Food for thought: "How to fix politics by adding more money to the system" .... pay people better

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Daniel Schuman

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Mar 15, 2012, 5:39:56 PM3/15/12
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How to Fix Politics By Adding More Money to the System

MAR 14 2012, 5:07 PM ET 209

Pascal-Emmanuel Gobry

http://www.theatlantic.com/politics/archive/2012/03/how-to-fix-politics-by-adding-more-money-to-the-system/254522/ 

In the New York Review of Books, Ezra Klein makes a convincing argument that the way lobbying has corrupted American democracy is not through money, or even indirectly via a "gift economy," as Harvard's Larry Lessig has argued, but rather because lobbyists provide legislators with alegislative subsidy.

If cash and lobbying bought votes, you'd expect a law like PPACA to have gotten some bipartisan approval, given that it was supported by major industry groups. Instead it was a party-line vote. Lobbying works not by swaying votes on the big-ticket issues, where politicians are more accountable to voters and their parties, but on the small-time issues that don't get public attention: Jack Abramoff's biggest job was getting tax breaks for Indian tribes, not exactly a page A1 issue. The way the legislative subsidy works is that on these host of smaller issues, lobbyists are a source of information, research and argument that simply isn't matched by the other side.

Writes Klein:

If someone walks up to you with a bag full of money and asks you to vote to make coal companies more profitable, that's not a very persuasive argument. Even if you take the money, you're going to feel dirty the next day. And most people don't like to feel dirty. But if one of your smartest, most persuasive friends, a friend you agree with on almost everything, is explaining to you that those environmentalist nuts are going too far again -- they're always doing that, aren't they? -- and they have sneakily tucked a provision into a bill that would make it more expensive for your constituents to buy electricity, that's very persuasive. And if it's also in your self-interest to listen to him -- and lobbyists are good at nothing if not making sure it is in a politician's long-term self-interest to listen to them -- then all your incentives are pointing in the same direction. You'll listen.

The expression "legislative subsidy" is excellent because it really shows how successful lobbyists hold legislators' hands and help them do their job. This seems very persuasive to me, because living in France, where campaign finance is highly regulated (since a string of corruption scandals in the 1980s), lobbying works very well, as I discovered (full disclosure) when I was in law school and active in politics and briefly worked as a lobbyist. Lobbyists equip politicians with tools to do their job, e.g. position papers, studies on complex topics, introductions to industry and sometimes even media folk, and often even drafted bills. Hence the legislative subsidy.

The other form of subsidy is of course the revolving door: legislative staffers are often poorly paid but highly intelligent and credentialed people, who would like to make money one day like the dumb fratboys they went to college with who are now at Goldman Sachs. And so the lure of lobbying beckons.

What to do about the legislative subsidy?

It seems to me that the obvious answer is to pay elected representatives and their staffs vast amounts of money.

Legislators crave the legislative subsidy simply because they don't have the staff to research whether proposed tax X would really kill eleventy zillion jobs. Legislative chiefs of staff are "owned" by Abramoff as soon as he tells them he has a job for them in several years because they're getting paid a pittance.

What if every member of Congress had a, say, $20 million staff-and-research budget? What if a congressional chief of staff made $1 million per year, and what if each congressman had an army of staffers to research policy and draft bills, as opposed to a skeleton staff? The legislative subsidy would just become irrelevant. Or at least, congresspeople would be on equal footing vis-à-vis well-funded lobbyists. And the cost would be a drop in the bucket compared to the federal budget -- and even less compared to the social and economic cost of carveouts and tax breaks.

This system could be abused: the budgets could become slush funds or patronage tools. Some rules (e.g., no spouses) can be drawn up, and maybe we could appoint an external auditor and some sort of review body made up of federal judges to punish abuses. Certainly the current system seems pretty rife with abuse, and if legislative subsidy really is the problem -- as I think it is -- this seems like a straightforward and effective solution.

You can follow me on Twitter here.


Daniel

Daniel Schuman
Director | Advisory Committee on Transparency
Policy Counsel | The Sunlight Foundation
o: 202-742-1520 x 273 | c: 202-713-5795 | @danielschuman

David Weller

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Mar 15, 2012, 6:26:18 PM3/15/12
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Excuse me, but as an analogy, that seems like feeding your house rats with cheese to replace the leaving of your food open like it is now.

If our representatives were solely accountable to the people and not special interests, we wouldn't be in the mess we are in today.  If you're talking about a "system", then that is the true one.  Guess what would happen to Congress's and the President's approval ratings if that happens.  Everything else in rep. and staff work would fall into place; true freedom.

David Weller
McAllen, TX



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WashingtonWatch.com

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Mar 15, 2012, 7:32:15 PM3/15/12
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I agree with David's analogy. Nothing about giving them more budget or paying them more would cut against also enjoying the legislative subsidy provided by lobbyists. More and bigger rats.
 
Jim

John Wonderlich

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Mar 15, 2012, 7:38:08 PM3/15/12
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I don't think that just because there's a legislative subsidy that that's wrong. 

Democracy, in a sense, is a legislative subsidy.

John Wonderlich

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Mar 15, 2012, 7:51:37 PM3/15/12
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I also think the "legislative subsidy" analogy is a strained attempt to bring the language of economics to a context that doesn't really follow economic rules at all.  Nobody's doing it in this thread, but this has become a popular way to take a seemingly more sophisticated approach to money in politics.

People seem impressed with the social sciences' inability to correlate money with votes, and somehow we're left discussing the influence system as a subsidy, as though vague economic terms bring more rigor to a complicated discussion.

In this case, the "legislative subsidy" frame obscures more complicated questions here.  

If there were zero unpaid staff in Congress, it seems obvious to me that Members would end up with less power, and would be far more reliant on parties and on lobbyists.  If there were three million congressional staff (the approximate # of federal employees), Congress would cease to be a representative institution, and become a self-serving bureaucracy. 

The sweet spot is surely somewhere between those two poles.  Unfortunately, I don't think the "legislative subsidy" frame helps determine where that ideal point is.


Additionally, I think there are a number of other structural reforms that could have a similar affect on lobbyists' clout.  For example, professionalizing committee staff, or applying FOIA to committees (both of which exist in other political contexts) could raise the bar for what is passable policy.  But those are also both tricky balances to play with. 

Daniel Schuman

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Mar 15, 2012, 10:37:14 PM3/15/12
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I also address this at length in my article from last year, Keeping Congress Competent. http://bit.ly/eUTtAu

Here's the summary:

An in-depth look at Congressional staff employment trends raises questions about whether Congress has the support necessary to do its job. After reviewing a quarter century of staff salary and retention data, we found:

  • A pay gap between Washington-based House personal office staff earnings and people doing equivalent work in the DC metropolitan area.
  • A decrease in the total number of hill staff over the last two decades.
  • Fewer staff engaged in policy-making roles.
  • Average salaries for most Washington-based House personal staff have not increased in two decades, and may have decreased for many.
Who is picking up the slack? One clue could lie in the nearly 12,500 federally registered lobbyists, and countless others, who provide information and exert influence in the halls of Congress; by contrast there’s around 7-8,000 House personal office, leadership, and committee staff. Put a different way, $2.6 billion was spent on lobbying in Washington in 2010, versus $1.37 billion for the House of Representatives in FY 2010. Have we privatized Congress?


Daniel

Daniel Schuman
Director | Advisory Committee on Transparency
Policy Counsel | The Sunlight Foundation
o: 202-742-1520 x 273 | c: 202-713-5795 | @danielschuman


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