Newt Gingrich
Gingrich Inc: Out of business
Newt stayed in the race too long -- and now even his old private companies are struggling. Will Romney rescue him?
Newt Gingrich (Credit: Reuters/Benjamin Myers) When the House of Representatives censured Newt Gingrich in 1997 for ethics violations — the first time ever for a sitting Speaker in 200 years — the vote was 395 to 28, with 196 Republicans joining. “Newt has done some things that have embarrassed House Republicans and embarrassed the House,” said then-Rep. Peter Hoekstra, R-Mich., who is now running for a Senate seat in Michigan. Gingrich resigned a year later, “in disgrace,” as Mitt Romney said in January.
Gingrich spent the next decade in the wilderness, but in a near-miraculous twist of the classic American redemption story, Gingrich’s quixotic bid for the presidency this year actually succeeded, for a time. For a few brief moments, he actually led the pack and felt confident enough to declare on national TV, “I’m going to be the nominee.” Of course, it all came crashing down eventually, as Gingrich’s rise was more a product of the comic weakness of the GOP field and its real front-runner than Gingrich’s strengths, but he still vastly outperformed all expectations and managed to redeem a badly-tarnished reputation.
But Gingrich just couldn’t help himself, and he stayed in the race long past his sell-by date, scuttling his once-in-a-lifetime shot at reclaiming his political career and, we now learn, potentially destroying his financial well-being.
Before he entered the race last year, Newt Gingrich headed a small empire of business and nonprofits that made more than a $110 million over the past decade. But Reuters reports today that the companies may vanish, along with Gingrich’s political career, because they are facing bankruptcies and debt.
Gingrich left the companies and sold his ownership stakes when he ran for the presidency, which may have pushed the already struggling companies over the edge. The biggest was the Center for Health Transformation, Gingrich’s healthcare consultancy, which advocated for an individual mandate much like Obamacare’s, though he later disavowed that.
CHT declared bankruptcy last month, citing declining membership. “Newt was the attraction,” said Steve Hanser, one of the people to whom Gingrich sold the company. He had “a big, magnetic personality, especially in the board room,” and membership went down when he left, Hanser said.
Gingrich may never see most of the $6.4 million he sold his stake for in 2011, as he was to be paid out in increments over a long period of time. And despite the lucrative companies, Gingrich was never extraordinarily wealthy — his six-figure debt at Tiffany became an early campaign issue — and he’s now also facing nearly $5 million in campaign debt left over from his presidential bid, campaign finance reports released this week show.
So, he’s done the only thing he can do and hitched his ride to Romney, who helped former GOP candidate Tim Pawlenty pay off his outstanding campaign debt. It must be humiliating for Gingrich, whose huge pride seems matched only by his hatred of Mitt Romney during the primary, to have to sycophantically campaign for the presumed nominee and apologize for all of his previous attacks.
One can’t help but think this all could have been avoided if Gingrich had just bowed out sometime in February, when he could have left with his head held high, his reputation miraculously redeemed, and in a position to influence whoever emerged as the nominee. He certainly wouldn’t have as much campaign debt, and he may have been able to save his companies. Instead, he stayed long past the bitter end, after reporters had stopped bothering to cover him and the Secret Service had refused to provide him with protection.
Rick Santorum, who also left Congress under a cloud and managed to salvage his reputation this year, seems to offer the alternative. Santorum has gone from a joke with the Google problem who lost his Senate seat by one of the largest margins in recent memories to a early front-runner for the 2016 presidential race, given Republicans’ habit of nominating the person who came in second last time.
Alex Seitz-Wald is Salon's political reporter. Email him at aseitz-wald@salon.com, and follow him on Twitter @aseitzwald. More Alex Seitz-Wald.
SPIN METER: Rivals airbrush anti-Romney words
After the nastiness of the Republican primary race, former candidates have collective amnesia about Romney disses
FILE - In this Jan. 26, 2012 file photo, Republican presidential candidates, former House Speaker Newt Gingrich and former Massachusetts Gov. Mitt Romney talk during a commercial break at the Republican presidential candidates debate in Jacksonville, Fla. Remember Gingrich calling Romney a liar? Michele Bachmann saying Romney's unelectable? Rick Santorum calling Romney "the worst Republican in the country" to run against Obama? They're hoping you don't. And acting like it never happened _ even though most of their words are just clicks away online. (AP Photo/Matt Rourke, File)(Credit: AP) WASHINGTON (AP) — Remember Newt Gingrich calling Mitt Romney a liar? Michele Bachmann saying Romney’s unelectable? Rick Santorum calling Romney “the worst Republican in the country” to run against President Barack Obama?
They’re hoping you don’t. And acting like it never happened (even though most of their words are just clicks away online.)
One by one — with the exception of holdout Ron Paul — the GOP also-rans have coughed up endorsements of their onetime rival. And as they do, they’re pulling rhetorical backflips to distance themselves from their former harsh assessments of Romney.
Continue Reading CloseGoodnight, sweet Newt
The rise and fall, rise and fall, and rise and fall of the Gingrich 2012 campaign
(Credit: AP/David Duprey) Today is another fine day for Newt Gingrich, although not his best. After months of neglect, he’ll get the political media to pay attention to him for a final 10 or so minutes. “All of us have an obligation, I think,” he said in Tuesday’s video announcing his announcement of his resignation today, which he first announced last week, “to do everything we can to defeat Barack Obama.” For Gingrich, this typically would mean attacking Mitt Romney. But Newt seems serious about dropping out this time, as shameful as that is for the erstwhile “definer of civilization,” as he called himself in some early-1990s doodles.
Continue Reading CloseJim Newell has covered politics for Wonkette and Gawker and is a contributor to the Guardian. More Jim Newell.
How much gasoline is a GOP primary voter worth?
Gas prices have barely budged compared to the cost of buying votes in the GOP primaries
Republican presidential candidate former House Speaker Newt Gingrich speaks at his primary night election rally with wife Callista on Tuesday, March 13, 2012, in Birmingham, Ala. (Credit: AP/Butch Dill) The rising price of gas has become a pressing political concern, with Republicans hammering President Obama for not finding some way to bring prices down. Newt Gingrich has promised to bring the cost of gas down to $2.50, using space technology borrowed from native Martians at our Lunar Trading Post, and he has forced his followers to carry large totems featuring “gas pump” icons.
But as gas prices have soared since the beginning of the year, the cost of a Republican primary vote has plummeted. A few months ago, campaigns were spending a fortune in ad buys and organizations in the small early states. In Iowa, Mitt Romney and the PACs affiliated with his campaign spent around $144 for each vote received. By Florida that number was down to $19. On Super Tuesday, only $2.89 was spent by each campaign for each vote cast nationwide.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
Will Newt give up if he starts losing the Old South?
He can't keep this up forever, right?
Republican presidential candidate and former U.S. Speaker of the House Newt "Rocket Man" Gingrich is seen during a campaign event in Manchester, New Hampshire December 21, 2011. (Credit: Jessica Rinaldi / Reuters) Newt Gingrich’s “path to the nomination” is basically a Billy-from-The Family Circus-style dotted line through his rich fantasy life, but he’s remaining in the race for the time being, because he performs well in the Old South, where likely nominee Mitt Romney does not. There is also a weird casino billionaire who keeps funding his campaign, maybe in part because he thinks it aids Mitt Romney by hurting Rick Santorum.
Well, Newt Gingrich remaining in the race might be hurting Rick Santorum, but by no means would Rick Santorum be winning if Gingrich wasn’t around. Give Santorum all of Gingrich’s delegates, he’s still losing to Mitt Romney. More realistically, as Nate Silver wrote earlier this morning, no Newt would mean more delegates for Rick and Mitt.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
No, Newt, don’t quit to make room for Santorum
Never, ever listen to the National Review VIDEO
Newt Gingrich and Rick Santorum (Credit: AP) The National Review has attracted some attention today for publishing an editorial suggesting that Newt Gingrich abandon his presidential run in order to allow Rick Santorum to fly free and destroy Mitt Romney. (Ramesh Ponnuru contests the notion that the editorial calls on Gingrich to quit the race but “the proper course for him now is to endorse Santorum and exit” seems pretty unambiguous even if it’s prefaced with a reminder that Gingrich told Santorum to do the same thing last month.)
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
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