The more things change…

Ed Kilgore raised a good point yesterday about the importance of considering Tom DeLay’s indictment in a broader context.

“Tempting as it is to dwell on the possibility that this self-appointed moral arbiter of the nation could soon be strolling the halls not of Congress but of a Texas correctional facility, we urge Democrats to keep focused on a much bigger issue: the systemic pattern of corruption, cronyism, influence-peddling, and partisan intimidation in Washington.”

Kilgore concluded that “DeLay doesn’t really matter,” at least not as much as “the system which he has served.” I think that’s largely true — I believe DeLay does matter in a political context for Dems, because he can and should be an albatross around the necks of so many House Republicans — but the larger point about the corrupt system is quite right.

With this in mind, I think it’s worthwhile to revisit how Roy Blunt (R-Mo.), DeLay’s replacement, fits into this system — and realize how little will change with regards to the congressional agenda.

The Washington Post noted today that Blunt has “created a formal alliance with K Street lobbyists, empowering corporate representatives and trade association executives to assist the House leadership in counting votes and negotiating amendments to bring holdouts into the fold.”

The Post is understating the case. I’ve written about the infamous “K Street Project” on a few occasions, but in case you’re just joining us, it’s a scheme that was launched after the GOP takeover of Congress in 1995. Gingrich and Co. looked at DC’s infamous K Street, home to the city’s powerful lobbying industry, and noticed a problem: some of the lobbyists weren’t Republicans and weren’t doing enough to advance the GOP agenda. The K Street Project was born; Republicans essentially seized control of Washington’s lobbying apparatus.

This is particularly significant now because Blunt has his very own efficient and lucrative K Street operation. Examining how the setup works tells us a lot about the kind of values and ethics we can expect from the new Majority Leader.

House Majority Whip Roy Blunt (R-Mo.), the man one step behind Tom DeLay (R-Tex.) in the Republican leadership, has built a political machine of his own that extends from Missouri deep into Washington’s K Street lobbying community.

Blunt, who entered politics as a protege of former senator John D. Ashcroft (R-Mo.), has assembled an organization of whips and lobbyist vote counters that has delivered more than 50 consecutive victories for the GOP leadership on tough fights over issues including tax and trade bills, District of Columbia school choice and tort reform — without a single defeat.

Working outside the glare of public attention, Blunt has maximized the organization’s influence by delegating authority to Washington business and trade association lobbyists to help negotiate deals with individual House members to produce majorities on important issues.

Blunt’s machine works, not by forging a cooperative relationship between corporate lobbyists and the Republican establishment, but by merging the two to the point where there is no practical distinction. As the WaPo described it, in “Blunt Inc.,” lobbyists are as integral to the Republican whip operation as “the network of lawmakers who serve as assistant whips.”

What does that mean? Well, before a major vote, lawmakers can expect to hear from House leaders, uring them to toe the party line. But under Blunt’s operation, that’s not all they can expect. Blunt oversees a de facto “executive committee,” a hard-core base of about 25 lobbyists, who lean on lawmakers to get desired results. Lawmakers who don’t fall into line run the risk of losing the campaign contributions that the lobbyists help orchestrate. It’s not just about party loyalty, at that point, it’s also about loyalty to a corporate cause.

And Blunt keeps the lobbyists themselves on board with his game plan by a generous reward system. The WaPo noted the example of a 2004 bill eliminating business export tax breaks ruled in violation of international agreements by the World Trade Organization.

The solution to breaking the logjam: Every major lobbying interest got something, and the Republican opposition in the House collapsed. The manufacturing companies got a three-percentage-point corporate tax cut. Industrial state Republicans from Minnesota to Pennsylvania voted for the bill 52 to 5. Another group of multinational, U.S.-based companies, including General Electric, Coca-Cola, General Motors and Time Warner, won a major tax reduction on overseas revenue. On the final vote, Republicans favored the bill, 203 to 23, while Democrats opposed it 154 to 48.

The task of rounding up the votes was delegated by Blunt’s whip operation to a coalition of lobbyists, all of whom had clients with huge stakes in the outcome.

Kenneth J. Kies, representing an array of Fortune 500 companies with facilities in virtually every congressional district — General Electric, Caterpillar, General Motors, Edison, Microsoft, U.S. Steel — helped win a host of breaks for his clients and collected fees of $8.69 million. Karl Gallant, a former DeLay aide, represented the Coalition for U.S.-Based Employment, made up of Boeing, Caterpillar, Honeywell, Microsoft and United Technologies, and other companies seeking favorable tax treatment. His firm, the Alexander Strategy Group, received $1.32 million in tax-related fees.

As new tax breaks were added to the bill, the vote count “just got better and better,” said [Rep. Mike Rogers (R-Mich.), then Blunt’s deputy whip], who worked closely with Blunt on the mobilization of lobbyists. “It was incredible.”

This is what we can expect from our new House Majority Leader. Meet the new boss, same as the old boss….

Maybe I’m missing something, but it seems Democrats could just pursue Blunt they way they pursued DeLay. File complaints, denounce, make him a model for everything that’s unethical.

It worked before. Let’s do it again.

  • Dean makes a good point on cnn.com:

    “With House Republican leader Tom DeLay under criminal indictment, Senate Republican leader [Bill] Frist facing SEC and Department of Justice investigations and White House Deputy Chief of Staff Karl Rove under investigation, the Republican leadership in Washington is now spending more time answering questions about ethical misconduct than doing the people’s business,” Dean said in a statement.

    GO GET EM

  • All that is true, and Kilgore makes a good point. He’s also setting up the anti-corruption narrative in order to avoid any real conversation on the direction of the Democratic Party, to protect the DLC and Blue Dog crowd that wants to triangulate with the Republican position all of the time.

    Corruption as a campaign narrative has the advantage of not requiring any self-examination by inside-the-beltway crowd. All one has to be is not-a-Republican and relatively honest.

  • Calling Philip Morris!!! Now that the “Hammer” has been replaced by
    the “Blunt Instrument” only the dramatis personae have been altered
    not the overall script. Blunt will try to keep the DeLay machine going,
    but he may have more trouble from the rank and file. His own less than
    stellar reputation may bring its own problems. Dennis Hastert still has
    the lead role in the play, but only in a walk-on capacity. The hollowness
    of his leadership is on display for all to see. Resentment and jealously will slowly infect the GOP to the point where the the machine will start to ground to a halt. The Democrats better be planning their next move
    to take advantage of this changing political landscape. It’s not a good time to be a Republican is it?

  • A few posts back, you noted the “stench of corruption”.

    Here’s how it works in NY:

    On December 9, 2002 John Snow, chairman of CSX, was nominated by President Bush to be secretary of the treasury.

    The next day, the Carlyle Group announced that it bought a majority stake in CSX’s container business for $300 million.

    On January 31, 2003, Pataki signed a bill that gave CSX a tax break totalling $70 million over ten years. The break was ostensibly to help CSX build a second high speed rail from Albany to Buffalo. The catch – CSX has never announced any plans to build a second line.

    In 2004, the NY Port Authority announces that it will spend more than $30 million to improve container shipping facilites on Staten Island including re-opening the Staten Island freight railroad. Charles Gargano, Bush pioneer, is the vice chairman of the NY Port Authority.

    How does it work in your state?

  • Let’s be honest and recognize that corruption is every where and is part of the “American way of life”, cronyism has been a part of government since George Washington took office, government contracts has always been full of overcharges, any small business owner in America salivate about getting federal contracts because they know they are more profitable than “regular” ones. Our society is not what it should be, is exactly what we have made of it, and in the rat race the poor are left behind, the working people are left behind, the ones that are not in the “game” are left behind. Both Republicans and Democrats are part of the game and neither are part of the solution for America, we need a grassroots movement that do away with politics as usual and create a new Party that represent the majority of working fools, the 80% of Americans that sustain this country’s economy.

  • As I noted above, you mentioned John Rowland, former Connecticut governor, a few posts ago. Rowland was sent away for routine corruption but what either wasn’t investigated or was covered up was his one time profit of $26,000 trading stock in a company named Edulink.

    Edulink is a OTC stock that claims to market educational software. It had virtually no revenue and consistently incurred losses.

    Edulink listed all sorts of highly educated people as executives and directors. Itt also claimed that it was associated with SAIC and that SAIC helped develop its software. One of the executives was one Dr. Boris Berenfeld, formerly of the Soviet Union, who was an investigator for Terk, a mysterious project funded by the National Science Foundation, and its Global Laboratory Curriculum. Howard Ash was the CEO of the Israel Export Development Corporation which, I think, was a taxpayer scam.
    I looked up the other companies associated with Mr. Ash and they were bogus.

    The OTC market is controlled by organized crime but it doesn’t exist just to swindle the uninformed. It launders money for people who need to show legitimate income like John Rowland.

    The aforementioned Charles Gargano became a director of Eagle Building Technologies in the spring of 2001 after Eagle contributed more than $245,000 to Republican causes. At the same time. Gargano was the head of the NY economic development agency and vice chairman of the Port Authority.

    Sam Gejdenson, former congressman from CT whose district included Foxwoods Casino, was also a director. Meyer Berman, a wealthy investor and big supporter of Clinton, was an investor and the landlord. Mr. Berman also was an investor in a privately held company named Biosterile which included one of the Reichman brothers on its board. Biosterile was started by former members of the military and claimed that it had Russian scientists working for it in Russia. The State Dept. gave Biosterile funding under a program to help Russia business.

    Shortly after 9/11, Eagle Building, located in Boca Raton, linked up with Biosterile and tried to scam Congress out of $50 million. Linda Daschle was pimping for Eagle in DC.

    None of Eagle’s financial information was true, every number was made up. The FBI caught the president, Anthony D’Amato in its “Bermuda Shorts” sting operation along with James “Carey” Parrish who was the president of Andros International Development Co., another bogus company where Gargano was listed as the chief advisor. An undercover FBI agent approached Parrish and D’Amato and they agreed to defraud an investment company out of a few million dollars.

    D’Amato ultimately went to prison for nine years for fraud as did Parrish. But the US attorney in southern Florida apparently never found any evidence of fraud on the part of Gargano, Berman or Gejdenson. Nor was it ever disclosed whether Gargano et al cashed in on their stock options when Eagle stock went from $2 to $10 in September 2001 based on news of its phony anti-terrorism equipment. Gargano’s options would have been worth $600k. Not bad for sitting on the board of a phony company while you are working for the state of NY.

    I suspect that two of the insiders selling Eagle stock were employees of the TVA and were paid off to look the other way for Bechtel. Two Arab investors were also investors in two other phony stock deals. Another investor appeared to be an employee of a federal agency overseeing a nuclear power plant cleanup in Washington state. One of the directors was a big roofing contractor doing business with the state of Florida.

    There’s more to the story but I’m sure you get the picture.

    Think about it – the first thing these bums could think of to do after 9/11 was steal from the government.

    Don’t take too much pleasure in Mr. DeLay’s travails. The corruption is bipartisan.

  • After reading this post and the comments it strikes me that we should just admit to reality and update the Gettysburg Address to read “government of the People, by the Money, and for the Money”.

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