Investing in the People's Business: a Business Proposal for Campaign

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Investing in the People's Business: a Business Proposal for Campaign Investing in the People’s Business: A Business Proposal for Campaign Finance Reform A Statement by the Research and Policy Committee of the Committee for Economic Development Investing in the People’s Business: A Business Proposal for Campaign Finance Reform A Statement by the Research and Policy Committee of the Committee for Economic Development Library of Congress Cataloging-in-Publication Data Committee for Economic Development. Research and Policy Committee. Investing in the people’s business : a business proposal for campaign finance reform : a statement on national policy / by the Research and Policy Committee of the Committee for Economic Development. p. cm. At head of title: Draft policy statement. Includes bibliographical references ISBN 0-87186-133-X 1. Campaign funds — United States. I. Title. JK1991.C6516 1999 324.7'8' 0973 — dc21 99-19942 CIP First printing in bound-book form: 1999 Paperback: $18.00 Printed in the United States of America Design: Rowe & Ballantine COMMITTEE FOR ECONOMIC DEVELOPMENT 477 Madison Avenue, New York, N.Y. 10022 (212) 688-2063 2000 L Street, N.W., Suite 700, Washington, D.C. 20036 (202) 296-5860 http://www.ced.org CONTENTS RESPONSIBILITY FOR CED STATEMENTS ON NATIONAL POLICY iv PURPOSE OF THIS STATEMENT vii I. INTRODUCTION AND EXECUTIVE SUMMARY 1 Findings 2 The Complexity of Reform 3 Summary of Recommendations 4 II. FINANCING FEDERAL ELECTIONS 8 Campaign Spending 8 Sources of Funding 10 Trends in Financing and Their Effects on the Political System 13 III. RECENT INNOVATIONS IN POLITICAL FINANCE: SOFT MONEY AND ISSUE ADVOCACY 22 Soft Money 22 Issue Advocacy 28 IV. RECOMMENDATIONS FOR REFORM 32 Basic Principles for Reform 32 Recommendation #1: Eliminate Soft Money 33 Recommendation #2: Improve Candidate Access to Resources 35 Recommendation #3: Reduce the Fundraising “Arms Race” with Congressional Campaign Spending Limits 37 Recommendation #4: Reform Issue Advocacy 39 Conclusion 40 ENDNOTES 41 MEMORANDA OF COMMENT, RESERVATION, OR DISSENT 43 OBJECTIVES OF THE COMMITTEE FOR ECONOMIC DEVELOPMENT 45 iii RESPONSIBILITY FOR CED STATEMENTS ON NATIONAL POLICY The Committee for Economic Development specific legislative proposals; its purpose is to is an independent research and policy organi- urge careful consideration of the objectives set zation of some 250 business leaders and educa- forth in this statement and of the best means of tors. CED is nonprofit, nonpartisan, and non- accomplishing those objectives. political. Its purpose is to propose policies that Each statement is preceded by extensive dis- bring about steady economic growth at high cussions, meetings, and exchange of memo- employment and reasonably stable prices, in- randa. The research is undertaken by a sub- creased productivity and living standards, committee, assisted by advisors chosen for their greater and more equal opportunity for every competence in the field under study. citizen, and an improved quality of life for all. The full Research and Policy Committee All CED policy recommendations must have participates in the drafting of recommenda- the approval of trustees on the Research and tions. Likewise, the trustees on the drafting Policy Committee. This committee is directed subcommittee vote to approve or disapprove a under the bylaws, which emphasize that “all policy statement, and they share with the research is to be thoroughly objective in char- Research and Policy Committee the privilege acter, and the approach in each instance is to of submitting individual comments for publica- be from the standpoint of the general welfare tion. and not from that of any special political or economic group.” The committee is aided by a Except for the members of the Research and Research Advisory Board of leading social sci- Policy Committee and the responsible subcommit- entists and by a small permanent professional tee, the recommendations presented herein are not staff. necessarily endorsed by other trustees or by the The Research and Policy Committee does advisors, contributors, staff members, or others not attempt to pass judgment on any pending associated with CED. iv RESEARCH AND POLICY COMMITTEE Chairman JOSH S. WESTON KATHLEEN B. COOPER CHARLES E.M. KOLB Honorary Chairman Chief Economist President Automatic Data Processing, Inc. Exxon Corporation Committee for Economic Development RONALD R. DAVENPORT ALLEN J. KROWE Vice Chairmen Chairman of the Board Retired Vice Chairman IAN ARNOF Sheridan Broadcasting Corporation Texaco Inc. Chairman FRANK P. DOYLE CHARLES R. LEE Bank One, Louisiana, N.A. Retired Executive Vice President Chairman and Chief Executive Officer ROY J. BOSTOCK GE GTE Corporation Chairman and Chief Executive Officer T.J. DERMOT DUNPHY A. V. LIVENTALS The MacManus Group Chairman and Chief Executive Officer Vice President, Strategic Planning BRUCE K. MACLAURY Sealed Air Corporation Mobil Corporation President Emeritus CHRISTOPHER D. EARL ALONZO L. MCDONALD The Brookings Institution Senior Vice President Chairman and Chief Executive Officer CLIFTON R. WHARTON, JR. Perseus Capital LLC Avenir Group, Inc. Former Chairman and Chief Executive W. D. EBERLE HENRY A. MCKINNELL Officer Chairman Executive Vice President TIAA-CREF Manchester Associates, Ltd. Pfizer Inc. WILLIAM S. EDGERLY JOSEPH NEUBAUER Chairman Chairman and Chief Executive Officer Foundation for Partnerships ARAMARK Corporation REX D. ADAMS WALTER Y. ELISHA JOHN D. ONG Dean Retired Chairman and Chief Executive Chairman Emeritus The Fuqua School of Business Officer The BF Goodrich Company Duke University Springs Industries, Inc. JAMES F. ORR III ALAN BELZER EDMUND B. FITZGERALD Chairman and Chief Executive Officer Retired President and Chief Managing Director UNUM Corporation Operating Officer Woodmont Associates STEFFEN E. PALKO AlliedSignal Inc. * HARRY L. FREEMAN Vice Chairman and President PETER A. BENOLIEL President Cross Timbers Oil Company Chairman, Executive Committee The Freeman Company VICTOR A. PELSON Quaker Chemical Corporation RAYMOND V. GILMARTIN Senior Advisor GORDON F. BRUNNER Chairman, President and Chief SBC Warburg Dillon Read Inc. Senior Vice President and Director Executive Officer PETER G. PETERSON The Procter & Gamble Company Merck & Co., Inc. Chairman FLETCHER L. BYROM BARBARA B. GROGAN The Blackstone Group President and Chief Executive Officer President * NED REGAN MICASU Corporation Western Industrial Contractors The Jerome Levy Economics Institute DONALD R. CALDWELL PATRICK W. GROSS JAMES Q. RIORDAN Chief Executive Officer Founder and Chairman, Executive Stuart, Florida North Atlantic Technology Fund Committee American Management Systems, Inc. MICHAEL I. ROTH ROBERT B. CATELL Chairman and Chief Executive Officer Chairman and Chief Executive Officer RICHARD W. HANSELMAN The MONY Group Inc. KeySpan Energy Corporation Retired Chairman Genesco Inc. GEORGE RUPP JOHN B. CAVE President Principal RODERICK M. HILLS Columbia University Avenir Group, Inc. Chairman Hills Enterprises, Ltd. HENRY B. SCHACHT CAROLYN CHIN Director and Senior Advisor Chief Executive Officer MATINA S. HORNER Lucent Technologies Inc. The Chin Company Executive Vice President TIAA-CREF ROCCO C. SICILIANO A. W. CLAUSEN Beverly Hills, California Retired Chairman and Chief GEORGE B. JAMES Executive Officer Retired Senior Vice President and Chief MATTHEW J. STOVER BankAmerica Corporation Financial Officer Group President, Bell Atlantic Levi Strauss & Co. Directory Group JOHN L. CLENDENIN Bell Atlantic Corporation Retired Chairman JOSEPH E. KASPUTYS BellSouth Corporation Chairman, President and Chief ARNOLD R. WEBER Executive Officer Chancellor GEORGE H. CONRADES Northwestern University Partner Primark Corporation Polaris Venture Partners MARTIN B. ZIMMERMAN Vice President, Governmental Affairs Ford Motor Company *Voted to approve the policy statement but submitted memoranda of comment, reservation, or dissent. See page 43. v SUBCOMMITTEE ON CAMPAIGN FINANCE REFORM Co-Chairmen EDWARD A. KANGAS THOMAS J. KLUTZNICK Ex-Officio Members Global Chairman and Chief Executive President FRANK P. DOYLE Deloitte Touche Tohmatsu Thomas J. Klutznick Company Retired Executive Vice President GEORGE RUPP VICTOR A. PELSON GE President Senior Advisor CHARLES E.M. KOLB Columbia University SBC Warburg Dillon Read Inc. President PETER G. PETERSON Committee for Economic Development Chairman JOSH S. WESTON ALAN BELZER The Blackstone Group Retired President and Chief Honorary Chairman Operating Officer * NED REGAN Automatic Data Processing, Inc. AlliedSignal Inc. The Jerome Levy Economics Institute Special Guests JOHN BRADEMAS E.B. ROBINSON, JR. President Emeritus Chairman and Chief Executive Officer KATHY STANWICK New York University Deposit Guaranty National Bank Kohlberg & Co. JOHN B. CAVE DANIEL ROSE MARK SCHMITT Principal Vice Chairman Director of Governance and Public Policy Avenir Group, Inc. Rose Associates, Inc. The Open Society Institute W. D. EBERLE HOWARD M. ROSENKRANTZ Chairman Chief Executive Officer Manchester Associates, Ltd. Grey Flannel Auctions PATRICIA O’DONNELL EWERS JOHN C. SAWHILL PROJECT President President and Chief Executive Officer Pace University The Nature Conservancy DIRECTOR EDMUND B. FITZGERALD ROCCO C. SICILIANO Beverly Hills, California ANTHONY CORRADO Managing Director Associate Professor of Government Woodmont Associates ALAN G. SPOON Colby College ROSEMARIE GRECO President Greco Ventures The Washington Post Company * WILLIAM F. HECHT STEPHEN STAMAS Chairman, President and Chief Chairman ADVISORS The American Assembly Executive Officer MICHAEL S. BERMAN
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