“Boy, How Things Have Changed”: We Will All Be Represented By Lobbyists Someday
Today, former Bush operative and tobacco lobbyist extraordinaire Ed Gillespie confirmed he is going to challenge Virginia Senator Mark Warner. This comes on the heels of news Monday that David Jolly, another lobbyist, had won the GOP primary in a special congressional election in Florida. And let’s not forget the victory of Terry McAuliffe, the Democratic lobbyist and second-worst candidate in the Virginia gubernatorial race.
Three examples makes it a trend. But what, if anything, does it herald for the future of American politics? Will Congress eventually be dominated by empty-eyed, gladhanding walking grins whose only skills are flattering the rich and powerful, and raising obscene amounts of money?
The short answer: Yes, so we might as well get used to it.
Congress was never a place where high idealism triumphed. On the contrary, for most of American history it has been dysfunctional, foolish, racist, in thrall to special interests, awash in money, and often stunningly corrupt. But, at the risk of romanticizing the past, it used to be a place that basically functioned, if you define “functioning” as “passing enough legislation to keep the country tottering along, usually after every other possibility was exhausted, and maybe even making things a little better for people every once in awhile.” It was exciting, for boring people at least, a place where ambitious strivers came for a career in political adventure and accomplishment.
But things have changed. Increasingly Congress has stopped doing anything at all, let alone anything positive, and became a place where not blowing up the world financial system for no reason is a success, and passing a budget like responsible countries do on a routine basis counts as a major accomplishment. And even then, everyone hates you for it anyway. Congress has rarely been well-liked, but it keeps setting new records in unpopularity—in November its approval rating was a record-low nine percent. Which only prompted one question: Who are these nine percent of people?
What’s more, the stupendous sums needed for a modern campaign, driven by Citizens United and the unintended consequences of the McCain-Feingold campaign finance reform law, have turned our representatives’ daily lives into one of endless begging for money. After the election, Ryan Grim and Sabrina Siddiqui wrote about the grim experience awaiting newly elected congressmen:
The daily schedule prescribed by the Democratic leadership contemplates a nine or 10-hour day while in Washington. Of that, four hours are to be spent in “call time” and another hour is blocked off for “strategic outreach,” which includes fundraisers and press work. An hour is walled off to “recharge,” and three to four hours are designated for the actual work of being a member of Congress — hearings, votes, and meetings with constituents. If the constituents are donors, all the better…It is considered poor form in Congress — borderline self-indulgent — for a freshman to sit at length in congressional hearings when the time could instead be spent raising money…
“What’s my experience with it? You might as well be putting bamboo shoots under my fingernails,” said Rep. John Larson (D-Conn.), a high-ranking Democrat.
Terry McAuliffe might not be terribly principled. But one thing he can do better than all but a handful of living humans is raise money—thanks to his utter shamelessness. Consider the time he, by his own admission, left his wife and literally newborn son in the car to raise money for the Democrats:
We got to the dinner and by then Dorothy was in tears, and I left her with Justin and went inside. Little Peter was sleeping peacefully and Dorothy just sat there and poor Justin didn’t say a word. He was mortified. I was inside maybe fifteen minutes, said a few nice things about Marty, and hurried back out to the car. I felt bad for Dorothy, but it was a million bucks for the Democratic Party and by the time we got home and the kids had their new little brother in their arms, Dorothy was all smiles and we were one big happy family again. Nobody ever said life with me was easy.
If the lobbyist-turned-politician trend continues, how much will it actually change on the Hill? After all, parties are getting better and better at enforcing ideological discipline. Devoid of any principle except their own advancement, lobbyists will serve as little more than a precisely calibrated measurement of the political influence of various interest groups and pressure groups. So to the extent that the country is well-served by actual ideological competition, lobbyist-politicians will be a reasonable proxy.
That’s the sunniest interpretation imaginable, anyway. Realistically, more lobbyist-politicians means more looted taxpayer cash stuffing plutocrats’ pockets. These brave new politicians won’t, by themselves, destroy the republic, but a Congress dominated by these money vacuums will probably be hell for the American people. Just wait until a grinning President McAuliffe signs the Chinese Lead-Based Toy Deregulation Act of 2024.
By: Ryan Cooper, The New Republic, January 16, 2014
“Rove’s Republican Rivals Step Up”: With The Bloom Off The Rose, Struggle Over Money And Influence Is Roiling The Republican Party
About a year ago at this time, Karl Rove found himself in a fairly awkward position. While maintaining a prominent media role as a campaign analyst, the Republican strategist was also raising truckloads full of cash for his Crossroads operation, which was trying to buy victories for the candidates Rove was covering.
The result was a rather striking fiasco. Rove burned through several hundred million dollars, but lost nearly every race he targeted, culminating in an unfortunate on-air tantrum. Conservative activist Richard Viguerie said at the time that “in any logical universe,” Rove “would never be hired to run or consult on a national campaign again.”
Indeed, a Republican operative told the Huffington Post, “The billionaire donors I hear are livid…. There is some holy hell to pay.”
A year later, on a superficial level, much of the landscape appears similar – Rove still enjoys his media perches, still leads the Crossroads attack operation, and still hopes wealthy far-right donors will finance his election plans. But Nick Confessore reports that there’s one important difference: Rove has more intra-party rivals, hoping to take advantage of his record of failure.
A quiet but intense struggle over money and influence is roiling the Republican Party just as the 2014 election season is getting underway.
At least a dozen “super PACs” are setting up to back individual Republican candidates for the United States Senate, challenging the strategic and financial dominance that Karl Rove and the group he co-founded, American Crossroads, have enjoyed ever since the Supreme Court’s Citizens United decision in 2010 cleared the way for unlimited independent spending.
In wooing donors, the new groups – in states like Texas, Iowa, West Virginia and Louisiana – are exploiting Crossroads’ poor showing in 2012, when $300 million spent by the super PAC and a sister nonprofit group yielded few victories. Some are suggesting that Crossroads’ deep ties to the Republican establishment and recent clashes with conservative activists are a potential liability for Republican incumbents facing Tea Party challengers.
It wasn’t too long ago that Rove’s name carried almost mythical weight in Republican circles, which no doubt made a difference when Crossroads approached donors for checks. But after 2012, the bloom is off the rose. Rove’s reputation took a hit and it hasn’t recovered.
In some respects, this is overdue. In 2000, it was Rove’s idea to keep George W. Bush in California in the campaign’s waning days, instead of stumping in key battleground states. Bush lost California by a wide margin, and Rove’s strategy practically cost his candidate the election.
In 2006, after nearly getting indicted, Rove’s sole responsibility was overseeing the Republican Party’s 2006 election strategy. At the time, he told NPR in late October that he’d found a secret math that gave him insights that mere mortals can’t comprehend, and soon after, Democrats won back both the House and Senate in a historic victory.
And then in 2012, Rove managed to strike out in ignominious fashion with other people’s money, raising questions anew about whether his reputation was ever fully deserved.
The result is skeptical GOP donors who not only see Rove as someone who can’t deliver victories, but also part of a tired Republican Beltway establishment that’s lost perspective. With the proliferation of groups similar to Crossroads, Rove has to worry about competition within his own party in ways he’s not accustomed to.
By: Steve Benen, the Maddow Blog, December 26, 2013
“Our Democracy Is Drowning In Big Money”: JP Morgan Chase, The Foreign Corrupt Practice Act, And The Corruption Of America
The Justice Department has just obtained documents showing that JPMorgan Chase, Wall Street’s biggest bank, has been hiring the children of China’s ruling elite in order to secure “existing and potential business opportunities” from Chinese government-run companies. “You all know I have always been a big believer of the Sons and Daughters program,” says one JP Morgan executive in an email, because “it almost has a linear relationship” to winning assignments to advise Chinese companies. The documents even include spreadsheets that list the bank’s “track record” for converting hires into business deals.
It’s a serious offense. But let’s get real. How different is bribing China’s “princelings,” as they’re called there, from Wall Street’s ongoing program of hiring departing U.S. Treasury officials, presumably in order to grease the wheels of official Washington? Timothy Geithner, Obama’s first Treasury Secretary, is now president of the private-equity firm Warburg Pincus; Obama’s budget director Peter Orszag is now a top executive at Citigroup.
Or, for that matter, how different is what JP Morgan did in China from Wall Street’s habit of hiring the children of powerful American politicians? (I don’t mean to suggest Chelsea Clinton got her hedge-fund job at Avenue Capital LLC, where she worked from 2006 to 2009, on the basis of anything other than her financial talents.)
And how much worse is JP Morgan’s putative offense in China than the torrent of money JP Morgan and every other major Wall Street bank is pouring into the campaign coffers of American politicians — making the Street one of the major backers of Democrats as well as Republicans?
The Foreign Corrupt Practices Act, under which JP Morgan could be indicted for the favors it has bestowed in China, is quite strict. It prohibits American companies from paying money or offering anything of value to foreign officials for the purpose of “securing any improper advantage.” Hiring one of their children can certainly qualify as a gift, even without any direct benefit to the official.
JP Morgan couldn’t even defend itself by arguing it didn’t make any particular deal or get any specific advantage as a result of the hires. Under the Act, the gift doesn’t have to be linked to any particular benefit to the American firm as long as it’s intended to generate an advantage its competitors don’t enjoy.
Compared to this, corruption of American officials is a breeze. Consider, for example, Countrywide Financial’s generous “Friends of Angelo” lending program, named after its chief executive, Angelo R. Mozilo, that gave discounted mortgages to influential members of Congress and their staffs before the housing bubble burst. No criminal or civil charges have ever been filed related to these loans.
Even before the Supreme Court’s shameful 2010 “Citizens United” decision — equating corporations with human beings under the First Amendment, and thereby shielding much corporate political spending – Republican appointees to the Court had done everything they could to blunt anti-bribery laws in the United States. In 1999, in “United States v. Sun-Diamond Growers,” Justice Scalia, writing for the Court, interpreted an anti-bribery law so loosely as to allow corporations to give gifts to public officials unless the gifts are linked to specific policies.
We don’t even require that American corporations disclose to their own shareholders the largesse they bestow on our politicians. Last year around this time, when the Securities and Exchange Commission released its 2013 to-do list, it signaled it might formally propose a rule to require corporations to disclose their political spending. The idea had attracted more than 600,000 mostly favorable comments from the public, a record response for the agency.
But the idea mysteriously slipped off the 2014 agenda released last week, without explanation. Could it have anything to do with the fact that, soon after becoming SEC chair last April, Mary Jo White was pressed by Republican lawmakers to abandon the idea, which was fiercely opposed by business groups.
The Foreign Corrupt Practices Act is important, and JP Morgan should be nailed for bribing Chinese officials. But, if you’ll pardon me for asking, why isn’t there a Domestic Corrupt Practices Act?
Never before has so much U.S. corporate and Wall-Street money poured into our nation’s capital, as well as into our state capitals. Never before have so many Washington officials taken jobs in corporations, lobbying firms, trade associations, and on the Street immediately after leaving office. Our democracy is drowning in big money.
Corruption is corruption, and bribery is bribery, in whatever country or language it’s transacted in.
By: Robert Reich, The Robert Reich Blog, December 8, 2013
“Getting Secret Money Out Of Campaigns”: It’s In The Public Interest To Disallow Sleazy Secret Money In Campaigns
The Internal Revenue Service spent years averting its eyes while clever campaign operatives abused the tax code for political purposes. Advocacy groups, mostly on the right, wanted to run attack ads while concealing the source of their money, and they came up with a brilliant way to do it: claim to be “social welfare” groups, which are allowed to hide donors.
Federal statutes say these groups can only engage in social welfare activity, but the tax agency decided political activity was fine as long as it wasn’t the primary purpose of the group. That helped create the torrent of secret money that poisoned the last few federal elections. The I.R.S. never explained, though, what kinds of activities are considered political, or why these groups, also known as 501(c)(4)’s, should be allowed to participate in campaigns at all.
On Thursday, long after the abuse became too rampant to ignore, the I.R.S. took the first tentative steps at reining in the problems it helped create. It proposed a definition of “candidate-related political activity,” an important starting point in determining what tax-exempt groups are really allowed to do. But it will have to do much more than that if it wants to be taken seriously as a regulator on this battlefield.
According to a press release from the Treasury Department, the agency said the new definition of political activity would include ads or other communications that clearly advocate for a candidate or party, or ads that mention a candidate within 60 days of a general election (30 days for primaries). That’s a good start for a definition, though 60 days is far too narrow a window — many of these attack ads air a full year or more before voting begins.
Once political activity is defined and separated from social welfare activity, 501(c)(4)’s will no longer be able to claim, as Karl Rove and others have, that “issue ads” mentioning candidates are for social welfare purposes. (These are the kinds of ads that say, “Dog-kicking is terrible. Call Senator Jones and tell her to stop doing it.”)
But a definition alone won’t do any good unless the I.R.S. tells these groups how much political activity is permitted. The ideal answer would be: zero. Social welfare groups have no business meddling in politics. Any group with a political interest has its own place in the tax code — they can be a 527 political organization. Those groups, which include political parties and official campaign organizations, also get tax exemptions, but there is one crucial difference: they have to disclose their donors, and 501(c)(4)’s don’t.
Conservatives immediately claimed that the I.R.S. was trying to take away their free-speech rights, which is laughable. Absolutely nothing is stopping advocacy from running ads, and the Supreme Court, in the Citizens United case, even granted corporations the right to make unlimited donations to independent groups that produce political ads. But there is no right to keep these donations a secret.
The Treasury announcement, tantalizingly, said the I.R.S. would consider comments from the public on how much political activity should be permitted for a social welfare group, suggesting that decision was farther down the road. It’s in the agency’s interest to end the confusion surrounding 501(c)(4)’s, which has led to charges that it has been arbitrary in its audits. But it’s in the public interest to do even more, and disallow sleazy secret money in campaigns.
By: David Firestone, Editors Blog, The New York Times, November 27, 2013
“Corporations Aren’t People”: If Given The Freedoms Of “People”, Corporations Should Be Subjected To Obligations And Restrictions Too
If you thought this “corporations are people” business was getting out of hand, brace yourself. On Tuesday, the Supreme Court accepted two cases that will determine whether a corporation can deny contraceptive coverage to its female employees because of its religious beliefs.
The cases concern two of the most politically charged issues of recent years: who is exempted from the requirements of the Affordable Care Act, and whether application of the First Amendment’s free speech protections to corporations, established by the court’s 2010 decision in Citizens United, means that the First Amendment’s protections of religious beliefs must also be extended to corporations.
The Affordable Care Act requires employers to offer health insurance that covers contraception for their female employees. Churches and religious institutions are exempt from that mandate. But Hobby Lobby, a privately owned corporation that employs 13,000 people of all faiths — and, presumably, some of no faith — in its 500 craft stores says that requiring it to pay for contraception violates its religious beliefs — that is, the beliefs of its owners, the Green family.
In a brief submitted to a federal court, the Greens said that some forms of contraception — diaphragms, sponges, some versions of the pill — were fine by them, but others that prevented embryos from implanting in the womb were not. The U.S. Court of Appeals for the 10th Circuit upheld the Greens’ position in June in a decision explicitly based on “the First Amendment logic of Citizens United.” Judge Timothy Tymkovich wrote: “We see no reason the Supreme Court would recognize constitutional protection for a corporation’s political expression but not its religious expression.”
Tymkovich’s assessment of how the five right-wing justices on the Supreme Court may rule could prove correct — but what a mess such a ruling would create! For one thing, the Green family’s acceptance of some forms of contraception and rejection of others, while no doubt sincere, suggests that they, like many people of faith, adhere to a somewhat personalized religion. The line they draw is not, for instance, the same line that the Catholic Church draws.
Individual believers and non-believers draw their own lines on all kinds of moral issues every day. That’s human nature. They are free to say that their lines adhere to or are close to specific religious doctrines. But to extend the exemptions that churches receive to secular, for-profit corporations that claim to be following religious doctrine, but may in fact be nipping it here and tucking it there, would open the door to a range of idiosyncratic management practices inflicted on employees. For that matter, some religions have doctrines that, followed faithfully, could result in bizarre and discriminatory management practices.
The Supreme Court has not frequently ruled that religious belief creates an exemption from following the law. On the contrary, in a 1990 majority opinion, Justice Antonin Scalia wrote that Native Americans fired for smoking peyote as part of a religious ceremony had no right to reinstatement. It “would be courting anarchy,” Scalia wrote in Employment Division v. Smith, to allow them to violate the law just because they were “religious objectors” to it. “An individual’s religious beliefs,” he continued, cannot “excuse him from compliance with an otherwise valid law.”
It will be interesting to see whether Scalia still believes that now that he’s being confronted with a case where the religious beliefs in question may be closer to his own.
The other issue all this raises: Where does this corporations-are-people business start and stop? Under the law, corporations and humans have long had different standards of responsibility. If corporations are treated as people, so that they are free to spend money in election campaigns and to invoke their religious beliefs to deny a kind of health coverage to their workers, are they to be treated as people in other regards? Corporations are legal entities whose owners are not personally liable for the company’s debts, whereas actual people are liable for their own. Both people and corporations can discharge their debts through bankruptcy, but there are several kinds of bankruptcy, and the conditions placed on people are generally far more onerous than those placed on corporations. If corporations are people, why aren’t they subject to the same bankruptcy laws that people are? Why aren’t the owners liable for corporate debts as people are for their own?
If corporations are going to be given the freedoms that people enjoy, they should be subjected to people’s obligations and restrictions too. I’m not sure how many corporations would think that’s such a good deal.
By: Harol Meyerson, Opinion Writer, The Washington Post, November 26, 2013
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