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No Compromise on Campaign Finance Reform
by Sheldon Richman, March 2001
President Bushs tone of
bipartisan cooperation has its perils. It could lead him to compromise on
the uncompromisable. That danger is looming already on so-called
campaign finance reform. Sen. John McCain, Bushs rival in the
primaries, is intent on pushing his bill to interfere further with the right
of the American people to give however much money they wish to the
candidates of their choice. McCain would ban soft money, the large
contributions given to the political parties.
He and other Republicans insist that
labor unions abide by the 1988 Beck decision, in which the
U.S. Supreme Court ruled that workers cannot be forced to finance a
unions political activities. This is a matter of simple justice.
Its bad enough that a worker is forced to pay dues even when he
declines to join a union. To force him to contribute to parties and
candidates he abhors compounds the injury. The best remedy is to make
union membership fully voluntary. Short of that, Beck should
be enforced.
Youd think that after
Beck compulsory political contributions would be a thing of
the past. But they are not. Using what labor economist Charles Baird calls
creative bookkeeping, unions have thwarted workers who
want the political portion of their dues refunded. The National Labor
Relations Board under President Clinton was less than vigilant about
enforcing the rights affirmed in Beck. For example, the NLRB
said that workers could not demand an objective accounting of a
unions activities.
In the debate over campaign finance
reform, the Democrats have found it hard to reject outright the
proposition that workers should be free from compulsory political
contributions. Instead, they have asked for what Senate Minority Leader
Tom Daschle calls a level playing field namely, that
corporate stockholders should have the same freedom. After all, Daschle
asks, why should a corporation make political contributions against the
will of its owners?
No one should be surprised that
Daschle would engage in such sophistry. What is disappointing is that the
Bush administration appears to be falling for it. Senior White House
adviser Karl Rove told an interviewer that shareholder
protection is an interesting idea.
But it is not an interesting idea. It is
bad idea based on a fallacy. Whether or not the Bush people really think it
has merit, there is a danger they will go for it in the spirit of
compromise. But such a compromise would interfere with the free market
and set a terrible precedent.
There is no comparison between a
worker forced to pay dues to a union and a stockholder. If a worker
doesnt like a union, he can quit but he cannot stop paying
tribute. His dues are simply redefined as fees. But if a stockholder
doesnt like what his corporation is doing, he is free to sell his
stock and have nothing to do with the company. If a company persists in
acting contrary to the interests of its owners, it will find itself the
target of a takeover unless government regulations thwart that
free-market process.
A true level playing field would
require the repeal of the exclusive representation provision
of the National Labor Relation Act. That provision recognizes a union
chosen by a majority of workers as the exclusive representative of all
workers even those who voted against it. Workers who wish not to
join must still pay. This is justified by the claim that nonmembers
receive services. But as Baird points out, if exclusive representation were
repealed, that justification would collapse.
There is no equivalent to exclusive
representation for stockholders. The moment a stockholder gets wind that
a company in which he holds shares is using corporate money in a manner
he disapproves of, he is free to dump the stock. Workers have no similar
power.
The Bush administration should resist
making this compromise. Even better, it should reject campaign finance
reform altogether. It is nothing but a limit on free political expression
and therefore contrary to the liberty we pride ourselves on. The best way
to eliminate the undue influence of money in politics is to shrink
government back to its original constitutional dimensions. If government
has no special favors to sell, special interests will have nothing to buy.
Sheldon Richman is
senior fellow
at The Future of Freedom Foundation in Fairfax, Va.
(www.fff.org), and
editor of
Ideas on Liberty magazine.
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