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Money talks in mid-term elections

One of the biggest players in the upcoming mid-term elections on November 2? Corporate donations.

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3 min read

Published

Updated

By Matthew Hall

Source: SBS


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Much right-wing opposition to Obama's Presidency and Democrat Congress control is based around "big government" and therefore high taxes.

But after a Supreme Court ruling in January allowed unlimited campaign spending by corporations and interest groups there is, apparently, no problem in selling out government to corporations.

According to the New York Times, the United States Chamber Of Commerce, essentially a lobby group, received a $2 million donation last year from Prudential Financial in time for an advertising campaign by the organisation against financial regulation.

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Industrial giant Dow Chemical similarly gave $1.7 million to the Chamber last year, coinciding with a campaign against proposed rules to impose tighter security requirements on chemical facilities.

Goldman Sachs, Chevron Texaco, and Aegon, a multinational insurance company based in Holland, gave more than $8 million to the Chamber of Commerce, critical of federal regulation and spending.

None of those donations were publicly disclosed – as allowed by law – but demonstrate the role played by business and lobby groups in campaigning.

The Chamber of Commerce was also active in opposing health care reform – health insurance providers anonymously donated at least $10 million to the organisation last year, according to the New York Times report.

Rupert Murdoch's News Corporation, which owns the right wing Fox News cable channel, also gave $1 million to the Chamber of Commerce.

Some critics have accused the organisation, which supports Republican candidates more than 90 per cent of the time, of using foreign funds to influence the election, which is illegal under US law.

But, as nearly always, there's a twist.

While combined donations to Republican causes may outspend Democrats, the biggest single non-party benefactor in the 2010 elections is the American Federation of State, County and Municipal Employees.

Essentially a national union of public servants, the $1.6 million-member organisation is spending $87.5 million on the elections to counter Republican campaigns, including efforts by the Chamber of Commerce.

Federal funding protected public sector layoffs during the economic downturn and Republicans are unlikely to support continuing those policies if they take control of Congress next week.

"We're the big dog," Larry Scanlon, the head of AFSCME's political operations, told the Wall Street Journal. "But we don't like to brag."

Except maybe behind closed doors next week if the Democrats hold their line.


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