Posted on 03/06/2010 4:24:47 AM PST by Kaslin
"Wall Street shifting toward Republicans," blared a front-page headline in The Washington Post last week. "Commercial banks and high-flying investment firms have shifted their political contributions toward Republicans in recent months amid harsh rhetoric from Democrats about fat bank profits, generous bonuses and stingy lending policies on Wall Street," the Post announced, making it sound as if the sinister forces of corporate reaction were punishing the brave reformer in the White House. After all, Barack "Teddy Roosevelt" Obama assailed Wall Street bonuses for "fat cats" and has promised tax increases for the wealthy, in the name of spreading the wealth.
Except there's one datum, mentioned but not explored in the article that doesn't quite fit this story line: Wall Street is still giving more money to the Democrats. "The wealthy securities and investment industry ... went from giving 2 to 1 to Democrats at the start of 2009 to providing almost half of its donations to Republicans by the end of the year," the Post reports.
Almost half. That's another way of saying that the allegedly vindictive Wall Street fat cats are still giving more than half of their political donations to Democrats, also known as the party in power.
It turns out that's what most big businesses and fat cats do: back the winner. And that's probably the best explanation for why the Republicans are getting more money from Wall Street these days. Everyone agrees that the GOP is poised to make huge gains in the House and Senate, conceivably taking one or both chambers. Scott Brown's victory in the Massachusetts Senate race also took away the Democrats' supermajority. As several lobbyists have explained to me, just as a matter of political math, the Republicans matter now. When Senate Democrats had all the power, lobbyists had to give more money to Democrats. Now that the equation has tilted back toward the center, giving has become more evenhanded.
No doubt, with populist prairie fires raging across the political landscape, the White House hardly regrets being cast as the enemy of "special interests" and beady-eyed bankers who look like Mr. Monopoly. But the truth of the matter is a bit different.
It's worth remembering that Obama was the preferred candidate of Wall Street, and the industry gave to Democrats by a 2-1 margin at the beginning of last year. The top business donor to Democrats in 2008 was Goldman Sachs, and nearly 75 cents out of every dollar of Goldman's political donations from 2006 to 2008 went to Democrats. Few can gainsay the investment, given how well Goldman Sachs has done under the Obama administration.
It's not just Wall Street. Obama led in fundraising from most big business sectors, according to the Center for Responsive Politics. Aside from the desire to back the winner, and the cultural liberalness of East and West Coast plutocrats, why did Obama get so much support from precisely the constituency he demonizes?
Because it was good business. A host of big corporations bet that the much-vaunted Obama era would materialize. For instance, nearly 30 major corporations and environmental groups invested in Obama's promise to force the American economy into a new cap-and-trade system via the United States Climate Action Partnership (CAP).
Whatever the benefits of such a scheme for the economy and environment as a whole, these corporations, led by General Electric, were looking simply to cash in on government policies. GE, which makes many wind, solar and nuclear doodads that would be profitable under "cap-and-trade," was poised to make billions if Obama succeeded in seizing control of the "carbon economy." GE is still protecting its bet, but after the failure in Copenhagen, the "climategate" scandals and perhaps most significantly, that implosion of Obama's new progressive era, several heavyweights -- Caterpillar, BP and ConocoPhillips -- have pulled out of CAP, with rumors that more will follow. There are similar rumblings of discontent within the ranks of PhRMA, the trade association for the pharmaceutical industry, which had cut an $80 billion deal with the White House last year for its support of ObamaCare, only to see the whole thing unravel.
The lesson here is fairly simple: Big business is not "right wing," it's vampiric. It will pursue any opportunity to make a big profit at little risk. Getting in bed with politicians is increasingly the safest investment for these "crony capitalists." But only if the politicians can actually deliver. The political failures of the Obama White House have translated into business failures for firms more eager to make money off taxpayers instead of consumers.
That's good news. The bad news will be if the Republicans once again opt to be the cheap dates of big business. For years, the GOP defended big business in the spirit of free enterprise while businesses never showed much interest in the principle themselves. Now that their bet on the Democrats has crapped out, it'd be nice if they stopped trying to game the system and focused instead on satisfying the consumer.
And the GOP establishment will line up to deliver in order to increase the campaign cash coming their way. A word of caution as we move into the 2010 elections.
Simple solution, kill off the regulation, kill off the confiscatory tax scheme, kill off the inept market intrusions and the lucrative buying and selling of politicians will dry up.
Simple solution, the South should secede, Yankees can keep all of New England with their BS Wall Street.
Plain and simple, that’s exactly what needs to happen. It’s all a big protection racket.
Politicians will be bought and sold as long as they're willing to be. Remember in November to vote all the incumbents out; either they take bribes, or they tolerate fellow politicians who do. This may cost us the services of a few virtuous people, at least temporarily, but it's worth it to be sure of cleaning out the infection.
Think we settled that one a while ago, can’t quite put my finger on it...oh yeah! That Civil War thingy. You remember, millions dead or wounded, slavery ended, Atlanta in flames that kind of thing.
Wrong answer.
I like your thinking, but, unfortunately it’s not enough, Washington corrupts everyone who ends up there (well, almost anyway). We need to follow Texas and work on the tenth amendment and nullification, then it won’t matter whom we send to washington.
Yeah. states rights, limited Federal Govt. ? Oh wait the Illinois Butcher™ killed that. And to think He has a Memorial in DC. Without the threat of secession, the Feds will continue, unabated, their power grab. Enjoy for now. I believe there won't be another Depression. IMO the country is WAY to divided for that. Too many socialists concentrated mostly in the North and on the Left coast. No, the coming economic Tsunami will end in a breaking up of the Union(Could be a good thing).
Try to separate the two concepts, you're starting to sound like a blood thirsty Yankee.
..... Your call to caution is a wise observation. But IMHO there is another, deeper issue in play. The economy of this nation no longer strictly operates under free market principles; it is now in many respects a command and allocation economy whose levers of power and control are principally located in Washington DC. Where once major corporations and business enterprises could successfully operate by buying, selling and investing within the private sector, it has now become essential for their survival and well-being to buy, sell and invest in politicians as well. The political sector today wields such an overwhelmingly powerful influence upon business, industry and the economy in general that failure to closely engage with it is tantamount to playing Russian Roulette with one’s business. A single decision taken by an obscure committee in some anonymous congressional meeting room can bring down irredeemable doom to an entire industry or create an unimaginable cornucopia of profits. The business community simply cannot afford NOT to have their interests represented and protected in such an environment, hence the legion of lobbyists which has inundated the political process. Put plainly, major corporation or industry today can effectively plan and conduct business without taking into careful account the influence of government policy.
Strictly my opinion, of course.
Not really a "good thing" if we wind up with 45,000,000 Mexicans and 75,000,000 Chinese living in California, with about 3,000,000 of them standing to arms as the People's Liberation Army (come to liberate North America from Americans).
Since we are speaking hypothetically, this would not be a problem as California will be a sovereign nation that I will no longer have no tie to politically or economically. CA can GTH at that point.
The problem is, my Yankeeness or lack thereof aside, the question of secession has been settled forever, not in the Confederacy’s favor as testified to by the current state of the home of General Lee and battle graveyards all over north and south. This is one country, indivisible the ideal from which the name Republican was derived.
Georgia and the Ukraine can separate from Russia but I have to live forever in a Union that I now feel is working against me? You sir(or ma'am), are a Nazi if you truly think that way. You have been brainwashed. Your attitude is the tool of the Federal Maw.
What a dumb@$$ statement, really.
A correct observation, and several of us have made that point here particularly during the Obamacare debate as the drug companies cut deals with the Dims.
Big business is amoral, out for its bottom line, and it loves to buy and own DC politicians.
This is nothing but democrat crony capitalism - Goldmine Sacks, AIG, etc.
Dear Clueless in KC,
My point; a new country can form new markets learning from the old corrupt one currently located on Manhattan. Better now to start with a clean slate.
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