'Tis the Season For Corporate Welfare

By Mark Engler, AlterNet. Posted December 27, 2002.

Who says that our current government in Washington, D.C. is filled with hard-hearted grinches? When it comes to handouts for corporate sponsors, it is the politicians' season of giving.

Senator John McCain has described the U.S. political process as "a system of legalized bribery and legalized extortion." The months immediately following an election provide a chance to see this system at its most cynical and transparent. Knowing that the national political culture suffers from a prolonged case of attention deficit disorder, politicians can make a safe bet that whatever disgraceful favors they do for special interests now will be long-forgotten by the general public before the next elections roll around.

For well-heeled donors, now is the time for the big payback. Between further tax cuts for the rich and legislation crafted by corporate lobbyists, they will have plenty to look forward to in coming months. In fact, returns on their political "investments" have already begun to come in. Members of Congress and President Bush made good use of the lame duck session to reward major contributors from the business community, in particular big energy and pharmaceutical companies.

Energy companies and other industrial polluters received one of the biggest gifts under the Christmas tree -- sent directly from the Bush administration. During the Thanksgiving holiday weekend, when few reporters were paying attention, the EPA announced the largest rollback of the Clean Air Act in its 22 year history. New EPA rules allow factory owners higher emissions of carbon monoxide and other smog-causing pollutants, and weaken previous clean-up requirements.

The fact that El Paso Energy Corporation and Union Pacific rest high on the list of top soft money donors to the Republican party no doubt encouraged the EPA's pro-industry change of heart. More than just sending money, energy companies provided a lush talent pool for top administration positions. First and foremost, there's ex-Halliburton chief Dick Cheney. Fellow cabinet members Don Evans and Gayle Norton, plus National Security Advisor Condoleezza Rice, all have direct ties to energy industry brand names like British Petroleum, Chevron, and Tom Brown, Inc.

While the new EPA guidelines allow these corporations to reap millions in savings, under-represented citizens and the environment pay the price. Frank O'Donnell of the Clean Air Trust points to a survey indicating that 34 states plus the District of Columbia already have serious -- and in most cases worsening -- smog problems.

"It is deplorable that the Bush administration would weaken clean air protections and subject us to even bigger health problems," O'Donnell says. "Children with asthma, senior citizens and others with breathing problems are suffering the most."

Big drug companies were a second early beneficiary of post-election handouts. Their gift came stealthily wrapped as an amendment to the Homeland Security Act. This rider protects the makers of vaccine preservatives from lawsuits charging that their drugs cause autism in children. Given that the Pharmaceutical Research & Manufacturers of America, Bristol-Myers Squibb, Pfizer, Inc. and Eli Lilly together contributed over $3.6 million in soft money to Republicans during the 2001-2002 election cycle, few expected that the pharmaceutical industry would receive a lump of coal in its stocking this year. But even many Senate Republicans were shocked by the callousness of the House-generated amendment.

Liked this story? Get top stories in your inbox each week from AlterNet! Sign up now »