The Superdonor Corruption Problem

by: Matt Stoller

Tue Dec 11, 2007 at 17:12


Michael Kieschnick, one of the most brilliant organizers and thinkers that I know at the higher levels of the progressive movement, has an important question on the surging market for Democratic lobbyists, former staffers leaving their positions of influence to make money working to influence policy on behalf of wealthy interests for as much as a million dollars a year.  Kieschnick is stark; this kind of influence peddling is wrong.  I agree, as it is also incredibly perverse in terms of incentives for decision-makers.  And yet, these people are competing with corporate law partners, hedge fund managers, corporate titans, media pundits, or other top tier credentialled social stars as senior operators at the top of their game.

The problem is big and complex, because expecting virtuous moral self-deprivation isn't reasonable.  Rahm Emanuel left the Clinton White House for a few years, made $20M as an investment banker using his earned contacts, and became a Congressman in 2002.  There's nothing you can do with ethics legislation to prevent that kind of path to wealth and influence.  The only real solutions involve a progressive tax code, open legislative processes, and public financing of elections.

Matt Stoller :: The Superdonor Corruption Problem
Yesterday's headline in Roll Call, the insiderish newspaper focusing on Congress, caught my eye: "Surging Market for Democrats". I could not tell if this was about one of those simulated stock markets for presidential races or something else. Unfortunately, it was about the top dollars being offered to Democratic staffers to lobby on behalf of corporate interests.

"A headhunter telephoned the chief of staff to a prominent Democratic Senator recently and, recalls, the staffer, said to him "Look, a downtown firm is looking for a senior Democrat, the package is $600,000, and could be more. Do you want to talk to us?"

You can be sure that this "downtown firm" was not lobbying on behalf of stricter CAFE standards or paid family leave. While perhaps priceless in terms of the common good, those who advocate for them don't have surging profits to pay for top lobbyists.

Now I know that thousands of people work selflessly on Capitol Hill and I admire and respect them. But all too many are on a different track, waiting for that $600,000 phone call. They behave differently before the phone call, after the phone call and once they hit K Street. They reap the salaries, their corporate sponsors get a big payoff, and we all pay the price.

They should be ashamed of themselves. They should be labeled for what they are - sell outs - and not welcomed in progressive circles.

This is institutionalized on K Street, as this article in National Journal on 'super-donor' lobbyists shows.

For Van Scoyoc, donating politically is not a matter of personal ideology but one piece of a carefully thought out business plan that encourages firm-wide contributions to candidates on both sides of the aisle...

Direct contributions are only part of that equation. Van Scoyoc Associates, which takes up almost the entire sixth floor of the same Constitution Avenue office building that houses Kies's firm, boasts one of the most popular locations in town for hosting fundraising events, and lawmakers routinely take advantage of it. Van Scoyoc's spacious office also overlooks the Capitol, which is only 10 minutes away.

The fact that corruption is designed into DC business models is a bipartisan problem that we are in the process of fixing with more transparency, openness, specialized media outlets, and eventually, a populist framework for politics.  Public financing is obviously important, but then, so is building a progressive tax code so that the professional lives of elites aren't organized around whether you are in a profession that manipulates financial regulations or propagandizes, or whether you are willing to tolerate a dramatically lower standard of living.


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more on this one (4.00 / 3)
This is the root of all evil in politics today.  It's so bad I really wonder if any legislative staffer actually writes their own bill.  I know that sounds grandiose but beyond a few such as Sanders, DeFazio and a few others I really have to wonder here for what I see so often is legislation that is clearly written by corporate/special interest lobbyists and seemingly anything not written by them that manages to squeeze through is attacked.

My understanding on the hill is many who get congressional staffer positions are simply "marking time" in order to get a lobbyist job.  It's like an internship to have connections on the hill in order to be a lobbyist, but the real goal is that six figure paycheck. 

Considering I don't think you can rent a cardboard box to live in in DC on what most staffers, including the legislative staffers make, I'm not surprised in the least by this. 

NoSlaves.com  


The Economic Populist


Exactly (4.00 / 2)
That's why we need to change the system. Reform media, lobbying reform, open government and public financing of elections. Without that we are not going to get anything done. Period.

John McCain: Beacuse lobbyists should have more power

Yes (4.00 / 1)
Apparently, there are more than 34,750 registered lobbyists in Washington, DC and they certainly wield a lot of influence over Congress, the federal bureaucracy, and the beltway media. As you say, for almost everyone in DC, "public service on behalf of the public good" is forced to compete with "selling out for fantastic wealth". Lots of people choose the latter option.

Expanding on what you say, these are the things that I think will help fix this:

* Clean Money elections (public financing) to reduce the sway of wealthy interests.

* Ethics laws that would (1) bar members of Congress, their spouses, and their staffmembers from working for a lobbying company for 2 years after being connected with Congress and (2) strengthen Congressional ethics committees with an outside ethics office open to outside complaints.

* Progressive taxes that would make large salaries less desirable.

* A strong estate tax that would make accumulating wealth less desirable.

* A wealth tax (of say 2%/year on wealth above $5 million) to prevent the accumulation of wealth. We don't have a wealth tax now, but wouldn't it be a good idea?

* A lot more publicity revealing corruption in Washington -- good investigative journalism that is widely publicized.

Groups like Public Campaign, CREW (Center for Responsibility and Ethics in Washington), United for a Fair Economy (UFE), and the Sunlight Foundation are doing great work on these issues. The netroots could have a big role in focusing attention on  corruption and pushing for real reform.


Public financing? (0.00 / 0)
I'm not following.

Even assuming that a method of public financing can be devised that is both constitutional and effective at replacing private financing, why should corporate America sit by and let it get enacted?

Wouldn't a public financing bill be the #1 target for every company that thinks it might need to grease some Congressional palms at some stage in the forseeable future, and who would hate to see its moolah being spurned in favor of Uncle Sam's?

Making the tax system more progressive would be a good in itself; but, assuming that Uncle Sam's bite was still going to be less (probably a lot less than in 91% Ike's time) than 100%, I can't see the sort of career plannning you're talking about becoming unpopular.

Plus - way to show love to those Dem Hill staffers! Finally, after six years (bar the Jeffords anomaly) in GOP trifecta hell, the guys on our team are getting a chance at majority party perks - and you're coming down all goo-goo on them...


A Pro-Corruption Comment From A "Skeptic"! (4.00 / 1)
Why am I not surprised?

Honestly, you have made some very good comments on occassion, but your overwhelmingly negative attitude toward the possibility of real progress has always struck me as perplexing.  If you really think that nothing can be done, why bother posting, particularly?

Now, I think I understand.

Now I think that you are one of those "guys on our team ... [looking to get] a chance at majority party perks."

Suddenly, a great light breaks...

"You know what they say -- those of us who fail history... doomed to repeat it in summer school." -- Buffy The Vampire Slayer, Season 6, Episode 3


[ Parent ]
wish in one hand and pee in the other (0.00 / 0)
Matt Stoller writes, with referrence to the revolving door on Capital Hill and on Pa. Ave into the lobbying industry: The only real solutions involve a progressive tax code, open legislative processes, and public financing of elections.

Exactly what kind of incentive can be provided to convince the wealthy, authoritarian, corporatist elite to foresake the powers they've spent the last 100 years, and several trillions of dollars amassing?

Appeals to altruism will certainly be unavailing. Neither honor nor patriotism (in its best sense or its worst) nor ethical concerns nor the future of their progeny will move them.

So what do we do to persuade them NOT to use their consideraqble power/wealth to obstruct justice and fairness, given they've spent their whole lives successfully combatting both justice and fairness?


The same way it's always been done (0.00 / 0)
Public financing of clean elections will happen when legislators are more scared of pissing off those agitating for it than those opposing it.

Forgotten Countries - a foreign policy-focused blog

[ Parent ]
Good question (0.00 / 0)
"Exactly what kind of incentive can be provided to convince the wealthy, authoritarian, corporatist elite to foresake the powers they've spent the last 100 years, and several trillions of dollars amassing?"

Especially if you forsake violence.

Maybe a less direct approach.  Find some common ground and try to convince some of these "corporatists" to re-direct their "powers" in a more positive way.  Philanthrophy - investments in "greener", more sustainable industries - donations to public lands and infrastructure - support for more grass-roots organizations.

Or, you could try to take control of the federal government and take their power away by taxation schemes, then redistribute the resources in a more equitable manner, while you cut corporate subsidies and kick-backs.

Maybe all of these simultaneously.

"It sounds wrong...
     ...but its right."


[ Parent ]
The Worst Lobbyist In the World (0.00 / 0)
What we need, above all, is a fundamental change in the ethos.

I'm not putting down any of the other suggestions, I'm in favor of all of them.  But they are mechanisms, and mechanisms can't be put into place, and have maximal impact once they are in place, without a supportive ethos.

So here's one little suggestion about how we can start changing the ethos:  Make a blogosphere-wide practice of highlighting one lobbyist, every day, as "the worst lobbyist in the world."  Don't do it half-assed, or it won't have the bite it really needs.  Do it to the hilt.  And do it every day, day in, day out, so that eventually it gets pounded into these guys skulls, "God, if I do that, I might be 'the worst lobbyist in the world' tomorrow, or maybe next week.  Do I really need that sort of attention?"

p.s. Great post, Matt.  Keep it up!

"You know what they say -- those of us who fail history... doomed to repeat it in summer school." -- Buffy The Vampire Slayer, Season 6, Episode 3


SCABS (0.00 / 0)
That's how I think of them -- people who will sell out the rest of us to make a quick buck for themselves.

And they deserve to be treated like scabs, shunned by all decent people, not elected to office like Emmanuel, not invited to join in any reindeer games whatsoever.

Shunned and yes, ridiculed just like you are suggesting, so that anyone who is thinking of becoming a scab thinks twice about it, saying to themselves, "geez I don't want to end up like that poor bastard."

Montani semper liberi


[ Parent ]
corruption is the wrong angle (4.00 / 1)
As you suggest in passing, the key is to change the rules of the game, and so make a process that works differently.  Public campaign financing and an open legislative process are key, as you suggest.

Legislation by ambush makes sense tactically, in light of the practical difficulties in the current system, but from a distance, the whole process is insane.  Instead, all bills and proposed amendments should be publicly disclosed, electronically, at least 14 days in advance.  There should be organizations dedicated to watching the legislative process, issue by issue, and reporting to their consitutencies.  And there should be organized parties presenting and moving organized legislative efforts.

Few people today even understand why that is desireable.  Most people associate the idea of organized parties with stomping individual members.  Anyway, good luck building the propaganda machine to generate the public support to push through what is needed.  It is worth doing, and in 20 years, you may show some progress.

The staff problem is less dramatic, and far worse, than you portray.  Kids who flit to the hill to boost egos.  Only the kind of people who never have a family stay on the hill.  A rat's nest of self-absorbed cliques.  Most never bother to sell out; they are their for petty ego reasons.

The situation persists, easily, because there is no organized structure to the legislative process.  No transparency.  Much fumbling in the dark.


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