Getting Out and Staying Out PDF Print E-mail
Wednesday, 19 December 2007
Honey won’t you open that door.”

 -Ricky Skaggs

 I’ve devoted several columns to Rudolph Giuliani’s  legal representation of the company that makes OxyContin.   

 Rudolph’s drug-maker clients benefited from his great connections and knowledge of the Justice Department.  Knowledge he gained  on the government payroll.

 I’m not  upset that Rudolph took the information he gained in public life and turned it to private gain.  People  come out of government with  expertise that is valued in the private sector.

 I  have a problem with politicians who take a “break” from government service, load up some  clients and jump back into government.   It seems to happen all the time in Washington.  Since Rudolph is running for President, he is  playing the game at a higher level.

 A potential President should not  have represented the  company that made OxyContin.   The  company  made need future influence  with the Justice Department and will certainly need help with the Food and Drug Administration.  It is worth big money for  the company to have a potential buddy  in the White House.

 A recent issue of Vanity Fair did a terrific job in exposing  Guiliani’s clients since he left public office.   Both Vanity Fair and the NBC Nightly News discussed Guiliani’s OxyContin ties but  talked about a number of his  questionable clients.

 Guiliani’s situation is unique.  He left politics but trying to get back in at the ultimate level.   He  left politics completely broke.  He told his second wife in a 2001 divorce that he only had $7000.   Five years later, it is estimated that he is worth $70 million.

 If Rudolph’s company were on the stock market,  it would have gained 364%  EACH  YEAR.  

 What makes Rudolph  valuable to clients is that he wants to come back in as President.  If he flames out in his bid for the White House,  he won’t  maintain that 364% rate of return.

 There is a  cry  from “good government” people that former politicians and regulators should not go into lobbying.    Some  entities make ex officials  wait a year or won’t let them lobby at a place they used to work for.

 I’m not as concerned about the ex government people turned lobbyists.  I’m worried about the system that makes those lobbyists so effective.

 I just finished reading  Robert Reich’s book,  Supercapitalism.   Reich was former Labor Secretary for President Clinton and like many around Clinton, does not speak in clear and direct language.    If you hang with it, the book offers some fascinating insights.

 Reich said that in the 1970’s, only 3% of retiring Congressmen became lobbyists.   Now nearly 30% do.  The amount of money spent on government influence is huge.  Banning Congressmen from  would  not change the dollar amount  spent on influence, it would just change who delivers the message.

 Influence peddling has become a big business and one not going to be legislated away.   There has to be a uprising from voters to protest the effects of big money.  It won’t happen soon.  People are focused on getting through their daily lives.  Politicians can distract attention with social issues and it is more fun for the media to cover the exploits of Britney Spears.

 Since  big interest groups have influence peddling culpability and no one seems to care,  you can’t pick on  retired  lawmakers for getting  their part of the pie.  If you are going to fix the system, it needs to be overhauled completely.

 Giuliani’s supporters claim that I am hypocritical since I don’t have a problem with retired Congressmen turning  lobbyist but I have a problem with Rudolph.  They  point out that many of my criminal lawyer  friends represent clients who are just as scummy as the ones that Giuliani represents.

 The Congressmen are retired and generally don’t plan to come back.  My lawyer friends aren’t running for President of the United States.  Their clients aren’t looking for long term political influence. They are looking to avoid making license plates.

Rudolph is running for President of the United States of America.  A person who has their finger on the nuclear button and who can influence the world economy  should have a private life that is expleary.

 There is a simple solution. Tell politicians that once you are out of government and start lobbying, you are barred from coming back.    That would have changed the dynamic of Giuliani’s situation.  He could have  stayed  poor and ran for President or been a super rich lobbyist.  

 He couldn’t have it both ways like he has it right now.

 Don McNay is the author of Son of Son of a Gambler: Winners, Losers and What to do when you win the lottery.  You can write to him at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or read his award winning syndicated column at www.donmcnay.com

 
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