Sunlight Foundation reveals scandalous data on Corporations
Sunlight Foundation's analysis reveals scandalous data on campaign contributions, lobbying expenditures, federal budget allocations, lobbying , buying political goodwill, and more.
It is interesting that the Sunlight Foundation, which has done this extensive analysis (and data supported study), publishes and works under a pseudonym.
Must we assume that the reason is because the power that Corporations have is so intimidating and large that they fear retaliation from them?
MJ
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THE SUNLIGHT FOUNDATION
The Best "Democracy" Money Can Buy: For Every Dollar Spent Influencing US Politics, Corporations Get $760 Back
Submitted by Tyler Durden
The first time we read the recent analysis by the Sunlight Foundation in which it combed through 14 million corporate records, including data on campaign contributions, lobbying expenditures, federal budget allocations and spending, in order to determine the "rate of return" on lobbying and spending to buy political goodwill, we were left speechless.
To be sure, we had previously shown that when it comes to the rate of return on lobbying, the rates were simply staggering, and ranged anywhere between 5,900% for oil subsidies, to 22,000% for multinational tax breaks and even higher for America's legal drug dealers.
Sunlight Foundation's analysis reveals scandalous data on campaign contributions, lobbying expenditures, federal budget allocations, lobbying , buying political goodwill, and more.
It is interesting that the Sunlight Foundation, which has done this extensive analysis (and data supported study), publishes and works under a pseudonym.
Must we assume that the reason is because the power that Corporations have is so intimidating and large that they fear retaliation from them?
MJ
---------------------------------------------------------------------------------------
THE SUNLIGHT FOUNDATION
The Best "Democracy" Money Can Buy: For Every Dollar Spent Influencing US Politics, Corporations Get $760 Back
Submitted by Tyler Durden
The first time we read the recent analysis by the Sunlight Foundation in which it combed through 14 million corporate records, including data on campaign contributions, lobbying expenditures, federal budget allocations and spending, in order to determine the "rate of return" on lobbying and spending to buy political goodwill, we were left speechless.
To be sure, we had previously shown that when it comes to the rate of return on lobbying, the rates were simply staggering, and ranged anywhere between 5,900% for oil subsidies, to 22,000% for multinational tax breaks and even higher for America's legal drug dealers.
Which translates into an Internal Rate Of Return of, hold on to your hats folks, 75,900%!....
According to the foundation's analysis, between 2007 and 2012, 200 of
America’s most politically active corporations spent a combined $5.8 billion
(with a B) on federal lobbying and campaign contributions.
What they gave pales compared to what those same corporations got: $4.4 trillion (with a T) in federal business and support.
Putting that in context, the $4.4 trillion total represents two-thirds of the $6.5 trillion that individual taxpayers paid into the federal treasury. Said otherwise, by "spending: a paltry $6 billion to bribe the US government, or just a little more than what GM will spend on stock buybacks alone, US corporations are getting the direct benefit of two-thirds of US taxpayers' labor!
And here is the visual representation of this stunning finding: for every dollar spent on influencing politics, the nation’s most politically active corporations received $760 from the government.
What they gave pales compared to what those same corporations got: $4.4 trillion (with a T) in federal business and support.
Putting that in context, the $4.4 trillion total represents two-thirds of the $6.5 trillion that individual taxpayers paid into the federal treasury. Said otherwise, by "spending: a paltry $6 billion to bribe the US government, or just a little more than what GM will spend on stock buybacks alone, US corporations are getting the direct benefit of two-thirds of US taxpayers' labor!
And here is the visual representation of this stunning finding: for every dollar spent on influencing politics, the nation’s most politically active corporations received $760 from the government.
Like we said, speechless.
* * *
Some more details from the Foundations' must read report:
Do political donors get something in return for what they give?
Four years ago, the U.S. Supreme Court suggested the answer to that question was no. Corporate spending to influence federal elections would not “give rise to corruption or the appearance of corruption,” the majority wrote in the landmark Citizens United v. Federal Election Commission decision.
Sunlight decided to test that premise by examining influence and its potential results on federal decision makers over six years, three before the 2010 Citizens United decision and three after.
We focused on the records of 200 for-profit corporations, all of which had active political action committees and lobbyists in the 2008, 2010 and 2012 election cycles — and were among the top donors to campaign committees registered with the Federal Election Commission. Their investment in politics was enormous.
There were 20,500 paying lobbying clients over the six years we examined; the 200 companies we tracked accounted for a whopping 26 percent of the total spent. On average, their PACs, employees and their family members made campaign contributions to 144 sitting members of Congress each cycle.
Four years ago, the U.S. Supreme Court suggested the answer to that question was no. Corporate spending to influence federal elections would not “give rise to corruption or the appearance of corruption,” the majority wrote in the landmark Citizens United v. Federal Election Commission decision.
Sunlight decided to test that premise by examining influence and its potential results on federal decision makers over six years, three before the 2010 Citizens United decision and three after.
We focused on the records of 200 for-profit corporations, all of which had active political action committees and lobbyists in the 2008, 2010 and 2012 election cycles — and were among the top donors to campaign committees registered with the Federal Election Commission. Their investment in politics was enormous.
There were 20,500 paying lobbying clients over the six years we examined; the 200 companies we tracked accounted for a whopping 26 percent of the total spent. On average, their PACs, employees and their family members made campaign contributions to 144 sitting members of Congress each cycle.
It's
not a "Republican" issue, nor a "Democrat" issue - it is a
"Political" issue. Worse, it is a "Democracy" issue. Or
lack thereof.
During
the six years we studied, newly elected Democratic majorities took control in
the House and Senate. Two years later, the White House shifted from Republican
to Democratic control, and two years after that the GOP came back to take the
House. The collapse of the housing bubble in 2007 led to massive bailout
efforts by the Treasury Department and the Federal Reserve Board, two massive
stimulus bills and the loss of more than eight million jobs. Congress passed
laws that overhauled health care insurance and financial industry regulation.
Troops surged in Afghanistan and withdrew from Iraq. There were 16 separate
“continuing resolutions” to fund the government, a debt ceiling standoff that
caused a downgrade in the nation’s credit rating and a “super committee” to
wrestle with the federal budget.
As middle class Americans lost ground, the Fixed Fortune 200 got what they needed.
What they needed included loans that helped automakers and banks survive the recent recession while many homeowners went under. It included full funding and expansion of federal programs started in the 1930s that, year after year, decade after decade, help prop up prices for agribusinesses and secure trade deals for our biggest manufacturers. It included budget busting emergency measures that funneled extra dollars to everything from defense contractors to public utility companies to financial industry giants. The record suggests that the money corporations spend on political campaigns and Washington lobbying firms is not an unwise investment.
As middle class Americans lost ground, the Fixed Fortune 200 got what they needed.
What they needed included loans that helped automakers and banks survive the recent recession while many homeowners went under. It included full funding and expansion of federal programs started in the 1930s that, year after year, decade after decade, help prop up prices for agribusinesses and secure trade deals for our biggest manufacturers. It included budget busting emergency measures that funneled extra dollars to everything from defense contractors to public utility companies to financial industry giants. The record suggests that the money corporations spend on political campaigns and Washington lobbying firms is not an unwise investment.
With
a 75,900% IRR, we tend to agree.
The
Fixed Fortune 200 come from a wide range of industries. There are a host of
familiar names among them, like Ford Motor Company, McDonald’s and Bank of
America, as well as some less famous, like MacAndrews & Forbes, the Carlyle
Group and Cerberus Capital Management. (For the complete list, including what
they gave and what they got, click here.) There are retailers and investment
banks, construction and telecommunications firms, health insurers and gun
makers, entertainment conglomerates, banks and pharmaceutical manufacturers,
among others.
Overall, the Fixed Fortune 200’s PACs, employees and their family members gave $597 million to political committees and disclosed spending $5.2 billion on lobbying. They make this enormous investment in politics in large part because their businesses are inextricably entwined with government decisions — including spending decisions.
Overall, the Fixed Fortune 200’s PACs, employees and their family members gave $597 million to political committees and disclosed spending $5.2 billion on lobbying. They make this enormous investment in politics in large part because their businesses are inextricably entwined with government decisions — including spending decisions.
In
short, government is the best "business partner" money can buy:
For
example, the federal government issued contracts to purchase goods and services
that totaled a little more that $3 trillion during the period; companies among
the top 200 corporate political givers won $1 trillion of that, a third of the
total.
The Treasury Department managed $410 billion in loans and other assistance issued under the Troubled Asset Relief Program, created by Congress to cope with the 2008 financial crisis; of that amount, $298 million, about 73 percent, went to 16 firms among the Fixed Fortune 200. When the Federal Reserve took extraordinary measures in the wake of the 2008 financial crisis, it funneled nearly $2.8 trillion through 29 Fixed Fortune firms. The companies that participated the most in politics got huge returns.
Of the 200 corporations we examined, we could sum the financial rewards for 179. Of those, 138 received more from the federal government than they spent on politics, 102 of them received more than 10 times what they spent on politics, and 29 received 1,000 times or more from the federal government than they invested in lobbyists or contributed to political committees via their employees, their family members and their PACs.
As for the other 21 companies on our list, while we could not quantify the financial benefits that some received, we were able to identify them. Some examples:
The Treasury Department managed $410 billion in loans and other assistance issued under the Troubled Asset Relief Program, created by Congress to cope with the 2008 financial crisis; of that amount, $298 million, about 73 percent, went to 16 firms among the Fixed Fortune 200. When the Federal Reserve took extraordinary measures in the wake of the 2008 financial crisis, it funneled nearly $2.8 trillion through 29 Fixed Fortune firms. The companies that participated the most in politics got huge returns.
Of the 200 corporations we examined, we could sum the financial rewards for 179. Of those, 138 received more from the federal government than they spent on politics, 102 of them received more than 10 times what they spent on politics, and 29 received 1,000 times or more from the federal government than they invested in lobbyists or contributed to political committees via their employees, their family members and their PACs.
As for the other 21 companies on our list, while we could not quantify the financial benefits that some received, we were able to identify them. Some examples:
· Arch
Coal lists the Tennessee Valley Authority (TVA), the government corporation
that’s the largest public electricity producer, as one of its three biggest
customers. TVA does not release data on its coal purchases.
· Forest
City Enterprises does not appear as a landlord in the Government Services
Agency’s database of federal rental agreements, though its annual report notes
that the U.S. government is the third-biggest customer for its pricey New York
City office space.
· Occidental
Petroleum has leases on federal land to extract natural gas, but the government
does not release information on how much that gas is withdrawn or how much it
is worth.
· And
while the government has so far refused to release information on what
retailers get the most purchases via food stamps, Wal-Mart went so far as to
acknowledge in a filing with the Securities and Exchange Commission that
reductions in the now $78 billion-a-year Supplemental Nutrition Assistance
Program — or food stamps — could have a significant impact on the company’s
earnings, which totaled $476 billion in its most recent fiscal year.
Of
the 200 companies analyzed for Fixed Fortunes, 28 are in what the money in
politics research organization the Center for Responsive Politics classifies as
the communications and electronics sector, 21 in healthcare, 13 in defense and
aerospace, 13 agribusinesses, 11 in energy and natural resources, and 7 in
transportation. The biggest sector, accounting for 48 of the 200, was finance,
insurance and real estate, which is consistently the largest source of campaign
funds for politicians cycle after cycle. Congress and the executive branch have
paid particular attention to the industry, approving hundreds of billions in
aid to help it weather the financial crisis. Meanwhile, the Federal Reserve
advanced trillions in credit, which the nation’s central bank hoped would
trickle down through the rest of the economy.
And
then there is the military industrial complex:
Weapons manufacturers like Boeing and Lockheed Martin, both of which disclosed
spending more than $10 million each year on lobbying, also made the list. So
did McKesson, a pharmaceutical wholesaler that is the biggest vendor for
Veterans Affairs, and the Carlyle Group, a wealth management firm started by
former government insiders who invest in firms that have significant
involvement with government, such as defense, telecommunications and health
care.
But
nothing, nothing, compares
to the return that Wall Street got on their "investment" in
government. And the biggest irony: some of the firms bribing,
pardon, lobbying the US government and generating the greatest returns were not
even American!
Companies with the biggest returns on their political investments
include three foreign financial service and banking firms, UBS and Credit
Suisse Group from Switzerland, and Deutsche Bank of Germany, all
of which benefited from the Treasury Department’s taxpayer-financed rescue of
American International Group. Investment banks Goldman Sachs and Morgan Stanley
as well as commercial banks like JPMorgan Chase & Co., Citigroup, Wells
Fargo and Bank of America also received far more from government than they put
into politics: They benefited from the bailouts of the financial industry
undertaken by Treasury and the Federal Reserve.
Ironically,
one thing the Fixed Fortune 200 did not do, for the most part, was take
advantage of the "new opportunities" to spend on politics that the
Citizens United decision afforded them.
The
200 corporate donors gave just $3 million to super PACs, with the bulk of that
amount a single $2.5 million donation from Chevron to the Congressional
Leadership PAC, a super PAC that’s been linked to House Speaker John Boehner.
It's important to note, however, that contributions by these companies to
politically active nonprofits (a category that includes the Chamber of
Commerce) are impossible to track because of tax laws that allow those entities
to shield donors.
And
while one may be disgusted at the unprecedented crony capitalism and corruption
that has taken over DC, the root of that frustration should be the very fabric
of what passes for democracy in the US - a fabric that is now mutated beyond
recognition in all three branches of government.
More
than seven years after Washington passed the first measures to stimulate the
economy as the housing bubble started to burst, more and more Americans are
living on less and less, without as much savings and other assets to fall back
on in hard times. Washington policies that have restored corporate profits and
made the stock market boom have left much of the country behind. Perhaps that’s
why a whole host of polls, from networks and news organizations and nonprofit
groups, show large majorities of Americans, year after year, saying that the
country is on the wrong track.
In its Citizens United decision, the court took for granted that “favoritism and influence” are inherent in electoral democracy and that “democracy is premised on responsiveness” of politicians to those who support them. We found ample evidence of that.
“The appearance of influence or access,” the court said, “will not cause the electorate to lose faith in our democracy.”
It appears that the electorate — who stayed away from the polls this year in droves — might not agree.
In its Citizens United decision, the court took for granted that “favoritism and influence” are inherent in electoral democracy and that “democracy is premised on responsiveness” of politicians to those who support them. We found ample evidence of that.
“The appearance of influence or access,” the court said, “will not cause the electorate to lose faith in our democracy.”
It appears that the electorate — who stayed away from the polls this year in droves — might not agree.
But
don't worry: at least under Obama regime of daily choreographed distraction,
gays and lesbians can legally marry, illegal immigrants will no longer be
deported and women have never been more "equal" with men. Oh and the
repeat invasion of Afghanistan is solely to punish a few head-cutting
terrorists (who got their funding, training and weapons with the blessings of
Qatar and the CIA).
And don't forget to bash that evil, evil regime in Russia where democracy is being trampled on a daily basis: the mainstream media which is also controlled by a handful of US billionaires, will have you know.
In fact, whatever you do just please ignore what is happening in the US right under everyone's noses.
And just in case what is happening is still unclear, here is the breakdown of the Top 25 contributors (full data set can be found as spreadsheet, html, or csv), or rather beneficiaries, of America's so-called "democracy."
And don't forget to bash that evil, evil regime in Russia where democracy is being trampled on a daily basis: the mainstream media which is also controlled by a handful of US billionaires, will have you know.
In fact, whatever you do just please ignore what is happening in the US right under everyone's noses.
And just in case what is happening is still unclear, here is the breakdown of the Top 25 contributors (full data set can be found as spreadsheet, html, or csv), or rather beneficiaries, of America's so-called "democracy."
https://docs.google.com/spreadsheets/d/1vMdkh3xLuYXli18_4iPs9y1CX1yvoghoW3bvd1p4vnw/edit?usp=sharing
https://docs.google.com/spreadsheets/d/1vMdkh3xLuYXli18_4iPs9y1CX1yvoghoW3bvd1p4vnw/edit?usp=sharing
MORE:
http://sunlightfoundation.com/blog/2014/11/17/fixed-fortunes-biggest-corporate-political-interests-spend-billions-get-trillions/
https://docs.google.com/spreadsheets/d/1vMdkh3xLuYXli18_4iPs9y1CX1yvoghoW3bvd1p4vnw/edit?usp=sharing
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