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James Love

James Love

Posted: November 4, 2010 07:08 AM

The 2008 election of Barack Obama was moving, not only for me and others who voted for Obama, but also for many who didn't support his candidacy. At one point everyone appreciated the historic barriers that had been crossed, and were grateful for the new more inclusive political landscape. We were also sobered by the grave risks to the world as a consequence of a financial crisis brought about by widespread fraud, the exploitation of uninformed investors, lax regulation, and greed.

Now, two years later, a new election has resulted in a loss of 60 democratic seats in the House of Representatives, and 7 to 9 seats in the U.S. Senate.

For the first time in the Obama Administration, the Republicans will have control of congressional committees, and the power to issue subpoenas and investigate the government, or anything else of interest. We haven't seen Republican investigations of a Democratic Administration since the Clinton Administration. Now we will see lots.

The Republicans will claim a mandate to cut federal taxes, spending and budget deficits. Two of three of these objectives might be feasible. Three of three is highly unlikely.

With most of our money going to the military, social security and paying the federal debt, and tax cuts for high income persons, and Republicans promising permanent tax cuts for wealthy and corporate taxpayers, it will be a rough go for anyone seeking to protect or expand federal spending on domestic social programs, or foreign aid unrelated to military adventures.

This election was partly a statement about the direction of the country, and the lack of a convincing story emulating from the White House about how the country will get back on the right track. Why did Democrats appear tone deaf during this economic crisis? For one thing, political leaders from both parties have first and foremost appealed to potential campaign contributors, and in particular, corporations with durable interests and deep pockets.

Some say $4 billion was spent on the election. This includes corporate money newly liberated by the U.S. Supreme Court's Citizens United decision. This may have been a tit for tat or a deliberate escalation, in addition to spectacularly poor judgment. The Supreme Court arguably broke precedent as a consequence of Obama's breaking of the public financing system in 2008. Conservatives on the Supreme Court were concerned that the current rules could benefit the Democrats more than the Republicans in the 2012 election.

Money for campaigns isn't given without expectations of influence, and politicians in both parties understand what donors want.

It's hard to develop a public narrative and a legislative record as a champion of the underdog when you spend so much time pandering to giant corporate interests.

It's not that the Democrats in the White House and the Congress have not done many good things - they have accomplished quite a bit. The economy would be much worse than it is today. Some helpful changes will be made in student loans, and the health care reform bill, while flawed for not dealing with cost controls, does make it easier for persons with prior conditions to buy insurance. In countless areas the Obama Administration has made the government more effective and better prepared to deal with the challenges of protecting the environment and worker, consumer or civil rights. (More on the positive achievements here).

But there are also very visible areas where they have compromised, delivered very little, or made things worse.

In the areas where I work, which includes policies regarding intellectual property rights and innovation, I have made a few notes of some of the positive and negative surprises we have seen over the past two years. This is not exhaustive -- I don't have the time for that. But it does illustrate the frustrations that many feel following the change we voted for (and expected) in 2008. In short, I was:

  • Surprised, shocked and disappointed to learn that almost immediately after his inauguration, President Obama held secret meetings with the CEOs of Pfizer, Abbott, Merck and PhRMA, and made non-transparent deals to abandon his campaign promises to rein-in high drug prices. More here and here.
  • Surprised and disappointed when the White House declared that international negotiations over a new controversial anti-consumer agreement on copyright, trademark and patent policy would be conducted in secrecy, as a matter of national security. Cynically named the "anti-counterfeiting" trade agreement (ACTA), but dealing with civil and criminal enforcement of all routine infringements of intellectual property rights, for more than a year, the Obama Administration fought the inclusion in the agreement of basic safeguards of consumer rights, and exceptions in areas of public interest, such as the enforcement of patent infringement cases against medical professionals, drug companies that fail to disclose relevant patents on biologic drugs, or uses of "orphaned" copyrighted works by libraries, archives or educational institutions. When the European Parliament vote 633 to 13 to demand that new safeguards be added for consumers, and the negotiators make the text public, President Obama personally endorsed the ACTA negotiations in a speech the next day. To the very end of this year, the United States was the only country of 38 that opposed transparency of the negotiations. More here, here, here and here.
  • Surprised when the Obama Administration was successfully lobbied by big pharma to oppose work at the World Health Organization on a medical R&D treaty.
  • Surprised that the Obama Administration placed drug company lobbyists inside of the UN's World Intellectual Property Organization to deal with public health issues.
  • Surprised that the Obama Administration gave grants to pharmaceutical industry funded groups to advise developing countries on pharmaceutical patent issues. More here.
  • Surprised that the Obama Administration blocked an effort to have regional discussions on the transparency of the pharmaceutical sector. More here.
  • Surprised that the Department of Justice allowed Ticketmaster to merge with LiveNation, creating more monopoly power in the booking of live performances of artists. The merger was opposed by Bruce Springsteen and other performers, but DOJ refused to block it. More here.
  • Disappointed when the Department of Justice allowed Oracle to acquire the assets of MySQL, putting together in one company the leading free software platform and the leading commercial platform for database services. Not surprisingly, Oracle has introduced sharp fee hikes to support MySQL, killed off low-priced support options, and more than doubled what it charges for the commercial versions of the database. More here and here.
  • Disappointed the Obama Administration has continued the Bush Administration policies of pressuring Thailand, India and other developing countries on drug patents.
  • Pleased the NIH agreed to license a minor patent on an AIDS drug, but waiting for stronger action on patents that are more useful. More here.
  • Disappointed the Obama Administration has yet to grant a hearing to patients suffering from Fabry's disease who are asking for a license to use a patent on a government funded invention, in order to overcome a shortage in the United States of a life saving drug. More here.
  • Disappointed that the Obama Administration has played a cynical game in blocking progress on a new copyright treaty for persons who are blind or have other disabilities, and taken the side of mostly foreign owned publishers backing complex and unworkable alternatives. At least the Obama Administration is no longer officially opposed to the treaty. Now they are "open" to the treaty. Unfortunately, all of the backroom diplomacy is designed to kill rather than advance the treaty, or to create such a mess that a new intentional legal norms will make things worse rather than better for persons with disabilities. (Following in the tradition of failed negotiations for Paragraph 6 of the Doha Declaration or the 1971 Appendix to the Berne Convention). Groups critical of the Administration position are just frozen out by the White House. More here.
  • Pleased that the Department of Justice has recently filed a brief opposing patents on genes, and hoping the Patent Office stops granting these patents. More here.
  • Disappointed when Howard Dean was hired by BIO to lobby against rules to allow more competition of biologic medicines. More here and here.
  • Shocked when a proposal by Representative Henry Waxman to make it easier to register generic (biosimiliar) versions of expensive biologic drugs was rejected by a 11 to 47 vote, in the committee he chaired, undermining one of the few efforts to control the costs of new medicines in the health care reform legislation. More here.


What are the lessons from all of this?

First, one thing that can't be repeated enough is that the public continues to underestimate the corrosive impact of our system of financing elections, which is basically legal bribery. This has pretty much destroyed the Democratic party as a defender of consumers and workers. Not every elected official, or every vote of every official has been corrupted by campaign contributions. But the pressing need to raise more and more money has a huge impact on the overall state of affairs, and it is just getting worse.

Second, it is possible to push for useful reforms, if they are easy enough for the public to understand, and there is a real effort by some political leaders with enough fame, power and/or charisma to make people pay attention. That's what we though we were getting with Obama. But so far, that type of communication seemed to have disappeared after the 2008 election. Maybe now that Obama will be running scared for the 2012 election we might see more of this -- if he doesn't spend all his time trying to raise a billion or so in fat cat contributions.

 

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12:41 PM on 11/04/2010
Two of the most progressive members of congress that are in favor of campaign finance reform (Feingold and Grayson) have lost their seats to corporate sponsored candidates giving corruption a not needed boost in Washington.
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La Goulue
Might be better if pigs could fly
11:55 AM on 11/04/2010
Reform--regulation? - is needed to limit campaign commercials.. of the over 500 I spoke with in getting out the vote, everyone was totally sick of the saturation of the airwaves, endless nitpicking, pundit
spin, irresponsible media attention etc., frequent flawed journalism ( if you can call it journalism),
in addition to being totally offended and disgusted by the scare tactics by exaggerations, distortions,
inaccuracies, if not outright untruths.. and lack of transparency of how they were paid for.
As many know, in the UK campaign ads are only allowed for 30 days preceding election... so populace is not barraged for months of BS. Hopefully the conference on media reform in April, 2011 in Boston
will address some of these issues.

The media has to be more circumspect and responsible to the public, and campaign laws need to be examined carefully.
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elkabong
Campaign finance is the disease.
11:10 AM on 11/04/2010
I was hoping president Obama and the Democratic Congress were going to make campaign finance reform a top priority. Silly me.

Campaign Finance, the revolving door between Capitol Hill and K-Street and Corporate Media Monopoly are the diseases. All of America's other problems are merely the symptoms.
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La Goulue
Might be better if pigs could fly
11:58 AM on 11/04/2010
EggsActly !
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La Goulue
Might be better if pigs could fly
12:22 PM on 11/04/2010
I forgot to add that some of that money spent on commercials could have gone to help the troubled middle class with financial woes instead. What a waste.

Secondly, before my first reply, I had posted a perfectly rational comment about needing reform in campaign finance laws and and that media needs to examine its own responsibilities to the public..
Huffpost deemed it ??? or lost it. ... nonsense. where is it ?
10:53 AM on 11/04/2010
The clear message from the national midterm elections is that President Obama’s progressive policies have not worked for economic recovery, and his other risky domestic initiatives are widely unpopular. This midterm election also shows California, and Obama, to be out of step with the American political mood.

California, generally seen as forward leaning politically, has voted to move in reverse -- back to the government-growing, tax-and-spend liberalism that has brought us 12.5% unemployment, job-killing environmental and business regulations, and ubiquitous taxes. Except for rejecting marijuana legalization, the other approved ballot initiatives blindly perpetuate the militant immigrant, labor union and environmental special interests that have crushed California prosperity for the foreseeable future.

What this election should have been for California is a therapeutic intervention to change its addiction to big government. Sadly, the election results will read like an obituary of failed progressive political policies and has beens. The national political trajectory is changed with this election; and it will leave California behind as a failed state.

California has wiped out on the conservative wave election. This confirms California's status as a failed state under the oppression of militant immigrant, labor and green special interests. The once "Golden State" is broke and broken.
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elkabong
Campaign finance is the disease.
11:17 AM on 11/04/2010
“We Can All Live In Alabama

"Alabama has the most regressive [conservative] revenue plan in America, and has thrown out a welcome mat for any business that would have it in exactly the way conservative economic theorists say they should. Moreover, the state has been doing this since 1901. According to the aptly-named "Laffer Curve" and the supply-side, trickle-down economics ascendant in America for the last thirty years, Alabama ought to be roaring with industry.

Instead, the once-bustling Florence industrial park is now a collection of small businesses and charity warehouses in the shells of former textile mills. The cotton farmer here who once sent his crop from the gin to the mill now sends it to India or China to return as a t-shirt. That's a classic third-world development trap, and a fair way to state the case: Alabama, like West Virginia, is a part of America's third world.

If conservative economics had any validity at all, population growth shouldn't have been virtually flat since 1978. Alabama remains one of the poorest states in America. The empirical evidence Alabama provides is that tax cuts for the rich, culture wars, and leaving the poor to starve in ignorance do not create prosperity."

http://crooksandliars.com/matt-osborne/we-can-all-live-alabama
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HUFFPOST SUPER USER
SCyankee
12:51 PM on 11/04/2010
You could say the same for most anywhere in the deep south. Were it not for the military bases (EVERYWHERE) and warm weather (tourism & retirees) there would be little economic activity at all. I live in SC, and yes it's embarrassing to call this country by the same name it's called north of the Mason-Dixon Line.

Completely different countries with completely opposed ideals and morals.
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ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:37 AM on 11/04/2010
Question: what did the large Republican wins in midterm mean to the President?
I refer to 1994, Gingrich et al taking over. What was the message to Bill Clinton from that?

Answer: none. Same with this midterm election: no meaning, no message.
07:56 AM on 11/04/2010
The use of Nazi propaganda "Big Lie" by the radical extremist republicans defeated the American people, not the Democrats. Yes sirree, telling lies, even preposterous lies and repeating them over and over works. The majority of the voters swallowed the hook, line, and sinker and went to the polls and committed political suicide for themselves, their families, their neighbors, their co-workers, and their community.

The American people received no protection from the American press by exposing the party of demagogues--the radical extremist republican party of demolition, obstruction, and hate.. President Obama and the Democrats are not to blame the spineless American press is!
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ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:44 AM on 11/04/2010
No, the American people are to blame, for everything. We get the government we deserve, but we can't admit it. Politics are like looking in a mirror.