DOLLAR DEMOCRACY ON STEROIDS

CHAPTER 2

Buying American Politics and

Selling Out the American Dream


“…I refused to take part in what former U.S. Congressman Cecil Heftel of Hawaii called ‘legalized bribery’ ”

Peter Mathews


U.S. Supreme Court: Super Rich Americans Can Now Buy All of Congress and Both Political Parties. McCutcheon v. FEC (2014)


It was another bright and sunny sparkling Southern California morning in June 1994. No worries. Optimism abounded. I had woken up early to shower, shave, and have a hot breakfast of oatmeal and coffee. I had just wrapped up the semester of teaching at the end of May. I drove with relaxed determination to my Congressional campaign headquarters a short four blocks from my house. By 9 o'clock in the morning, the warm sun and blue sky enveloped me with the promise of new beginnings.

As I opened the door with confidence, my campaign manager who was already in the office before me, greeted me with enthusiasm. The campaign headquarters did not have luxuries such as finished floors like most campaign offices; it was a bare room with concrete flooring. However, our enthusiastic volunteer staff had cleaned and organized it beautifully. Nothing like the fruits of victory to galvanize positive attitudes and enthusiasm, even from unpaid volunteers. My campaign manager said "Congratulations Mr. Democratic primary winner. Your reputation precedes you. Are you ready for this important meeting with

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the ARCO PAC (political action committee)? This is your big day to make an impression. These guys can kick off the raising of hundreds of thousands of dollars that it will take to win in the fall."

I had mixed feelings about this meeting with this oil company's political elite. I had refused to raise money from corporate special interests in my 1992 primary election campaign for the same congressional seat, and still had landed a very strong second-place. As a professor of political science, I knew the strong influence that wealthy corporate donors had over policy votes of candidates who took their money.

Now, as I was facing my campaign manager in that room with desks covered with neatly stacked papers, I looked him in the eye, and seeing his enthusiasm for raising the huge amount of money it would take to defeat a powerful, well-known, well-respected moderate Republican Congressman in November, I said, “Okay let's meet these ARCO guys and see what they have to say.” I could see the sense of relief spread over his face. He was probably thinking maybe this guy is not such a crazy, unrealistic, idealist after all. Maybe Mathews has finally come to realize the importance of raising the serious amount of money that it takes to win a general election and become a Congressman. He wasted no time as he drove me to the ARCO PAC offices for our meeting with the political action committee and its chairman.

We had plenty of time to get there, but my manager drove like there was no tomorrow. It felt like he was ready to hit the jackpot. It felt as if we were going to Vegas, not to gamble, but to collect our winnings. After all we only had to show ARCO that I had won more votes in the Democratic primary than my Republican opponent, incumbent Congressman Steve Horn, had won in his Republican primary: 33,000 votes to 26,000 and that this was a strong sign of my likely victory in the fall. Helping us in this argument was the cover story in a magazine in the Los Angeles Times with a cover picture of the facial profiles of Steve Horn and me, challenging each other like two prizefighters. The caption accompanying the LA Times magazine cover said, "Democrat Peter Mathews poses stiff challenge to incumbent Republican Steve Horn."

We arrived earlier than expected because somewhere on the drive from the campaign office to the ARCO office, my campaign manager

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had morphed into a Grand Prix racer. The fact that ARCO had taken us seriously enough to invite us to meet and interview with them, and possibly gain their financial support, must have given him an adrenaline boost.

When we arrived and saw the gleaming buildings and offices, I'm sure my campaign manager felt that we had landed a tryout in the major leagues, every baseball player's dream. Of course, major-league baseball players produce a lot of viewing pleasure for the fans and are paid handsomely for playing a superb and professional game. In contrast, major-league politicians such as members of Congress are not about producing a pleasurable game to view but much more importantly, members of Congress gain huge amounts of power to create and shape government policies that benefit or hurt millions of people in major ways. The ARCO political action committee chairman and members were clearly aware of this.

As soon as we walked into the gleaming air-conditioned offices where we were being interviewed, we were treated with professional courtesy and warmth by the receptionist. We did not have to wait very long. The folks in the back room must have been notified of our arrival right away.

A guide was sent to escort us to the room where the interview was to take place with the ARCO PAC members. As my campaign manager and I were ushered in to the immaculately furnished conference room, the committee members rose to greet us and shake our hands very cordially. The atmosphere into which we had walked was very positive and welcoming. I knew that the ARCO PAC members were extremely experienced and aware of their important roles and the power that lay in their hands. After all, these were the men and women who would decide which candidates to support and which to reject in their bids to become members of Congress. These committee women and men knew exactly what kinds of questions to ask of the candidates, both challengers and incumbents running for reelection. The political action committee members knew how to judge the substance and nuances of the answers and presentations provided to them by the hopeful candidates for Congress.

I had been interviewed by political action committees before while

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seeking the endorsement of public interest groups, so I was not nervous at all while being seated in the hot seat in the conference room facing all those political judges, members of the ARCO PAC. Shaking each person's hand, and making personal contact, including small talk when appropriate, had broken the ice between me and the committee members. I felt at home being interviewed for an endorsement for the U.S. House of Representatives. I told them that government needs to spend its revenues wisely in building the best K-12 and college and university educational systems. Government should ensure that the kindergarten through technical and trade school as well as college and university systems should provide equal opportunity for every single American child and young adult regardless of their parents’ economic standing. I added that government should also create policies that would encourage the creation of jobs through small business growth and the rebuilding of America's infrastructure, roads, bridges, water and sewer systems, levies, school buildings etc.

As I looked around the room there seemed to be an expectation for something else. After all we were in the Lions’ Den of a corporate big business oil company. I had done my research and knew that in 1994 big business was doing very well in terms of profitability, government subsidies, and corporate tax loopholes given to them by Congress. Big business was getting its way in the area of Free Trade instead of Fair Trade. I knew exactly what the men and women in this room expected to hear from me, if I wanted their political and financial support.

I looked around the room at these women and men playing the role of the political guardians for big oil and once again noticed their expectant expressions. They would have loved it if I had said that what's good for business is good for America. That business, particularly big business, was the engine that drives the train of the American economy. The engine must be constantly fueled by the policies of government, if the boxcars loaded with heavy goods were to be pulled along successfully, and the American economic train was to run smoothly and efficiently.

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To Tell You the Truth,

You Can Keep Your Money


What kind of fuel for the big business engine were these ARCO PAC committee members thinking of? I knew that to win their support, endorsement, and full commitment of campaign funding, I had to mention that I supported government policies that would fuel the engine of big business to successfully pull the boxcars of the economic train. All I had to do to gain their support was to say that I supported tax incentives and corporate subsidies so that the big business engine could do its job well in successfully building up and maintaining the American economy. The expectant faces around the room wanted to see that I truly believed in Charles Wilson's claim that what's good for GM is good for America, and vice versa. Charles Wilson, the former CEO of General Motors, served as President Eisenhower’s Defense Secretary. I knew that I would disappoint most of those in that room including my campaign manager with what I was about to say, but I was going to say what I believed anyway!

I told them I believed that in order to strengthen and grow the American economy we had to guarantee high-quality, affordable and equal education to everyone; and in order to help create high paying, new technology jobs, the federal government needed to invest in America. As any businessperson knows, productive investment costs money. It would take hundreds of billions of dollars to invest in America's educational systems, small business growth, technological development, and to modernize the aging infrastructure. This investment would be absolutely necessary to create the foundation for a successful 21st Century world-class economy. We will pay now, or we will pay dearly later by falling behind other nations in our productivity. I told them if we don't invest now we will see the rich getting richer, the poor getting poorer, and the middle class disappearing. I looked around the room at the eyes of these eminent, powerful, and influential decision-makers, and said the best way to generate the funds for investment in America is to close the unproductive corporate tax loopholes, and to end the most egregious and unproductive corporate subsidies by government, and use the money generated to educate Americans for the 21st Century jobs just around the

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corner. I said, “My good friends of ARCO PAC, if we take this path, our economy and our country will be prosperous and successful and corporations like ARCO will be partners and beneficiaries in this venture.”

I paused to gauge their reaction. They were smiling nervously at each other, a little shocked at a candidate who would tell them directly what they were not too happy to hear. The chairman proceeded to a couple of more relatively insignificant questions and then the interview was over sooner than expected. The PAC chairman got up to shake my hand and said, “Thank you very much for coming, we appreciate your time. Goodbye.” I wasn't sure why I was surprised by this response. I suppose I had thought in the back of my mind that perhaps these people would like to have a serious and vigorous discussion and debate about what it means to close unproductive corporate tax loopholes, and end government subsidies (corporate welfare) of large corporations such as ARCO. No such luck, so I said, “Thank you for your time ladies and gentlemen. Goodbye.” I never heard from ARCO PAC again!



“We Have the Best Politicians

Money Can Buy”


As we were making our way out of the ARCO offices, my campaign manager reminded me that we had a long way to go to raise the requisite $500,000 minimum that winning candidates for Congress were raising and spending in 1994. In the national elections of 2016, the winning candidates for the U.S. House of Representatives averaged more than $1.7 million raised and spent per district. The losing candidates averaged more than $700,000 raised and spent in each district. That was a total of $1,644,300,000 raised and $1,597,000,000 spent in the 2015-16 election cycle (FEC.gov, March 23, 2017). In the 2018 midterm election, $5.2 billion was raised and spent on House and Senate incumbents and challengers by the candidates, political parties, political action committees (PACs), Super-PACs, and non-profits. (opensecrets.org, Oct. 29, 2018). These were mostly wealthy corporate special interests in

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the top 1%, who want tax loopholes, subsidies, and other handouts from members of Congress whom they help elect.

They get these favors from Congress, which causes Congress to cut, or not increase, needed spending for programs that provide opportunity and success for the bottom 99% (the middle class and working poor); programs such as public education pre-school through college and university, full universal healthcare (where Obamacare left 20,000,000 Americans uncovered and Trumpcare increased the uninsured by 7 million more), full and secure retirement for all Americans, higher minimum wage and a living wage, investment in small business and entrepreneurial capital and rebuilding and modernizing our infrastructure, scientific research and development, and direct government employment as in Franklin Roosevelt’s New Deal, all of which would create millions of new well-paying jobs through increased demand and growth in the American economy. In the two years of the Trump presidency (2017-2018), the rate of uninsured Americans has risen from 10.9 percent to 13.7 percent: 7 million more people, mostly women, young adults, and low-income Americans without health insurance. (news.gallop.com, by Dan Witters, Jan. 23, 2019). Today, in 2019, 44 million Americans have no health insurance, eight out of ten of these are workers or their dependents. Another 38 million have inadequate health insurance coverage!

An FDR type New Deal program has been blocked by Big Money going into Congressional campaigns from the Big Corporations and their wealthy owners and lobbyists. Money and favors go out from Congress to the Wealthy Corporate Special Interests and Super-wealthy Donors. This is “Dollar Democracy”, the millions and billions of dollars used by wealthy campaign donors and corporate lobbyists to legally buy influence over our members of Congress, which stops them from representing us, the 99%, and fighting for the American public interest. This reminds me of Will Rogers’ quip, “We have the best politicians money can buy!”

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