Corporate PACs now giving to GOP

posted at 12:45 pm on May 22, 2010 by Ed Morrissey

In 2008, corporate PACs donated heavily to Democrats as the political momentum unmistakably swung their way.  In 2010, the momentum has shifted enough for the majority of corporate donations to go to Republicans, even though they do not currently hold the majority in Congress as Democrats did in 2008.  They’re betting on a big change in the House, the Washington Post reports:

Corporate America is gambling on the minority in its political giving this year, assuming that Republicans will win big in the November midterm elections, an analysis of campaign finance reports shows.

The pattern represents a distinct change from a year ago, when President Obama was sworn into office. Back then, corporate political action committees made a shift to the Democrats, giving 58 percent of their donations to the party. So far this year, 48 percent of the contributions from big business are going to the Democrats.

The shift in political giving represents a calculated gamble by lobbyists and executives overseeing corporate largesse that the Republican Party may regain control of Congress, sayGOP fundraisers and political consultants.

Many other political winds have shifted behind Republicans in recent months, but the swing in money from corporate PACs is unusual. Corporations often give campaign contributions while seeking access and favor with incumbent lawmakers in position to shape legislation — meaning they gravitate to the party in power.

The last time corporate PACs made such a dramatic shift to the Republicans was in 1995, after the GOP’s rout of the Democrats in the 1994 midterms. This time, corporations have switched sides before the election.

This looks like a lobbyist version of Intrade.  Actually, Intrade currently has the opposite indicators, with GOP control of the House only at $40 and Democratic control at $58.10.  Otherwise, though, it’s basically a market on political handicapping, where companies put their money according to the risk and reward involved.  Right now, corporations clearly see Democratic control as a risk.

Why didn’t they make that decision in 2008?  After all, the populist rhetoric that lifted Barack Obama over Hillary Clinton targeted corporations more than anything else, especially after the economic collapse.  However, the perceived reward of being on the inside of Democratic Party agenda decisions apparently outweighed the perceived risk of the chance that Democrats would follow through with their damaging, anti-business agenda.  In other words, the business world rolled the dice on moderation, and came up snake eyes.

Unlike the Left, I have no problem with corporations or any entity making contributions and publicly defending their interests.  The core problem that creates this kind of lobbyist Intrade is the spoils system of a Leviathan federal government.  They’re bidding for pork, for regulatory favor, and for political influence precisely because Congress has arrogated so much power to Washington DC.  In one sense, it’s a protection racket set up by the entrenched politicians in order to defend their incumbencies and fiefdoms.  Corporations have little choice but to play along or get squashed, thanks to the power these politicians have managed to grab.

If we want campaign finance reform, we need smaller government in order to eliminate the incentives that create these bidding markets.  It would be nice if these corporations saw that in their long-term interest and supported small-government candidates and policies, rather than aim for the spoils and play defense.  Hopefully, we’ll have a happy coincidence of small-government candidates in this cycle who benefit from the shift.


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Oh good: the corrupt-o-pendulum gets ready to swing the other way.

I don’t think the GOP has learned a d@mn thing in the last 4 years. Not a d@mned thing…

karl9000 on May 22, 2010 at 12:51 PM

It’s crony capitalism at its best. Big business is after which ever party will give the goodies instead of actually wanting a free market system.

taney71 on May 22, 2010 at 12:52 PM

The corporations in this country have injured their own stockholders when they decided to sign up with the socialists.
Business people need to stop being tax-sucking rent seekers and Democrat lapdogs and return to the basic principles of the free market and enterpreneurship.

TexasJew on May 22, 2010 at 12:52 PM

Ed, those last two paragraphs could not have been more spot on. Well said.

Weight of Glory on May 22, 2010 at 12:53 PM

OT, but I’m wondering how come HA isn’t hammering the Obama administration over the handling of the oil spill a month after the disaster, like HUFFPO is?

scalleywag on May 22, 2010 at 12:56 PM

In other words, the business world rolled the dice on moderation, and came up snake eyes.

Yeah, wonder how B of A donations are tracking about now, given last weeks visit by the SEIU to their Chief Counsel’s home.

GarandFan on May 22, 2010 at 1:00 PM

Well, after all, there is only one major pro-capitalist political party left. What else are they going to do? Commit suicide?

RBMN on May 22, 2010 at 1:00 PM

Oh dear, it looks like the d’s and this bho needs to pass a bill stat that makes this illegal somehow!
L

letget on May 22, 2010 at 1:00 PM

OT, but I’m wondering how come HA isn’t hammering the Obama administration over the handling of the oil spill a month after the disaster, like HUFFPO is?
scalleywag on May 22, 2010 at 12:56 PM

*cough…Rand Paul…cough*

Bishop on May 22, 2010 at 1:00 PM

It would be nice if the electorate these corporations saw that in their long-term interest and supported small-government candidates and policies,

We have to have more than just the corporations with this mindset.

bluemarlin on May 22, 2010 at 1:02 PM

scalleywag on May 22, 2010 at 12:56 PM

Dude, don’t make me sift through the garbage. Give a better link, please. All I saw was a goring, and I couldn’t find anything spill related.

Now, to cleanse myself from that horrible experience…

karl9000 on May 22, 2010 at 1:03 PM

Oh dear, it looks like the d’s and this bho needs to pass a bill stat that makes this illegal somehow!
L

letget on May 22, 2010 at 1:00 PM

They are trying right now to pass a bill to get around teh Citizens United decision from SCOTUS. Thery know they are in big trouble!

bluemarlin on May 22, 2010 at 1:05 PM

It would be nice if these corporations saw that in their long-term interest and supported small-government candidates and policies, rather than aim for the spoils and play defense.

It would be better than nice, it would be a more effective form of insurance that they’d be purchasing for all of us.

ontherocks on May 22, 2010 at 1:07 PM

….And SEIU has vowed to spend millions to re-elect democrats….Corporate pacs can give you a job…SEIU can protest outside your home and scare the hell out of your fourteen year old son….

HornetSting on May 22, 2010 at 1:12 PM

The last time corporate PACs made such a dramatic shift to the Republicans was in 1995, after the GOP’s rout of the Democrats in the 1994 midterms. This time, corporations have switched sides before the election.
============================================

Corporate Contributions Shift to the Left
Published on Monday, June 19, 2006 by the Wall Street Journal
=========================

Mr. Casey’s PAC has given Democrats 41% of its $123,000 in donations since the beginning of the 2005-2006 cycle. That is up from 31% in the 2003-2004 cycle, and the highest share since Democrats controlled the White House and both houses of Congress in 1994.
===============================
http://www.commondreams.org/headlines06/0619-05.htm

canopfor on May 22, 2010 at 1:14 PM

….And SEIU has vowed to spend millions to re-elect democrats….Corporate pacs can give you a job…SEIU can protest outside your home and scare the hell out of your fourteen year old son….

HornetSting on May 22, 2010 at 1:12 PM

I thought I saw 100 million that they are willing to spend this cycle.

bluemarlin on May 22, 2010 at 1:17 PM

Speaking of the Unions, they are all broke, SEIU is 90 million in the hole, so is this money coming from the taxpayer somehow?

bluemarlin on May 22, 2010 at 1:18 PM

Could be instead that Crop’s are seeing that how traditionally party donations bought political protection from gov’t and Obama isn’t playing by the rules. That no matter how much you give if it becomes politically expediant Obama & the DNC will toss you to the wolves. Or. in the case 9of the BofA exec, actually send the wolves to your door.

Just like the residents of Englewood where Obama community organized, Wright, Van Jones, and even his own grandmother BHO and the progressives practice what Chrysler atty Furia said, the ends justify the means. The end BHO & Co are after are absolute control, power over everything and an end to western philosophy of individualism. Barack and his minions are hell bent on reversing the gains of The Enlightenment and all that it has brought which is the prosperity we have earned since.

Archimedes on May 22, 2010 at 1:18 PM

HornetSting on May 22, 2010 at 1:12 PM
I thought I saw 100 million that they are willing to spend this cycle.

bluemarlin on May 22, 2010 at 1:17 PM

Yep. Millions.

HornetSting on May 22, 2010 at 1:21 PM

o/t anyone catch this story

http://bigjournalism.com/acary/2010/05/21/d-c-metro-police-escorted-seiu-protesters-to-greg-baers-home/

heshtesh on May 22, 2010 at 1:10 PM

There’s a whole other thread on it further down the HA page.

Archimedes on May 22, 2010 at 1:23 PM

HornetSting on May 22, 2010 at 1:12 PM

I’m wondering if it’s time for some broad citizens group like The Patriot Guard that would quietly gather at these protests and surround/cordon the house. Not that I want to “defend” bankers in particular, but it pisses me off to see this happening to anyone’s home.

karl9000 on May 22, 2010 at 1:23 PM

Speaking of the Unions, they are all broke, SEIU is 90 million in the hole, so is this money coming from the taxpayer somehow?

bluemarlin on May 22, 2010 at 1:18 PM

…..’obama’s stash’……

HornetSting on May 22, 2010 at 1:24 PM

o/t anyone catch this story

http://bigjournalism.com/acary/2010/05/21/d-c-metro-police-escorted-seiu-protesters-to-greg-baers-home/

heshtesh on May 22, 2010 at 1:10 PM

heshtesh: It goes hand in hand with this!!:)
==========================================================

a new “international order

WEST POINT, N.Y. — President Obama on Saturday pledged to shape a new “international order” as part of a national security strategy that emphasizes his belief in global institutions and America’s role in promoting democratic values around the world.

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/22/AR2010052201586.html
=====================================================

The left had a fit,when Bush Sr. said new World Order!!

Obama might have had another gaffe,in the video from
the Washington Post when he said suffered in GRENADE and Iraq, I don’t know,if he meant,

Grenada!

canopfor on May 22, 2010 at 1:26 PM

I thought I saw 100 million that they are willing to spend this cycle.

bluemarlin on May 22, 2010 at 1:17 PM

The $100mil was from SEIU & AFSCME, AFL wasn’t disclosing and we already know that the NEA will dish out scads from the bailout for them in Fin-Reg. Plus the tech Industry is going to give to the Dhim’s big.

Archimedes on May 22, 2010 at 1:26 PM

If we want campaign finance reform,

I’m not sure that I do…I’ve gotten so I break out in hives whenever someone in Washington, D.C. says the r-word.

Jenfidel on May 22, 2010 at 1:28 PM

Uncovered Video: Obama Leads SEIU Chant After Vowing to ‘Paint the Nation Purple’
=================================

http://www.breitbart.tv/uncovered-video-obama-leads-seiu-chant-after-vowing-to/

canopfor on May 22, 2010 at 1:28 PM

I thought I saw 100 million that they are willing to spend this cycle.

bluemarlin on May 22, 2010 at 1:17 PM

I’m sure they’ll be petitioning for a loan from BoA to finance thier spending.

heshtesh on May 22, 2010 at 1:29 PM

karl9000 on May 22, 2010 at 1:23 PM

My subversive friend….when the LEFT riots and causes chaos, they are called patriotic and righteous….if the right gets involved, they will be beaten down for the subversive, rightwing extremist, racist, bitter clinging, gun slinging, homophobic criminals that they are……
I would LOVE to join up, karl.

HornetSting on May 22, 2010 at 1:29 PM

Speaking of the Unions, they are all broke, SEIU is 90 million in the hole, so is this money coming from the taxpayer somehow?

bluemarlin on May 22, 2010 at 1:18 PM

They are using future revenues from membership, borrowing the money from banks(most likely TARP banks OK’d by the admin)to keep the spigot of Gov’t bailouts open. The unfairness of it all is if they go belly up, we cover the losses through the USPG. Heads they win, tails we lose.

Archimedes on May 22, 2010 at 1:30 PM

Any corporation that has given to Democrats should be put out of business. You have to consider why a corporation would donate to Democrats and all reasons are nefarious or cowardly. Republicans should use their political influence to bankrupt these companies when they have power.

Buddahpundit on May 22, 2010 at 1:32 PM

Obama’s SEIU Thugs Attack Black Conservative

http://www.youtube.com/watch?v=dWnxlFbYjVY
=================================================

Remember this,SEIU thugs attcked Black Republican,
and the SEIU thugs say,that the African Republican
attacked America!!

And thats what the RIGHT have to deal with!!

canopfor on May 22, 2010 at 1:33 PM

HornetSting on May 22, 2010 at 1:29 PM

As someone else pointed out, when Bush talks about “New World Order,” it’s imperialism. When Obama talks about it, it’s internationalism.

Face it: we’re already screwed, so what do we have to lose? There’s nothing more dangerous than someone with nothing to lose…

Hey, we already know there will be media coverage up the wazoo; it’s all pre-coordinated. Suppose a bunch showed up covered in the American flag, at the home owner’s invitation, and attempted to peacefully surround the house? Would they really attack? Think of the symbolism!

Use the left’s own tactics against them.

karl9000 on May 22, 2010 at 1:34 PM

…..’obama’s stash’……

HornetSting on May 22, 2010 at 1:24 PM

Yes, all that Stimulus and TARP money that has not been spent, what was I thinking? I mean the people in Detroit know about it so this slow Texas boy should get it by now.

bluemarlin on May 22, 2010 at 1:36 PM

Yeah but…

Earlier this morning, after mentioning the Democratic National Committee’s fundraising haul in the month of April ($10 million plus), we asked this question: What will the RNC show after all the bad news the committee suffered that month?

Well, we got our answer: $6.8 million.

That’s a significant drop from the $11.6 million the committee raised in March.

In fact, this month brought us the first true disparity in DNC vs. RNC fundraising this year. Consider:

April 2010 fundraising
DNC: $10.4 million
RNC: $6.8 million

William Amos on May 22, 2010 at 1:37 PM

Use the left’s own tactics against them.

karl9000 on May 22, 2010 at 1:34 PM

Agreed. So, where do I sign up? Do I have to bring my own torch?

HornetSting on May 22, 2010 at 1:39 PM

I think i’ll donate more money to the ammo manufactures.

heshtesh on May 22, 2010 at 1:42 PM

Use the left’s own tactics against them.

karl9000 on May 22, 2010 at 1:34 PM
Agreed. So, where do I sign up? Do I have to bring my own torch?

HornetSting on May 22, 2010 at 1:39 PM

Going to have to be some quick response from people. I have noticed they only will do these demonstrations in safe blue cities or states. Hard to get there from Texas.

bluemarlin on May 22, 2010 at 1:43 PM

I think i’ll donate more money to the ammo manufactures.

heshtesh on May 22, 2010 at 1:42 PM

That and direct to select candidates has been my plan.

bluemarlin on May 22, 2010 at 1:44 PM

Going to have to be some quick response from people. I have noticed they only will do these demonstrations in safe blue cities or states. Hard to get there from Texas.

bluemarlin on May 22, 2010 at 1:43 PM

That’s why it has to be some sort of local groups like The Patriot Guard.

I must cogitate. And maybe agitate…

karl9000 on May 22, 2010 at 1:45 PM

That and direct to select candidates has been my plan.

bluemarlin on May 22, 2010 at 1:44 PM

Direct is the only way i’ll make contributions.

heshtesh on May 22, 2010 at 1:48 PM

Speaking of the Unions, they are all broke, SEIU is 90 million in the hole, so is this money coming from the taxpayer somehow?

bluemarlin on May 22, 2010 at 1:18 PM

From Obama’s “stash”. Or in other words, from us, the taxpayers.

silvernana on May 22, 2010 at 1:52 PM

Use the left’s own tactics against them.

karl9000 on May 22, 2010 at 1:34 PM

karl9000: Liberal tricks!:)
====================================================

http://www.conservapedia.com/Liberal_tricks

canopfor on May 22, 2010 at 1:53 PM

O/T

Is it me or my lyin’ eyes, but did Ed just post then pull the Obama at West Point thread?

Christien on May 22, 2010 at 1:56 PM

Uncovered Video: Obama Leads SEIU Chant After Vowing to ‘Paint the Nation Purple’
=================================

http://www.breitbart.tv/uncovered-video-obama-leads-seiu-chant-after-vowing-to/

canopfor on May 22, 2010 at 1:28 PM

Notice how Obama was able to speak without a teleprompter or any of those verbal pauses like “uhh, ahh, ummm”? He was speaking from his core beliefs there and not having to censor himself as he thought up new “nuances” during those verbal pauses.

Victoria Jackson is right, we have a communist in the White House.

AZfederalist on May 22, 2010 at 1:58 PM

…..’obama’s stash’……

HornetSting on May 22, 2010 at 1:24 PM

From Obama’s “stash”. Or in other words, from us, the taxpayers.

silvernana on May 22, 2010 at 1:52 PM

Oops! This is what happens when you don’t read through all the comments before responding!

silvernana on May 22, 2010 at 2:00 PM

canopfor on May 22, 2010 at 1:53 PM

Then they should … understand…

karl9000 on May 22, 2010 at 2:02 PM

Victoria Jackson is right, we have a communist in the White House.

AZfederalist on May 22, 2010 at 1:58 PM

As Gomer Pyle would say Suprise,Suprise,Suprise

heshtesh on May 22, 2010 at 2:02 PM

O/T

Is it me or my lyin’ eyes, but did Ed just post then pull the Obama at West Point thread?

Christien on May 22, 2010 at 1:56 PM

I saw it as well, just got an error when I tried to open it, then it was gone.

bluemarlin on May 22, 2010 at 2:08 PM

After PA-12 I think some of that $$ will start going back to Dems.

angryed on May 22, 2010 at 2:09 PM

Oops! This is what happens when you don’t read through all the comments before responding!

silvernana on May 22, 2010 at 2:00 PM

Great minds…

HornetSting on May 22, 2010 at 2:09 PM

Now, to cleanse myself from that horrible experience…

karl9000 on May 22, 2010 at 1:03 PM

lol. They change headlines quickly but I gave a look this morning b/c they have been highly critical of the administration’s handling of the spill, and there in big headlines were the words “lackadaisical and naive” quoting CARVILLE about Obama’s response to the spill and that BP was going to “bring him down.” They also quoted Chris Matthews saying the president “scares him.” It was delightful!

scalleywag on May 22, 2010 at 2:09 PM

They also quoted Chris Matthews saying the president “scares him.” It was delightful!

scalleywag on May 22, 2010 at 2:09 PM

Sounds like the electoshock therapy must be kicking in.

heshtesh on May 22, 2010 at 2:19 PM

…“lackadaisical and naive” quoting CARVILLE…

scalleywag on May 22, 2010 at 2:09 PM

I’m feeling a little cynical today so I see this as cover. If they were really after Obama ala Bush, you would hear “criminal,” “racist,” and a host of other nastiness. This is just so they can say they hammered Obama. They’ll need that cover when they start defending him.

See? Cynical…

karl9000 on May 22, 2010 at 2:30 PM

See? Cynical…

karl9000 on May 22, 2010 at 2:30 PM

You could be right. Sometimes I myself am a little
“lackadaisical and naive”.

scalleywag on May 22, 2010 at 2:34 PM

I’m with Ann Coulter. These characters will find some way to snatch defeat from the jaws of victory. McConnell and Boehner. Give me a break.

ultracon on May 22, 2010 at 3:34 PM

For several years I ran an extremely large PAC in the energy industry, and at least 90% of our contributions were strictly protective/defensive in nature, i.e., to try to stop excessive government overeach. This is the primary motivation of almost every company in any industry. Hence, incumbents typically command the largest share, by far, of contributions.

Moreover, successful company PACs, unlike union PACs, depend on truly voluntary membership, so you want to give to winners. It’s not unusual for a company PAC to post a winning percentage in the high 90s. Again, incumbents are more likely to win, so they get the most bucks.

All of which is to say that what is happening this year is highly unusual. It tells me that the professional handicappers, the ones whose jobs depend on picking winners, are seeing a sea change, come November. I hope they are right.

TXUS on May 22, 2010 at 4:17 PM

It’s crony capitalism at its best. Big business is after which ever party will give the goodies instead of actually wanting a free market system.
taney71 on May 22, 2010 at 12:52 PM

Individuals are guilty of this as well. It’s not all on the backs of businesses.

joejm65 on May 22, 2010 at 5:32 PM

So Team R is going to return to power and re-elect the same useless loser BoehnerMcConnell leadership what got them routed from power?

Brilliant.

happyfeet on May 22, 2010 at 9:28 PM

It would be nice if the government were a disinterested “free market” referee, regulating what is minimally necessary and putting the hammer down when crooks get out of line.

Too bad the government is the crook.

rickyricardo on May 23, 2010 at 5:35 AM

karl9000 on May 22, 2010 at 12:51 PM

I think some in the GOP have heard the message loud and clear, especially in NJ (yay for me, I have Chris Christie for a Governor! Finally someone great leading my state!), VA, MA (though the jury is still out there-don’t know that I am ready to give up as I think is Brown is as Conservative as you are going to get in the bluest of blue states MA) and now Hawaii!

margategop517 on May 23, 2010 at 1:13 PM