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  • SATURDAY OCTOBER 28 2006 9:00 PM

Corporate Donors Switching to Democrats

Most people think that all corporations favor Republican political candidates because of their overt friendliness to "big business," their willingness to support "free trade" while keeping protectionist trade barriers in place to help domestic industries, and their aversion to taxes. While corporations have been much more generous in their donations to Republican political candidates in the past few years, it's not so much for their political views, but because they prefer to bet on winners. The truth is that while on some issues Democrats take a slightly harder tack on corporate excess and greed, for the most part the mantra ever since Bill Clinton was first elected was to leave business alone and just let them make money. Now that the political winds have begun to shift, like sharks smelling blood in the water, the corporate donations are following.

Corporate America is already thinking beyond Election Day, increasing its share of last-minute donations to Democratic candidates and quietly devising strategies for how to work with Democrats if they win control of Congress.

The shift in political giving, for the first 18 days of October, has not been this pronounced in the final stages of a campaign since 1994, when Republicans swept control of the House for the first time in four decades.

Though Democratic control of either chamber of Congress is far from certain, the prospect of a power shift is leading interest groups to begin rethinking well-established relationships, with business lobbyists going as far as finding potential Democratic allies in the freshman class — even if they are still trying to defeat them on the campaign trail — and preparing to extend an olive branch the morning after the election.


Fantastic. So we can all sleep soundly tonight, knowing that even if Democrats do manage the herculean feat of retaking one or both houses of Congress away from the Republicans, they'll still be happily in the pocket of corporate America.

Republicans still received 57 percent of contributions, compared with 43 percent for Democrats, but it was the first double-digit October switch since 1994. “A lot will hold their powder for now,” said Brian Wolff, deputy executive director of the Democratic Congressional Campaign Committee. “But after the election, we will have a lot of new friends.”


You can almost see the sleave for yourself.

Isn't this exactly what the McCain-Feingold campaing reform bill was specifically written to address? Of course, that lasted all of about four seconds before new ways were found to funnel money to candidates running for office. While limits on donations toiindividual candidates were put into place by the bill, it still allowed for large corporations (and individuals, unions, etc.) to donate as much as they liked to Political Action Committess, also sometimes known 527 groups, which while they cannot be directly affiliated with any particular candidate, usually skirt awfully close to that line (think Swift Boat Veterans for Truth and The Club for Growth.) Not only are these donations still possible and unrestricted, but they're also tax deductible. So corporations divert money that shuold be going as taxes to pay for the government and subvert the interests of the rest of the country by contributing donations to PACs for "their" candidates.

The real kicker, however, is that so-called "grassroots" activism, that is small donations sent in by lots and lots of "regular" people, has exploded along with the internet. Netroots groups raised over three hundred thousand dollars to support Ned Lamont's primary campaign against Joe Lieberman. Hardly an insignificant number, and that's just a single candidate. It's not quite there yet, but the distinct possibility exists that in the future one may be able to win an election entirely without corporate donations. Small scale donations are helpful in that no single individual wields too much influence on the candidate in question, so the candidate is not obligated to serve any particular interest if elected. This is a powerful notion for modern politics, but as yet there do not seem to be any viable candidates who are publicly disavowing corporate donations in the hopes of running a campaign entirely from the grassroots level. That seems like the only way that the endless flood of corporate money corrupting American politics can be dried up.

 
Comments
gunphreek

gunphreek

I'm lost
September 2004

OCT 28, 2006 09:27 PM

And yet, I've heard that the money is only an indicator. Have you read "Freakonomics" yet?

Both sides play the game, of course. Doesn't make it right, or acceptable.

SGrizzy

SGrizzy

Tampa, FL
January 2004

OCT 28, 2006 09:35 PM

This is a sign that the government has way too much power.

Think about it: in order for people to bribe public officials, there must be something worth buying.

---------------

See my blog at scottgrizzard.com

gunphreek

gunphreek

I'm lost
September 2004

OCT 28, 2006 09:40 PM

The government has had too much power since about 1860. Of course, if they hadn't exercised that power, we'd probably be subjects of one european power or another.

"If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place, oblige it to control itself." - James Madison.

We've been running nonstop for about 230 years. Nothing goes that long without developing a few kinks.

Kenet

Kenet

USA
November 2004

OCT 28, 2006 10:00 PM

The only real solution is to implement reality-game style challenges to decide whether or not legislation will pass.

And just think, the American public would be entranced! whatever


Wait, wait, I voted early today, I'm supposed to put the jaded card in my back pocket for the night. I'll remain the optimistic cynic, and diminish to the west.

darwinsjoke

darwinsjoke

Virginia Beach, VA
July 2003

OCT 28, 2006 10:12 PM

Incidently, legislation that breaks the links between lobbyists and the Congress is scheduled for the first day of the next Congress, should the Dems take control, under (future) Speaker Pelosi's first 100 hours plan.

pascalpp

pascalpp

Brooklyn, NY
January 2004

OCT 28, 2006 10:40 PM

It's obvious that to break corporate control over Congress, we need public campaign financing. And free, equally-allotted use of our public airwaves for candidates during campaign season.

Some people balk at the idea of public campaign financing, saying that there's no way to pay for it without raising taxes.

And they're right.

We'll pay for it by electing officials who will enforce the tax laws that apply to these corporations, forcing them to pay their real share instead of letting them buy candidates who will look the other way while holding their hands out for campaign donations.

skeptik

skeptik

New Orleans, LA
February 2004

OCT 28, 2006 10:48 PM

Best reform idea for the issues surrounding corporate donations: mandate anonymous donation.

Just as with voting by secret ballot, this would permit anybody to support whatever issue or candidate they want, but prevent the politicians from knowing who supported what.

SGrizzy

SGrizzy

Tampa, FL
January 2004

OCT 28, 2006 10:58 PM

Ssssskeptik said:
Best reform idea for the issues surrounding corporate donations: mandate anonymous donation.

Just as with voting by secret ballot, this would permit anybody to support whatever issue or candidate they want, but prevent the politicians from knowing who supported what.



Bad idea: because you can't mandate ananomous donations of time or other "in-kind" donations. This gives an advantage to groups that have legions of volunteers (like public unions), and disadvantages interests that have only money to bring to the table.

Besides that, you can't prevent people from proclaiming their support for a candidate, or prevent them from saying how they spent their money. To do so tramples on free speech.

NewSpectre

NewSpectre

Baltimore, MD
March 2005

OCT 28, 2006 11:04 PM

I think this has less to do with democrat vs. republican this election and more to do with our current senate sucks. And it's not because of the democrats or the republicans, they all suck.

NickFaust

NickFaust

USA
April 2004

OCT 29, 2006 05:18 AM

SpectreInTheUK said:
I think this has less to do with democrat vs. republican this election and more to do with our current senate sucks. And it's not because of the democrats or the republicans, they all suck.



This is just adolescent nonsense. There are good people in Congress. Not everyone is a sleaze on the take and not everyone who takes money for a PAC immediately performs fellatio on them.

But here is the deal - told to me in person by Rep Chaka Fattah - one of the good ones - You don't want people taking money from corporations and special interests? Then you have to start writing checks yourself.

I think that one of the best reforms - aside from making the whole thing publicly financed, setting up cable access for candidates and denying any other public media (big first amendment issues here, I know) - would be to put an absolute, cumulative limit on all donations and then make them tax deductible. That would make an incentive for John or Jane Q to pony up and would also make it impossible for any entity to give more than say - 1,000 per calendar year.

orbro

orbro

New York, NY
July 2004

OCT 29, 2006 07:48 AM

yeah, there's actually a supreme court decision that equates free speech and money. i.e., the more money you have, the more "free" speech you're entitled to on the "public" airwaves.

legionnaire

legionnaire

Belgium
November 2003

OCT 29, 2006 08:15 AM

The free speech issues are extremely difficult to get around - and like I wrote, even though donation limits to particular candidates can be restricted, there's no constitutional way that I can imagine to limit money donated to a PAC that advertises in favor or against a particular candidate. And as much as I'd like to clean up the money from politics, I don't think banning speech is the way to go about doing it, there has to be a better option.

That's why I think if a candidate were able to forego any large donations from any individuals, corporations or groups (ie. a strictly grassroots campaign) it would give them incredible leverage against an opponent who took money from whoever was offering. It's a sort of free-market solution; if voters are interested enough in a candidate who is pretty much immune to special interest considerations or favors they vote for that candidate (and presumably donate to them too,) thus commodifying freedom from influence and making it potentially more valuable than the donation dollars it's replacing. Of course, this seems like market driven idealism, my guess is that plenty of candidates would publicly claim that they weren't accepting money in increments larger than $20 or something and then figure out a way to funnel large cash donations to themselves in exchange for influence.

skeptik

skeptik

New Orleans, LA
February 2004

OCT 29, 2006 08:16 AM

SGrizzy said:

Ssssskeptik said:
Best reform idea for the issues surrounding corporate donations: mandate anonymous donation.

Just as with voting by secret ballot, this would permit anybody to support whatever issue or candidate they want, but prevent the politicians from knowing who supported what.



Bad idea: because you can't mandate ananomous donations of time or other "in-kind" donations. This gives an advantage to groups that have legions of volunteers (like public unions), and disadvantages interests that have only money to bring to the table.


Which is only relevant if you believe that the advantage in influencing political decisions is equal between the two types of groups. Do you seriously propose that a group that can provide campaign volunteers has anywhere near the influence on a candidate's stances as a large corporate donor? If this is empirically true, then I would have no problem with limiting that, as well.

Besides that, you can't prevent people from proclaiming their support for a candidate, or prevent them from saying how they spent their money. To do so tramples on free speech.



Nor can you prevent voters from doing the same regarding their votes. What you can do is use the equivalent of secret balloting, and prevent the kind of influence that comes from knowing exactly who tried to buy a candidate, and for how much.

I have no problem with free speech. But when were corporate donations ever "free?"

Subrosa

Subrosa

San Francisco, CA
July 2004

OCT 29, 2006 08:28 AM

orbro said:
yeah, there's actually a supreme court decision that equates free speech and money. i.e., the more money you have, the more "free" speech you're entitled to on the "public" airwaves.



Buckley v. Valeo.

gunphreek

gunphreek

I'm lost
September 2004

OCT 29, 2006 08:12 PM

Two things. Although profits aren't always passed on to the worker or consumer, costs are always passed on to the consumer. Close corporate tax loopholes and you drive the price of whatever they're selling up. Corporate america is NEVER taxed. It's just indirect taxation of the consumer.

If donations were anonymous, you'd get a new situation. One corporation giving to a candidate or party, and ten claiming to have done so. Doesn't sound so bad to me. Dollars can only theorically "buy" influence when you can reasonably know who the purchaser was.
Say one hundred thousand dollars was given to the democrats by an anonymous doner. PETA, NRA, AND Ford Motor Company could all claim to have ponied it up. Initially, there may be a good reason to suspect NRA had nothing to do with such a donation, (after all, the two most dangerous women in america are, on paper at least, democrats, (I think clinton is whatever will get her elected. I don't know what pelosi really is,)) Now. Do you give your votes to Detroit or the bunny huggers?

In ten years? The cirsumstances get fuzzier. That's long enough for the "good guys" and the "bad guys" to switch places, again. I like the idea of anonymous donations, at least on the surface.

Now, in-kind donations are harder. Can you really tell anyone to keep their mouth shut about their beliefs without treading on their freedom of speech? If a group can bring in volunteers, is it the group donating or the individuals?