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The Money-Laundering Operation at the Heart of the Democratic Party

Posted by Matt Stoller, Open Left at 6:23 PM on June 25, 2008.


Hoyer and the Blue Dogs hold the purse strings of the party.
moneylaundering

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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. 

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Tagged as: politics, democrats, hoyer, money


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Money and That too For Throwing away?
Posted by: flymulla on Jun 26, 2008 5:28 AM   
Current rating: 1    [1 = poor; 5 = excellent]
Money and That too For Throwing away?
No. I definitely detest the way the article is written. Yes, there are donations from the rich to elect the friend. But that is recoupable when he/she becomes the presidents.
Let me give an example. When Hillary was short of cash, Bill got angry and started the war of word. Then we knew Hillary was short of cash and the race. Now here comes the thinking. When I have donated 200,000 dollars for Hillary to win and she shows a little shaky signs, I remember the phrase my mom told me. The horse with three legs is of no use, leave it in the forest the vultures will take care of it. We save on burial also.
The launderings on election is to get something back in turn in future.
It is to leave a mark and then tell the president later, “Remember I had paid. I need the oil contract in Iraq.” What happens? You get this. Cheney is a master in this.
I thank you
Firozali A. Mulla MBA PhD
P.O.Box 6044
Dar-Es-Salaam
Tanzania
East Africa

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Terrytom what else is new?
Posted by: terryton on Jun 26, 2008 5:49 AM   
Current rating: 5    [1 = poor; 5 = excellent]
This is simply more evidence for what I have been saying for a long while.
We are in a conversion to a Fascist nation. Mussolini said it well, “Fascism should more correctly be called corporatism.” This control of government and the media along with the shredding of our constitution is deplorable and nearly complete. Obama’s recent flip on the FISA bill is only proof that the big change he promises is just a greater reduction in our freedom and justice. There is little difference between the rethugnicans and the dimocraps, they are all in on it. Our explosion in militarism is shocking. Dissent more than ever before is now viewed as dangerous and laws are in place to punish those who offend the powerful.
We need a purge but revolutions are so messy and usually result in worse conditions. That option being not wise the public needs to become educated and involved yet honest elections too are a thing of dreams.
I cannot feel more pessimistic. I am just short of despair.
God help America.

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The Democratic Party: Part One
Posted by: chlamor on Jun 26, 2008 5:53 PM   
Current rating: 5    [1 = poor; 5 = excellent]
The Democratic Party plays an indispensable role in the United States political machinery. This doesn't mean it has any power, in terms of controlling the state or setting policy. It means that without the existence of the Dem Party, the US could no longer maintain the pretense that it's a "democracy." If the Dem Party disintegrated, the US would be revealed for what it really is -- a one-party state ruled by a narrow alliance of business interests.

In terms of defending the general population against the depredations of this business consortium, the Dem Party gave up the ghost in the mid-1960's. Their threadbare act as the "Party of the People" serves not to defend the well-being of the population, but merely to persuade ordinary citizens that within the official political system's framework, there's at least some faint hope for eventual progressive change. Their focus is not so much being on our side, as convincing us that they're on our side -- without the slightest serious examination of what that might entail.

The party's true function is thus largely theatrical. It doesn't exist to fight for change, but only to pose as a force which one fine distant day might possibly bestir itself to fight for change. Thus the whole magic of the Dem Party -- the essential service it renders to the US power structure -- lies not in what it does, but in its mere existence: by simply existing, and doing nothing, it pretends to be something it's not; and this is enough to relieve despair & to let the system portray itself as a "democracy."

As long as the Dem Party exists, most Americans will believe we have a "democracy" and a "choice" in how we are ruled. They will not despair, and will not revolt, as long as they have this hope for "change within the system." From the system's point of view, this mechanism serves as the ultimate safety valve -- it insures against a despairing populace, thus eliminates the threat of rebellion; yet guarantees that no serious change to the system will be mounted, because the Dems weren't designed to play that role in the first place.

The Democrats are not the "lesser evil;" they are an auxiliary subdivision of the same evil. To understand the political system, one must step back and regard its operation as an integrated whole. The system can't be properly understood if one's study of it begins with an uncritical acceptance of the 2-party system, and the conventional characterizations of the two parties. (Indeed, the fact that society encourages one to view it in this latter way, is perhaps a warning that this perspective should not be trusted.)

Any given piece of reactionary legislation is invariably supported by a higher percentage of Republicans than Democrats. Does this show that the Democrats are "less evil?" If one focuses on the noble efforts of the few outspoken dissenters, it's easy to feel that the Democrats are somewhat less evil. But in the larger picture, Democrats invariably submit to what Republicans more ardently promulgate, & the entire range of official opinion thereby shifts to the right. Thus the overall function of Democrats is not so much to fight, as to quasi-passively participate in this ever-rightward-moving process. Just as the Harlem Globetrotters need their Washington Generals to make their basketball games properly entertaining, Republicans need the Democrats for effective staging of the political show.

The Democrats are permitted to exist because their vague hint of eventual progressive change keeps large numbers of people from bolting the political system altogether. Emma Goldman once said, "If voting made a difference, it would be illegal." Similarly, if the Democrats potentially threatened any sort of serious change, they would be banned.

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The Democrats: Part Two
Posted by: chlamor on Jun 26, 2008 5:57 PM   
Current rating: 5    [1 = poor; 5 = excellent]
The fact that they are fully accepted by the corporations and political establishment tells us at once that their ultimate function must be wholly in line with the interests of those ruling groups.

Can Progressives "Take Over" the Dem Party?

The argument is often advanced by progressives that they might be able to "take over" the Dem Party just as the Republican Party was supposedly "taken over" by the Religious Right and neoconservatives. This is wishful thinking, and ignores the actual history and character of both parties.

The Republicans were always the party of Wall Street & Northern manufacturing. The Democrats were the party of the Southern slaveocracy. When the national Democrats defied southern racism by passing the Civil Rights Acts in the mid '60's, the southern states bolted, destroying the New Deal coalition. The Republicans profited from this by adapting to southern tastes, values, & religious/cultural conceptions.

But this was in no way out of character for the Republicans. The far right was able to take over the Republican Party because that kind of alliance was always very much in the nature of the Republican Party anyway. It was compatible with, not contradictory to, the big-business nature of the Republican party. Forming an alliance with fascists, racists & religious zealots ADVANCED the big-business agenda.

By contrast, for progressives to take over the Democrats would be an unprecedented departure from the party's character. To understand this, one must first recognize that the sole Dem claim to being progressive is rooted almost entirely in the New Deal, itself a response to a unique crisis in American history. FDR recognized that to avert the very real threat of massive social unrest and instability, significant concessions had to be made to the working class by the ruling class. Government could act to defend the weak, and to some extent to rein in the strong, but this was all in the longterm interests of defending the existing social order.

Before FDR, the Dem Party had no progressive record whatsoever; and after FDR, though the New Deal coalition survived until the mid-1960's, it did so with a record of achievement that was restrained compared to the 1930's. After passing Medicare in 1965 the party reverted to its longterm pattern, and since then, there has again been no progressive record to speak of. The party's progressive social reform was thus concentrated mostly in the 1930's, with some residual momentum lasting until the mid 60's. The party's "progressive period" was thus 1) an exception to the longer term pattern; 2) a response to a unique crisis; and 3) has in any case been dead for over 40 years.

American public discourse attempts to paper over this vexing truth with fatuous happy talk, such as, "By working together, we can make make things better for everyone!" This is a lie. When capital controls government, government is no more than a tool used by elites to enrich themselves at the expense of everyone else. This kind of arrangement cannot possibly "make all boats rise" over the long term. Only the yachts will rise. If there is no political mechanism for opposing plutocratic rule, the strong will continue to squeeze additional wealth out of the weak until a) the weak become desperate and rebel, b) the weak are crushed and become permanently enslaved, or c) the strong begin suffering more from guilty consciences, than reaping enjoyment from additional wealth -- and therefore relent. (Very few instances of this last are known in recorded history.)

A party whose controlling elements are millionaires, lobbyists, fund-raisers, careerist apparatchiks, consultants, and corporate lawyers is not likely to serve the people in any meaningful way.

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