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Obama Follows the Money

by Marty Goodman / July 2008

 
Presumed Democratic presidential candidate Barack Obama has retreated rapidly on promises to so-called Democratic Party progressives—the very ones he called upon, messiah-like, to believe in his message of "hope."


Obama-speak has it that his campaign is funded by "small donations," yet recent data reveals that Democrat Obama’s campaign is very much about big bucks. So far, Obama is leading fund raising on Wall Street and among the ruling rich, leaving Republican John McCain in the dust.


"No matter who wins in November, Wall Street will have a friend in the White House," said Massie Ritsch of the Center for Responsive Politics, sponsors of the award-winning website, Opensecrets. org, which tracks election funding. Despite legitimate pride at the prospect of electing the first African-American president, it’s hopeless to believe that Obama or any other representative of his party can bring meaningful change.


The twin parties of capital, Republicans and Democrats, do face a crisis of "hope." Even at the beginning of Bill Clinton’s term in 1992, polls showed that 36 percent thought Bubba usually didn’t tell the truth. A September 2007 Gallup poll found that only 55 percent trusted those in public office.


And why should people trust them? Both parties are run by small financial elites, far removed from the impact of the decades-long attack on living standards and the impact of the current economic crisis on working people. A look at where Obama is getting his funding makes clear the reasons for the crisis of "hope" at the heart of his pitch.


The Obama campaign claims that 93% of all campaign donations are under $200. However, current data on the Opensecrets.org website reveal that only 47% of total contributions to Obama are under $200. A full 33% of donations are over $1000—and many, way over.  That means corporate wealth will dominate an Obama administration, much as in a McCain White House.


In this capitalist pay-to-play democracy, a record $2.79 billion was spent on lobbying candidates throughout 2007, an increase of 7.7 percent, or $200 million, over spending in 2006.


This year, Obama set an individual fund-raising record, collecting nearly $300 million, far more than his war-crazed opponent McCain, who raised $119.5 million as of the end of June. The two candidates are expected to spend about $1 billion through November, a vast sum that is an insult to any notion of democracy.


So far, Wall Street investment and banking firms have contributed a whopping $9.5 million to Obama— close to twice as much as the $5.3 million they have given McCain. After clinching the nomination, Obama’s financial roll has accelerated. So far, Obama’s Wall Street haul is second only to George Bush’s record $10.8 million in 2004.


Four out of five of Obama’s biggest contributors are employees of top Wall Street corporations: Goldman Sachs ($571,000), UBS AG ($364,000), JP Morgan Chase ($362,207), and Citigroup ($358,054).  McCain’s big Wall Street pals are Merrill Lynch ($230,310) and Citigroup ($219,551).


In individual contributions of $2300 or more, and in the $4600 category, the federal maximum for individuals, Obama is leading McCain. By adding the number of contributions of the lower amount, using $2300 as an average, and adding the $4600 contributions, Obama raised over $80 million among big contributors as opposed to over $56 million for McCain.


Obama’s lock on corporate America is solid. So far, Obama has stomped his opponent by raising substantially more than Republicans from commercial banks, financial and investment securities firms, the health-care industry, hedge funds, real estate, and the TV/movies and music industries. The largest Obama cash cows are lawyers and law firms, who gave Obama $18.77 million as opposed to just over $6 million to McCain.
On the Republican side, McCain has maintained Republican domination of agribusiness, oil and gas, and transportation.


The Obama campaign has made big inroads among the yuppie capitalists of Silicon Valley , whose internet savvy enabled Obama to rake-in $45 million in February alone. On its own, the computer and electronics industry raised a total of $10.8 million for Obama as opposed to $2.69 million for McCain. And in the "miscellaneous business" category, Obama slammed McCain almost two to one.


The Obama campaign is sponsoring dinners with the candidate, many with a $28,500 per plate snob appeal, the maximum contribution allowed for the national Democratic and Republican Party apparatuses. One New York City host, a former Hillary Clinton booster, charged an obscene $33,100 per plate.


Chasing even bigger amounts are "bundlers," who collect a large number of checks, usually from the affluent, totaling far above the limit on individual donations. These high rollers can collect as much as $250,000 or more, focusing on wealthy political cliques. One Hillary Clinton supporter, Norman Hsu, collected $800,000 before being accused of fraud. 


Obama’s 328 bundlers have brought in $31.65 million, about 11.9% of his total, says the Center for Responsive Politics.


Fourteen of Obama’s bundlers are actually lobbyists—a group Obama condemned in campaign speeches—reports Public Citizen, a nonprofit organization founded by Ralph Nader. Rival John McCain, says Public Citizen, has 70 lobbyists working as bundlers.
Despite campaign rhetoric by McCain and Obama about transparency, both withheld many names of their bundlers. Eight watchdog organizations, including Common Cause and The League of Women Voters, asked the candidates to reveal missing names.


Meanwhile, the AFL-CIO, who refused to back a candidate during the primaries, announced in June that it will spend $50 million of its members’ dues and deploy more than 250,000 workers in support of Obama. John Sweeney, AFL-CIO president, called Obama, "a champion for working families." The "Change to Win" coalition of trade unions, an AFL-CIO split-off, has also endorsed Obama.


Given Obama’s hold on Wall Street and the subservience of the labor bureaucracy to the Democratic Party, you can imagine how likely are Obama’s promises to unions or his promises to tax corporate capital gains—a huge tax write-off for the rich—or enact any meaningful progressive tax.


The deepening crisis on Wall Street means working people can expect from either candidate continued assaults on living standards and job security, a prolonged war for oil, and attacks on immigrant rights.


Betrayal.com


Obama supporters are reeling with the speed at which he is pulling the rug out from his so-called "progressive agenda." Obama’s supporters were shocked when he cast aside promises to abide by federal campaign funding—a democratic reform that would level the field somewhat during elections. But, Obama’s betrayals didn’t stop there. Here’s the short list of recent betrayals:


"Antiwar" Obama has refused to promise removing all troops from Iraq by the end of his term and will intensify the war on Afghanistan, while threatening new wars on Iran and Pakistan. He supported every war-funding bill in Congress.


Obama backed a Senate bill that gave immunity to telephone companies who tapped phones on orders from the Bush administration without demanding a warrant. He promised CIA-backed Cuban counter-revolutionaries that he would maintain the illegal U.S. trade embargo on Cuba and work to destabilize the revolutionary government. He promised massive military aid to apartheid Israel and threatened Palestinians (see Socialist Action, June 2008).


Obama encouraged government funding of church programs, eroding church and state boundaries, not unlike Bush. To get votes, Obama criticized the NAFTA "free-trade" treaty, which meant the loss of hundreds of thousands of U.S. and Mexican jobs and farms, yet Obama recently voted for a NAFTA-like agreement with Peru.


As a supporter of the racist death penalty, he criticized a recent Supreme Court ruling limiting the death penalty in rape cases. And Obama refused to call for a moratorium on mortgage foreclosures.


Perhaps the unkindest cut of all was Obama’s Clinton-esque "Sister Souljah" moments, in reference to the rapper Bill Clinton had attacked to reassure racist whites that he was on their side. Obama dissed his life-long pastor, Jeremiah White, for the reverend’s mostly on-target indictments of racism and U.S. imperialism. But spared Obama’s criticism was McCain’s anti-Semitic pastor, the Rev. John Hagee.


And earning squeals of delight from the corporate media, Obama went on to blame Black men, not racism, for conditions in the Black community.


Obama’s betrayals of the African-American community were so raw that the Rev. Jesse Jackson said in what he thought was an off-camera remark, "I’d like to cut his nuts out." Despite the loyal Democrat Jackson’s cowering apology to his capitalist masters, the U.S. rulers used the "scandal" to ram home the message of a "generation gap" between "out of touch" civil rights leaders and a "new breed" of capitalist politicians like Obama. To underscore the point, the New York Daily News called Jackson a "relic."


Ruling-class spokespersons are tirelessly using Obama to fool working people into believing that we’ve entered a new race-less society. Hardly. The Black community suffers double-digit urban unemployment, poverty, poor housing, underfunded schools, and police brutality—like the cop-murder of Sean Bell in New York and the police frame-up of journalist and former Black Panther Mumia Abu-Jamal.


The decades-long economic offensive against all working people, deepened in today’s economic crisis, is hitting the African-American community doubly hard. It is time for renewed struggle, not another retreat into the Democratic Party, the graveyard of social struggles.


Obama’s past and present demonstrates the impossibility of reforming the Democratic Party. The bosses have their own party. Working people need a party of their own—a labor party!

 

Human Needs, Not Profits!