September, 08 2009, 12:50pm EDT
Public Citizen President Robert Weissman on ...
Public Citizen President Robert Weissman on ...
Corporate influence over national policy
WASHINGTON
Public Citizen President Robert Weissman on ...
Corporate influence over national policy
"There is a common link between the policy failure to impose
meaningful restraints on Wall Street, drug companies marketing unsafe
drugs, a deeply flawed climate bill, a dysfunctional health insurance
system that results in 18,000 preventable deaths a year, cable
companies' ability to impose onerous contractual terms, and a global
trading system that undermines our government's authority to adopt
consumer, environmental and worker protections. That common link is
excessive and unchecked corporate power. Public Citizen has always been
a leader not only in addressing issues directly related to health,
safety and environmental protection, but also in working directly to
curb excessive corporate power.
"I hope to help us continue to challenge - and break down - the
false boundaries corporations have successfully imposed on policy
debates. In healthcare, the Obama administration and congressional
leaders have refused to consider the only approach - a
Medicare-for-All, single-payer system - that can cure the system's dual
ills: runaway costs and denial of coverage to tens of millions. In
climate, the legislation that has passed the House of Representatives
utterly fails to produce the economic transformation that the science
tells us we must undergo to avert climate catastrophe. In financial
regulation, the banks have defeated the most important legislative
proposals to mitigate the mortgage epidemic - leading Senate Majority
Whip Dick Durbin to say the banks 'own the place.' The banks have
announced they intend to "kill" the most important regulatory proposal
from the Obama administration - a proposed new financial consumer
protection agency. Our job at Public Citizen is to refuse to let
corporations impose these kinds of limits on policymaking."
Climate change
"Climate change is the greatest threat to the well-being of the
planet and its people. It is going to be the defining issue of the next
50 years - and the world is right now on a terribly worrisome
trajectory.
"It is good to have an administration that acknowledges the reality
of climate change and wants to address it, but the proposals on the
table are woefully inadequate. King Coal, Big Oil and the utilities,
among other industrial and agribusiness interests, have joined together
to, so far, thwart an appropriate policy response.
"There is great opportunity in responding to the crisis, with more
attention to the vibrancy of local communities, the creation of
millions and millions of new jobs, greater equity, and a sense of
shared national and global mission.. New efficiency and energy
technologies can be the engine for an economy that has lost its drivers
- which, for this decade, were the financial sector and housing.
Decentralized generation and distribution offer the possibility for
more independent and livable communities.
"But to respond to the crisis will require first recognizing it for
what it is - not just another in the list of important issues, but an
existential threat to the planet. We - all of us together, with
government in the lead - have to mobilize resources and organizational
might commensurate with the scale of the threat. In the United States,
we have to mobilize the way the country did for World War II.
"Public Citizen brings a long history of working on climate-related
policies like fuel economy standards, subsidies for fossil fuels,
stopping new coal plant construction, and promoting the development of
solar and renewable energy technologies. We are going to build on that
tradition and leverage our collective expertise in matters from global
trade to administrative law. We are going to engage our members and
allies so that together we build a strong citizen movement to overcome
the fossil fuel lobby and avert climate catastrophe."
The financial crisis
"Through its avarice and recklessness, Wall Street has sunk us into
the worst recession of the past 70 years - and, not so incidentally,
destroyed many of its leading firms. Those that survive are dependent
on the trillions of dollars in public funds used to bail out Wall
Street and the big banks.
"Yet rather than express shame and apologize, these institutions
continue to dominate the policymaking debate. Senator Durbin says the
banks "own the place," in the context of their defeat of mortgage
cramdown legislation - a modest measure to address foreclosures that
would very likely benefit banks but would contravene their ideological
opposition to adjusting loan principle. The banking industry openly
announces its plans to 'kill' the most significant Obama
administration financial regulatory proposal - to create a new
financial consumer protection agency.
"We need a smaller financial sector. We need to shrink the size of
the giant banks, impose meaningful restraints on compensation for
executives and highly paid employees (because pay packages incentivized
reckless risk-taking), impose a financial transaction tax, empower
consumers, and offer much more institutional support for community
development banks and credit unions."
Health care reform
"The richest country in the world spends far more than other wealthy
nations on healthcare (at least 50 percent more than every country
except Luxembourg) but sports middling health indicators. It permits 45
million people to live without health insurance, denying them access to
preventative and routine care, resulting in the death of 18,000 people
a year. It tolerates private health insurance companies making
life-and-death rationing decisions for millions of people with only
minimal accountability. It lets private health insurers refuse to take
sick people as customers and engage in endless manipulations to discard
its customers if they do become sick. It features a system in which
medical bills and illness contribute to almost two out of three
personal bankruptcies - even though three-quarters of these bankrupt
people had insurance when they became sick.
"There is a cure all for these ills. It is a Medicare-for-All,
single-payer system, in which everyone is guaranteed access to
healthcare as a matter of right and the government pays medical bills
(thus operating as the "single payer").
"Unfortunately, instead of advocating for this approach - which
President Obama supported as a state senator, and which he still says
would be superior if the system was being designed from scratch - the
Obama administration has sought to reach an accommodation with the
insurance industry, hospitals and Big Pharma."
Money in politics/public financing of elections
"We now have a president eager to take on the big issues -
healthcare, climate change, financial regulatory reform. But in each
case, things are going very wrong. That's because of excessive
corporate power in general, and the distorting power of corporate money
in politics in particular. Indeed, the extraordinarily serious problems
with health care, climate and the financial system are traceable in
large part to money in politics. Wall Street invested more than $5
billion in campaign contributions and lobbying in the decade preceding
the financial meltdown, for example. That money bought them a series of
deregulatory moves that paved the way for the financial meltdown. Now,
with it no longer possible to deny that these problems need addressing,
corporate money is working - all too successfully - to prevent
meaningful remedies.
"With the Citizens United case, the Supreme Court appears poised to
make a bad situation much worse. The court may permit corporations to
spend unlimited amounts of money from the company treasury to support
electoral candidates. Such a decision will unleash a tsunami of
corporate money - probably the best investment a business can make - to
slant elections in favor of corporate-friendly candidates. That money
not only will affect the outcome of races, it will further lead
candidates to engage in self-censorship when they risk offending
powerful business interests.
"Running effective campaigns that engage voters costs money. But it
is equally obvious that elections funded by private money give
disproportionate influence to the wealthy. The simple solution is to
treat elections as a public good (we do, after all, still have public
financing of the electoral apparatus itself) and to provide public
financing for candidates."
Pending free trade agreements
"Designed by the world's largest corporations, our global trading
system benefits those who designed it. Trading rules, including those
in existing and pending free trade agreements, strip power away from
democratically elected governments. Trade rules prevent our federal
government and our states (as well as other governments) from
protecting consumers and the environment. They interfere with efforts
to promote community development and the preservation of good-paying
jobs. They give pharmaceutical companies the right to price gouge the
world's poor, and help agribusiness eliminate family farms.
"When it comes to trade, we need a redirection. We need trade rules
that enhance democracy and ensure that trade advances rather than
undermines the things we want from an economy: safe products,
good-paying jobs and decent livelihoods, vibrant communities and a
healthy planet.
"The Trade Reform, Accountability, Development and Employment
(TRADE) Act offers us a way to achieve this redirection. There is
overwhelming public support for the course correction that the TRADE
Act would achieve; the only question is whether the public can be
organized to overcome the entrenched interests supporting the trade
status quo."
The state of the regulatory system
"Whether it comes to health and safety, environmental protection or
maintaining a working financial system that serves all people, our
regulatory system is broken. It is the victim of more than two decades
of deregulatory ideology, misguided court decisions, inappropriate
budget cutbacks, inappropriate reliance on partnership with industry,
distorted cost-benefit analyses and simple corporate capture.
"We need more funding for regulatory agencies - which more than pays
for itself in injuries and illness prevented, lives saved and
environmental space preserved. We need to validate the work of food
inspectors and drug regulators who help keep us safe. We need to ensure
regulatory independence, and empower and direct regulatory agencies to
prioritize their health, safety and related missions over accommodating
the industries they regulate. We need to make sure the courts remain
available for victims of corporate violence, irrespective of whether
their actions were blessed by regulators. And we need to organize and
create mechanisms so citizens can band together to hold regulators (and
the corporations they regulate) accountable."
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
Defeating 'MAGA Dark Money,' Summer Lee Wins Primary in Landslide
"This is a huge testament to our collective strength and resilience as a progressive movement," said the executive director of Justice Democrats.
Apr 24, 2024
U.S. Rep. Summer Lee, a member of the progressive "Squad," won the Democratic primary for Pennsylvania's 12th Congressional District on Tuesday, fending off an opponent whose campaign was backed by a billionaire Republican megadonor and ally of Israeli Prime Minister Benjamin Netanyahu.
Lee, a vocal critic of the Netanyahu government and leading supporter of a cease-fire in Gaza, handily defeated Bhavini Patel, a borough councilmember in Edgewood, Pennsylvania whose effort to unseat the progressive incumbent was bankrolled by Jeffrey Yass, the state's richest man. Patel actively courted Republican and pro-Israel voters, characterizing Lee as "fringe."
With more than 95% of the vote counted, Lee is ahead of Patel by more than 20 percentage points.
"I am so humbled and proud to win my first primary reelection to be the congresswoman for this incredible district I've spent my life fighting for," Lee said after the race was called in her favor. "Our campaign was built on a record of delivering for our democracy, defending our most fundamental rights, and expanding our vision for what is politically possible for our region's most marginalized communities."
"Our victory is a rejection of right-wing interests and Republican billionaires using corporate super PACs to target Black and brown Democrats in our primaries—be it AIPAC or Moderate PAC or any other MAGA billionaire in Democratic clothing," Lee added. "Western PA is the blueprint for the future all of America deserves."
Opposing genocide is good politics and good policy. #CeasefireNOW https://t.co/A7pnJNskWS
— Summer Lee (@SummerForPA) April 24, 2024
Through the misleadingly named Moderate PAC, Yass—a prolific tax dodger who has been floated as a possible treasury secretary pick if former President Donald Trump wins another term—spent hundreds of thousands of dollars boosting Patel and attacking Lee.
Rahna Epting, executive director of MoveOn Political Action, said that by ushering Lee to victory, residents of Pennsylvania's 12th District "soundly rejected MAGA dark money."
"MoveOn members are ready to defeat this dangerous flood of dark-money spending against progressive champions and ensure that we continue to elect working-class people to Congress," said Epting.
"Now that it's clear Summer won her primary, AIPAC's super PAC has already officially failed at their one goal for this cycle: taking out the entire Squad."
During her 2022 campaign, Lee faced and overcame huge spending by the powerful pro-Israel lobbying group AIPAC via its super PAC, the United Democracy Project. But the organization opted to stay on the sidelines this time around, even as it plans to spend $100 million to defeat progressives in this year's cycle amid growing public opposition to Israel's war on Gaza.
"They had every intention of spending in this race—but they didn't, because they realized they would likely lose," Justice Democrats executive director Alexandra Rojas wrote in an email late Tuesday. "And that is because all of us had Summer's back and supported her campaign to out-organize AIPAC in every way."
"This is a huge testament to our collective strength and resilience as a progressive movement," said Rojas. "Now that it's clear Summer won her primary, AIPAC's super PAC has already officially failed at their one goal for this cycle: taking out the entire Squad."
While AIPAC ultimately sat out the Pennsylvania race, it is devoting considerable resources to ousting other progressive lawmakers, including Reps. Jamaal Bowman (D-N.Y.) and Cori Bush (D-Mo.).
The pro-Israel lobbying group has endorsed Bush challenger Wesley Bell, calling him a "strong advocate for the U.S.-Israel relationship." As The Guardianreported last week, Bell has "raised more than $650,000 in earmarked contributions through the group Democracy Engine Inc. PAC—a donation platform that allows unpopular PACs to obscure their donations and lists AIPAC as a client on its LinkedIn page."
AIPAC is the largest donor to Bowman challenger George Latimer, who has supported Israel's war on Gaza and denied that Israel is committing genocide. The Democratic primary for New York's 16th Congressional District is on June 25.
We must be clear-eyed about what's next. @JamaalBowmanNY & @CoriBush are facing an existential threat from AIPAC, their GOP megadonors, and the politicians willing to compromise on core Democratic values to try to take a school principal & nurse out of Congress. #ProtectTheSquad
— Justice Democrats (@justicedems) April 24, 2024
Michele Weindling, political director of the youth-led Sunrise Movement, said Tuesday that following Lee's victory, "we're ramping up to take on AIPAC in Jamaal Bowman's race."
"With a candidate like George Latimer willing to sell their lies to the district, we are going to prove once again that a politician's commitment to their community beats dark money every time," said Weindling. "Whether it's in Pittsburgh or New York, Minneapolis or St. Louis, our generation is going to send billionaires packing and reelect the squad."
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Critics Blast 'Reckless and Impossible' Bid to Start Operating Mountain Valley Pipeline
"The time to build more dirty and dangerous pipelines is over," said one environmental campaigner.
Apr 23, 2024
Environmental defenders on Tuesday ripped the company behind the Mountain Valley Pipeline for asking the federal government—on Earth Day—for permission to start sending methane gas through the 303-mile conduit despite a worsening climate emergency caused largely by burning fossil fuels.
Mountain Valley Pipeline LLC sent a letter Monday to Federal Energy Regulatory Commission (FERC) Acting Secretary Debbie-Anne Reese seeking final permission to begin operation on the MVP next month, even while acknowledging that much of the Virginia portion of the pipeline route remains unfinished and developers have yet to fully comply with safety requirements.
"In a manner typical of its ongoing disrespect for the environment, Mountain Valley Pipeline marked Earth Day by asking FERC for authorization to place its dangerous, unnecessary pipeline into service in late May," said Jessica Sims, the Virginia field coordinator for Appalachian Voices.
"MVP brazenly asks for this authorization while simultaneously notifying FERC that the company has completed less than two-thirds of the project to final restoration and with the mere promise that it will notify the commission when it fully complies with the requirements of a consent decree it entered into with the Pipeline and Hazardous Materials Safety Administration last fall," she continued.
"Requesting an in-service decision by May 23 leaves the company very little time to implement the safety measures required by its agreement with PHMSA," Sims added. "There is no rush, other than to satisfy MVP's capacity customers' contracts—a situation of the company's own making. We remain deeply concerned about the construction methods and the safety of communities along the route of MVP."
Russell Chisholm, co-director of the Protect Our Water, Heritage, Rights (POWHR) Coalition—which called MVP's request "reckless and impossible"—said in a statement that "we are watching our worst nightmare unfold in real-time: The reckless MVP is barreling towards completion."
"During construction, MVP has contaminated our water sources, destroyed our streams, and split the earth beneath our homes. Now they want to run methane gas through their degraded pipes and shoddy work," Chisholm added. "The MVP is a glaring human rights violation that is indicative of the widespread failures of our government to act on the climate crisis in service of the fossil fuel industry."
POWHR and activists representing frontline communities affected by the pipeline are set to take part in a May 8 demonstration outside project financier Bank of America's headquarters in Charlotte, North Carolina.
Appalachian Voices noted that MVP's request comes days before pipeline developer Equitrans Midstream is set to release its 2024 first-quarter earnings information on April 30.
MVP is set to traverse much of Virginia and West Virginia, with the Southgate extension running into North Carolina. Outgoing U.S. Sen. Joe Manchin (D-W.Va.) and other pipeline proponents fought to include expedited construction of the project in the debt ceiling deal negotiated between President Joe Biden and congressional Republicans last year.
On Monday, climate and environmental defenders also petitioned the U.S. Court of Appeals for the D.C. Circuit, challenging FERC's approval of the MVP's planned Southgate extension, contending that the project is so different from original plans that the government's previous assent is now irrelevant.
"Federal, state, and local elected officials have spoken out against this unneeded proposal to ship more methane gas into North Carolina," said Sierra Club senior field organizer Caroline Hansley. "The time to build more dirty and dangerous pipelines is over. After MVP Southgate requested a time extension for a project that it no longer plans to construct, it should be sent back to the drawing board for this newly proposed project."
David Sligh, conservation director at Wild Virginia, said: "Approving the Southgate project is irresponsible. This project will pose the same kinds of threats of damage to the environment and the people along its path as we have seen caused by the Mountain Valley Pipeline during the last six years."
"FERC has again failed to protect the public interest, instead favoring a profit-making corporation," Sligh added.
Others renewed warnings about the dangers MVP poses to wildlife.
"The endangered bats, fish, mussels, and plants in this boondoggle's path of destruction deserve to be protected from killing and habitat destruction by a project that never received proper approvals in the first place," Center for Biological Diversity attorney Perrin de Jong said. "Our organization will continue fighting this terrible idea to the bitter end."
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'Seismic Win for Workers': FTC Bans Noncompete Clauses
Advocates praised the FTC "for taking a strong stance against this egregious use of corporate power, thereby empowering workers to switch jobs and launch new ventures, and unlocking billions of dollars in worker earnings."
Apr 23, 2024
U.S. workers' rights advocates and groups celebrated on Tuesday after the Federal Trade Commission voted 3-2 along party lines to approve a ban on most noncompete clauses, which Democratic FTC Chair Lina Khansaid "keep wages low, suppress new ideas, and rob the American economy of dynamism."
"The FTC's final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market," Khan added, pointing to the commission's estimates that the policy could mean another $524 for the average worker, over 8,500 new startups, and 17,000 to 29,000 more patents each year.
As Economic Policy Institute (EPI) president Heidi Shierholz explained, "Noncompete agreements are employment provisions that ban workers at one company from working for, or starting, a competing business within a certain period of time after leaving a job."
"These agreements are ubiquitous," she noted, applauding the ban. "EPI research finds that more than 1 out of every 4 private-sector workers—including low-wage workers—are required to enter noncompete agreements as a condition of employment."
The U.S. Chamber of Commerce has suggested it plans to file a lawsuit that, as The American Prospectdetailed, "could more broadly threaten the rulemaking authority the FTC cited when proposing to ban noncompetes."
Already, the tax services and software provider Ryan has filed a legal challenge in federal court in Texas, arguing that the FTC is unconstitutionally structured.
Still, the Democratic commissioners' vote was still heralded as a "seismic win for workers." Echoing Khan's critiques of such noncompetes, Public Citizen executive vice president Lisa Gilbert declared that such clauses "inflict devastating harms on tens of millions of workers across the economy."
"The pervasive use of noncompete clauses limits worker mobility, drives down wages, keeps Americans from pursuing entrepreneurial dreams and creating new businesses, causes more concentrated markets, and keeps workers stuck in unsafe or hostile workplaces," she said. "Noncompete clauses are both an unfair method of competition and aggressively harmful to regular people. The FTC was right to tackle this issue and to finalize this strong rule."
Morgan Harper, director of policy and advocacy at the American Economic Liberties Project, praised the FTC for "listening to the comments of thousands of entrepreneurs and workers of all income levels across industries" and finalizing a rule that "is a clear-cut win."
Demand Progress' Emily Peterson-Cassin similarly commended the commission "for taking a strong stance against this egregious use of corporate power, thereby empowering workers to switch jobs and launch new ventures, and unlocking billions of dollars in worker earnings."
While such agreements are common across various industries, Teófilo Reyes, chief of staff at the Restaurant Opportunities Centers United, said that "many restaurant workers have been stuck at their job, earning as low as $2.13 per hour, because of the noncompete clause that they agreed to have in their contract."
"They didn't know that it would affect their wages and livelihood," Reyes stressed. "Most workers cannot negotiate their way out of a noncompete clause because noncompetes are buried in the fine print of employment contracts. A full third of noncompete clauses are presented after a worker has accepted a job."
Student Borrower Protection Center (SBPC) executive director Mike Pierce pointed out that the FTC on Tuesday "recognized the harmful role debt plays in the workplace, including the growing use of training repayment agreement provisions, or TRAPs, and took action to outlaw TRAPs and all other employer-driven debt that serve the same functions as noncompete agreements."
Sandeep Vaheesan, legal director at Open Markets Institute, highlighted that the addition came after his group, SBPC, and others submitted comments on the "significant gap" in the commission's initial January 2023 proposal, and also welcomed that "the final rule prohibits both conventional noncompete clauses and newfangled versions like TRAPs."
Jonathan Harris, a Loyola Marymount University law professor and SBPC senior fellow, said that "by also banning functional noncompetes, the rule stays one step ahead of employers who use 'stay-or-pay' contracts as workarounds to existing restrictions on traditional noncompetes. The FTC has decided to try to avoid a game of whack-a-mole with employers and their creative attorneys, which worker advocates will applaud."
Among those applauding was Jean Ross, president of National Nurses United, who said that "the new FTC rule will limit the ability of employers to use debt to lock nurses into unsafe jobs and will protect their role as patient advocates."
Angela Huffman, president of Farm Action, also cheered the effort to stop corporations from holding employees "hostage," saying that "this rule is a critical step for protecting our nation's workers and making labor markets fairer and more competitive."
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