Who's More Special, Business or Labor?
The current battle between Arnold Schwarzenegger and the California
legislature in many ways mirrors the on-going battle between
labor interests and business interests for the heart and soul
of California government. While Arnold portrays himself and
his business allies as the underdogs in this fight, campaign
finance data tells a different story.
When he first campaigned for governor, Schwarzenegger
told voters that he would remain independent and not raise money
from special interests. Within weeks, he narrowed his definition
of special interests to only include labor unions and Indian tribes.
Recently, when faced with throngs of teachers, nurses, and other
unionized workers protesting his actions, the Governor dismissed
them and said "when the special interests push me around,
I will push back.''
The Democrats counter that it is the corporate world
that is the real special interest. "For someone who promised
voters he didn't need to raise money, the governor, in lockstep
with the corporate backers of his initiatives, has gone to incredible
lengths to eliminate the will of the people to limit campaign
spending," charges Assembly Speaker Fabian Nunez.
Both sides are right. Both businesses and labor
unions represent specific interests. But, rather than chasing
some utopian idea of eliminating these interests, we should focus
on how to balance the debate in order to wind up with state policy
that benefits the public interest.
Most of us have feet in both camps. Nonunion employees
benefit when unions promote workers' interests within the halls
of government. People who don't work at all, whether they are
students or retirees have a stake in labor being successful too.
If wages and benefits become too meager for people to make a living,
then consumers don't have money to spend and the entire state's
economy falters.
Likewise, some 56% of California households are
invested in the stock market as part of their retirement planning,
savings for a child's college education, or rainy day funds. Even
those of us who aren't part owners of businesses have a stake
in their success - if businesses fail it means slowdown in the
economy, a decline in state revenues, and fewer jobs.
The key is to find the right balance between business
and labor while also looking out for other interests like consumers,
families, the environment, and overall quality of life. That's
the job we place in the hands of our elected leaders. But in order
for them to find the public interest among all the competing private
interests, elected officials need information from all sides.
More fundamentally, voters need balanced information from all
interests when they walk into the voting both.
This balance is lacking in California politics right
now. In the 2004 election cycle, labor interests gave just 5.73%
of the total contributions given to California candidates. The
financial, insurance, and real estate sector alone topped that,
let alone all the other corporate interests. In terms of giving
to political parties, over the course of three election cycles,
business interests gave $29 million compared to labor's $8 million.
While we all have a stake in ensuring that business
interests are heard in Sacramento, we all lose when their voice
is so overwhelming. The best solution would be to do what the
federal government did nearly 100 years ago - ban business interests
from making political contributions to federal candidates from
their corporate treasuries. No one would argue that corporate
voices are muzzled in Washington, D.C.
Rather, business interests show their support for
federal candidates through the individual contributions from their
executives and shareholders. This expression of individual support
for the corporate agenda more accurately represents the level
of public support for business when weighed against other competing
interests.
Labor unions are already funded by individual contributions
from the worker to the union. Moreover, any worker who doesn't
want to support a union's political agenda can ask for the political
portion of their dues to be returned. That's something that consumers
can't do when they buy a product or service from a corporation.
Putting business interests on the same footing as other interests
would be a good start toward restoring balance in California's
democracy.
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