I promised to be good. Last time we talked, I said I would forge a positive path, easing you toward the radical center. Hold my hand; let’s go for a walk.
The special interest lobby has crippled our democracy. Public-interest firms, business lobbies and cultural identity groups are co-conspirators in the parasite economy. Think of it this way: A CEO wants to build her corporate assets, so she invests $1 million into stocks, new equipment and raising employee benefits. This serves both a social benefit as well as the obvious financial dividends. The money invested into stocks will allow those smaller companies to increase production, while hopefully delivering a positive return for the CEO. The new equipment allows the corporation to raise output. Finally, the investment in worker benefits increases productivity. That’s a good economy.
Now, behold the parasite economy. In this scenario, the lobbyist wants to secure a $1 million tax break or federal subsidy for her respective group. In lobbying, you don’t create wealth, you capture it. Therefore, the lobbyists are willing to spend anywhere from $1 to $999,999 capturing their share of the pie. Even with only an additional $1, they still benefit. Unfortunately for the rest of us, up to $1,999,999 can be drained from a productive economy to serve the exclusive interests of one organization. Citizens lose. Not only is the lobby self-serving, it thrives by capturing taxpayer money, a form of legal theft. The street beggar can be ignored, you can change the channel on Pat Robertson and you can choose not to buy a company’s product; but the lobbyist takes without consent.
If you want a detailed and much more educated version than my 600-word rant, I recommend “Government’s End” by Jonathon Rauch. It’s both entertaining and enlightening, a rare combination in politics.
So, what can be done about it? Well, a lot, actually.
First, return a large portion of lobbying to the states. Look no further than OSPIRG to see an organization that’s structured like a typical lobby, but at the local level. The room for corruption is limited and the possibilities for direct action are large. Love them or hate them, OSPIRG gets work done without being bloated.
Second, enact campaign-finance reform. Closing the loopholes on corporate AND labor contributions would allow these groups to participate, without putting a price tag on democracy. In fact, as much as Republicans have become corporate whores, it was unions who first gave this disease to the American voter.
Back in the 1980 campaign, unions made a $3 million contribution to Democrats, which was an unprecedented amount. The Republicans cried foul and the unions snickered. So, Reagan hit up the corporations, blowing away Carter and his Democrats in both fundraising and votes. Full disclosure of campaign contributions is essential. Check out the Web site www.opensecrets.org to find out exactly how much money candidates are receiving and who is giving.
Next, balancing the budget. It’s important for more than cosmetic reasons. With a surplus, we have reduced interest rates, which means lower car payments, mortgage payments, and yes, student loans.
Lastly, tax reform. Washington bureaucrats have made thousands of changes to the tax code over the last two decades, and still almost no one is happy. A simplified tax code would benefit all Americans. And while we’re at it, reform corporate welfare. Helping a struggling business is great, but screwing over taxpayers so a few millionaires can get richer is against the American way.
These are just a few initiatives that would reel-in the parasite economy and invigorate the radical center. But it requires sacrifice from all plates at the table. Who’s willing to start?