“Political System Owned Outright By The Wealthy”: In A Citizens United World, We Should At Least Know Who Is Buying Our Politicians
In 1899, an ultra-wealthy Montana copper magnate named William Clark wanted to be one of the state’s U.S. senators. In those days, senators were elected by state legislatures, so Clark tried a straightforward tactic: mass bribery. He gave $10,000 to every legislator who would take it, which worked like a charm. Unfortunately for Clark, the Senate got wind of this, and refused to seat him. He resigned, though he tried again without the overt bribery and won in 1901, when he served a full term.
Mark Twain wrote of Sen. Clark: “He is said to have bought legislatures and judges as other men buy food and raiment. By his example he has so excused and so sweetened corruption that in Montana it no longer has an offensive smell. His history is known to everybody; he is as rotten a human being as can be found anywhere under the flag…”
Such stories inspired some of the original reforms against organized money in politics. Indeed, Clark was almost singlehandedly responsible for the direct elections of senators.
But we should not be too self-righteous when it comes to poor old William Clark. Not only is the problem of political corruption fast returning to its Gilded Age nadir, in some respects it is actually worse than in Twain’s day. Then as now, our political system is essentially owned outright by the wealthy. But today we have allowed them to hide their identities behind legal chicanery.
Removing the money from politics altogether is a worthy goal. But until then, simple transparency about who is buying which politician would be an excellent stopgap measure.
It was Supreme Court Justice Anthony Kennedy who wrote the Citizens United decision, which abolished limits on independent political spending by unions and corporations and sparked a stupendous growth in shadowy nonprofits allied with various parties and candidates. The decision’s most famous line is this: “Independent expenditures do not lead to, or create the appearance of, quid pro quo corruption.”
I would like to direct Justice Kennedy’s attention to this story by Michael Isikoff, about a Wisconsin hardware store magnate named John Menard, Jr. When Menard wanted to help Gov. Scott Walker (R) defeat a hard-fought recall attempt in 2012, post-Citizens United groups were a handy weapon of choice — especially 501(c)(4) nonprofits, which do not have to disclose their donors:
He wrote more than $1.5 million in checks to a pro-Walker political advocacy group that pledged to keep its donors secret, three sources directly familiar with the transactions told Yahoo News.
Menard’s previously unreported six-figure contributions to the Wisconsin Club for Growth…seem to have paid off for the businessman and his company. In the past two years, Menard’s company has been awarded up to $1.8 million in special tax credits from a state economic development corporation that Walker chairs, according to state records. [Yahoo News]
According to Isikoff, Menard has also benefited from regulatory laxity under the Walker regime — the Wisconsin government had previously levied stiff fines against him and his company for “illegally dumping hazardous waste.” In a telling coincidence, an old William Clark mining site is now one of the biggest contaminated Superfund sites in the country.
These documents were obtained as part of a state investigation into whether Walker’s campaign committee actually violated the few remaining stipulations of campaign finance law. But this says more about the carelessness and arrogance of these people than the laws themselves — it is pitifully easy to do an end-run around disclosure or non-coordination requirements.
Justice Kennedy’s assertion that a tsunami of corporate money cannot even create the appearance of corruption is so preposterous it surely has to be willful ignorance. Nevertheless, I defy him to argue with a straight face that Isikoff’s story is not the foulest of quid pro quo corruption.
And even if he can manage that, it is utterly indefensible for the ultra-wealthy to purchase state governments whole without disclosing who is doing the purchasing. An email sent to Walker by one of his aides stressed the importance of secrecy to the scheme: “Stress that donations to WiCFG [Wisconsin Club for Growth] are not disclosed and can accept corporate donations without limits… Let them know you can accept corporate contributions and it is not reported.”
So if the conservative majority on the Supreme Court insists on government of the rich, by the rich, and for the rich, there’s precious little the citizenry can do about it. But can we proles at least know which plutocrat deserves our cringing deference?
By: Ryan Cooper, The Week, March 26, 2015
“Who Says Money In Politics Doesn’t Buy Influence?”: The Distorting Impact Of Money, Enabled By Supreme Court Rulings
One recent day, my newspaper had two front-page stories related to money and politics. One was about financial contributions made from the political action committees of prospective presidential candidates to Iowa office-seekers of the same party. Another reported that former Texas Governor Rick Perry has been appointed to the board of the corporation planning the controversial Bakken pipeline.
The U.S. Supreme Court ruled money in politics is free “speech,” and doesn’t buy influence. But both of those stories offered small examples of how it might. In the first, potential presidential candidate Rand Paul wants Iowa operatives in his camp, so he donates some of his PAC funds — a thousand here or there — to their campaigns. They in turn may feel grateful enough to repay the favor by talking Paul up to their supporters.
In the second case, prospective presidential candidate Perry gets a direct financial stake in a controversial oil-pipeline proposal. The Bakken pipeline, which would stretch from North Dakota to Illinois, is widely opposed by environmental and other groups. But by investing in Perry and his campaign, the company could bank on having a friend in the White House to create a climate favorable for such projects. In 2012, the head of Energy Transfer Partners gave a quarter million dollars to a SuperPAC for Perry. And now Perry has a seat on its board.
A Perry spokesman said Perry won’t be publicly promoting the pipeline, but he doesn’t have to. His board presence is endorsement enough.
Traditional PACs are chicken feed compared with the filet mignon influence SuperPACs can buy. The first allow a group of people with a common goal — say, reducing environmental regulations — to donate up to $5,000 to a candidate in each round of an election campaign, and $15,000 a year to a national political party. But SuperPACs — authorized by the 2010 Supreme Court ruling, Speechnow vs. FEC — can raise and spend unlimited amounts of corporate, union or private dollars to promote or discredit a candidate in a federal election. They just can’t donate directly to the candidate or party.
The Center for Responsive Politics reports that in 2014 elections, 1,300 SuperPACs had raised more than $695 million. They ranged from the liberal Senate Majority PAC, which raised $67 million, to the conservative American Crossroads PAC, which raised $23 million. Ten billion dollars were spent in the 2012 election cycle — combining the presidential, local, state and regional races — according to national journalist/author John Nichols. But for all that spending, Nichols told a Des Moines audience, 2014 had the lowest turnout in midterm elections since 1942.
Nichols, the Washington correspondent for the progressive Nation magazine and co-author of Dollarocracy: How the Money and Media Election Complex is Destroying America was brought to Iowa by the Quaker American Friends Service Committee to kick off a project provocatively titled “Governing Under the Influence.” It aims to focus attention in Iowa and New Hampshire, the leadoff presidential selection states, on the distorting impact of money in politics, enabled by Supreme Court rulings.
In a rousing speech in the basement of a United Methodist Church, Nichols said most Americans feel too overwhelmed to know what to do. Rather than motivate voters, the excess negativity of political ads causes many not to vote. But Nichols maintains that Iowans get more one-on-one time with presidential candidates than anyone else and should use that to grill them. “Iowans should be saying, ‘How much money have you taken from this interest?’” and how do they stay independent of it, he said. He suggested everyone ask the candidates if they agree with the Supreme Court that corporations are people, and if unlimited spending to influence elections is protected free speech.
Ultimately, those rulings can only be overridden by a constitutional amendment. But history, notes Nichols, was filled with people organizing in response to an injustice and getting the constitution changed — like the 19th amendment, ratified in 1920, granting women the right to vote, the 13th amendment (1865), abolishing slavery and the 15th amendment (1870) giving black people voting rights.
It takes either a two-thirds majority in both houses of Congress or in two-thirds of state legislatures to amend the constitution. That must be ratified by three-quarters of the states. But some states have begun the process. Montana and Colorado voted differently for president in 2012, but both voted to amend the constitution to curb money in elections.
It’s a long and laborious process. The 27th amendment, on congressional pay, was submitted in 1789, but not ratified until 1992. On the other hand, the 26th amendment, giving 18-year-olds voting rights, took only three months to be ratified in 1971. Most Americans understood the absurdity of drafting young people who couldn’t even vote. I hope most Americans also understand the absurdity of politicians using their office to return a debt to the deep pockets that helped get them elected.
By: Rekha Basu, Columnist for the Des Moines Register; The National Memo, February 18, 2015
“Money Is Not Speech”: McConnell’s Appeal To Millionaire Donors Makes Case For Constitutional Amendment On Political Money
He surely did not intend it, but Senate Minority Leader Mitch McConnell has made a stunningly compelling case for a constitutional amendment allowing Congress and the states to restore sensible limits on the influence of money in politics. We appreciate his help and his clarity.
The good news is that the Senate will vote on just such a proposal next month, the Democracy for All Amendment (S.J. Res 19). Senators still undecided about the amendment should study Sen. McConnell’s remarks carefully.
Speaking to a roomful of ultra-rich political investors in June (audio here), McConnell voiced his delight at their collective success in unharnessing political money. “The worst day of my political life” was when then-President George W. Bush signed the McCain-Feingold law with its limits on independent political spending, he declared. He paid particular tribute to industrialists Charles and David Koch, the country’s most prolific political spenders: “I don’t know where we’d be without you,” he told them.
McConnell calls the Democracy for All Amendment radical; it is anything but. The amendment simply restores an understanding of the Constitution that was in place for at least a century until the Supreme Court began unraveling it in the 1970s. It affirms that money is not speech and that no one, however wealthy or powerful, has a constitutional right to spend unlimited sums to influence our elections.
A poll conducted for CBS News in May found that 71 percent of Americans support reasonable limits on political spending. A survey taken this month in battleground states for this November’s elections—including McConnell’s home state of Kentucky—found 73 percent support a constitutional amendment.
The senator argues that proposals to limit political spending are aimed at silencing critics of government. Singling out Common Cause, he charges that those who favor a system that pays for campaigns with a mix of public funds and small-dollar donations from individuals are really trying to elevate Democrats and defeat Republicans.
Neither claim stands up to scrutiny. The Democracy for All Amendment and the spending limits it would permit would protect the First Amendment; every citizen’s right to express his or her views, however unpopular or unconventional, would remain fully intact. Corporations also would continue to speak; the amendment simply would permit sensible controls on how much they and individuals can spend to influence elections.
As for public financing, Republicans routinely run and win using public funds in states where voluntary public financing systems are in place. In my home state of Connecticut, GOP gubernatorial candidate Tom Foley has opted to run on public financing this year; Arizona Governor Jan Brewer used her state’s public financing system in her victorious 2010 campaign. The “clean elections” or “fair elections” systems in these states encourage candidates of all parties to focus on issues important to the general public rather than the parochial concerns of a handful of funders.
The real radicals are those who argue that their free speech rights include the right to use their wealth—corporate or individual—to drown out the voices of other Americans. They view the Citizens United decision, which invited corporations to spend freely on our elections, as—in Sen. McConnell’s words— having “leveled the playing field for corporations.”
The American people know better.
By: Mles Rapoport, The American Prospect, August 28, 2014