The Money Laundering Operation at the Heart of the Democratic Party

by: Matt Stoller

Wed Jun 25, 2008 at 12:11


Every week or two I read another article in Roll Call, the Hill or the Politico on the increasing clout of the Blue Dog caucus.  Today's came out in Roll Call, titled 'Blue Dogs' Bite Gets Stronger'.  Anna Palmer's article opens with the sentence, "Blue Dogs get ready: The ranks of obsequious lobbyists looking to curry favor - and contribute to your war chest - is set to explode."  The article also dubs Blue Dogs 'pro-business' and 'fiscally conservative'.

Since the 2006 elections, the Blue Dog political action committee has become one of the fastest growing, and is among the largest in Democratic leadership. Already it has nearly doubled its fundraising this cycle from the $1.2 million raised in 2006. This cycle, through the end of May, it had raised more than $2.2 million, according to CQ MoneyLine.

That puts it nearly on a par with House Majority Leader Steny Hoyer's (D-Md.) AMERIPAC, which as of the end of April had raised more than $2.2 million.

"We've always been fairly successful with fundraising, even when we were in the minority," said Vickie Walling, chief of staff to Tennessee Rep. John Tanner, a founding member of the group.

Going on to the FEC site lets you see the truth about the Blue Dog PAC - 85% of its money - $1.95M - comes from conservative corporate interests.  The list is pretty standard.  Walmart, Verizon, AT&T, Charter, Comcast, US Chamber of Commerce, Raytheon, Boeing, etc.  And Steny Hoyer's PAC - AmeriPAC - isn't much better.  Roughly 65% of his money comes from PACs, most of them similar to the ones flooding the coffers of Blue Dogs - Raytheon, AT&T, Boeing, etc.  

From Hoyer and the Blue Dog PAC the money spreads outward.  Just check out the list of candidates and committees Hoyer supports, from the Congressional Black Caucus to conservatives like John Barrow, Al Wynn, Don Cazayoux, Larry Kissell, Brad Ellsworth, and the Blue Dogs to progressives like John Hall, Dennis Schulman, Jim Himes, and Darcy Burner.

Now don't get me wrong, I like a lot of the people that Hoyer gives to, which is the point.  We've endorsed some of them on our Better Democrats page.  It's just important to note that much of the capital funding the Democratic Party is corporate PAC money, sluiced through figures such as Steny Hoyer and the Blue Dog caucus.

This has real consequences, for the business community.  Check out the roll call for the net neutrality amendment that went down to defeat in 2006, 269-152.  Blue Dogs voted against it, by and large, which is not so much pro-business as it is pro-telecom and cable industry and anti-technology and innovation.  Or if you look at the people protecting the large tax credits for oil and gas, just check out the Blue Dog caucus and you'll find a good number in there.  And telecom immunity matters deeply to businesses that don't break the law.

The sluicing funds within the Democratic Party represent relationships that make it really easy to go along with the status quo.  They are at their heart network systems, dense thickets built to withstand change.  I'm really quite excited about some new mapping tools I saw at Personal Democracy Forum which will help us understand just how dense the networks are, on all sides.  

Matt Stoller :: The Money Laundering Operation at the Heart of the Democratic Party

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Going to be even more of a problem (4.00 / 2)
As Dems retain the majority, they are going to draw even more cash compared to the GOP.  I'm not sure how we counter this, except to build our own warchest, to pick smartly and concentrate our resources, and to try to hold to account the people we do support.

John McCain--He's not who you think he is.

Seventy years (4.00 / 1)
FDR complained about corporate obstructionism early in his tenure.  IIRC, as early as 1934 he was astounded at business funding of northern Republicans and southern Democrats in a not-so-successful effort to block his programs so soon after he salvaged the remnants of capitalism.

This game's been going on for at least 70 years.  What it means is that we need to elect 220+ non-Blue Dog Democrats (and yes push Steny Hoyer out of leadership).  That comes to electing 265-270 Democratic House members instead of the current 236.  We've been at a 270-60% Senate-President trifecta only following the elections of 1932,1934,1936,1964, and 1976 and Jimmy Carter blew the opportunity of substantive change by getting into a pissing match with Tip O'Neill and "Washington."  Yes, instead of civil service reform and that extra aircraft carrier (which Reagan funded not long after) we could have fixed the long term energy problem in the country.  Carter's a fine man but his Presidency was screwed up.


How about 75 years? (0.00 / 0)
How could you mention '33 and '34 without letting the folks know that America was under attack under yet another Fascist Takeover Attempt? Sounds like you might not be aware either. Go look and you'll find the same culprits that are involved in today's treasonous attempt: JPMorgan (MorganStanley); Chase Manhattan (Rockefeller Family). Sounds like you'll be "Amazed" at the fact of an actual Senate Hearing that took place that the Press has never reported on!

Brick


[ Parent ]
I know (0.00 / 0)
The point was right wing/business support for conservative Democrats as a counter weight to main stream Democrats goes way back.  The attempted coup against FDR was something else.

[ Parent ]
Democratic Party Splitting in Two? (4.00 / 1)
Evidence cited in this post of growing, organized corporate fund-raising support for Blue Dogs indicates the Democratic Party may be on the verge of splitting into two parties.

If so, I predict one party will be dominated by right-of-center Democrats, particularly conservative pro-corporate Blue Dog Democrats.

This rump party will sunset and its candidates handed electoral defeats within the next decade or two as it loses an electoral base sufficient to win elections.

The other party will be a party dominated by a winning majority of voters who are progressives and working Americans who recognize that their livelihoods will be in jeopardy if they support candidates with either GOP or rump party backing.

The candidates of this party will become the dominant force in local, state and federal branches of government for the foreseeable future.


What's really strange... (4.00 / 9)
I think mainly of my current Senator (Frank Lautenberg) and former Senator (Jon Corzine) - two guys who aren't just well off, but are insanely rich, and became so as a result of their own business acumen, and they're both ridiculously liberal.  

We hear things like Blue Dogs being "pro-business" and "fiscally conservative" - that's just utterly ridiculous.  Corzine and Lautenberg are two men who ran multi-billion dollar corporations. Corzine with Goldman Sachs, pushing for the wildly successful IPO that has since made it the premier global investment bank, and Lautenberg, who was the first salesman for Automatic Data Processing when it was founded in 1949 above a freaking ice cream shop in Paterson, NJ (now has revenues of a measly $7 billion annually), and was CEO of the Port Authority (a highly coveted and important position).  

Both of these guys (plus plenty of other Democrats - just think of someone like Jared Polis) are model businesspeople, and model progressives.  For all the talk of these super-awesome pro-business Blue Dogs, it turns out a lot of the guys who have run things, and run things extremely well (that seems pretty 'pro-business' to me), have no connection to the Blue Dogs whatsoever.  What's happening with the Blue Dogs isn't at all pro-business, and isn't even pro-corporate, per se - it's legalized bribery, which is pro-one or two corporations, and that's when things become really awful.  

I really wish we had some kind of working group for Democrats who are both highly successful businesspeople and very progressive so that we can counter this kind of bullshit.  As someone who is both a hardcore capitalist and a very progressive Democrat, I know the two aren't mutually exclusive - in fact, I view them as going hand in hand.  In many respects, I view this kind of message as one of the last frontiers of Democratic politics, but I think in a period of rising "creative class" progressives, as Bowers might say, it is an increasingly accessible frontier.


Ugh (4.00 / 2)
I know you have a deep disdain for populists, but to lump Larry Kissell in with Al Wynn leaves a sour taste in my mouth.

"Keep the Faith"

Matt .. (0.00 / 0)
this goes back to what I have been saying for a while ... Kos and others used to/still does trump the money raised by the DSCC and DCCC ... where do you think a lot of that money comes from? .. the DSCC and DCCC accumulate those war chests at a cost(like the FISA bill) .. don't ever forget that

Might as well (4.00 / 1)
The Republican brand is deeply damaged at this point. I'm pretty sure corporate interests don't recognize faction or ideology-- of no party or clique, as it were-- they just want bang for their buck. So if the blue dogs are the people who provide that now, then hey...

As A Gate-Crashing Quasi Insider... (4.00 / 1)
About a year and a half ago, I decided I would do a little gate-crashing.  So I had been involved in my local party for a while.  But I ran for an office in the Congressional District-level party, won, and then won to be chairman of the CD-level party, getting me on the state party administrative committee.  It's been tremendously succesful, has enabled me to network with other progressives within and outside of the party, have a hand in some party decisions, learn the machinery, and keep working to build an ORGANIZATION of the Democratic Party in my state that is a grassroots, progressive one.  

I highlight ORGANIZATION because "the Democratic Party" has elected Democrats and there is also an entity that is an organizational political party.  By getting involved in the organization that is the DP, we can get to the point of choking off much of the support network of the elected Democrats that suck.  It's amazing to me how much actually occurs within the nexus of the party organization.  Never knew how much before.

In a candidate-centric era, you're not institutionalizing power and creating root-case, process-based solution to electoral problems if you just get behind candidates that agree with you.  We have to build party entities that we own.  We don't yet.  

Along the way, we need to help and support people getting involved in the party.  I know Chris is doing a panel at Netroots Nation on this.  I wish I could go and share some more of my thoughts (and coherently at that).  But we need to get progressives into power in the organization, as elected officials, and the like, and build progressive organizations outside the party that serve as checks-and-balances.

Also, we need to support progressives IN party office.  I'm trying to do some unique, grassroots progressive organizing in my party unit.  Demonstrating its success will build the power-base of progressives in our party and help extend it around.  To that end, you can all support this work to build a progressive, grassroots Democratic Party by going here and making a contribution


Could you widen the comparison? (0.00 / 0)
Matt, whenever I see numbers like you describe, I always want to see comparable numbers for progressive organizations like ActBlue, MoveOn, and the like. It seems progressives should strive to exceed these other numbers using low dollar donors. Including progressive numbers when you do these comparisons would provide important context over time.

I'd also agree the "pro business" meme is pure bs. They're just willing to pimp for people with money who happen to be a few giant corporations. That's not the definition of pro business. Indeed, the interests of small business and even large businesses often conflict with the needs of giant global corporations: what works for one group does not work for the other groups, at best, or harms the other groups, worst case.

And it's equally true that being anti-worker actually hurts businesses, in many ways. Like anything, it is a matter of balancing interests, something I doubt these Blue Dogs do.


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