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“Billionaire Nullification”: With No Guardrails, Secret Money Fuels The 2012 Elections

For those who believe money already has too much power in U.S. politics, 2012 will be a miserable year. The Supreme Court’s Citizens United decision, lassitude at the Federal Election Commission and the growing audacity of very rich conservatives have created a new political system that will make the politics of the Gilded Age look like a clean government paradise.

Americans won’t even fully know what’s happening to them because so much can be donated in secrecy to opaque organizations. It’s always helpful for voters to know who is trying to buy an election, and for whom. This time, much of the auction will be held in private. You can be sure that the candidates will find out who helped elect them, but the voters will remain in the dark.

We do know that the playing field this year is tilted sharply to the right. Journalists often focus on the world of rich liberals in places such as Hollywood and Silicon Valley. But there are even more conservative millionaire and billionaire donors who hail from less mediagenic places. There is, for example, a lot of oil money in Texas. Then there’s Wall Street. Once a bountiful source of Democratic as well as Republican cash, it has shifted toward the party of Mitt Romney, John Boehner and Mitch McConnell. And then there’s Las Vegas casino mogul Sheldon Adelson, whose $10 million donation to the super PAC supporting Romney was reported Wednesday.

Republicans argue that turnabout is fair play. Barack Obama shunned the public financing system in 2008 and vastly outspent John McCain. Democrats, they say, are complaining now because they are at a disadvantage.

That’s at best half right. It’s true that Obama struck a blow against public financing, though the system was insufficiently financed and would eventually have collapsed under its own weight. And four years ago, Obama filled his coffers through the regulated system that limited the size of contributions and that required disclosure. This year, there are no guardrails, no limits on what can be raised and spent. A remarkably small number of very wealthy people will be able to do what hasn’t been done for generations.

And their influence will be especially large in congressional races where the outside groups can swamp what the candidates themselves spend. Those who claim that this is all about free speech need to explain how speech is free when one side can buy the microphone and can set the terms of debate, especially in contests below the presidential level.

What is to be done? The IRS could and should crack down on political committees legally disguised as “charities.” The Federal Election Commission and Congress could promote disclosure. The Supreme Court could undo its error, or we could do it by embarking on the cumbersome process of amending the Constitution. Ultimately, we need to democratize the money chase by providing, say, 5-to-1 public matches for small donations.

But it’s highly unlikely that any of this will happen before November, so here is a modest proposal: A small group of billionaires, aided perhaps by a few super-millionaires, should form an alliance to offset the spending of the other billionaires and super-millionaires. They might call themselves Billionaires Against Billionaire Politics. These public-spirited citizens would announce that they will match every penny raised by the various super PACs on the other side.

In principle, they could commit themselves to balancing off whichever side — conservative or liberal, Republican or Democrat — is dominating the airwaves and the fundraising. The idea would be to destroy the incentives for the very rich to buy the election. If shrewd wealthy people realized that every $10 million they put up would be met immediately by $10 million from the other side, they might lose interest in the exercise.

As a practical matter, it’s conservative dollars that need to be offset, so this balancing act would likely be financed by non-conservatives. George Soros, Warren Buffett and New York Mayor Mike Bloomberg come to mind. But there may be other, less high-profile wealthy folks who want to do their patriotic bit. The hope is that this would be a one-shot deal. After one nuclear winter of an election, rich partisans could agree to mutual disarmament.

It’s preposterous that our system has handed over so much power to those with large fortunes that the only way to get matters under control is to have one group of rich people check the power of another group of rich people. Maybe the absurdity of it all will finally force the Supreme Court and Congress to bring us back to something more reasonable. It’s called democracy.

 

By: E. J. Dionne, Opinion Writer, The Washington Post, June 13, 2012

June 15, 2012 Posted by | Democracy, Election 2012 | , , , , , , , | Leave a comment

“The Fragility Of The 3rd Branch Of Government”: Why The Public’s Growing Disdain For The Supreme Court May Help Obamacare

The public’s growing disdain of the Supreme Court increases the odds that a majority will uphold the constitutionality of Obamacare.

The latest New York Times CBS Poll shows just 44 percent of Americans approve the job the Supreme Court is doing. Fully three-quarters say justices’ decisions are sometimes influenced by their personal political views.

The trend is clearly downward. Approval of the Court reached 66 percent in the late 1980s, and by 2000 had slipped to around 50 percent.

As the Times points out, the decline may stem in part from Americans’ growing distrust in recent years of major institutions in general and the government in particular.

But it’s just as likely to reflect a sense that the Court is more political, especially after it divided in such partisan ways in the 5-4 decisions Bush v. Gore (which decided the 2000 presidential race) and Citizen’s United (which in 2010 opened the floodgates to unlimited campaign spending).

Americans’ diminishing respect for the Court can be heard on the right and left of our increasingly polarized political spectrum.

A few months ago, while a candidate for the Republican presidential nomination, Newt Gingrich stated that the political branches were “not bound” by the Supreme Court. Gingrich is known for making bizarre claims. The remarkable thing about this one was the silence with which it was greeted, not only by other Republican hopefuls but also by Democrats.

Last week I was on a left-leaning radio talk show whose host suddenly went on a riff about how the Constitution doesn’t really give the Supreme Court the power to overturn laws for being unconstitutional, and it shouldn’t have that power.

All this is deeply dangerous for the Court, and for our system of government.

Almost 225 years ago, Alexander Hamilton, writing in the Federalist (Number 78, June 14, 1788) noted the fragility of our third branch of government, whose power rests completely on public respect for its judgement:

The Executive not only dispenses the honors, but holds the sword of the community. The legislature not only commands the purse, but prescribes the rules by which the duties and rights of every citizen are to be regulated. [Yet lacking sword or purse, the judiciary] is in continual jeopardy of being overpowered, awed, or influenced by its co-ordinate branches; and that as nothing can contribute so much to its firmness and independence as permanency in office, this quality may therefore be justly regarded as an indispensable ingredient in its constitution, and, in a great measure, as the citadel of the public justice and the public security.

The immediate question is whether the Chief Justice, John Roberts, understands the tenuous position of the Court he now runs. If he does, he’ll do whatever he can to avoid another 5-4 split on the upcoming decision over the constitutionality of the Obama healthcare law.

My guess is he’ll try to get Anthony Kennedy to join with him and with the four Democratic appointees to uphold the law’s constitutionality, relying primarily on an opinion by Judge Laurence Silberman of the Court of Appeals for the District of Columbia – a Republican appointee with impeccable conservative credentials, who found the law to be constitutional.

 

By: Robert Reich, Robert Reich Blog, June 8, 2012

June 10, 2012 Posted by | Affordable Care Act | , , , , , , , , | Leave a comment

“Money Doesn’t Talk, It Screams”: Walker Wins Recall, Democrats Win Control Of The Senate

After a 16-month long fight, an astonishing $63.5 million spent, and a people’s uprising that attracted international attention and laid the groundwork for a movement that will last for years to come, Governor Scott Walker will keep his seat after Tuesday’s recall election, winning 53-46 over challenger Tom Barrett. Lt. Governor Rebecca Kleefisch also survived her recall challenge.

In the early hours of the morning, word came from Southeastern Wisconsin that former state Sen. John Lehman, D-Racine, beat incumbent Republican Sen. Van Wanggaard, with 36,255 votes to Wanggaard’s 35,476 votes, according to unofficial results with all precincts reporting. Combined with two other successful Senate recalls in August of 2011, this win means Democrats flipped the Senate from Republican control and put a halt to the Walker agenda.

A Historic Struggle Over Tremendous Odds

Walker was voted into office in 2010 with a promise to create 250,000 jobs in his first term — which was appealing to residents of a state suffering from the economic downturn. During the campaign, Walker indicated that he would ask public sector employees to pay more into their health care and pensions, but never suggested that he would attack their right to collectively bargain, which public workers in Wisconsin have had for fifty years.

Walker first announced his plans to roll back collective bargaining rights on February 11, 2011 and anticipated the fight would be over in less than a week. Walker announced his “Budget Repair Bill” (Act 10) on a Friday and planned a vote the following Wednesday, leaving almost no time for public debate or deliberation. He even scheduled a bill signing at the end of the week.

Things did not go according to plan. Students, firefighters, and many others occupied the capitol for 18 days. Hundreds of thousands of people marched on the Capitol after 14 Senate Democrats delayed the vote by exiting the state. When the vote was eventually lost in March of 2011, many protesters vowed to recall Walker.

The task was not a small one. Wisconsin’s recall law, which had never been used in a statewide election since it was added to the state constitution in 1926, first required that protesters wait a year before initiating a recall. Next, it required that advocates gather signatures equivalent to 25 percent of ballots cast in the last election — which would require 540,000 signatures to trigger a Walker recall — one of the highest recall thresholds in the nation (and much greater than the 12 percent required in California). But starting in November 2011, 30,000 volunteers braved a cold Wisconsin winter and collected over 930,000 signatures in 60 days, greatly exceeding expectations.This is the largest percentage of voters to petition for the recall of an elected official in U.S. history.

At that point, another problem with the process quickly emerged. A campaign finance loophole allows a politician facing recall to accept unlimited campaign donations. This meant Walker could receive checks for $100,000, $250,000, and $500,000 — for a total of $30.5 million — while his opponents engaged in a Democratic primary had to abide by a $10,000 contribution cap. No opponent could overcome this astonishing financial advantage. Finally, after the Democratic primary on May 8, there were only four weeks for the winner to raise money, cut ads and campaign around the state.

Democrats Unable to Match Avalanche of Outside Money

Around $63.5 million was spent in the election, according to most recent reports. $45 million of that $63.5 million — more than 70 percent — came from Walker’s campaign and supporters. Because of the loophole in Wisconsin campaign finance law, Walker out-raised Barrett 7.5 to 1 ($30.5 million to $4 million at last count). Two-thirds of Walker’s money came from out-of-state, versus only one-fourth of Barrett’s money coming from outside Wisconsin.

According to Mike McCabe of the nonpartisan Wisconsin Democracy Campaign, which tracks money in politics, “Money doesn’t talk, it screams. And that is what we saw in this election.”

Wisconsin’s recall election was widely viewed as a preview of November’s presidential election and as a referendum on the strength and power of unions.

But for many observers, the key question was whether grassroots gumption was enough to win in a post-Citizens United world. The Supreme Court’s Citizens United decision made it even easier for outside special interests to flood a state with money. While Walker had a significant financial advantage with his own campaign funds, he received additional help from secretive special interests.

Because of the money spent to support Walker, for months Wisconsin residents have heard a consistent drumbeat of ads claiming that Walker’s reforms have created new jobs and benefitted the state. The Koch-funded Americans for Prosperity, for example, spent more than $10 million on ads and bus tours since November to push the message that “It’s Working!” This was more than twice the amount of money Barrett even raised. Walker received additional support from groups like the Republican Governors Association, which spent $10 million beating up Walker’s opponents.

Because of the disparity in spending between Republicans and Democrats, Wisconsinites have not heard a consistent counter-message about how Wisconsin was dead last in job growth among the 50 states, or about how Walker’s cuts to schools might affect education quality, or more about the ongoing “John Doe” criminal investigation into the actions of Walker’s former staff and associates during his time as Milwaukee County Executive. While labor spent big for Barrett, the estimated $20 million spent by unions was easily matched by RGA and AFP alone. Barrett received very little support from the Democratic National Committee or President Obama. Obama stayed out of the race, although he tweeted his support for Barrett the day before the election — an act that some found offensive in its insignificance.

Still, although Walker originally expected the entire fight to be done in less than a week, Wisconsin residents rose up, like citizens in countries around the world, and inspired a much broader discussion about austerity politics in the land of plenty, the lack of shared sacrifice, and how to create a fairer economy that works for all. In the process, they raised awareness of the role of right-wing institutions like the American Legislative Exchange Council that facilitated Walker’s attacks on working people, and laid the groundwork for the victory over anti-union measures in Ohio, and for the Occupy Wall Street movement.

All players in the Wisconsin recall fight know that this battle will continue long after June 5.

 

By: Brendan Fischer, Center For Media and Democracy, June 6, 2012

June 7, 2012 Posted by | Wisconsin | , , , , , , , , | Leave a comment

Former Supreme Court Justice Stevens: “President Obama Right To Criticize Court Ruling On Citizens United”

President Barack Obama ruffled some feathers two years ago when he lambasted the Supreme Court for its Citizens United decision during a State of the Union speech. It was unusual for a president to criticize the justices as they sat before him.

Now, retired Justice John Paul Stevens has taken the equally unusual step of saying the president was right in challenging the court’s opinion.

Obama said the 5-4 ruling freeing corporations to spend unlimited sums on elections “reversed a century of law,” adding it would “open the floodgates for special interests – including foreign corporations – to spend without limit in our elections.”

“In that succinct comment, the former professor of constitutional law at the University of Chicago made three important and accurate observations about the Supreme Court majority’s opinion,” Stevens said in a speech Wednesday evening. “First, it did reverse a century of law; second, it did authorize unlimited election-related expenditures by America’s most powerful interests; and, third, the logic of the opinion extends to money spent by foreign entities.”

Stevens dissented from the 2010 decision, and he said again Wednesday that he could not understand why, if “corporations have no right to vote,” they should have the right to sway elections.

The justice also said he did not see why those with the most money should be permitted to dominate the airwaves during election campaigns. “During the televised debates among the Republican candidates for the presidency, the moderators made an effort to allow each speaker an equal opportunity to express his or her views,” he said, speaking in Little Rock, Ark. If there were six candidates, he said, they were given roughly the same amount of time to speak.

“Both the candidates and the audience would surely have thought the value of the debate to have suffered if the moderator had allocated the time on the basis of the speakers’ wealth, or it they had held an auction allowing the most time to the highest bidder,” Stevens said.

The 92-year old retired justice has reason to feel kindly toward Obama this week. He was awarded a Presidential Medal of Freedom at the White House on Tuesday, and Obama described his “signature style: modest, insightful, well-prepared and razor-sharp … always favoring a pragmatic solution over an ideological one.”

Stevens retired in 2010, and Obama chose Justice Elena Kagan to replace him.

 

By: David Savage, McClatchy-Tribune News Service, May 30. 2012

June 4, 2012 Posted by | Elections | , , , , , , | Leave a comment

“Post Office Box 72465”: A Pervasive Mess With An End Run Around Campaign Finance Laws

To grasp the clear and present danger that the current flood of campaign cash poses to American democracy, consider the curious case of Post Office Box 72465. It demonstrates that the explosion of super PAC spending is only the second-most troubling development of recent campaign cycles.

Box 72465, on a desert road near Phoenix, belongs to a little-known group called the Center to Protect Patient Rights. According to reports by the Center for Responsive Politics and the Los Angeles Times, the center funneled more than $55 million to 26 Republican-leaning groups during the 2010 midterm election.

Where is the money from? The Times found links to the conservative Koch brothers, yet because the center is a nonprofit corporation, it is impossible to know. Such groups must disclose how they distribute their money, not who donates to them.

This privacy makes sense in the context of ordinary nonprofits. But in the ­push-the-envelope world of modern campaigns, in which such groups spend millions of dollars on thinly disguised campaign ads, the result is an end run around the fundamental principle of campaign finance law: that voters are entitled to know who is trying to influence elections.

Even the Supreme Court understands this: Disclosure, it wrote in its otherwise appalling 2010 Citizens United ruling, “permits citizens and shareholders to react to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.”

Except when, as in the case of the Center to Protect Patient Rights, the identities — and motives — of those giving are hidden from public view. The center sent almost $13 million to the American Future Fund, a Des Moines-based group that ran campaigns against two dozen Democrats in 2010. Rep. Bruce Braley (D-Iowa) was targeted with what the Times described as “a $2-million fusillade” of radio ads, robo-calls and mailers.

“It was almost a feeling of helplessness because there was no way to identify who the source of the funds was,” Braley said. He won by two percentage points, after a 29-point margin two years earlier.

The gusher of secret money that nearly toppled Braley promises to be even more abundant this year — and the groups behind the undisclosed cash remain determined to do whatever it takes to keep the sources hidden.

In March, ruling in a lawsuit brought by Rep. Chris Van Hollen (D-Md.), a federal judge found that the Federal Election Commission was wrong to exempt nonprofits and other groups that run “electioneering communications” — advertising that names specific candidates within a short time before the election — from having to reveal their donors.

It says something about the FEC that the agency charged with overseeing campaign reporting would come out against disclosure.

Luckily, U.S. District Judge Amy Berman Jackson disagreed. “Congress intended to shine light on whoever was behind the communications bombarding voters immediately prior to elections,” she wrote. The federal appeals court in Washington refused to stay the ruling while an appeal was underway.

The response from the U.S. Chamber of Commerce was telling: It would switch its way of influencing elections rather than reveal its donors. The chamber, which has made itself a major political player, plans to spend more than $50 million during the 2012 campaign.

At a breakfast with reporters this week, chamber officials said that, in reaction to the ruling, the organization would conduct its political spending through independent expenditures that explicitly support or oppose particular candidates.

Such is the perverse mess that is the current campaign finance law. Under the Citizens United ruling, corporations, such as the chamber, can make unlimited independent expenditures. The upshot is that advertising like the chamber’s can be even more brutal — because it won’t have to pretend to be merely “educating” voters — and just as opaque.

Meanwhile, the American Future Fund, the organization that ran ads against Braley, has brazenly asked the FEC to approve a different end run. The group contends that if its ads merely mention “the administration” or “the White House,” they would not be attacking a “clearly identified candidate” and therefore not subject to disclosure requirements.

This would be laughable — if it were not such a scary illustration of the lengths to which these groups will go to avoid letting voters know who is trying to buy their elections, and the unfortunate likelihood that they will succeed.

 

By: Ruth Marcus, Opinion Writer, The Washington Post, May 31, 2012

June 2, 2012 Posted by | Election 2012 | , , , , , , , , | Leave a comment