the audit was paid for by a bank and that said bank was corrupt.

Regarding #5, I think you are confused. The funding of capital projects occurred by the city issuing bonds. Bonds are not loans made by banks, they are investment vehicles purchased by individual and institutional investors. Regardless of whether or not you believe that the downgrading of Cleveland's debt rating was fair or not, it is a FACT that the downgrading occurred. To assert that the downgrading resulted in Cleveland being unable to issue further bonds to fund capital projects is merely the result of this fact.

[OhioStateProgressive]

34. read goodhues post

i can paste what she posted or just tell you to read it, it explains how the bond market was dry BEFORE Dennis even became Mayor

[Nederland]

39. Goodhue's post

Doesn't explain or prove your claim that the bond-rating agencies downgraded the city's credit rating did so as a result of an audit paid for by corrupt banks.

[goodhue]

42. hey

not that gender matters or anything but i'm a he

[OhioStateProgressive]

49. my bad

im not even sure where i got that from:)

I am sorry

[goodhue]

29. the problem created Dennis

is exactly right!
Remember the problem began under Perk when CEI got upset over losing court battle and decided they were going to force sale.

The May 1996 Cleveland Magazine piece is relatively balanced.
http://www.clevelandmagazine.com/editorial/thismonth_features.asp?docid=363

Here is an excerpt:

Meanwhile, in 1975, the Perk administration filed a $330 million antitrust suit against CEI based on charges that the company was trying to undermine Muny as a competitor. Then, in January 1977, a ruling of the Nuclear Regulatory Commission all but saved Muny Light. Stating that CEI had "deliberately rigged the interconnection policies to cause Muny Light's power failures," it demanded CEI "wheel" power from the Power Authority of the State of New York (PASNY) to Muny over its lines - a condition to its granting CEI licenses to operate nuclear power plants. This action was a huge Muny Light victory: Prior to this, Muny couldn't purchase electricity from outside sources. Because PASNY power was cheaper, the ruling was Muny's ticket to getting out of the red.

Furious, CEI took the city to court. During Carl Stokes' and Ralph Perk's mayoral terms, Muny had built up a $16 million debt to CEI, and the company wanted its money. After city council's attempt to raise property taxes to pay the debt failed at the polls community pressure mounted to sell. In May 1977, city council approved the sal of Muny Light to CEI for $150 million. That's when a 5-foot-7-inch, 135-pund obstacle stood in everybody's way.

Clerk of Courts at the time, Kucinich created the Save Muny Light Committee, collecting nearly 30,000 signatures to put the decision of whether to sell Muny Light on the ballot. While a court battle ensued over the legality of the petitions, his efforts successfully froze the sale until he stepped into the mayor's office in November 1977 - based on the campaign promise to save Muny Light.

But there was no mayoral honeymoon for Kucinich over this issue. Almost immediately, CEI filed a lien on city land and property through federal court, which ordered Cleveland to pay its now $18 million debt to CEI. Having walked into a general fund deficit of millions, Kucinich resorted to using the city's operating funds to pay off the debt. Pressure mounted when six Cleveland banks refused to refinance $14 million in short-term loans that would come due on Dec. 15, 1978 - an unusual move considering these banks had routinely rolled over such loans for Perk's administration. And the city needed those banks - shut out of the national bond market, it relied on local banks for financing.

[redqueen]

31. Thanks to goodhue and OSP for presenting the 'other side'

It's nice to know that not only is there a candidate who's even willing to try to speak truth to power, and change things to benefit the public; but there's also people like you two out there, working to counter the neverending propoganda-war which works nonstop to fool people into trusting corporations even if it means that by doing so, they're working against their own interests.

[Nadienne]

35. I second that (n/t)

[redqueen]

36. And thanks to you, too!

Kucinich can't have too many supporters. :D

[Nederland]

38. Response

From the your own link, an article you called "balanced".

"Any skillful mayor could have found a thousand ways to pay off those notes," Pogue says. "Selling Muny Light might have been a good way to do it, but there were many other ways to raise the money. The point is the notes were not paid. People try to hook it up with the Muny Light deal. It had nothing to do with the fact that he put the city into default making us look like, well, we were the laughingstock of the country for a decade." (emphasis mine)

I don't deny that DK inherited a mess. So did Bill Clinton. So will the Democrat that beats Bush in 2004. :)

My problem with DK is that he has a proven record of being unable to fix messes. He is a principled activist, not a person that gets things done. He doesn't realize that in a democracy solutions are not clean cut actions of principle, they are by necessity compromises made with multiple players that all share power in a system of checks and balances and divided government. For example, his assertion that as President he could get US troops out of Iraq in 90 days assumes much. It assumes that he can walk into the UN and get France, Germany, Russia, etc. to send troops into the mess that is Iraq. It assumes that he could get a Congress dominated by Republicans and DINO's to give a sizeable chunk of that 187 billion taxpayer dollars to foreign corporations. It assumes that everybody would just get up and fall into line. It doesn't work that way, and for him to think it does is naive.

[Mairead]

40. Check your facts.

[goodhue]

41. well

I said "relatively balanced" in that it provides both sides of the debate over the default. I happen to think that one side has it right, the other wrong. But article is balanced in that it lays out the facts and describes both points of view. You quote here from one of the DK critics in the article. Pogue's opinion ignores that "other ways" to raise money where foreclosed by CEI and banks and that the notes were called in an irregular fashion in an attempt to force DK's hand. But DK refused. DK did indeed inherit a mess and yet he saved muni light from private takeover at great personal cost. His actions were principled and right. He was ultimately vindicated and sent to Congress on the slogan because he was right. We need more leaders like him.

The Iraq plan has been rehashed on other threads ad naseum but rather than being naive essentially calls for what Annan signaled last July--relinqueshment of US sovereignty and a halt to privatization to the highest bidder. We do not need a leader who will cave in to profligate defense contractors spending but rather who will take a principled stand for the truth. The eyes that see through the lies.

Dennis Kucinich is Halliburton and Dick Cheney's worst nightmare, just as he was CEI's worst nightmare. They tried to roll him and he remained resolute, mess and all.

[Nederland]

45. Great personal cost?

...as if the suffering that the people of Cleveland underwent as a result of the default is meaningless. The hubris is shocking...

The man lost an election because of this. Big deal. I'm not going to cry for him because of it.

[Nadienne]

47. The cost

was his reputation.

The suffering of the people of Cleveland was because of corporate greed. Just like a lot of the suffering that goes on today in many parts of this country. Where's a scape goat when you need one?

[redqueen]

46. Which is why Kucitizens are so devoted.

Seeing that we have a candidate with convictions and the courage to stand up for them *running on the Democratic ticket* is beyond refreshing. :D

[Nadienne]

48. Compromises with multiple players

And if the democratic representative is a middle of the roader, the compromises made will be right-of-center.

Another good reason to support Kucinich.

[WhoCountsTheVotes]

37. "courage and foresight to refuse to sell the city's municipal electric"

If Davis had been so smart and dedicated, Arnold wouldn't be governor right now.

[goodhue]

43. very astute point n/t

[genius]

44. That's why I trust Dennis as President.

He will stand up for what's right.

My only concern about Dennis is his judgment of character when it comes to appointments. He needs to check on the people to whom he delegates too much power. So far, this is the one weakness in his campaign.