Mark Schmitt

Roosevelt Institute Senior Fellow

Recent Posts by Mark Schmitt

  • What the D.C. Mayor's Scandal Tells Us About Disclosure of Political Spending

    Jul 13, 2012Mark Schmitt

    Vincent Gray's "shadow campaign" that gave money to both the incumbent and challenger exposes the real reason some fight transparency: the desire to cover up the favors they buy with contributions.

    Vincent Gray's "shadow campaign" that gave money to both the incumbent and challenger exposes the real reason some fight transparency: the desire to cover up the favors they buy with contributions.

    The Senate finally took up the DISCLOSE Act today, which would respond to the post-Citizens United explosion of large and secret political spending by requiring SuperPACs and political nonprofits to promptly reveal their own political spending and their large donors. While Republicans will block it, as they did in 2010, they have developed a new argument that was unveiled by Senate Minority Leader Mitch McConnell in a speech at the American Enterprise Institute on June 15: Disclosure would feed the Obama administration in its efforts to “silence” and intimidate its opponents. This new argument was mostly developed by Brad Smith, Steve Hoersting, and their colleagues at the anti-reform Center for Competitive Politics. I wrote about it before the McConnell speech, noting that the conservative argument in the past was to oppose restrictions on political money in favor of disclosure, but now that disclosure is the only option, they have to find a way to oppose that too.

    There is a lot that's silly about the “intimidation” argument, most notably that if it were really true that the Obama administration has “got the IRS, the SEC, and other agencies going after contributors, trying to frighten people and intimidate them out of exercising their rights to participate in the American political discourse,” as McConnell said on Fox News, the appropriate remedy would be impeachment. (One of the articles of impeachment against Richard Nixon in 1974, the one that got broadest bipartisan support, was for just such activities.) Instead, McConnell's remedy for what he claims is a lawless administration is that his party's donors alone should get a special exemption from campaign disclosure laws.

    Not only does McConnell have less than zero evidence of actual intimidation, his model of how money works in politics is an imaginary one. Let's look at a case of real corruption here in Washington, D.C. On Tuesday, a fundraiser and friend of Mayor Vincent Gray agreed to plead guilty for her role in a $658,000 "shadow campaign" on behalf of Gray, funded by city contractor Jeffrey Thompson.

    According to the Washington Post, the fundraiser, Jeanne Clarke Harris, “said Thompson opted to hide his campaign largesse in large part to avoid angering [incumbent mayor Adrian] Fenty, whose administration his businesses relied on for contracts. The Medicaid deal held by his D.C. Chartered Health Plan is the city’s largest contract: It is worth more than $300 million yearly. 'He did not want the sitting mayor to find out he was supporting his opponent,' Harris said. 'If somehow the sitting mayor won, he would be in some serious contractual problems.'"

    On the surface, then, this looks exactly like the kind of situation McConnell and his allies have been warning about. Harris may not be telling the truth or accurately representing Thompson's fears, but let's assume she is. Here we have an example of a businessperson fearing retaliation from government for expressing his political views. But I don't see the campaignfreedom.org blog rallying to the defense of Mr. Thompson.

    Perhaps that's because its obvious that Thompson was not expressing political views by secretly supporting Gray. He was covering his bets. Like most large political donors, his main view is his interest in making more money. He expected to have more clout in a Gray administration, especially because that administration will feel more obligated to him, but he did not want to jeopardize his partial success with the Fenty administration. So he made his expenditures secretly, through Harris and other channels.

    Nondisclosure allowed Thompson to basically operate without expressing a political choice, by making contributions that he hoped would ensure access and influence no matter which candidate won. That's the more general explanation for corporations and individuals wanting to keep large expenditures undisclosed. "Retaliation," if and when it happens (and I'm not including plainly illegal actions like turning the IRS on an opponent's supporters), is just the inverse of the influence and access that motivates giving. And nondisclosure, of course, doesn't mean that the politicians and elected officials who benefit from the money don't know about it. It should really be called uneven disclosure or asymmetrical disclosure.

    Disclosure generally, and the DISCLOSE Act in particular, hardly solve all the problems of political inequality. But at least they allow us to begin to see the patterns of corruption, such as the connections between Thompson's spending and his contracts, and demand better – just as D.C. voters and councilmembers are doing in calling for the mayor's resignation.

    Mark Schmitt is a Senior Fellow at the Roosevelt Institute.

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  • Why Republicans Won't Repeal the Affordable Care Act (Hint: It's About Money in Politics)

    Jul 3, 2012Mark Schmitt

    Republicans are likely to leave the Affordable Care Act in place, but only because their backers in the insurance industry fear the alternative.

    “If I’m the leader of the majority next year, I commit to the American people that the repeal of Obamacare will be job one.”

    – Senate Republican leader Mitch McConnell, on Fox News Sunday

    "If you thought it was a good idea for the federal government to go in this direction, I'd say the odds are still on your side. Because it's a lot harder to undo something than it is to stop it in the first place."

    Republicans are likely to leave the Affordable Care Act in place, but only because their backers in the insurance industry fear the alternative.

    “If I’m the leader of the majority next year, I commit to the American people that the repeal of Obamacare will be job one.”

    – Senate Republican leader Mitch McConnell, on Fox News Sunday

    "If you thought it was a good idea for the federal government to go in this direction, I'd say the odds are still on your side. Because it's a lot harder to undo something than it is to stop it in the first place."

    – Mitch McConnell, in Elizabethtown, KY, on Monday

    With the Supreme Court ruling upholding the core of the Affordable Care Act, Republicans at every level have renewed their promise to repeal it. It is Mitt Romney's “Day One” task. Because Chief Justice John Roberts upheld the individual mandate under the taxing power in the Constitution, conservatives such as economist Keith Hennessy and Virginia Attorney General Ken Cucinelli argue, the penalties for non-compliance are now a “tax,” and the mandate can be repealed under the federal budget reconciliation process, which can't be filibustered in the Senate. That is, just 50 senators, along with a Republican vice president to break the tie, can repeal the mandate.

    This is true – though the Court's decision has nothing to do with it. Anything that has a significant impact on federal revenues or spending, such as fees, interest on student loans, or mining licenses, can be changed using the budget reconcilation process. The mandate, and some other provisions of the Affordable Care Act, can certainly be stripped out by a Republican majority. Other provisions that don't affect the budget, such as some of the requirements placed on insurance companies to cover preexisting conditions and keep young adults on their parents' plans, probably can't be, because their effect on federal finances is minimal.

    So if Romney wins the presidency and Republicans capture the Senate (as seems likely, if Romney wins), at the very least, we can expect them to repeal the individual mandate, right? It's the least popular element of the law, and not too difficult to sever from the rest. As Paul Starr of Princeton and The American Prospect has argued for years, a mandate with minimal enforcement mechanisms might be worse than no mandate at all.

    Whether they do that or not will be an interesting case study in the role of money in politics. Health insurance companies and HMOs, after all, are mainstays of the Republican money machine. Aetna, the health insurer that spends the most on lobbying, recently bolstered its Republican bona fides by being the first public corporation to disclose recent contributions to Republican dark-money committees, the American Action Network and the U.S. Chamber of Commerce's political arm. Aetna's former CEO, Ronald Williams, even went so far as to renounce the company's long-standing support for the mandate, predicting it would fall at the Supreme Court.

    But for health insurers like Aetna, stripping out the mandate alone would be the worst possible outcome. It would mean that they would still have to take all applicants, and couldn't reject or charge more to people with preexisting conditions. And they wouldn't have the profits from younger, healthier customers. Ideally, companies like Aetna would like to have the mandate without any of the other reforms, but that's a political non-starter, since individuals would be mandated to buy something that the insurers would refuse to sell them. Failing that, the insurers could live with the Affordable Care Act, or the pre-ACA status quo. But what they can't live with is the insurance reforms alone, without a mandate. (As a spokesperson for America's Health Insurance Plans told Reuters, “There has always been broad agreement that the insurance market reforms... cannot work without universal coverage.”)

    And you can be pretty sure that they won't have to. By deepening their alliance with the Republican Party, Aetna and other insurers have made sure they would be at the table, whether the Court overturned the mandate (in which case the insurers' goal would be to undo the rest of the law) or upheld it.

    Some Republicans, including Romney, promise to repeal the whole law and “replace” it with something better, often suggesting that the replacement would include the popular provisions on preexisting conditions. That, too, is a non-starter with the party's cash constituents. And other Republican proposals, such as to allow insurance companies to sell across state lines – that is, evade state regulations – aren't ready for prime time. Republicans never offered an alternative during the health care debate and they don't have one now.

    Thus you have McConnell's careful lowering of expectations on Monday: “It's a lot harder to undo something than it is to stop it.” The Republicans will talk about repealing “Obamacare” for as long as it succeeds in firing up their base. But it's all cheap talk; they won't do a thing.

    And so, the Affordable Care Act is secure. Unfortunately, that has less to do with public opinion or the Constitution than the simple power of money in politics.

    Mark Schmitt is a Senior Fellow at the Roosevelt Institute.

     

    Image via Shutterstock.com.

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  • After "Citizens United II," Time for Campaign Finance Reformers to Focus Away from the Court

    Jun 26, 2012Mark Schmitt

    The huge role of money in politics can be addressed in ways that don't rely completely on the nine Supremes.

    The huge role of money in politics can be addressed in ways that don't rely completely on the nine Supremes.

    It should have come as no surprise that the Supreme Court would strike down the lower court decision to uphold Montana's ban on corporate political spending. Even if Justice Kennedy, say, had been taken aback by the public reaction to his flawed opinion in Citizens United, it is extremely rare for the Court to directly reverse itself. The more likely outcome, if the Court had taken the case rather than simply reversed the lower court's decision, would have been that it might move even further in the direction of Citizens United – for example, by indicating that it would reconsider prohibitions on direct contributions from candidates. As Rick Hasen of the Election Law Blog commented yesterday, “The best way to win before the Roberts Court if you are a campaign reformer (aside from on disclosure issues) is not to play.”

    What does it mean “not to play”? It doesn't mean giving up on everything. And it shouldn't mean pursuing the even more futile path of a constitutional amendment to reverse Citizens United. Rather, it means getting over the obsession with corporate money, which plays a small role in federal elections and Super PACs, and getting refocused instead on the broader question of the ways in which political inequality reinforces economic inequality. To put CU in perspective, corporate money (mostly from privately held companies) represents only 17 percent of contributions to Super PACs, and Super PACs represent, so far, only about 10 percent of the total money in federal politics. That's not to dismiss the issue or the cases, but corporate political spending is only one part of the story of how money distorts democracy.

    While Citizens United and the somewhat more important SpeechNow case have certainly brought in a new atmosphere of “anything goes” to money in politics, there are answers that don't involve waiting around for one of the five conservative justices on the Court to retire. One, of course, is generous public financing, such as New York City's system, which provides a six-to-one match on small contributions. State legislators and Governor Cuomo have been pushing to extend the city system to the state level. Everywhere that similar public financing systems have been put in place (Arizona, Connecticut, Maine) they have been popular, resilient, constitutionally sound, and have broadened the role of small contributors and brought new candidates into the process.

    The recent court decisions have also opened new opportunities for Congress and state legislatures to require the disclosure of donors to outside groups as well as to candidates. Law professor Ciara Torres-Spelicy recently described this move as a “dramatic 180 degree turn...on the issue of the constitutionality of disclosure.” Disclosure doesn't solve all problems, but a big part of the story of money in politics post-Citizens United is the creation of political entities, such as Karl Rove's Crossroads GPS, that are not Super PACs but instead use a section of the tax code for non-profits to avoid limits and also maintain anonymity for donors. This could be fixed by the IRS (these non-profits are not supposed to have election activity as their primary purpose) or by Congress, without the slightest constitutional problem.

    While Hasen is right that it would be futile to keep knocking on the door of the Supreme Court, hoping that they've changed their mind, there's a lot of work to be done, and a lot of progress that can be made, without involving the Court at all.

    Mark Schmitt is a Senior Fellow at the Roosevelt Institute.

     

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  • 50 Years Later, What JFK Can Teach Us About Expertise in Government

    Jun 14, 2012Mark Schmitt

    Kennedy Democrats put too much faith in the "liberal consensus," but today's policymakers place far too little in the value of experts.

    Kennedy Democrats put too much faith in the "liberal consensus," but today's policymakers place far too little in the value of experts.

    This is a year of big 50th anniversaries: 1962 was a big year for jazz albums and children's books, but also for several of the great documents of the tortured history of modern liberalism. Michael Harrington's The Other America: Poverty in the United States was published 50 years ago, and the Port Huron Statement appeared the same year.

    There's a third document that surely won't receive the same level of Boomer-nostalgia attention, but is far more relevant to the political history that followed. That's John F. Kennedy's Yale Commencement speech of June 11, 1962. In that speech, which was drafted and edited by all the famous brains of Camelot – Arthur Schlesinger Jr., McGeorge Bundy, Theodore Sorenson, John Kenneth Galbraith – Kennedy declared, “What is at stake in our economic decisions today is not some grand warfare of rival ideologies... but the practical management of a modern economy." The economic problems of the 1960s, Kennedy said, are "subtle challenges for which technical answers, not political answers, must be provided."

    This was surely the most profound error of the era of “liberal consensus.” Kennedy and the men around him had persuaded themselves that “ideology” (by which they meant the great 20th Century clashes among fascism, Marxian socialism, democratic socialism, and democratic capitalism that had defined their own lives) was just a matter of “myths” and that all the real challenges that remained were just technical choices to be resolved by experts. Meanwhile, just beyond the shadows of the campus, an ideological showdown was building that was hardly mythical. It would pit the radically individualistic conservatism of Barry Goldwater, Ronald Reagan, and their far more radical heirs against the moderate Democratic safety net capitalism that the men of the New Frontier took so much for granted that they couldn't even call it an ideology. Indeed, even today it's hard to define the viewpoint that stands in opposition to the dominant ideology of the right.

    Liberalism was discredited in part because of the Kennedy men's faith in experts and their conviction that the choices were technical, not political. In the most narrow reading of the 1962 speech, JFK was embracing the view, held briefly by the American followers of John Maynard Keynes, though not Keynes himself, that “the practical management of a modern economy” involved “fine-tuning” fiscal and monetary policy, which would keep it on a steady path of growth. Keynesian fine-tuning failed dramatically, especially in the 1970s, leaving liberals essentially without economic tools and vulnerable to the alternative of supply-side economics. Excess faith in expertise is also held responsible for the Vietnam War (“The Best and the Brightest” were technocrats who could ask every question except whether the basic idea made sense) and failures of the community-based anti-poverty programs of the Johnson era. Above all, as critics of liberalism both sympathetic and hostile have argued ever since the late 1960s (most recently, Jonathan Haidt), the ideology of expertise-not-ideology put liberals far out of touch with the real stuff of life – morality, ethnicity, family, fear, tribal instincts. And to some extent it's true – a classic example is the idea of overcoming residential segregation through more aggressive desegregation of schools, that is, busing – which surely created more conflict and racial antagonism than it resolved, and not solely because of racism.

    But 50 years is a long, long time (check this video clip of Kennedy's speech if you want a sense of how far away that era seems), and liberals have been apologizing for and backing off of their faith in dispassionate expertise for most of it while the contempt for expertise developed by the populist right has continued to build. When populist politicians like Sarah Palin denounce “elites,” we act mystified that she doesn't seem to mean the very rich. But the idea that the real elites are technocratic experts empowered by government is now very old – so old that it's not true. One of the first things conservatives have done consistently when they gain power is to cut the legs out from under any kind of independent source of evaluation – eliminating the Office of Technology Assessment in 1995, ending any independent analysis of the distributional effects of tax cuts in the Bush administration, challenging scientific consensus on climate change, and most recently, attempting to eliminate funding for the American Community Survey and the National Science Foundation's social science research program.

    At the same time, we're actually a lot smarter than we were in 1962. Experts understand the limits of their own rational models (that's part of the breakthrough of behavioral economics), and our methods for evaluating government programs have evolved more than a little bit. David Bornstein, writing on the New York Times Opinionator blog, recently called in some detail for an age of “evidence-based policy making,” hailing, for example, an experiment that showed that simply making the standard application for student financial aid easier could increase the likelihood that a student would attend college for two or more years by 29 percent. As Bornstein notes, the Obama administration is attempting to quietly restore a role for evidence and evaluation, but it's hardly the stuff of presidential speeches.

    That we don't base policy on such evidence isn't just because government is lazy or ignorant – although sometimes neither the believers in a policy nor its opponents really want to know whether it works. It's about politics and power, and it has been for 50 years. When everything, from climate change to whether economic austerity might lead to economic growth, is treated as an ideological question rather than a matter of evidence, then it's a battle of power, and the side with more power is likely to prevail. Restoring a place for dispassionate expertise, evaluation, and evidence is central to the promise of a just society – but we have to do it without the Kennedy men's clumsy blindness to how radical that idea is, how much it threatens powerful interests, and the fact that there is much of life where expertise is of no value.

    Mark Schmitt is a Senior Fellow at the Roosevelt Institute.

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  • George H.W. Bush Was Not a Civil Rights Hero

    May 24, 2012Mark Schmitt

    In a cover story at National Review, Kevin D. Williamson attempts to rewrite the history of race and politics to tell a story in which Republicans not only were, but always have been, the party of civil rights and racial reconciliation, even in the South, against Democratic resistance.

    In a cover story at National Review, Kevin D. Williamson attempts to rewrite the history of race and politics to tell a story in which Republicans not only were, but always have been, the party of civil rights and racial reconciliation, even in the South, against Democratic resistance.

    As I pointed out in a recent review of a book about moderates in the Republican Party, there’s no point in denying that Republicans supported the Civil Rights Act of 1964 in greater numbers than Democrats and that most of the members of the Southern Caucus were Democrats. But it’s also very tough to make the case that those Southern Democrats have any continuity with today’s Democrats when most of them either became Republicans themselves (like former Senator Trent Lott) or were succeeded by very conservative Republicans who rely entirely on the same white votes. Political scientist Jonathan Bernstein has offered just one of the thorough rebuttals to Williamson.

    Williamson’s alternative history mostly works through distortion and omission rather than outright falsehood – overlooking, for example, the entire 38 years that South Carolina Senator Strom Thurmond spent as a Republican, or all the non-Southern, pro-Civil Rights Democrats. Jonathan Chait notes that “as his one data point, Williamson cites the victory of George Bush in Texas over a Democrat who opposed the 1964 Civil Rights Act.”

    Chait points out that Bush also opposed the 1964 Act, but there’s a bigger error in Williamson’s one data point. Williamson writes, “Segregationist Democrats were thrown out by southern voters in favor of civil-rights Republicans. One of the loudest Democratic segregationists in the House was Texas’s John Dowdy, a bitter and buffoonish opponent of the 1964 reforms... Dowdy was thrown out in 1966 in favor of a Republican with a very respectable record on civil rights, a little-known figure by the name of George H. W. Bush."

    In fact, Dowdy wasn’t “thrown out” by anyone. He served in the House uninterrupted until a scandal in 1973. Bush’s opponent was a local prosecutor named Frank Briscoe.

    Bush won an open seat, created by a massive Texas redistricting in 1966, which created three new congressional districts in the Houston area. And that’s important, because the redistricting was itself a civil rights move. Previously, Texas districts had been disproportionately weighted toward the rural (and white) population, and congressional districts varied in population from just 400,000 to almost a million people with a single representative. The rapidly growing African-American and Hispanic populations in the cities were sharply unrepresented. In a 1964 case, Wesberry v. Sanders, the Supreme Court applied the one-person, one-vote principle to congressional districts, which forced the redistricting. In addition to creating Bush's affluent Republican district, that ruling created a state senate seat that was won by Barbara Jordan, the first African-American to serve in that body since Reconstruction, and a congressional district that Jordan won in 1972.

    The elder Bush, it turns out, was not so much an advocate for civil rights as a secondary beneficiary of it. And with that, Williamson’s one data point crumbles along with the rest of his argument.

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