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Saturday, April 11, 2009

Three Mistakes the Tea Party Movement must Avoid

The Tea Party movement is a spontaneous, passionate, and in many respects, disorganized effort to restore those principles that made the United States the greatest country in the history of the world. Like many mass movements in its early stages, it is poised to rewrite the future of this Republic, or to be a mere footnote in US history. Decisions this movement is making today, will have everything to do with its legacy tomorrow.

Currently, there is plenty discussion about what the Tea Party should do. I want to focus on three things it needs to avoid.
  • The Tea Party must never become partisan. Fewer people identify themselves with a party now than at any time in US history. The reason why is because the major parties have failed us miserably. The Reagan Revolution wasn't about partisan politics, but important principles regarding the way government viewed the economy, family, and national security. The 1994 "Contract with America" movement was actually motivated over issues of accountability. You had check kiting Members of Congress who wrote bad checks without consequences and a Post office Scandal (Members would turn their huge allocation of stamps into cash and even included drug laundering) that brought down many Democrats, including the Chairman of the powerful House Ways and Means Committee (Dan Rostenkowski). The current Tea Party is also about accountability, which is very similar to the 1994 elections and needs to maintain that nonpartisan appeal.

  • The Tea Party must not become a single issue movement. On the one hand, Americans have every right to make this movement about taxation. The US has the second highest tax rates on businesses than any industrialized country in the world and the pressure on taxpayers in general are only growing. But there is a widespread attack on America's freedom that include excessive regulations, pressure from organized labor that is poised to damage the US competitive advantage, the disenfranchisement of our political freedoms (thanks to Obama's political antics, e.g., the movement of the Census Bureau to the White House in an effort to effect Congressional Districts, the attack on members of Obama's own party who won't vote lock step with the Administration, etc.), and more. If the movement only worries about taxes, it will be separating itself from those concerned about other issues and validating those who believe that people in this movement only care about money. It isn't about money nearly as much as it is about freedom. That includes economic freedom.

  • The Tea Party must not become about personalities. Right now there is jockeying in the movement all over the country by individuals who want to lead it going forward. If a single individual rises to fill the role, the movement will likely be in trouble. That person will probably have a partisan history that will make him or her easy to dismiss by the movement's opponents. I'm reminded of the early days of the Reagan Revolution, which was led by people who were "mad as hell," like Eddie Chiles in Texas and Howard Jarvis in California. These were individuals who were leaders in business, not politics, and had no further agenda then restoring America's freedoms. In spite of how powerful of a personality Reagan had, he was, in many respects, the epitome of the movement that elected him, rather than the creator of it.

There are, I am sure, other pitfalls the Tea Party should avoid, but by being ever diligent on these three important areas, the Tea Party will be a force to be reckoned with for years to come and should leave a positive and powerful impact on the future of this country.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

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Thursday, March 05, 2009

Tea Parties are Reminders of Howard Jarvis and Eddie Chiles

When I first got involved in politics as a teenager in the late 1970s, it was during a massive tax revolt against a government that had grown out of control. The highest income tax rate was hovering around 70 percent. This attack on capital formation did not only weaken the economy, but under minded freedom itself and the ability for individuals to pursue their aspirations.

The man who came to the rescue and who fought the battle of middle America who were being pounded by taxes was Ronald Reagan. But, in many respects, Reagan was a product of what was going on in the political culture at that time. For decades Americans were told that the patriotic thing to do was to pay taxes. Many more taxes. Reagan believed the patriotic thing was to hold government accountable for its spending and that the American people fundamentally knew how to manage their money better than government.


Reagan's message resonated because of individuals like Howard Jarvis in California who led the Proposition 13 drive that changed the way people would be taxed and Eddie Chiles of Texas who said that he -- like millions of other Americans -- was "mad as hell" over what the government was doing to American taxpayers.


In the June 5, 1978 edition of Time Magazine you find Howard Jarvis on the cover with his fist in the air. At that moment a grass root movement had finally received mainstream credibility. The article in the magazine stated that "rising taxes are a burning concern all over the U.S. In California, they are nothing less than an obsession, and small wonder." About the movement's leader, it stated that "the furor has turned Howard Jarvis, 75, into a statewide folk hero to millions of Californians, a demagogic devil to others. A retired millionaire manufacturer, Jarvis has been railing against high taxes for 15 years. Jarvis, whose face looks a bit like a California mudslide, has been demolishing debating opponents with his oddly compelling blend of verbosity, profanity and humbug." His supporters included the great economist, Milton Friedman, who did TV commercials for free and it stated that "former Governor Ronald Reagan has rallied behind Jarvis." That last line was an understatement. In June in 1978 when this article was written, Reagan was considered a political "has been" and a perennial candidate who would not have a prayer if he ran for President again in 1980. This tax revolt movement became a major driver that helped to put Reagan in office.


A little further south you had a gentleman I knew named Eddie Chiles, who also rose up in business (while Jarvis was in manufacturing, Chiles was in the energy field) to become an advocate of smaller government who also rose to the scene in the late 1970s. The New York Times pointed out in an obituary for Chiles that "as a businessman, he shared his views in the late 1970's, usually about some government affront to business, through a series of radio commercials in which he proclaimed, 'I'm Eddie Chiles, and I'm mad." The commercials were broadcast on 650 stations in 14 states where Western (Company of North America, which he owned) had operations and spawned almost a million bumper stickers reading, 'I'm mad too, Eddie.'" Eddie helped fuel the flames that led to the rise of Reagan.

People are mad as hell today and you see this in the rise of the new tea parties. Among the thousands who are going to the streets we will find our next Jarvis and Chiles. Also, on the political landscape, we will find the right elected officials who will carry this message to Washington. Some may be merely running for Congress in 2010, others may already be in office, but they all have far more to be mad about today than we did in the 1970s when the anti-tax movement began. The federal budget in 2008 was $2.7 trillion. The government has increased that budget by more than fifty percent in the last six months alone. This will be paid for with funny money (inflation) and by raising the taxes of those who make more than $250,000 a year (the same people who create most of the jobs). I'm mad too, Eddie and so are millions of other Americans.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

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