Grateful for ObamaCare, drug lobby goes to bat for Harry Reid

[Originally posted at Beltway Confidential]

Remember when President Obama thanked Majority Leader Harry Reid and the Senate for “standing up to the special interests?” If you don’t, go watch this video, just the first 25 seconds is enough to get the idea. And remember that Obama said that same sort of thing a dozen times.

Then watch this video.

You catch that part at the end, where the ad for Harry Reid, facing the toughest reelection of his life, was paid for by PhRMA — the drug lobby. And check these numbers from 2009, showing that PhRMA spent more than any single-industry lobby — or the numbers from 2010’s first quarter showing the same thing.

Of course, we already knew PhRMA liked the bill, and that it will be very profitable for the drug industry. But this Reid ad brings into focus the magnitude of the President’s mendacity:

Obama thanks the Reid for “standing up to the special interests” by passing the bill. Then the single biggest industry lobby also thanks Reid for passing the bill, with a big-money TV ad.

This episode should be enough to make every discerning person ignore the President every time he claims to be taking on “special interests.

Alcoa loves green, but not the environment

Alcoa is one of those "green" companies that lobbies for environmental policy. Of course, Alcoa also stands to profit from these policies, even while the planet might be suffering. My column:

Absent such regulations, an aluminum car frame is much more expensive than a steel car frame. With these regulations, aluminum, which is lighter, becomes more desirable.

So what's the problem? Alcoa is getting rich, but more people are driving lighter-weight, more efficient cars, right? Industry and the Earth both win, right? Hardly.

Making aluminum car frames requires much more energy than making steel car frames. One stage in the process -- dissolving the alumina to get pure aluminum -- inherently gives off carbon dioxide and the far more potent greenhouse gasses hexafluoroethane and tetrafluoromethane.

But Alcoa makes its aluminum in Australia, where Washington's CAFE and climate policies can't touch it. Down under, naturally, Alcoa's lobbying agenda isn't nearly so green. The Australian newspaper reported in 2008 that Alcoa "has warned that even a modest carbon cost on aluminum production could lead to plant closures in Australia and moves to higher-emitting plants in countries such as China."

The Marlboro Monopoly Act is working — More of Obama’s phony war on the special interests

[Originally posted at Beltway Confidential]

President Obama serially wages pretend wars against the special interests. It’s his thing.

Currently he’s pretending to battle Wall Street. Recently, he pretended to battle the health sector. Last year, he pretended to battle the banks on credit cards. But my favorite episode of Obama pretending to take on industry might be his regulation of tobacco.

In the Rose Garden, Obama declared, “Today, despite decades of lobbying and advertising by the tobacco industry, we’ve passed a law to help protect the next generation of Americans from growing up with a deadly habit. …”

At the same time, the largest tobacco company in America issued a press release declaring “Philip Morris supports federal regulation of tobacco.”

Philip Morris at the time was not merely the biggest tobacco company in America — it was half of the U.S. cigarette market. It also was a majority of the tobacco lobby, spending more on lobbying than every other tobacco company combined according to data from the Center for Responsive Politics. So we can debate the virtues of FDA regulation, but Obama can’t honestly claim he passed this bill “despite” the tobacco lobby.

Critics called the bill the Marlboro Monopoly Act, arguing that restrictions on production and advertising would further boost the market share of the industry leader, Marlboro. So far, the critics are right. From Altria’s quarterly earnings report:

Marlboro achieves record retail share of 42.7% in the first quarter of 2010

If they’re looking at these numbers, I’m sure Pfizer and Goldman are drooling over how Obama is sticking it to them, too.

Goldman Sachs wants regulation, not laissez-faire

When all is said and done in Wall Street regulation, Goldman will be the winner. I explain in my column:

So, just as drug companies and insurers used Republicans to kill the public option before using Democrats to mandate insurance and subsidize drugs, big banks are using Republicans to kill a bank tax while using Democrats to erect barriers to entry, to institutionalize bailouts, and to restore confidence in Wall Street.

Free-market populism: Ron Paul says Obama's not 'socialist,' he's 'corporatist'

[Originally posted at Beltway Confidential]

Down at the Southern Republican Leadership Conference, a parade of potential 2012 GOP nominees, plus some other rising stars have addressed what Washington Post blogger Dave Weigel calls "the Republican wing of the tea party movement."

Rep. Ron Paul used the occasion to educate the crowd about the true nature of Obama's economic agenda. The Wall Street Journal reports:

“In the technical sense, in the economic definition, he is not a socialist,” the Texas Republican said to a smattering of applause at the Southern Republican Leadership Conference.

“He’s a corporatist,” Paul quickly added, meaning the president takes “care of corporations and corporations take over and run the country.”

Ron Paul is right. Obama has signed: a health-care bill that mandates we buy private insurance and has the endorsement of the drug industry; a tobacco regulation bill that earned the applause of the largest cigarette company in the country; a credit-card regulation bill that the banks like; a stimulus bill approved by the U.S. Chamber of Commerce and nearly every lobby in the country; a Cash-for-Clunkers bill that subsidized automakers, car-dealers, and more. Also, Obama has a huge corporate lobby on his side for cap-and-trade legislation. Plus, Obama backed the Wall Street bailout, has stuck close to its main authors Ben Bernanke and Tim Geithner, and even expanded the bailout.

I could go on, but the point is not simply that Ron Paul is right about Obama being a corporatist, the relevant point is that a few Republicans are starting to sound the populist note of calling out Obama's closeness with Big Business.

In December, Rep. Paul Ryan (R-Wisc.) wrote an op-ed headlined "Down with Big Business."

Last week, in the Republican response to President Obama's weekly address, Rep. Kevin McCarthy (R-Calif.) attacked Obama's financial regulation primarily because it would "guarantee permanent bailouts for Wall Street."

Ron Paul is also uniquely positioned to tap into the free-market populism notion. He's both the most free-market congressman, and the Chamber of Commerce's least-favorite Republican according to recent voting scorecards.

The tangled web of the ObamaCare write-downs

There's been plenty of confusion, teeth-gnashing, and finger-pointing about the effect ObamaCare is having on the future earnings of major corporations. My column today sets the record straight:

There are no good guys in this story. The bad guys are the Republicans who made a new entitlement for drugs, and Waxman who menaces companies for making Democratic legislation look bad.

The moral: Sticking government hands into the economy -- through new subsidies, taxes, and regulations -- creates bad situations where there are no right answers.

Obama gives sugar plums to the special interests

Obama signed health-care reform, and the special interests won. My column:

"Tonight," President Obama intoned near midnight Sunday, after the House had passed two health care bills, "we pushed back on the undue influence of special interests. ... We proved that this government -- a government of the people and by the people -- still works for the people."

But even before the president spoke, the Pharmaceutical Researchers and Manufacturers of America -- whose $26.1 million lobbying effort in 2009 was the most expensive by any industry lobby in history -- hailed the health package as "important and historic."

The second-biggest industry lobby in America, the American Medical Association, also cheered, as did the American Hospital Association, the No. 5 industry lobby. Throw in the goliath senior lobby AARP and Beltway powerhouse General Electric, and you realize Obama's underdog tale is all bark and no bite.

Student loans get the ObamaCare treatment

It's fitting that student loans would be nationalized in a bill that lays out subsidies for the private health sector while paving a road to its elimination. My column today discusses the pairing:

In Chicago, the legend goes, whenever Mayor Daley needed a quick infusion of cash, he would order a "street sweeping." After the evening rush hour, city workers would post signs warning of a street sweeping at dawn the next day -- any car parked on the street would be slapped with a ticket.

Congressional Democrats' version of "street sweeping" is nationalizing an industry and folding its profits into the budget, thus partly paying for some radical expansion of government -- health care reform in this case.

The budget reconciliation bill being used as a sidecar to the Senate health care bill also contains a federal takeover of the student loan industry....

Over the next decade, between reduced subsidies to private lenders and interest collected from students, the expected profit is $60 billion. Student aid would be increased by about $40 billion, leaving the U.S. Treasury $19.4 billion in the black thanks to this takeover. That profit gets counted toward the reconciliation bill's score from the Congressional Budget Office, and voila! more deficit reduction from the health care reform bill.

If only Democrats had thought of this trick back in the spring, they could have budgeted in the nationalization of other profitable industries. Throw the porn industry into the Department of Health and Human Services and nationalize Exxon Mobil, and your budget score looks even better.

Why not put Goldman Sachs on the budget so that Goldman CEO Lloyd Blankfein, in a reversal of roles, would be working for Treasury Secretary Tim Geithner?

Dems tap drug maker millions for PhRMA-friendly bill

Obama keeps talking as if "the special interests" are battling against his "reform." That's simply not true. My column tells the true tale:

Of all the single-industry lobbies in Washington, the largest is the Pharmaceutical Researchers and Manufacturers of America. PhRMA spent $26.2 million on lobbying last year — that's nearly three times as much as the insurance lobby, America's Health Insurance Plans, which spent $8.9 million.

If you include individual companies' lobbying, pharmaceuticals blow away the competition, beating all other industries by 50 percent, according to data at the Center for Responsive Politics.

Given this Big Pharma clout, it's unsurprising that the bill Obama's whipping for — Senate bill — has nearly everything the drug companies wanted: prohibiting reimportation of drugs, preserving Medicare's overpayment for drugs, lengthy exclusivity for biotech drugs, a mandate that states subsidize drugs under Medicaid, hundreds of billions in subsidies for drugs, and more.

PhRMA chief Billy Tauzin, who was vilified by Obama on the campaign trail, worked out much of this sweetheart deal in a West Wing meeting with White House Chief of Staff Rahm Emanuel. Tauzin visited the White House at least 11 times. He left his imprint so deeply on the current bill that it should probably be called BillyCare rather than ObamaCare....

This week, PhRMA, through a front group called Americans for Stable Quality Care, is rolling out millions of dollars in advertisements for the Democrats' jury-rigged package consisting of the BillyCare bill and some as-yet-undetermined "budget reconciliation" measure. The ads reportedly will target wavering Democrats.

Obama's export plan imports Europe's corporatism

I attended the annual conference of the Export-Import Bank, and what I saw wasn't pretty. My column today paints the picture:

"Germany is the model."

General Electric Chief Executive Officer Jeff Immelt, opening for President Obama at the annual conference of the federal export-subsidy agency, phrased Obama's industrial policy in terms that were not quite as focus-grouped as the president's.

Immelt was at the Export-Import Bank's conference rallying the troops behind Obama's National Export Initiative, aimed at doubling U.S. exports in five years. Immelt praised Germany and Japan's policies of "government and business working as a pack."

The GE CEO lamented that "for so long, we've said, 'It just doesn't matter. Let whatever happens happen.' "

But in Germany, Immelt pointed out, Chancellor Angela Merkel huddles with corporate leaders and says, "Let's kick some rear." The Germans exhibit stronger "public will" and national "vision," Immelt says. "The companies roam as a pack. They stick together. And the government supports the companies to be exporters."...

"If we stand on the sidelines," the president said Thursday, "while they [China and Germany] go after those customers, we'll lose out on the chance to create the good jobs our workers need right here at home. That's why standing on the sidelines is not what we intend to do. ... We need to up our game."

By "up our game," Obama largely means increase government subsidies for exporters -- greater taxpayer funding for export promotion programs, new "public-private partnerships" and more aggressive government advocacy.

Boeing gets tailwind from subsidy bank

Think Big Business fears Big Government? My column should help dismiss that notion:

A government agency that finances U.S. exports directed 90 of its loan guarantees last year to subsidize one company: Boeing.

Before President Obama unfurls his export-promotion plan at the Export-Import Bank's annual conference this Thursday, he should review the agency's recent annual report, which documents an unparalleled case of corporate welfare -- a government program dedicated almost entirely to serving one well-connected company.

Of the $9.3 billion in loan guarantees Ex-Im issued in fiscal 2009, $8.4 billion subsidized Boeing sales....

Candidate Obama assailed government policy that enriched the wealthiest in the hope that "somehow prosperity will trickle down." But this is this mission of Ex-Im -- subsidize Boeing's profits in an effort to create jobs.

The cautionary tale of the student loan industry

The student loan industry will soon be dead. Other subsidy sucklers should learn a lesson here. My column teaches the lesson:

But this nationalization should serve as a cautionary tale for others — such as health insurers and the tourism industry — looking to latch onto Leviathan’s teat.

For a business, getting in bed with Uncle Sam is like marrying Henry VIII — you may reap benefits you never could have gotten on your own, but history suggests the affair won’t end well for you.

Under Obamanomics, industry realizes that not everybody wins

The corporate lobby for cap-and-trade is collapsing -- which is what you should expect. My column explains:

Alternating with his disingenuous populist anti-big-business rhetoric, Obama has also offered the opposite: Hope & Change, the-wolf-will-live-with-the-lamb talk of cooperation between business and government.

This cooperation talk is not new. During and after World War I, business giants sought to perpetuate the War Industries Board. WIB member and historian Grosvenor Clarkson described the "contempt" industry leaders had for "the huge hit-and-miss confusion of peacetime industry, with its perpetual cycle of surfeit and dearth" -- replacing competition with government-guaranteed profit....

Big government, unlike the free market, doesn't create wealth -- it redistributes it. In a free market, a rising tide can lift all boats. Under Obamanomics, businesses can rise only by pulling someone under -- usually taxpayers, competitors, consumers or workers.

Dan Coats, lobbyist for fat cats, plots Senate return

My latest column at the Washington Examiner explores the lobbying record of Republican Senate candidate Dan Coats:

Democrats have been quick to attack Coats as a lobbyist who has done the bidding of the fattest fat cats. But, ironically, the policies Coats advanced on behalf of his corporate clients are the same bailouts, regulations, and overspending that President Obama has championed in the name of "change." And Coats' biggest clients -- Google and the Pharmaceutical Researchers and Manufacturers of America -- have been intimate Obama allies.

Government Motors Adds Another Lobbyist

[Originally posted at Beltway Confidential]

When bailed-out automaker General Motors went bankrupt, the company laid off most of its K Street lobbyists. When it came out of bankruptcy, although the majority owner was still the taxpayer, Government Motors lobbied back up, hiring top-shelf revolving-door veterans.

This week, GM discloses that it has hired -- on your dime -- another lobbyist, Lee Godown at Public Strategies, Inc. Godown reports he will lobby on "issues relating to restructuring; funding for technology, science and energy initiatives; taxation relating to employee benefits, alternative minimum tax and alternative simplified credit; and border trade, competitiveness and market access."

Godown was chief of staff to Rep. Loretta Sanchez, D-Calif., from 2000 until he cashed out in 2007.

Special interests dominate Obama's State of the Union

Obama's state of the Union reflected his belief in government aggressively steering the economy. In my column, I list who wins under Obama's proposals:

For instance, he called for more funding to build high-speed rail. Why rail? Rail is only one way to travel or to ship things.

A likely clue: lobbying. Lorenzo Simonelli, chief executive officer of GE Transportation, said in May, "We are ready to partner with the federal government and Amtrak to make high-speed rail a reality."

Subsequently, GE Transportation hired two new lobbying firms. One new GE lobbyist on high-speed rail: Linda Hall Daschle, the wife of former Senate Majority Leader Tom Daschle, an Obama confidant.

Samuel Whitehorn is another new addition to GE's train lobby. He served as senior counsel on the Senate commerce committee and a senior lawyer at Bill Clinton's Department of Transportation.

The audacity of Barack Obama's populist posturing

It's becoming the Democrats' theme for the 2010 elections: populism. My column today pokes some holes in that balloon:

But the image of Obama as a reformer is at odds with his behavior as president. He signed a massive spending bill that benefited the biggest companies, ratcheted up Wall Street bailouts, signed a tobacco regulation bill written in part by the largest tobacco company, handed ownership of Chrysler to a union that had spent $4.9 million to help elect him president, rallied behind a porked-up climate bill that gave away tens of billions of dollars to the largest energy companies, and cut a backroom deal with the top drug industry lobbyists to get them on board with a health care plan derided by his own party's former leader as "a bailout for the insurance industry."

Coakley in Trouble? Pharma and HMO lobbyists to the rescue

[Originally posted at Beltway Confidential]

With Democrat Martha Coakley in trouble in the Massachusetts special election to fill Ted Kennedy's seat, Democrats could lose vote No. 60 for President Obama's health-care bill. In response, an army of lobbyists for drug companies, health insurance companies, and hospitals has teamed up to throw a high-dollar Capitol Hill fundraiser for Coakley next Tuesday night. The invitation is here.

Of the 22 names on the host committee--meaning they raised $10,000 or more for Coakley--17 are federally registered lobbyists, 15 of whom have health-care clients. Of the other five hosts, one is married to a lobbyist, one was a lobbyist in Pennsylvania, another is a lawyer at a lobbying firm, and another is a corporate CEO. Oh, and of course, there's also the political action commitee for Boston Scientific Corporation.

All the leading drug companies have lobbyists on Coakley's host committee: Pfizer, Merck, Amgen, Sanofi-Aventis, Eli Lilly, Novartis, Astra-Zeneca, and more. On the insurance side of things, Blue Cross/Blue Shield, Cigna, Humana, HealthSouth, and United Health all are represented on the host committee.

Those HMOs (like Aetna) or drug companies who don't have lobbyists in Coakley's top tier of fundraisers? They're covered, because the host committee includes four lobbyists representing the Pharmaceutical Researchers and Manufacturers of America (PhRMA), two representing America's Health Insurance Plans (AHIP), and one representing the Biotechnology Industry Organization (BIO)

So think of these top donors to health-care reform's 60th vote next time President Obama claims that he's battling the special interests in this battle. The army listed below is on Obama's side, and these clients will all benefit from "reform."

Here are some of Coakley fundraiser hosts with some of their current health care clients:

• Thomas Boggs, Patton Boggs: Bristol-Myers Squibb
• Chuck Brain, Capitol Hill Strategies: Amgen, BIO, Merck, PhRMA
• Susan Brophy, Glover Park Group: Blue Cross, Pfizer
• Steven Champlin, Duberstein Group: AHIP, Novartis, Sanofi-Aventis
• Licy Do Canto, Raben Group: Amgen
• Gerald Cassidy, Cassidy & Associates: U. Mass Memorial Health Care
• David Castagnetti, Mehlman, Vogel, Castagnetti: Abbot Labs, AHIP, Astra-Zenaca, General Electric, Humana, Merck, PhRMA.
• Steven Elmendorf, Elmendorf Strategies: Medicines Company, PhRMA, United Health
• Shannon Finley, Capitol Counsel: Amgen, Astra-Zeneca, Blue Cross, GE, PhRMA, Sanofi-Aventis.
• Heather Podesta, Heather Podesta & Partners: Cigna, Eli Lilly, HealthSouth
• Tony Podesta, Podesta Group: Amgen, GE, Merck, Novartis.
• Robert Raben, Raben Group: Amgen, GE.

If Coakley pulls it out, this is the crowd that will have brought her here. If health-care reform passes, this is the crew that will have won.

Once Obama's target, lobbyist Tauzin now his pet

My Examiner column follows Obama's turnabout on Billy Tauzin:

White House visitor logs dumped late in the week between Christmas and New Year's Eve show that Billy Tauzin, the top lobbyist for the prescription drug industry and once a favorite target of Barack Obama, visited the White House at least 11 times in Obama's first six months in office.

A corporate takeover of healthcare AND a government takeover

[Originally posted at Beltway Confidential]

Following up on my column today about the progressive rebellion against Obama's corporatism, I wanted to comment on this claim by blogger Ed Kilgore:

To put it more bluntly, on a widening range of issues, Obama's critics to the right say he's engineering a government takeover of the private sector, while his critics to the left accuse him of promoting a corporate takeover of the public sector. They can't both be right, of course....

But, my health-care writing since February has focused on how a government takeover of health care is entirely congruent with a corporate takeover of health-care. Just as a government takeover of Wall Street and a Wall Street takeover of government are consistent. Reihan Salam at National Review explains it well:

The concern from the right isn't that the Obama approach will literally nationalize for-profit health insurers. Rather, it is that for-profit health insurers will continue evolving into heavily subsidized firms that function as public utilities, and that seek advantage by gaming the political process. Profits, including profits governed by medical loss ratios, can and will then be cycled into political action, which leads to the anxiety concerning a "corporate takeover of the public sector." Again, progressives don't literally believe that such a takeover is happening. Instead, they believe, rightly, that subsidies without effective cost containment represent a massive windfall for the private insurance sector, including non-profit insurers that generate salaries for large numbers of politically active middle and upper middle class professionals.

And Ross Douthat, as usual, takes it to a far higher level:

The point is that the more intertwined industry and government become, the harder it is to discern who’s “taking over” whom — and the less it matters, because the taxpayer is taking it on the chin either way. Or to put it another way: The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which...