Wednesday, June 30, 2010

D.C. Lobbyists: Cronyism/Business As Usual



From Timothy Carney of the Washington Examiner

John Podesta*****, chief executive officer of the liberal Center for American Progress, may be President Obama's closest confidant outside of the administration -- he ran the transition and has visited the White House at least 37 times according to visitor logs. Tony Podesta, John's brother, is a corporate lobbyist and a leading fundraiser for Democrats.
On at least a handful of issues, John's CAP has advocated the same solutions Tony has lobbied for. On some of those issues, CAP has partnered with the companies that hire Tony as a lobbyist. Given Obama's anti-lobbyist rhetoric -- and the gaping holes in his lobbyist policies that have been repeatedly exposed -- it's worth examining where the work of the president's confidant, John, dovetails with the business of lobbyist and fundraiser, Tony.
In June 2009, Obama's health care bill got a boost from a strange-bedfellows coalition: CAP and the Service Employees International Union teamed up with Wal-Mart to endorse a proposed requirement that employers provide health insurance for employees.
The groups co-signed a letter declaring, "We are for an employer mandate which is fair and broad in its coverage." They also said, "we have worked closely in support of health care reform since 2006."
Wal-Mart benefited from this regulation, partly by forming a truce with Big Labor and good press from a gullible media. But the regulation also gave Wal-Mart a competitive advantage. Wal-Mart self-insures its employees -- meaning the company, not an insurer, collects premiums and pays providers. As America's largest private-sector employer, Wal-Mart uses economies of scale to get a better deal on health care. Smaller competitors, if forced to match Wal-Mart's benefit level, would suffer.
Wal-Mart had given at least $500,000 to CAP, according to Wal-Mart's Web site. But there was another connection: Tony Podesta was (and still is) a lobbyist for Wal-Mart, on issues that include health care policy. Wal-Mart had hired Podesta in September 2006 (the firm was then called Podesta Mattoon), just about when CAP, Big Labor, and Wal-Mart started "work[ing] closely in support of health care reform."
This isn't the only overlap of interests between the nonprofit CAP and the Podesta Group.
Tony has represented BP since 2006, recently lobbying for current climate legislation. BP was a prized ally for Sen. John Kerry, who is leading the charge in the Senate for a global warming bill.
*****John Podesta is a WIMP(opinion only)

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