How Congress Occupied Wall Street

Mark Twain famously wrote, "There is no distinctly native American criminal class except Congress." Peter Schweizer's new book, "Throw Them All Out," reveals this permanent political class in all its arrogant glory. (Full disclosure: Mr. Schweizer is employed by my political action committee as a foreign-policy adviser.)

Mr. Schweizer answers the questions so many of us have asked. I addressed this in a speech in Iowa last Labor Day weekend. How do politicians who arrive in Washington, D.C. as men and women of modest means leave as millionaires? How do they miraculously accumulate wealth at a rate faster than the rest of us? How do politicians' stock portfolios outperform even the best hedge-fund managers'? I answered the question in that speech: Politicians derive power from the authority of their office and their access to our tax dollars, and they use that power to enrich and shield themselves.

The money-making opportunities for politicians are myriad, and Mr. Schweizer details the most lucrative methods: accepting sweetheart gifts of IPO stock from companies seeking to influence legislation, practicing insider trading with nonpublic government information, earmarking projects that benefit personal real estate holdings, and even subtly extorting campaign donations through the threat of legislation unfavorable to an industry. The list goes on and on, and it's sickening.

Palin Flashback: How Politicians Occupy Wall Street

Posted on July 07 2015 - 11:44 AM - Posted by: Steve Flesher

I’ve been leery as politician after politician announce their run for the White House (when they’re not announcing an announcement to run, that is).
I catch myself rolling my eyes an awful lot. The game of politics as usual and watching what it’s done to the nation has made me more cynical. But you just can’t make this stuff up.
This morning, for example, I read that John Kasich is "huddling" with "more than a dozen Washington lobbyists and lawmakers" today.
I guess it’s not an awful big deal to do so considering that after Former Florida Governor, Jeb Bush denounced lobbyists, The Blaze pointed out a teeny bit of hypocrisy on his part just a couple weeks back.
Even Politico pointed out recently how politicians love to attack lobbyists when it makes for good campaign rhetoric, but how they mingle with them when our eyes turn away.
Luckily though, it’s relatively simple to view candidates’ records to examine how they align with such rhetoric when they’re on the campaign trail.
For example, when Governor Palin was put to the test, she outed corruption in her party. She united Democrats, Republicans, and the people against it. True unity occurred and good prevailed. That’s why the following article written for the Wall Street Journal (while reviewing Peter Schweizer’s Throw Them all Out) remains a favorite — especially since we all know that the words of the author match her record.

Mr. Schweizer answers the questions so many of us have asked. I addressed this in a speech in Iowa last Labor Day weekend. How do politicians who arrive in Washington, D.C. as men and women of modest means leave as millionaires? How do they miraculously accumulate wealth at a rate faster than the rest of us? How do politicians’ stock portfolios outperform even the best hedge-fund managers’? I answered the question in that speech: Politicians derive power from the authority of their office and their access to our tax dollars, and they use that power to enrich and shield themselves.
[…]
The corruption isn’t confined to one political party or just a few bad apples. It’s an endemic problem encompassing leadership on both sides of the aisle. It’s an entire system of public servants feathering their own nests.
None of this surprises me. I’ve been fighting this type of corruption and cronyism my entire political career. For years Alaskans suspected that our lawmakers and state administrators were in the pockets of the big oil companies to the detriment of ordinary Alaskans. We knew we were being taken for a ride, but it took FBI wiretaps to finally capture lawmakers in the act of selling their votes. In the wake of politicos being carted off to prison, my administration enacted reforms based on transparency and accountability to prevent this from happening again.
We were successful because we had the righteous indignation of Alaskan citizens on our side. Our good ol’ boy political class in Juneau was definitely not with us. Business was good for them, so why would they want to end "business as usual"?
The moment you threaten to strip politicians of their legal graft, they’ll moan that they can’t govern effectively without it. Perhaps they’ll gravitate toward reform, but often their idea of reform is to limit the right of "We the people" to exercise our freedom of speech in the political process.
I’ve learned from local, state and national political experience that the only solution to entrenched corruption is sudden and relentless reform. Sudden because our permanent political class is adept at changing the subject to divert the public’s attention—and we can no longer afford to be indifferent to this system of graft when our country is going bankrupt. Reform must be relentless because fighting corruption is like a game of whack-a-mole. You knock it down in one area only to see it pop up in another.
What are the solutions? We need reform that provides real transparency. Congress should be subject to the Freedom of Information Act like everyone else. We need more detailed financial disclosure reports, and members should submit reports much more often than once a year. All stock transactions above $5,000 should be disclosed within five days.
We need equality under the law. From now on, laws that apply to the private sector must apply to Congress, including whistleblower, conflict-of-interest and insider-trading laws. Trading on nonpublic government information should be illegal both for those who pass on the information and those who trade on it. (This should close the loophole of the blind trusts that aren’t really blind because they’re managed by family members or friends.)
No more sweetheart land deals with campaign contributors. No gifts of IPO shares. No trading of stocks related to committee assignments. No earmarks where the congressman receives a direct benefit. No accepting campaign contributions while Congress is in session. No lobbyists as family members, and no transitioning into a lobbying career after leaving office. No more revolving door, ever.

We need to remember as we go into this election season that sucking up to lobbyists and large campaign donors remains a red flag that we cannot afford to ignore. As such, we remain grateful that Governor Palin remains such a strong voice in its opposition and that SarahPAC is ready to pack another punch in 2016 with our help

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