Blog

US politics: lobbyists

Jim Riley

26th August 2008

A great deal of media coverage will focus on the National Party Conventions for the Democrats and Republicans, and students should look out for examples of what role these summer events perform. Do they give the candidates a bounce in the polls? Do they help to unify the parties?

But I thought I’d use this post to highlight a story I came across about the influence peddlers that are said to be such a corrupting force in US politics: lobbyists and corporations.

In today’s Times there is an article about the way in which wealthy groups have managed to bypass campaign finance laws in order to gain access to Washington politicians.

‘Thousands of lobbyists, corporate sponsors and wealthy donors have descended on the Democratic convention where their deep pockets are once again securing them privileged access, the best seats . . . and maybe a few favours from Congress or a Barack Obama administration.

New ethics rules, driven by the Democrats through Congress, were designed to ban legislators from accepting gifts, meals, trips or tickets from lobbyists and corporations. But the loopholes are so big that, well, you could stage a convention in them. If campaign donations are limited by law to a maximum of $2,300 (£1,230) there is no such restriction on sponsoring the convention, and the Democratic Party is deciding to hold its nose and take the lobbyists’ money.

Xcel Energy, Pfizer and Molson Coors, each of which have given more than $1 million, will be among the donors with their own private executive boxes at the Invesco Field Stadium, the 75,000-seat home to the Denver Broncos, on Thursday when Mr Obama makes his big speech. So will Ben Barnes, a Texas lobbyist, who said: “It’s bigger than the Super Bowl.”

Qwest Communications has given $6 million to the convention committee. The help it is receiving from Diana DeGette, the Colorado Congresswoman, with its case pending at the Federal Communications Commission is, apparently, entirely unrelated.

Stephen Weisman, of the Campaign Finance Institute, is among those with a bad taste in his mouth, saying that the people soliciting donations have the capacity to “affect federal policy”.

The restrictions on wining and dining legislators do not apply to charitable fundraisers. So the gambling industry – in the form of the Poker Players Alliance – is putting on a tournament where members of Congress will be given $5,000-worth of chips to play cards with celebrities such as Ben Affleck. And, oh yes, proceeds will go to Paralysed Veterans of America.

Last night the Distilled Spirits Council was hosting yet another party – for which The Timeswas among corporate sponsors – where guests received gift bags with premium cigars.’

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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