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Lawrence Lessig: How money corrupts Congress

Ford School of Public Policy・53 minutes read

Professor Lawrence Lessig argues that American democracy is under threat from the influence of money in elections, highlighting how a small fraction of wealthy donors undermines public interests and promotes majority factions detrimental to the common good. He advocates for citizen-funded campaigns as a solution to increase political participation and reduce the dependency of elected officials on affluent contributors, presenting various models to enhance democratic engagement.

Insights

  • Susan Collins, the Dean of the Gerald Ford School of Public Policy, emphasized the importance of alumni support during the Policy Talks event, highlighting the collaboration with the Michigan Campaign Finance Network and setting the stage for a critical discussion on the influence of money in politics.
  • Professor Lawrence Lessig critiqued the current electoral system by introducing the concept of "Lesterland," a hypothetical scenario where a small group of wealthy individuals holds disproportionate power over elections, illustrating how a mere 0.05% of Americans dominate campaign financing, which undermines the democratic process and prioritizes private interests over the public good.
  • Lessig proposed citizen-funded campaigns as a viable solution to enhance democratic participation, advocating for systems like matching funds and democracy vouchers that would empower ordinary citizens to contribute to political campaigns, thereby reducing reliance on wealthy donors and fostering a more representative political landscape.

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Summary

00:00

Democracy and Money in American Elections

  • Susan Collins, Dean of the Gerald Ford School of Public Policy, welcomes attendees to the Policy Talks event, co-sponsored by the Michigan Campaign Finance Network, thanking alumni Rich Robinson.
  • Professor Lawrence Lessig, a prominent academic from Harvard Law School, is introduced as the speaker, known for his work on copyright, intellectual property, and the influence of money in democracy.
  • Lessig's lecture focuses on how democracy is threatened by financial contributions in American elections, particularly the impact of majority factions as discussed in Federalist No. 10.
  • Federalist No. 10, authored by James Madison, addresses the dangers of factions, emphasizing the need to manage their effects rather than eliminate their causes.
  • Madison distinguishes between majority and minority factions, suggesting that minority factions are less dangerous, while majority factions can undermine public good and citizens' rights.
  • Lessig critiques Madison's theory, arguing that the Bill of Rights was necessary to address majority faction issues, while the system fails to adequately manage minority factions.
  • He introduces the concept of "Lesterland," a hypothetical state mirroring the U.S., where only a small percentage of citizens named Lester hold significant electoral power.
  • In Lesterland, candidates must perform well in a "Lester election" to succeed in the general election, paralleling how campaign funding influences candidates in the U.S.
  • Lessig presents statistics showing that a tiny fraction of Americans (0.05%) contribute significantly to campaign financing, creating a dependency on wealthy funders.
  • He concludes that the U.S. political system is worse than Lesterland, as funders prioritize their interests over the common good, making meaningful reform unlikely.

16:51

Corruption and Influence in U.S. Policy

  • Madison discusses the influence of shifting coalitions, representing 0.05% of interests, that prioritize private over public interests in U.S. public policy, particularly in global warming and healthcare.
  • The concept of corruption is redefined, emphasizing a conflict between public dependence and funder dependence, diverging from the framers' vision of a government accountable solely to the people.
  • Federalist 52 outlines the republican principle, asserting that a representative democracy should depend exclusively on the people, contrasting with Congress's current reliance on funders.
  • The Sonny Bono Copyright Term Extension Act, signed on October 27, 1998, extended copyright terms by 20 years, despite evidence that it did not serve the public good.
  • Over $6 million in campaign contributions from Disney and related companies influenced Congress to extend copyright terms, disregarding the public interest and expert opinions.
  • The childhood obesity epidemic has tripled since 1980, with one-third of children over 2 classified as obese, leading to an estimated $147 billion in annual healthcare costs.
  • High fructose corn syrup's prevalence in 40% of supermarket products is linked to subsidized corn and protected sugar prices, distorting food production and contributing to health issues.
  • Between 1997 and 2003, vegetable prices rose by 17%, while fast food prices, like Big Macs and Coke, decreased by 5.4% and 35%, respectively, due to market distortions.
  • The temporary nature of tax provisions, like the research and development tax credit initiated in 1981, persists due to lobbying efforts from large corporations seeking tax benefits.
  • The Deepwater Horizon drilling approval process involved only 17 pages of analysis, highlighting how campaign financing influences regulatory decisions and compromises safety standards.

33:20

Corruption and Trust in American Politics

  • Prior to Republican control of the House, the balance of power was equal between Republicans and Democrats, highlighting a belief that money influences congressional outcomes.
  • A poll by ABC News and the New York Times revealed only 9% of Americans have confidence in Congress, lower than confidence in the British Crown during the American Revolution.
  • Rock the Vote found that many young voters did not participate in the 2010 elections, primarily due to the belief that corporate interests dominate and hinder real change.
  • A Harvard study on institutional corruption showed that financial relationships significantly affect trust in various fields, including medicine and consumer products, impacting public confidence.
  • A New England Journal of Medicine study indicated that physicians' trust in clinical research is negatively influenced by industry sponsorship, regardless of the research's methodological quality.
  • Research by Professor Gilens at Princeton demonstrated that policy outcomes align more closely with the preferences of the wealthy, disregarding the desires of middle and lower-income Americans.
  • In 2011, Congress prioritized the bank swipe fee controversy over pressing issues like unemployment, driven by financial interests from banks and retailers.
  • The current campaign funding system favors a small percentage of wealthy donors, leading to a disconnect between elected officials and the general populace.
  • Citizen-funded campaigns are proposed as a solution, allowing candidates to rely on small contributions from citizens rather than large donations from corporations or wealthy individuals.
  • Various models for citizen-funded campaigns exist, including matching fund systems in states like Arizona and New York City, and a proposed democracy voucher system to empower all voters.

49:18

Reforming Democracy Through Citizen Engagement

  • Citizens can contribute a maximum of $100, with a proposed $50 voucher grant, totaling $7 billion, which is three times the amount raised in 2010 elections.
  • John Sarbanes introduced the Grassroots Democracy Act, which includes components like matching funds, tax credits, and vouchers to support small dollar-funded federal campaigns.
  • The proposed system aims to increase citizen participation in campaigns, moving from 0.05% participation to a broader base funded by small contributions.
  • Testimony from Jim Cooper highlights that many Congress members transition to lobbying, with 50% of senators and 42% of house members becoming lobbyists between 1998 and 2004.
  • The average salary increase for members leaving Congress to become lobbyists was 1,452%, indicating a strong financial incentive to maintain the current system.
  • The speaker argues that meaningful change in corruption requires addressing the gap between funders and citizens, echoing Thoreau's idea of striking at the root of issues.
  • The speaker believes the current political system is worse than the Gilded Age, as corruption is legal and accepted, making it harder to rally against.
  • Citizens United is viewed as a symptom of a broken democracy, with the speaker suggesting that reversing it alone won't restore the republic.
  • The polarization of American politics is inconsistent, with both parties often aligning on financial reform, exacerbating the fundraising issues and citizen disengagement.
  • A mandatory voting law could enhance political participation by engaging the broader, non-polarized public, countering the influence of the polarized political class.

01:05:33

Voter Mandates Could Bridge Political Divide

  • Mandating voter participation could reduce political polarization by encouraging candidates to appeal to a broader audience, necessitating reforms to engage more citizens in the political process.
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