Tuesday, October 18, 2011

Tom
<http://www.nakedcapitalism.com/2011/10/tom-ferguson-congress-is-a-coin-oper
ated-stalemate-machine.html> Ferguson: Congress is a "Coin Operated
Stalemate Machine" 


Readers may recall that we discussed a
<http://www.nakedcapitalism.com/2011/10/tom-ferguson-congress-is-a-coin-oper
ated-stalemate-machine.html#> Financial Times op ed by University of
Massachusetts professor of political sciences and favorite Naked Capitalism
curmudgeon Tom Ferguson which described a particularly sordid aspect of
American politics: an explicit pay to play system in Congress.
Congresscritters who want to sit on influential committees, and even more
important, exercise leadership roles, are required to kick in specified
amounts of money into their party's coffers. That in turn increases the
influence of party leadership, since funds provided by the party machinery
itself are significant in election campaigning. And make no doubt about it,
they are used as a potent means of rewarding good soldiers and punishing
rabble-rousers 

A new
<http://www.washingtonspectator.org/articles/20111015postedprices.cfm>
article by Ferguson in the Washington Spectator sheds more light on this
corrupt and defective system. Partisanship and deadlocks are a direct result
of the increased power of a centralized funding apparatus. It's easy to
raise
<http://www.nakedcapitalism.com/2011/10/tom-ferguson-congress-is-a-coin-oper
ated-stalemate-machine.html#> money for grandstanding on issues that appeal
to well-heeled special interests, so dysfunctional behavior is reinforced. 

Let's first look at how crassly explicit the pricing is. Ferguson cites the
work of Marian Currander on how it works for the Democrats in the House of
Representatives:

Under the new rules for the 2008 election cycle, the DCCC [Democratic
Congressional Campaign Committee] asked rank-and-file members to contribute
$125,000 in dues and to raise an additional $75,000 for the party.
Subcommittee chairpersons must contribute $150,000 in dues and raise an
additional $100,000. Members who sit on the most powerful committees . must
contribute $200,000 and raise an additional $250,000. Subcommittee chairs on
power committees and committee chairs of non-power committees must
contribute $250,000 and raise $250,000. The five chairs of the power
committees must contribute $500,000 and raise an additional $1 million.
House Majority Leader Steny Hoyer, Majority Whip James Clyburn, and
Democratic Caucus Chair Rahm Emanuel must contribute $800,000 and raise $2.5
million. The four Democrats who serve as part of the extended leadership
must contribute $450,000 and raise $500,000, and the nine Chief Deputy Whips
must contribute $300,000 and raise $500,000. House Speaker Nancy Pelosi must
contribute a staggering $800,000 and raise an additional $25 million. 

Ferguson teases out the implications:

Uniquely among legislatures in the developed world, our Congressional
parties now post prices for key slots on committees. You want it - you buy
it, runs the challenge. They even sell on the installment plan: You want to
chair an important committee? That'll be $200,000 down and the same amount
later, through fundraising...

The whole adds up to something far more sinister than the parts. Big
interest groups (think
<http://www.nakedcapitalism.com/2011/10/tom-ferguson-congress-is-a-coin-oper
ated-stalemate-machine.html#> finance or oil or utilities or health care)
can control the membership of the committees that write the legislation that
regulates them. Outside investors and interest groups also become decisive
in resolving leadership struggles within the parties in Congress. You want
your man or woman in the leadership? Just send money. Lots of it..

The Congressional party leadership controls the swelling coffers of the
national campaign committees, and the huge fixed investments in polling,
research, and media capabilities that these committees maintain - resources
the leaders use to bribe, cajole, or threaten candidates to toe the party
line. Candidates rely on the national campaign committees not only for
money, but for message, consultants, and polling they need to be competitive
but can rarely afford on their own..

This concentration of power also allows party leaders to shift tactics to
serve their own ends..They push hot-button legislative issues that have no
chance of passage, just to win plaudits and money from donor blocs and
special-interest supporters. When they are in the minority, they obstruct
legislation, playing to the gallery and hoping to make an impression in the
media.

The system .ensures that national party campaigns rest heavily on
slogan-filled, fabulously expensive lowest-common-denominator appeals to
collections of affluent special interests. The Congress of our New Gilded
Age is far from the best Congress money can buy; it may well be the worst.
It is a coin-operated stalemate machine that is now so dysfunctional that it
threatens the good name of representative democracy itself. 

If that isn't sobering enough, a discussion after the Ferguson article
describes the mind-numbing amount of money raised by the members of the
deficit-cutting super committee. In addition, immediately after being named
to the committee, several members launched fundraising efforts that were
unabashed bribe-seeking. But since the elites in this country keep
themselves considerable removed from ordinary people, and what used to be
considered corruption in their cohort is now business as usual, nary an ugly
word is said about these destructive practices. 

Ferguson gave a preview of his article last week on Dylan Ratigan:



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