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Lawrence Lessig

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The Good Soul Howard Schultz: Exploiting an Addict Rather Than Ending an Addiction

Posted: 08/25/11 12:12 PM ET

Starbucks CEO Howard Schultz has joined a small but important group of business leaders who believe it right to use their personal influence to make government work better. In a letter to colleagues and friends, Schultz pledged to end his contributions to political campaigns "until [politicians] strike a bipartisan, balanced long-term debt deal that addresses both entitlements and revenues." He also pledged on behalf of Starbucks to "hire and accelerate employment." Both pledges flow from an obviously deeply felt view that something profoundly wrong has happened to our government and nation. His efforts -- like the efforts of Warren Buffett and Bill Gates -- are not first steps in a political campaign. They are the actions of decent citizens trying to make a society better.

Schultz is right that something profoundly bad has happened to American politics. He is also right to tie that profound bad to the endless addiction that our elected officials have to campaign cash. We have entered a time when politicians like Republican Scott Brown are not even embarrassed to argue that while programs like Medicare and Social Security must be on the budget chopping block, subsidies to big oil (a contributor to Scott Brown) should not. Or when Democrat Xavier Becerra, appointed to the "super Congress" that will have extraordinary power to make spending and revenue budget decisions, doesn't think twice about cashing in on his newly-found power by touting it in a fundraising letter to DC lobbyists. (Update: Congressman Becarra writes that he "did not know, did not ask, would not ask and I will not ask any of my supporters to use my appointment to the select committee for purposes outside its principle focus." Bravo.) Or when Congress, in the middle of two wars, a recession, a jobs crisis, and an impending government shutdown, spends most of its attention on whether "swipe fees" for debit cards should be higher (banks win) or lower (retailers win). Why would it do that? Because of course, both sides in that fight are only too eager to shower the not-yet-wooed Members with endless campaign cash. In context after context, the priorities and sensibilities of this Congress are queered by its perpetual addiction to campaign funds. Nothing in Washington will change until we change this.

But however right his motivation, Schultz's pledge to withhold campaign dollars until Congress agrees on a budget won't fix this mess. No doubt, you can get an addict to clean up the garage by withholding his fix until he is done. But that won't help the addict end his addiction. The same with our cash-addicted-Congress: What reformers like Schultz need to do is to use their power to get Congress to end its addiction, by pushing for reforms that would make it possible for government to act sanely and independently of special interest funders.

That was the objective of Arnold Hiatt (former CEO of Stride Rite) and Alan Hassenfeld (former Chairman of Hasbro, Inc.) when they launched a similar campaign just last year, by writing (PDF) to the largest campaign funders, and asking them to withhold funds from any candidate who didn't pledge to support the Fair Elections Now Act -- a bill that would give candidates the chance to opt out of special interest funding, and into a voluntary system that would limit campaign contributions to $100, with each contribution matched 4 to 1 by the government. Their letter convinced scores of large funders -- including producer and director J.J. Abrams, Edgar Bronfman Jr., CEO of Warner Music, Ben Cohen, co-founder of Ben & Jerry's, and Vin Ryan, Chairman of Schooner Capital -- to withhold campaign contributions from special interest candidates. It also inspired thousands of smaller contributors to make a similar pledge.

The Hiatt/Hassenfeld strategy uses the leverage of campaign contributions to change the system for funding campaigns. It doesn't withhold the fix. It ends the addiction. There are any number of important causes that powerful souls like Schultz could organize funder strikes around -- bank reform, health care reform, tax reform, global warming legislation -- for our current Congress can't address any of these issues sensibly because special interests always block change. But far better is a strategy to change the environment within which these special interests can always block change. That was Hiatt and Hassenfeld's objective -- an objective that Schultz's approach cannot achieve.

Schultz could fix this flaw by adding an escape clause to his current pledge. Let contributors promise not to give unless Congress strikes a deal or a candidate pledges to funding reform. Let this powerful movement produce something permanent, rather than a single victory in an endless tale of defeat.

"There are a thousand hacking at the branches of evil," wrote Thoreau in Walden, "to one striking at the root." We need souls like Schultz to be that one, striking at the root, if the efforts of the thousands are ever to have an effect.

 
 
 

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07:56 AM on 09/04/2011
Corporatism is the new Colonialism.
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HUFFPOST SUPER USER
Joel Ford
Whose truth?
01:04 PM on 08/29/2011
This was our inevitable destiny though. Horrifying, yes, but it isn't like this snuck up on us.

There should be no money in politics, especially on the campaign. Campaign advertising should be illegal. Only debates and speeches should be shown in public media, with all available information being completely dry and straightforward. Candidates' statements should be rigorously reviewed and held up to to the light of fact and research. This is about the only way I can imagine weeding out the people who desire power from the people who deserve power.
12:27 PM on 08/28/2011
The going Robber Baron Bribe Rates (RBBR's) in the U.S. Congress have reached historic levels compliments of all those historically high corporate profits and tax breaks, outsourcing and bailout money.
Since America's Orwellian World refuses to inform the people about those RBBR'S it is time the blogging world got busy spreading the word.
Here is an accurate breakdown of the U.S. Congress:
1. One third of the U.S. Congress has honest, hardworking, outstanding public servants and they do not sell their votes because they really believe they should be representing the best interests of the American people.
2. One third of the U.S. Congress has always been in the pay of the Robber Barons and can be bought cheap.
3. The other third are no dummies and know the going RBBR's on any vital issue and of course if you are a congressional or senate chairperson or any run of the mill Senator your vote always brings in the big buckies!!! and of course the promise of millions in income working for these Robber Barons after they leave the U.S. Congress is one of the best vote getters of all!!!
The Robber Barons know exactly how many U.S. Senators to bribe to keep the public option out of those health care bills (swindle bills) and prevent anything else they don't like from passing. Sad isn't it!!! and anyone who says America is still a Republic is either a liar, a fool or totally deceived.
09:28 AM on 08/28/2011
It seems to me that the founding father of the constitution took great pains to ensure checks and balances to make sure that they couldn't corrupt the federal govt. I am no historian and I am really talking off the top of my head but I think that is the difference between the federal govt. of the past and the one in the present.
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HUFFPOST SUPER USER
Richard Bartholomew
My micro-bio isn't empty.
09:00 AM on 08/26/2011
'... Fair Elections Now Act -- a bill that would give candidates the chance to opt out of special interest funding, and into a voluntary system that would limit campaign contributi­ons to $100, with each contributi­on matched 4 to 1 by the government­.'

I have a better idea Mr Lessing. How about we all stop mindlessly voting for candidates with flashy, expensive, and intensely vulgar (re)electi­on campaigns and start voting third party / independen­t who spend far, far less money on their campaigns. At bottom of it isn't the pols who are addicted to campaign finance money, it's the electorate who are addicted to fancy, gee-whiz, who-can-sp­end-the-mo­st-money campaigns.

Vote third-part­y or independen­t. Vote Libertaria­n.
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HUFFPOST SUPER USER
waltifarian
Quis custodiet ipsos custodes?
06:09 AM on 08/26/2011
How absurd -- offering up one example of Democrats acting badly. Folks like this author need to stop playing games and get real: 1) The Obama admin offered the GOPs basically all they wanted. Even Boehner, as reported on this blog, noted he got 98% of want he wanted. 2) Starbucks CEO is shrewdly doing what many do, hedging his bets so he can give to both parties when the time is right i.e. a clever marketing ploy. 3) Copping out is easy -- just mindlessly repeat the narrative: both sides are bad--that way you don't have to think, if only Obama had given the GOPsters all they wanted, compliantly, things would be good, ummm I mean bi-partisan, non? What a lie to say that both parties are equally responsible. Shame on those CEOs and the author of this blog post.

Perhaps HuffPO will find some guts and provide reportage on how one party has hijacjked US political journalism such that all they ever have to do is reflexively say "both sides are bad" while ignoring the reality that in fact only one party in this era is obstructionist and intransigent pretty much always. I hate 5bucks anyway, and can take or leave Whole Foods. So now I will refrain from patronizing either. Claiming that both sides are at fault is a myth, based on a poor grasp of simple fact and chronology.
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HUFFPOST SUPER USER
Skeptical Patriot
08:49 AM on 08/26/2011
Your very statement demonstrates your partisanship. I along with many are deeply frustrated with a political system that involves constant the calculus of re-election and politics to cloud legitimate decision making processes. You obviously don't like the GOP and seem to have a problem with business. Political Kabuki sets vote getting and power over the needs of our country. The President established his priorities when taking office and when Democrats controlled both houses. His pandering to the middle class is just as disingenuous as the Republicans no tax policy. Democrats demonize Republicans as heartless, coddlers of the rich for talking about entitlement reforms while the Republicans accuse Democrats of never seeing a tax that the didn't like and socializing the country. BTW, did you ever hear of anyone proposing to means test Medicare and SS as methods of entitlement reform and taxation instead of increase income and capital gains taxes? Of course not, it would mean going up against the AARP crowd.

Holding back financial support from both sides is likely not to work as too many people like yourself are dead set on getting their side to win and will continue to reward bad behavior of both parties by giving them money.
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HUFFPOST SUPER USER
mogluver
If you can pitch, you can catch.
09:20 AM on 08/26/2011
Faved, I agree...how can one get Congress to reform itself and move to public funding of elections? Looking at the flow of money into the presidential contest, it is clear that both Democrats and Republicans have started to curry dollars from the super pac groups, resulting in the status quo. Meanwhile nothing gets solved for the greater good.
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FilthyHarry
Expletive Deleted
10:54 PM on 08/25/2011
The one thing I've never understood about the money=speech argument is if that is true how come bribery illegal?
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robadeaux
Your labels have expired....
11:12 AM on 08/28/2011
One mans bribe is another mans lobbyists contribution
mikiao
Empty my micro-bio is.
02:33 PM on 08/28/2011
Bribery is only illegal if you're NOT a politician.
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HUFFPOST SUPER USER
aacme
My micro-bio is on a strict need-to-know basis.
10:38 PM on 08/25/2011
Those of us who aren't powerful can do things also. Do not contribute, work or vote for any candidate of any party who has not pledged to end money corruption in government.
Gather together a million like-minded souls and jam the halls of Congress permanently with people vowing to sit there until what was once quaintly called "bribery" is outlawed.
"Give a politician money, go to jail." That should be the goal.
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HUFFPOST SUPER USER
mogluver
If you can pitch, you can catch.
09:22 AM on 08/26/2011
Bribery can take the form of a "pledge." Those folks that agree to sign a pledge for "no taxes," or "marriage is between a man and a woman," are examples of out front "bribery."
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HUFFPOST SUPER USER
Richard Genco
10:13 PM on 08/25/2011
How about when the Health Care Bill was being pushed and some politicians said"no way, this is not good for the people but wait a minute, what did you say you will give me, okay, now it is good for the people" And were proud to stand up and say they got more then what was stated.
09:50 PM on 08/25/2011
I think men like Schultz should be commended and even put in office--because he understands what the real problem of this country is... He understands that politicians dont care about us and America anymore--its money money money--all coming in from the lobbyists -which should be called for what it really is and that is "BRIBERY" --just think what would happen to you if you gave money to an honest police offiicer to pursuade him to or not to do something...you would be in jail and fined for BRIBING a peace officer.....BUT NO ONE GOES AFTER THESE LOBBYISTS-- Why do we even have elections anymore? Our Congressmen dont represent us-ONLY BIG COMPANIES AND THE WEALTHY--- So when you see a rare bird come along and stand up for us the little guy--its Refreshing----
HUFFPOST SUPER USER
ThinkinPerson
07:34 PM on 08/25/2011
Wow, I am very impressed by these citizens and their pledges. Seriously, its very inspiring, and makes me certain to support their businesses. Its the kind of pledges to our country - not a party or ideology - that makes me want to jump up with such enthusiasm and excitement for the future.

I LOVE that he is withholding campaign contributions.

Seriously.

For all the complaining about not paying a cent more in taxes, instead, the money goes to humungus campaign contributions instead of our country.

I personally think all lobbying needs to stop. Our representatives don't even have time to read laws, and with so much POWER - like a teenager to a parent nagging for the car - these Lobbyists just drum their beat over and over and over until our representatives clearly lost touch with the rest of citizens who don't have a lobbyist.

I like the point the article makes about the pledge but sadly, these addicts may need instead some tough love until all lobbying is ended.

If Corporations are Citizens, let them write a letter to their representatives like everyone else.
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The Ben Bernanke
AMI (American Monetary Institute)
07:20 PM on 08/25/2011
We need real electoral reform in this country, including, but not limited to...

-Public financing of all campaigns
-Shortening the election campaign cycle
-Banning of television campaign advertisements
-Banning of of electronic voting machines (paper ballots)
-Removal of rules/laws that cause voter disenfranchisement...
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06:13 PM on 08/25/2011
How about we leave "addiction" out of these discussions.

Schultz's whine does not get to the root of anything. And he appears serious. I think Schultz is a real plus in american business, but this ain't it. He's simply doing a soft shoe.
05:50 PM on 08/25/2011
It seems to me that we've had a lot of campaign finance reform come and we still have a vast amount of money with its attendant influence in Government. We've continued over the years by trying to "shut off the faucet." Soft money, and other fund raising methods have simply bypassed the well-intended reforms.
I suggest that we get rid of the demand side, or at least control it. What if Congress enacted election laws, at least at the Federal Level that restricted Campaign SPENDING, to say, five times the annual salary of the position being sought.
The relatively severe funding strictures would require the candidate to spend the majority of his or her funding on travel. Debates would become critically important, along with meeting constituents. Candidates would HAVE to accept any interview opportunities, from whatever media would talk with them. Negative campaigning would be far to expensive, and the PAC attack ads would become just background noise. I'd support a rally that encompasses left, right and center for this, and I believe it is one thing that all voters could support. National and State Parties could be the source for the funds, but the candidates would be limited, by law, to a rational expenditure.
09:15 AM on 08/26/2011
Problem is the supreme court keeps throwing out campaign finance reform laws. A constitutional amendment is the ONLY way to fix the problem.
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05:29 PM on 08/25/2011
The pity is the horse race sells while the back story slumbers. Cable news flogs the obvious; personality slays process 24/7. "Who's Howard Schultz?" Who's Hermain Cain? He's that black pizza guy running for president.

We're chatting because Howard sells fine coffee rather than cheap shoes and toys. It's always about what sells. I agree with the professor.