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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
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or read his award winning
syndicated column at www.donmcnay.com
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