While people were focused on the fact that CBS allowed a pro-life advocacy ad by Focus on the Family to play during the Super Bowl, another one by a right-wing group slipped in unnoticed: a “Defeat the Debt” ad showing schoolchildren pledging allegiance “to America’s debt, and to the Chinese government that lends us money.” Watch it:
This ad has run on other national networks and is part of a campaign by the Employment Policies Institute (EPI) that has featured full-page ads in national newspapers and a billboard in Times Square. EPI is a project of right-wing, pro-business lobbyist Rick Berman, also known as “Dr. Evil.” Berman is “one of Washington’s most notorious PR operatives,” who uses his firm, Berman and Company, to fund non-profit front groups for his clients.
Over the years, Berman has gone after Mothers Against Drunk Driving, PETA, and right-wing bogeyman ACORN, and tried to convince Americans that healthier foods, raising the minimum wage, stopping smoking, getting rid of mercury in fish, and unions are bad for them. Berman refuses to reveal his clients, although in 2007, CBS’s 60 Minutes revealed that they included Coca-Cola, Tyson Chicken, Outback Steakhouse, and Wendy’s. According to the watchdog group CREW, Berman “runs at least 22 industry-funded projects, such as the Center for Union Facts, and holds 23 “positions” within these various entities.” Watch Rachel Maddow’s November 2009 report on Berman:
The New York Times reported that EPI, “a conservative research group with close ties to business,” launched its campaign last fall and planned to spend approximately $5 million.
Until recently, CBS and other networks said they had a policy against airing advocacy ads during the Super Bowl. In the past, ads by groups such as MoveOn.org, the United Church of Christ, and the pro-marriage equality group GetToKnowUsFirst.org were rejected (even though networks have selectively decided to air other advocacy ads). This year, CBS controversially decided to accept a pro-life ad from Focus on the Family, saying that it had changed its policy and was willing to accept appropriate advocacy ads.

Frank Luntz
The new memo instructs opponents of financial reform to simply lie about reform legislation, and to twist economic anxiety resulting from the recession into fear of any government effort to fix the underlying cause of the financial crisis. The most dishonest argument is that financial reform would “punish” taxpayers while rewarding “big banks and credit card companies.” In reality, top financial industry lobbyists are not only fighting proposed oversight regulations, but have said recently that they are opposed to “any regulation” at all.
Luntz, ever the publicity hound, leaks his memos out to the media to claim credit for the Republican charge against reforming Wall Street. While he is certainly a driving force behind much of the GOP misinformation, a closer look at his client list reveals that he is in fact being paid by the finance industry:
– Luntz client Ameriquest Mortgages: The proposed Consumer Financial Protection Agency (CFPA) would eliminate predatory mortgages. Ameriquest, America’s “sub-prime leader,” has been prosecuted by Attorney General Richard Blumenthal for inflating property values so borrowers could get bigger loans, imposing upfront fees without reducing interest rates as promised, and intentionally deceiving lenders with hidden penalties and interest rates on final loan documents.
– Luntz clients Merrill Lynch and Bear Stearns: Under proposed financial reform, big banks, like Luntz clients Merrill Lynch and Bear Stearns, would face a new structure designed to police financial products, prohibit predatory ones, and require clear forms and disclosures. The CFPA would also help regulate hidden bank fees and other bank abuses.
– Luntz client American Express: The CFPA would regulate the credit card industry, preventing predatory interest rates and fees.
Nearly every attack recommended by Luntz is not grounded in reality. For instance, he calls for opponents of reform to label a CFPA head an “unaccountable” “czar.” But the legislation clearly states that the CFPA’s Director would be appointed by the President, and then confirmed by the Senate. Luntz also charges that reform advocates are behind “lobbyist loopholes” in the bill. However, the most controversial loophole was inserted by Rep. John Campbell (R-CA), whose amendment allows an exemption for auto dealers. Of course, Campbell still tried to kill financial reform once it arrived on the House floor.
Confusing the public is the point of Luntz’s work. In an interview explaining his smears against health reform, Luntz told the New York Times last year that it did not matter what the actual policy offered — he would still call it a “Washington takeover.”
In 2005, Jamie Leigh Jones was gang-raped by her co-workers while she was working for Halliburton/KBR in Baghdad. The attack occurred while she was out with a “small group of Halliburton firefighters,” just four days after her arrival in Iraq. After taking a few sips of her drink, she later woke up in the barracks, “naked” and “severely beaten.” Her “breasts were so badly mauled that she is permanently disfigured.”
In an apparent attempt to cover up the incident, the company then put her in a shipping container for at least 24 hours without food, water, or a bed, and “warned her that if she left Iraq for medical treatment, she’d be out of a job.” Even more insultingly, the DOJ resisted bringing any criminal charges in the matter.
Jones tried to sue the company for failing to protect her, but KBR argued that Jones’ employment contract — created for the company under the tenure of then-CEO Dick Cheney — warranted her claims being heard in private arbitration, without jury, judge, public record, or transcript of the proceedings. Basically, KBR argued that Jones’ brutal rape was a workplace injury — nothing more. But in September, the 5th Circuit Court of Appeals ruled in favor of Jones. “Jones’ allegations do not ‘touch matters’ related to her employment, let alone have a ’significant relationship’ to her employment contract,” wrote the court.
KBR is now petitioning the Supreme Court to reverse the ruling. The contractor is personally going after Jones’ integrity to argue that she shouldn’t have a fair and open hearing. Stephanie Mencimer from Mother Jones reports:
On Jan. 19, it petitioned the Supreme Court to overturn the 5th Circuit Court of Appeals decision allowing Jones to press her case in a civil court rather than in arbitration. Among its many arguments in favor of a high court hearing: that Jones is a relentless self-promoter who has “sensationalize[d] her allegations against the KBR Defendants in the media, before the courts, and before Congress.” … KBR also suggests that much of Jones’ story is fabricated. The company says in a footnote, “Many, if not all, of her allegations against the KBR Defenandants are demonstrably false. The KBR Defendants intend to vigorously contest Jones’s allegations and show that her claims against the KBR Defendants are factually and legally untenable.”
The Department of Defense Appropriations Act, 2010 signed into law by President Obama in December contained an amendment by Sen. Al Franken (D-MN) — inspired by Jones’ story — that prohibits defense contractors from restricting their employees’ abilities to take workplace discrimination, battery, and sexual assault cases to court. Mencimer notes that in its petition, KBR is “clearly miffed about the Franken Amendment, which it credits Jones with getting passed.”
Today’s Supreme Court ruling that opens the floodgates to unprecedented political spending by corporations is another major victory for the corporate lobbying giant — the U.S. Chamber of Commerce.
In July, the organization declared its support for Citizens United in an amicus brief arguing that there is “no basis for restricting its core First Amendment right to engage in independent electoral advocacy.” In spite of the fact that the U.S. Chamber has topped lobbying spending year after year, the group had the gall to complain to the Supreme Court that its voice is being “suppressed”:
In particular, the electoral advocacy of the Chamber – a not-for-profit corporation – and of millions of its corporate members has been suppressed. This has occurred even though 96% of Chamber members are businesses with fewer than 100 employees, far from the immense aggregations of wealth hypothesized in Austin. Suppression has been imposed even when candidates have directly attacked business interests and when corporations have unique and valuable insight into the likely consequences of electing or defeating particular candidates. Although this Court has protected the ability of corporations to discuss “issues,” that is no substitute for direct and explicit speech about candidates.
After complaining about its influence being “suppressed,” the Chamber just disclosed that it spent a whopping $123 million to influence federal policy in 2009. Of all the corporations and associations spending money in D.C., the U.S. Chamber tops them all. The Chamber admitted to Roll Call that it was not “suppressed,” but rather, was “active in all of the major debates”:
“It shouldn’t come as a shock to anyone because it was an incredibly active year for the president and the economy,” said Tita Freeman, a chamber spokeswoman. “Hence the chamber was active in all of the major debates that impacted the economy and business community.”
Freeman said the big spike in spending in the fourth quarter was due largely to health care, including issue ads, meetings and letter-writing campaigns.
Aside from health care, the chamber listed a slew of other lobbying issues, including energy and climate change legislation, endangered species regulatory processes, executive compensation and travel promotion.
The Chamber isn’t happy with simply influencing Congress and the administration. It wants more — specifically, the opportunity to purchase its own fleet of friendly lawmakers.
As many federal lawmakers and the Obama administration push for cap-and-trade legislation, health care reform, regulatory reform, and corporate tax reform, the U.S. Chamber stands as the most well-funded opposition to progressive change. The group spent $10-$20 million of insurance-industry-provided cash on fighting reform. After Scott Brown’s victory in Massachusetts, the Chamber was quick to congratulate itself for running television ads in support of the candidate.
Between Brown’s election victory and the Supreme Court ruling, the most anti-reform corporations in the country are circling their wagons and their wallets around the U.S. Chamber and its fight to increase corporate influence in American politics at the expense of the average American. Today’s Citizens United ruling is a gift by the court’s conservative justices to their efforts.

Saudi Arabian oil field
– Nigeria’s Bayelsa State, the region of the country producing much of its crude oil, is registered with the Carmen Group as its representative in DC. (Update: The Carmen Group later informed ThinkProgress that it no longer represents Nigeria.) The Carmen Group
is run largely byemploys lobbyist David Keene as a Managing Associate, who also manages the American Conservative Union. (Update: The Carmen Group’s Managing Director Richard Masterson tells ThinkProgress that Keene “does not work for any energy-related interest at the Carmen Group.”) Keene has lobbied against clean energy reform and used his conservative organization to generate “grassroots” opposition to legislative efforts to move away from a fossil fuel based economy. Although the extent to which the Carmen Group “provide[s] general representation before the United States Congress” is unclear — as Justice Department disclosures indicate — the Nigerian state has lavished Carmen group lobbyists with $903,450 in payments since 2006. According to a report produced Monday by the State Department, Nigeria is at risk of becoming a haven for terror and extremism. In the past, Keene, the coordinator of the CPAC convention, has been caught auctioning off conservative grassroots support to his corporate lobbying clients for as much as $2 million dollars.– The lobbyist-run front group Americans for Prosperity is perhaps the most active anti-clean energy group in the country. In addition to working furiously to orchestrate anti-clean energy themed tea parties, Americans for Prosperity is running anti-clean energy legislation ads, anti-climate change science ads, and is even barnstorming around the country with anti-clean energy “hot air” rallies. The organization was founded and is bankrolled by David Koch of Koch Industries, a major refiner of oil. Through Koch Industry subsidiaries — Koch Supply & Trading and Flint Hills Resources — Koch imports crude oil and unfinished oils from a variety of foreign sources, including from Saudi Arabia and Nigeria.
– Currently, FreedomWorks is focusing their energy activism on supporting the status quo reliance on fossil fuels. Throughout 2009, as FreedomWorks leader Dick Armey organized tea party opposition to clean energy reform, he simultaneously worked for the lobbying firm DLA Piper on the account of Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister of the United Arab Emirates. According to disclosure forms filed with the Justice Department, the UAE paid Armey’s lobbying firm at the time to help maintain the “development of UAE energy resources, which represent about 10 percent of global oil reserves.”
– Oil companies have attempted to demonstrate popular support for fossil-fuel dependence by hosting “Energy Citizen” rallies around the country, where employees of oil companies are bused in for large events. The “Energy Citizen” website claims that converting a clean energy economy would mean “less energy independence.” Ironically, the main sponsor of the Energy Citizen effort is the American Petroleum Institute, which is a trade association for companies like Chevron, Exxon Mobil, and Sunoco. These companies, in turn, are highly dependent on foreign oil imports — from countries including Algeria, Nigeria, Saudi Arabia, Libya, and Venezuela. For perspective, Exxon Mobil imports 27%, Valero 29%, and Chevron 36% of its oil from Persian Gulf countries alone.
As a report by Rudy deLeon and Dan Weiss has argued, “America’s dependence on foreign oil transfers U.S. dollars to a number of unfriendly regimes, while robbing the United States of the economic resources it desperately needs for domestic development and American innovation.” It is alarming, though, that American lobbyists — funded by foreign oil — are working furiously to continue the status quo that is putting the nation’s security at risk.
Last September, ThinkProgress reported that, despite its public support for health care reform, the insurance industry was engaged in a “duplicitous” campaign to undermine the effort. Now the National Journal has confirmed that from September to December 2009, “six of the nation’s biggest health insurers began quietly pumping big money into third-party television ads aimed at killing or significantly modifying the major health reform bills moving through Congress.” The companies used America’s Health Insurance Plans — the lobbying arm of the insurance industry — “as a conduit to avoid a repeat of the political flack that hit the insurance industry after it famously ran its multi-million dollar ‘Harry and Louise’ ads to help kill health care reforms during the Clinton administration”:
That money, between $10 million and $20 million, came from Aetna, Cigna, Humana, Kaiser Foundation Health Plans, UnitedHealth Group and Wellpoint, according to two health care lobbyists familiar with the transactions. The companies are all members of the powerful trade group America’s Health Insurance Plans. The funds were solicited by AHIP and funneled to the U.S. Chamber of Commerce to help underwrite tens of millions of dollars of television ads by two business coalitions set up and subsidized by the chamber. Each insurer kicked in at least $1 million and some gave multi-million dollar donations.
Watch a compilation of some of these ads:
The industry’s covert ad campaign isn’t the industry’s only means of wasting millions of premium dollars on sabotaging reform. As former health insurance executive Wendell Potter told ThinkProgress, insurers are using a variety of front groups to advance a hidden attack campaign. The industry regularly feeds talking points to right-wing media like Rush Limbaugh and Fox News, mobilizes anti-reform “grassroots” groups and coordinates with conservative think-tanks to produce academic-appearing reports to advance their cause.
The insurance industry has also funded state efforts to challenge the constitutionality of health reform. Insurers have “spent heavily on political contributions” in the 14 states seeking to ratify constitutional amendments that would repeal all or parts of the new measure and contributed thousands of dollars to the attorneys generals seeking to disqualify reform. Earlier this month, Lee Fang reported that Blue Cross Blue Shield Association “played a pivotal role in crafting this anti-health reform states’ rights initiative.”
National Journal’s report should be the last nail in the coffin of AHIP’s public charm campaign. Throughout the health care debate, AHIP President and CEO Karen Ignagni repeatedly reassured the public that insurers were committed to health care reform and even produced a plan for reforming the system. “We understand that we have to earn a seat at the table,” Ignagni told Obama during the White House Health Summit in March 2009. “You have our commitment to play, to contribute, and to help pass health care reform this year,” she promised.
Even after the industry sponsored several reports criticizing reform legislation, AHIP always reiterated the insurance industry’s “commitment” to reforming the health system. “We don’t want to let Americans down. It’s very important. We promised that we are committed to this. Our industry is for-square behind it, but we have an obligation to explain how to make that happen,” Ignagni told Congress in October, as her industry was donating millions of dollars to defeat reform. In fact, insurers have long been dues-paying members of the Chamber. AETNA has given $100,000 to the Chamber, while Unitedhealth Group payed at least $20,000.
Cross-posted at the Wonk Room.
On Saturday, the New York Times reported that the “bank bonus season” that begins this week “will be one of the largest and most controversial blowouts the industry has ever seen.” “Despite calls for restraint from Washington and a chafed public, resurgent banks are preparing to pay out bonuses that rival those of the boom years. The haul, in cash and stock, will run into many billions of dollars,” reported the Times.
The reality that banks aren’t “taking immediate steps to reduce bonuses substantially” led former Citigroup CEO John Reed to slam the banks for learning nothing from the financial crisis:
Even some industry veterans warn that such paydays could further tarnish the financial industry’s sullied reputation. John S. Reed, a founder of Citigroup, said Wall Street would not fully regain the public’s trust until banks scaled back bonuses for good — something that, to many, seems a distant prospect.
“There is nothing I’ve seen that gives me the slightest feeling that these people have learned anything from the crisis,” Mr. Reed said. “They just don’t get it. They are off in a different world.”
But some prominent New Yorkers are defending Wall Street’s compensation packages. On Don Imus’ radio show this morning, former New York City mayor Rudy Giuliani declared that from his point of view giant Wall Street bonuses are “wonderful”:
GIULIANI: I have to tell you. You’re going to get annoyed. I have a different view of bonuses than you do.
IMUS: Ok.
GIULIANI: And this comes from my experience as mayor of New York. They balance my budget. They were wonderful from the point of view of getting the money you need to run New York City. Particularly when they were paid in cash rather than stock because in stock you don’t get the benefit until somebody sells the stock. And but when they get it in cash, all of a sudden a deficit can turn into a surplus. So, I mean, I have somewhat of a warped view of this because it used to help me balance by big 30, 40 billion dollar budget.
Giuliani added that the big banks “should do a better job of explaining their compensation system and they should do a better job of explaining what they contribute, which is really the life blood that makes our economy work.” Watch it:
This isn’t the first time Giuliani has made this argument. About this time last year, he defended Wall Streets practices by saying that “one of the ways in which you determined New York City’s budget, tax revenues, was Wall Street bonuses.” He added that it has “a reverse effect on the economy, if you somehow take that bonus out of the economy. It really will create unemployment.”
As the Wonk Room’s Pat Garofalo has pointed out but Giuliani neglects to mention, “the banks are returning to huge paydays when their profits have come courtesy of the government programs that kept them from collapsing.” “Investment firms should be looking at ways to alter their pay packages to appropriately acknowledge how they were able to make so much money,” writes Garofalo.
Since Democrats secured 60 votes to pass health care reform legislation — and passage became inevitable — prominent conservatives relaunched an under-the-radar campaign to invalidate reform through the legal system. On the eve of the final health care vote in the Senate, Sens. Jim DeMint (R-SC) and John Ensign (R-NV) invoked a “constitutional point of order” to allow the Senate to rule by majority vote on whether the “Democrat health care takeover bill” is unconstitutional. Legislatures in approximately 14 states — organized by the American Legislative Exchange Council (ALEC), a “business-friendly conservative group that coordinates activity among statehouses — have also introduced initiatives to ratify constitutional amendments that would repeal all or parts of the pending health care reform legislation, and Attorney Generals in at least 13 states are challenging a deal secured by Sen. Ben Nelson (D-NE) to fund Nebraska’s Medicaid expansion for perpetuity.
In a letter to House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV), the attorneys generals from South Carolina, Washington, Michigan, Texas, Colorado, Alabama, North Dakota, Virginia, Pennsylvania, Utah, Florida, Idaho and South Dakota “wrote that they consider the [Nebraska] provision ‘constitutionally flawed’ and demanded that it be stricken from the final bill.”
Yesterday, Sen. Orrin Hatch (R-UT) penned an op-ed in the Wall Street Journal explaining “Why the Health-Care Bills Are Unconstitutional.” “The policy issues may be coming to an end, but the legal issues are certain to continue because key provisions of this dangerous legislation are unconstitutional,” he wrote, and went on to challenge the constitutionality of the individual mandate, the so-called sweet heart deal for Nebraska, and the requirements for states to establish health insurance exchanges and insurance regulations.
The effort may prove a strong political organizing tool for conservative activists, but the legal reasoning has little support beyond the right fringe of the Republican party and the health care industry. Several weeks ago, the New York Times reported, “The states where the [constitutional] amendment has been introduced are also places where the health care industry has spent heavily on political contributions.” The industry has also contributed heavily to the campaigns of at least 7 of the 13 attorney generals threatening to sue the federal government over the Nebraska provision. (Campaign finance data was not readily accessible for the other 6 attorneys generals.)
An analysis conducted by the Wonk Room of available campaign finance disclosures for AGs from South Carolina, Washington, Michigan, North Dakota, Pennsylvania, Utah and Idaho reveals that the health industry contributed heavily to their campaigns. For instance, Pennsylvania Attorney General Tom Corbett (who is also running for Governor) accepted some $24,300 from the health care industry for his campaigns, including $10,300 from Pfizer PAC, $3,500 from Aetna Inc. PAC, and $2,500 from United Health Group Inc. Read the full analysis here.
As Congress prepares to pass the final health care reform legislation early next year, health care lobbyists are mobilizing legislatures in approximately 14 states to ratify constitutional amendments that would repeal all or parts of the new measure. “The states where the amendment has been introduced are also places where the health care industry has spent heavily on political contributions,” the New York Times notes:
Over the last six years, health care interests have spent $394 million on contributions in states around the country; about $73 million of that went to those 14 states. Of that, health insurance companies spent $18.2 million.
Overall, at least 21 states have indicated a desire to opt out of federal health care reform or block fundamental features of the reform bill, including mandatory health coverage. While Arizona, is the only state legislature to place an opt-out measure on the 2010 ballot, a significant number of gubernatorial and state legislature candidates across the country have also said that they are strongly “leaning towards” opting out of reform.
Lawmakers in Wyoming, New Mexico, Montana, Kansas, Texas, Pennsylvania, Utah, Virginia, Arizona, Alabama, Michigan, Missouri, Ohio, West Virginia, Louisiana, Alaska, Minnesota, North Dakota, Georgia Illinois and Florida have introduced ballot measures to protect their states from reform legislation or promised to spearhead such efforts if reform is enacted.
While it’s unlikely that conservatives and their health care industry allies could repeal health care reform, (they are more likely to water-down certain elements of reform), a successful challenge would devastate the populations suffering from the most pronounced health care crisis. A back-of-the envelope analysis conducted by ThinkProgress suggests that on average, the repealing states have experienced very substantial premium increases, high rates of uninsurance and annual percent growth in health care expenditures and higher insurance market concentration:
- 42% (9 of 21): have an uninsurance rate higher than the national average of 15.4%.
- 62% (13 of 21): have an average annual percent growth in health care expenditures that his higher than the national average of 6.7%.- 62% (13 of 21): experienced premium increases of more than 75% between 2000 and 2007.
- 90% (19 of 21): are dominated by two insurers that control more than 50% of the health insurance market.
The effort to repeal health care reform “began at the conservative Goldwater Institute in Arizona” and was latter “picked up by the American Legislative Exchange Council [ALEC], a business-friendly conservative group that coordinates activity among statehouses.” As the New York Times points out, “five of the 24 members of its ‘free enterprise board’ are executives of drug companies and its health care ‘task force’ is overseen in part by a four-member panel composed of government-relations officials for the Blue Cross and Blue Shield Association of insurers, the medical company Johnson & Johnson and the drug makers Bayer and Hoffmann-La Roche.”
Earlier this month, Lee Fang reported that Joan Gardner, executive director of state services with the BCBS Association’s Office of Policy and Representation and a member of ALEC’s ‘task force’ “played a pivotal role in crafting this anti-health reform states’ rights initiative.”
In the New York Times today, Nobel Prize-winning economist Paul Krugman writes in defense of the Senate health care bill. “[F]or all its flaws and limitations, it’s a great achievement,” he says. “It will provide real, concrete help to tens of millions of Americans and greater security to everyone.” But the health insurance industry and business lobbyists weren’t quite as joyous in their reaction.
The Hill writes, “the health insurance industry expressed disappointed opposition…and big-business groups slammed the bill.” The Indianapolis Star adds, “The big losers, at the moment, seem to be insurers.” Here’s a sampling of their reactions:
– The health insurance lobby, America’s Health Insurance Plans (AHIP), criticized the Senate health care bill, arguing it would “increase, rather than decrease, health care costs; reduce coverage options; and disrupt existing coverage for families, seniors and small businesses.”
– The health insurance company Aetna complained that the bill “has not done enough on addressing costs,” and is lobbying for greater subsidies that — in the absence of a public plan — would help pay for more expensive private coverage.
– Bruce Josten, the executive vice president of the U.S. Chamber of Commerce, also criticized the bill, calling it “counterproductive” and argued “it is not reform.”
The Wall Street Journal reports that health-care stocks “fell after the Senate’s approval of the health bill.” Insurance giants “WellPoint, Humana and Aetna were among the health-care sector’s decliners Thursday. WellPoint dropped 1.3%, while Humana fell 1% and Aetna was also off 1%.”
Big insurers are still hoping to influence some language in the legislation before Congress sends it to the president. But one thing is clear: The initiative is poised to change their industry more than any other sector of the U.S. health-care system, with huge potential to disrupt profitability.
ThinkProgess has documented how the private health insurance industry is waging a duplicitous, “two-faced” campaign to kill health reform. Because the industry understands that the public views it in a largely negative light, the industry presents itself as proactively working hand-in-hand with legislators to produce reform. However, behind the scenes, the industry is coordinating a massive effort to kill all reform — employing attacks from front groups, allied politicians, think tanks, lobbyists, and right-wing media.
The Blue Cross Blue Shield Association, which is a lobbying group representing 39 independent Blue Cross and Blue Shield Plans, is also engaged in this two-faced campaign. Like most of industry, the BCBS Association says it fully supports the concept of health reform, but continually demands drastic changes to the bills in Congress. Some have begun to question the BCBS Association’s claim of support given its new study attacking reform legislation in the Senate. The criticism of BCBS is bolstered by a new revelation that BCBS Association lobbyists are helping to orchestrate a right-wing movement to invalidate all of health reform.
Yesterday, the BCBS Association released yet another industry-sponsored study to distort health reform and falsely claim that premiums will skyrocket because of the legislation. However, the nonpartisan CBO reported earlier this week that under the Senate health reform bill, “most Americans would pay the same or less in premiums.” A New York Times editorial yesterday criticized BCBS Association’s study, and noted correctly that it is yet another example of the private insurance industry doing whatever it can to frighten Americans.
But while the study certainly damages BCBS’ credibility, BCBS is involved in another anti-health reform ploy that they do not bother to promote on the BCBS website. The American Legislative Exchange Council (ALEC), founded in 1973 by conservative activist Paul Weyrich, is a DC-based front group which helps state lawmakers craft corporate-friendly legislation. As the Atlantic has noted, ALEC developed template health care “states’ rights,” legislation to declare aspects of health reform unconstitutional. ALEC has promoted this “tenther” legislation using its network of mostly far right Republican state lawmakers. The bills, which have been adopted in some form in 24 states so far, aim to invalidate federal regulations of health insurance, the public option and the individual mandate using the Tenther Amendment.
According to the ALEC website, the resolution was developed by a three member task force of industry representatives. One of the of the members is Joan Gardner, who is executive director of state services with the BCBS Association’s Office of Policy and Representation. In an interview with ThinkProgress, Christie Herrera, the director of ALEC’s health task force, confirmed that Gardner played a pivotal role in crafting this anti-health reform states’ rights initiative. Herrera told us that Gardner’s unique position at the BCBS Association brought “great knowledge” to the issue, and that Gardner voted to press forward with the campaign.
Part of the reason the BCBS Association has claimed that it opposes the reform bill in its current form is because of what it perceives as a weak individual mandate. However, the BCBS Association-supported ALEC campaign depicts the very notion of an individual mandate as “anti-freedom.” So either way the Senate acts, BCBS will be able to trash the bill and try to kill reform.
Private insurers have already been caught using a stealth lobbying firm to send employees to rowdy town halls (and radical tea party events), sharing lobbyists with slash-and-burn anti-health reform attack groups, and paying a number of conservative pundits who regularly appear in major media outlets to slam health reform. Now that it is clear that BCBS helped write the script for the radical tenther movement, any claim that the industry supports reform must be viewed with heightened skepticism.
In recent weeks, the U.S. Chamber of Commerce has been stepping up its campaign against health care reform, running ads in seven states fear-mongering that the public option will increase individual costs and threaten the system of employer-sponsored coverage. It has even been “collecting money to finance an economic study that could be used to portray the legislation as a job killer and threat to the nation’s economy.”
But on Thursday, Comcast, the nation’s largest cable provider, came out and endorsed the Senate health care legislation. CEO Brian Roberts sent a letter to President Obama saying that the “enactment of comprehensive health care reform legislation is, in my judgment, critical to putting this country on a path of sustained growth and prosperity.”
Later that day, a small group of bloggers met with Comcast Executive Vice President David Cohen, who discussed how important the company believes health care reform is to reinvigorating the economy. A Comcast spokesperson confirmed to ThinkProgress that the company is an annual contributor to the Chamber, but not a member of the board of directors. It is also active on a number of working groups, such as Technology and Regulatory Affairs, and a supporter of a recent broadband study commissioned by the Chamber. At the meeting, Cohen made a specific point of noting that Comcast is not involved in the Chamber’s controversial anti-climate change legislation lobbying.
However, when we asked Cohen about what the Chamber is doing on health care, he said that Comcast clearly disagrees. But Cohen gave no indication that the company was thinking of discontinuing its dues, stating that the members and national organization are bound to have disagreements:
We’re entitled to have our own opinion, and I think it’s impossible for the U.S. Chamber of Commerce to only take positions that 100 percent of its members agree with 100 percent of the time. … But we clearly don’t agree on health care. There may be other things we agree on, but on health care, we clearly don’t agree. [...]
You just can’t let the perfect be the enemy of the very good. Nobody wrote that you have to solve this problem in one piece of legislation at one time.
The Chamber of Commerce did not respond to ThinkProgress’ requests for comment.
Corporate front groups and large business trade associations are funneling their resources into defeating health reform. Even though health reform will lower costs for small businesses and boost worker productivity economy-wide, it appears that corporate entities influenced by major polluters are hoping that the defeat of health care legislation will slow President Obama’s agenda and derail their true enemy: clean energy reform.
The West Virginia Chamber of Commerce, which is largely backed by the coal industry, candidly revealed this strategy in a letter released today to Sens. Jay Rockefeller (D-WV) and Robert Byrd (D-WV). The Chamber of Commerce demanded that the senators use “their clout and seniority” to obstruct the health reform debate until cap and trade legislation is taken off the table and the EPA is barred from regulating carbon dioxide as a pollutant. As Ken Ward of the Charleston Gazette noted, Rockefeller has already rejected a similar proposal of blocking health reform unless the EPA stops reviewing mountaintop removal permits. The coal lobby has also pressured West Virginia state legislators to pass resolutions opposing clean energy reform.
The coal industry’s selfish push to block health reform displays how little it cares about West Virginia and the communities where coal is burned for energy. Not only do 19 percent of West Virginians lack health insurance, but coal is literally killing people:
– The American Lung Association reports that there are 24,000 premature deaths every year due to coal power plant pollution. In addition, the ALA research estimates that coal pollution causes over 550,000 asthma attacks, 38,000 heart attacks and 12,000 hospital admissions.
– A report by Physicians for Social Responsibility found that coal combustion releases mercury, particulate matter, nitrogen oxides, sulfur dioxide, and dozens of other substances known to be hazardous to human health. These coal pollutants are associated with increased congestive heart failure, lung cancer, infant mortality, stunted lung development, and Ischemic stroke, among other diseases.
The national Chamber of Commerce is also fighting health reform tooth and nail. Like the West Virginia Chamber, the U.S. Chamber is dominated by coal and polluter interests and denies the science underpinning climate change. The U.S. Chamber’s extreme approached forced pro-clean energy companies Apple, Levi Strauss & Company, Mohawk Paper and the utilities Pacific Gas and Electric, Exelon and PNM Resources to resign from the Chamber. By killing both clean energy and health reform, U.S. Chamber President Tom Donohue may be hoping to protect his own wallet. Donohue sits on the board of a major coal industry player, Union Pacific.
Indeed, one of the most powerful corporate front groups, Americans for Prosperity, is focusing its efforts on defeating health reform. Although AFP is backed by oil industry giant David Koch, his ultimate goal of stopping clean energy appears to begin with stopping health reform.
The resistance to reforming our nation’s healthcare system has been fueled by entrenched corporate interests. Their deep pockets are funneling money into generating attack ads, funding lawmakers’ campaigns, and hiring lobbyists. These corporate interests are also funding various front groups to make up their own facts and scare the public.
Among the latest corporate front groups orchestrating a campaign of misinformation against health reform, ThinkProgress has learned, is an outfit called the “Center for Medicine in the Public Interest” (CMPI). CMPI was originally a project of the Pacific Research Institute, an older corporate front established in conjunction with Philip Morris to fabricate academic support for the tobacco industry. Some of CMPI’s recent attacks on health reform have included:
– CMPI produced a series of “US Policymaker” interviews about health reform featuring exclusively Republican lawmakers — such as Reps. Louie Gohmert (TX), Bob Inglis (SC), Jack Kingston (SC), Tom Price (GA), Joe Wilson (SC), Michele Bachmann (MN), Paul Ryan (WI); Sens. Jim DeMint (SC), Jim Bunning (KY), David Vitter (LA) — attacking health reform. CMPI also produced a series of videos mocking health reform and the public option.
– CMPI created various video games distorting health reform. They serve as gimmicks to recruit users to sign up for CMPI’s daily anti-reform talking points.
– CMPI launched a website called “Hands off my Health” showcasing the supposed horrors of universal healthcare programs in Canada and the UK. CMPI officials centered a media campaign around Shona Robertson-Holmes, claiming she had a brain tumor the Canadian system refused to treat. However, the Ottawa Citizen reported that CMPI has been exaggerating Holmes’ case, and that she in fact had a benign cyst.
– CMPI helped sponsor anti-Obama tea party protests.
– CMPI has subcontracted GOP consulting firm Political Media to develop a blizzard of online ads attacking health reform. In the weeks preceding the House vote on reform legislation, CMPI ran ads on sites like the Politico, DrudgeReport, WashingtonPost.com, WashingtonTimes.com with an animated sheep stating that the public option is a “baaaaaad idea.” CMPI plans to run many more ads as the Senate begins debate.
The head of CMPI, Peter Pitts — a former Bush administration FDA communications official and director of marketing at the Washington Times — has a long history of using his CMPI title to hawk the interests of corporate clients. The Bioethics Forum has noted that CMPI, which receives drug company money, aggressively defends almost any practice of the pharmaceutical industry. For instance, as Slate reported, Pitts appeared on an NPR special to downplay fears about the side effects of antidepressants like Prozac, but failed to disclose his position as a VP of the PR firm Manning Selvage & Lee, which at the time represented Eli Lilly Inc. (the maker of Prozac), GlaxoSmithKline, Pfizer.
In March of this year, Pitts became the head of international corporate PR firm Porter Novelli’s healthcare division. Despite the fact that CMPI’s latest 990 tax form states that Pitts spends 40 hours a week at CMPI, a representative from Porter Novelli told ThinkProgress that Pitts actually works on a day to day basis in his office at Porter Novelli. Asked about how the firm engages in the health reform debate, ThinkProgress was told by Porter Novelli that Pitts is “pretty much our voice.” Porter Novelli specializes in using social networking and other stealth marketing techniques to help drug companies avoid FDA regulations on marketing pharmaceutical products. Since Pitts joined Porter Novelli, CMPI has continued to shill for drug companies.
Although CMPI refused to tell ThinkProgress about its funders, Pitt’s firm Porter Novelli has a financial stake in blocking reform. Porter Novelli is a subsidiary of the global lobbying and communications giant Omnicom Group. Other Omnicom Group subsidiaries include Frank Luntz’s firm Luntz, Maslansky Strategic Research — which counts insurance companies like Blue Cross Blue Shield and the Health Insurance Plans of New York as clients — and Clark and Weinstock, a major lobbying firm representing healthcare clients like the health insurance company HealthNet.
Porter Novelli has also created front groups for the insurance industry in the past. In 1998, Porter Novelli managed the insurance industry’s “Health Benefits Coalition” group to kill the Patients Bill of Rights. As former insider Wendell Potter explained, Porter Novelli helped the industry form alliances with right-wing groups like the Family Research Council, the Christian Coalition, as well as conservative talk radio. Similar to how CMPI is currently working closely with tea party groups to attack “big government healthcare,” Porter Novelli developed a message that the Patients Bill of Rights was part of a “big government agenda” the “Democrat” party failed to pass 1994.
CMPI is among a constellation of mysterious corporate front groups attacking reform. As the Associated Press reported over the weekend, a secretive group called Americans for Quality and Affordable Healthcare has operatives placing anti-health reform columns, booking anti-reform pundits on talk radio, and organizing anti-reform panel discussions. AQAH also refuses to disclose its backers, but it is apparently being managed in part by the North Carolina law firm Moore & Van Allen.
The U.S. Chamber of Commerce, which purports to be “the voice of business,” is run by a Republican money machine. As the nation’s largest lobbying shop, the Chamber is spending millions of dollars from its corporate members against President Obama’s progressive agenda of health care, energy, and financial reform. The Chamber claims that the “board’s membership is as diverse as the nation’s business community itself,” but this is false. A ThinkProgress analysis of federal election contribution data compiled by the LittleSis project has found that the Chamber’s 116-member board of directors has given more than six times as much money to Republican candidates and committees ($4,741,747) as it has to Democrats ($778,282), with $1,074,697 flowing to corporate political action committees:
![]() |
| Source: Center for American Progress Action Fund, from Federal Election Commission data compiled by the LittleSis project of the Public Accountability Initiative. |
The top beneficiary of this outpouring of conservative cash is the Republican National Committee, which has received over ten times as much money from the Chamber’s board as the Democratic National Committee — $1,257,201 versus $102,950. Contributions went 4.5 to 1 for John McCain ($373,150) versus Barack Obama ($82,150).
![]() |
| Source: Center for American Progress Action Fund, from Federal Election Commission data compiled by the LittleSis project of the Public Accountability Initiative. |
Of the board’s 116 members, 96 have made major political contributions. Sixty-eight directly contributed to the campaigns of George W. Bush or John McCain. In contrast, only 27 gave to the campaigns of Al Gore, John Kerry, or Barack Obama. Forty-seven board members, including Chamber of Commerce president Tom Donohue, have contributed more than 90 percent to Republicans, averaging $74,634 in GOP contributions. Only seven members have contributed more than 90 percent to Democrats, averaging $3,529 to Democrats.
The political giving is dominated by leading Republican billionaire George Argyros, the Bush pioneer who served a disastrous term as the U.S. ambassador to Spain. Argyros is also one of the top backers of Newt Gingrich’s right-wing American Solutions for Winning the Future. The following visualization of Chamber of Commerce board member contributions is a sea of red surrounding a few small islands of blue. The size of each box is proportional to amount of total contributions per person, with the shading indicating percentage of Republican versus Democratic contributions:
![]() |
| Source: Center for American Progress Action Fund, from Federal Election Commission data compiled by the LittleSis project of the Public Accountability Initiative. |
Cross-posted at the Wonk Room.
One of the worst abuses in the international labor markets is the use of child labor. The most recent report on the issue by the International Labor Organization found that as of 2004 more than 218 million children were engaged in illegal work, as defined by international treaties. It’s estimated that 126 million of these children were engaged in hazardous work such as “mining or handling chemicals.”
In order to combat the issue, the Senate Finance Committee has included sections in S.1631, the Customs Facilitation and Trade Enforcement Reauthorization Act of 2009, that would ban the importation of goods made “with convict labor, forced labor, or indentured labor under penal sanctions.” Such a measure by the world’s largest importer would strike a crucial blow against the use of child and slave labor.
Business groups and their lobbyists, however, are not taking kindly to the measures. The D.C.-based business newsletter “Inside U.S. Trade” reports that business groups are “worried” about the effects of such a provision, and they expect to see industry lobbyists and foreign governments profiting from child labor to form an “ad hoc” coalition to oppose it:
Business groups are worried by the potential effects of provisions banning the import of all goods made with convict labor, forced labor, or forced or indentured child labor that were included in a customs bill sponsored by Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA)
Business sources say this reporting requirement could cause DHS to more actively seek out imported products made with child labor, forced labor or convict labor. [...]
Sources conceded that this was a sensitive issue because industry groups do not want to be seen as opposing strict measures guarding against human rights abuses. However, one source did expect a push from lobbyists closer to the finance committee mark-up of the bill, and speculated that U.S. industry groups and foreign governments could form ad hoc coalitions to help send a united message.
MSNBC host Rachel Maddow covered the story last night. Addressing the business interests opposing the measure directly, she said, “You think that child labor and slave labor and forced convict labor are cheap and therefore cool with you? Go ahead, make your case. I would love to hear it …. you child labor-endorsing, pro-slavery freaks.” Watch it:
(HT: Openleft)
The American Coalition for Clean Coal Electricity (ACCCE) — a front group of big utilities and coal companies — is no stranger to fraud. During the summer’s House debate on cap-and-trade legislation, lobbyists working on behalf of the coal group sent forged letters to members of Congress, and lied under oath about it. Now, ACCCE is trying to exploit Veterans Day by misrepresenting veterans groups in an email to supporters:
With Veterans Day around the corner, we wanted to take a moment to reflect on all the military personnel who are involved in ensuring our country is protected.
Energy security is one issue that has become increasingly important to our veterans. In fact, national veterans groups Votevets and Operation Free are urging the government to become more energy independent and less reliant on foreign oil.
We can do this by using the abundant domestic fuels we already have. With more than 250 billion tons of recoverable coal reserves, the United States has more coal than the Middle East has oil.
The letter implies that VoteVets and Operation Free support ACCCE and its dirty energy agenda, but the the two groups are actually vocal backers of clean energy legislation. VoteVets excoriated ACCCE for citing them in the email, writing that VoteVets “will never advocate the continued use of carbon based fuels” and that ACCCE is trying “to hijack America’s Veterans” in “an act of despicable hubris.”
Operation Free — a veterans group which is dedicated to fighting climate change — was also quick to condemn ACCCE. In a blog post, Operation Free wrote that the email “dishonors Veterans day” and is “insulting to all of the Veterans who are fighting to protect America’s national security by supporting clean, American power.”
Will ACCCE acknowledge their continued misrepresentation and apologize for using Veterans Day as a prop to support an agenda that many veterans oppose?
Friends of Coal (FOC) is a front group created by the West Virginia Coal Association. Its mission is to “inform and educate West Virginia citizens about the coal industry” and “provide a united voice” for the industry. To make dirty coal seem appealing, FOC has sponsored or initiated license plates, football games, basketball practices, plane jumps, fishing events, and scholarships.
FOC is now selling coal to children. ThinkProgress obtained the “Let’s Learn About Coal” coloring book, which asks children to unscramble statements about the “advantages” of coal, such as “Than coal other cheaper is fuels” (”Coal is cheaper than other fuels”). Kids also learn that coal is “important” and “provides jobs for lots of people!”:

The FOC Ladies Auxiliary has been handing the coloring book out to children around West Virginia as part of a “Coal in the Classroom” campaign. Coal officials go into schools and give presentations about the importance of coal. “We’d really like this to be statewide, that it be mandatory in the schools that they learn about coal,” said FOC ladies auxiliary president Regina Fairchild in January. The ladies auxiliary is also recruiting members for its “junior” FOC group, open to “girls and boys ages 8 to 16.”
Additionally, FOC ladies auxiliary members have visited children in West Virginia hospitals to give them a “special present“: Mr. Coal, “a small, black Labrador stuffed puppy meant to bring a smile to kids’ faces during hospital stays.” (Coal pollution kills 24,000 Americans each year.)
Last year, American Coalition for Clean Coal Electricity (ACCCE), another industry front group, also tried to make coal seem warm and fuzzy by creating the “coal carolers” — illustrated lumps of coal singing Christmas carols whose altered lyrics praised coal power. After widespread scorn, ACCCE took down the carolers. Find out more on what coal is really doing to Appalachia at Appalachian Voices.
Today, the Select Committee on Energy Independence and Global Warming held a hearing investigating fraudulent letters forged by Bonner & Associates on behalf of the American Coalition for Clean Coal Electricity (ACCCE) to attack the Waxman-Markey American Clean Energy and Security Act (H.R. 2454). As the Wonk Room’s Brad Johnson has reported, ACCCE President and CEO Steve Miller lied under oath when he told the committee that his organization has never opposed clean energy legislation.
Later during the hearing, Rep. Jay Inslee (D-WA) asked Miller about the purpose of ACCCE. Miller replied that in addition to grassroots lobbying (astroturfing) and state-based lobbying, his front group has only began federal lobbying in “April of 2008″ in its “16 year history”:
INSLEE: Your entire goal of your organization is to influence Congress. Is that right?
MILLER: We do work at the state level, we do regulatory matters, we do general education to the public. So, the federal, direct federal lobbying has only been part of our portfolio since April of 2008 with a 16 year history of the organization.
Watch it:
Miller’s claim is another example of the coal industry’s perjury under oath. In a six month period of 2007 alone, ACCCE, under its previous name of Americans for Balanced Energy Choices, spent $2,660,000 lobbying the federal government. Senate disclosures show that the organization has spent millions more lobbying since 2001.
ACCCE was formed in 2008, according to its website, with the combined “assets and missions of the Center for Energy and Economic Development (CEED) and Americans for Balanced Energy Choices (ABEC).” So when Miller noted his 16 year history, he was referring to the lobbying efforts of the coal industry’s previous incarnations, ABEC and CEED.
A group led by Alliance Coal CEO Joseph Craft recently proposed donating $7 million to the University of Kentucky for a new dorm for the men’s basketball team. The catch, however, is that the dorm would have to be named after Craft’s true love: coal. The proposed change sparked intense protests from local environmentalists and students. One professor said that as universities become “models for new energy sources,” putting “coal” on a prominent building could “make it difficult to attract top students and faculty members to the university.” Last night, MSNBC host Rachel Maddow and Dave Zirin, sports editor for The Nation, discussed the controversy. Watch it:
This afternoon, the University of Kentucky Board of Trustees voted 16-3 to approve the proposal for the new dorm, which will be named the “Wildcat Coal Lodge.” Significantly, two of the “no” votes were from faculty representative Ernie Yanarella and Student Government President Ryan Smith, who said he opposed the motion “as a voice for the student body.”
Students in the audience were reportedly not allowed to speak at the meeting. After the vote, people began chanting, “Move forward, not backward,” forcing the trustees to temporarily recess. More on the events at the meeting:
The vote set off shouts from about 30 protesters, mostly students, who attended the meeting.
“Big Coal is about to go down, and the university’s going down with them,” said Cor de Jong, who described himself as “a Lexingtonian and a basketball fan.”
A statement from students was passed out to board members moments before the vote. “They did not read our statement,” said Katie Goldey, a senior majoring in international studies. “They weren’t even given a chance to read it.”
Ironically, because the building costs more than $5 million, it is required to “meet the U.S. Green Building Council’s Leadership in Energy and Environmental Design standards.”
The coal industry has been taking a greater “public role” in the University of Kentucky lately. While Craft has already donated millions of dollars and has a basketball practice facility named in his honor, this is the first time that coal is being specifically recognized. Last weekend, however, there was a “students only” basketball practice “sponsored by Joe Craft and the Friends of Coal.”
The battle over America’s clean energy future is increasingly being fought on college campuses. As Greenwire reported recently, environmentalists are turning to student activists to get the word out about dirty coal, while American Coalition for Clean Coal Electricity — the coal industry’s biggest lobbying group — “spent the summer sending activists to 264 cities in eight states, where they attended community events and visited college campuses.” More here and here on efforts to get dirty coal off U.S. campuses.