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Ethnicity

Ethnicity. African 2.4 East Asian (China, Japan, Korea), 8.5 Other Asian, 8.7 British/Irish, 21.5 German/Scandinavian/Dutch 35.4 Other European 18.1 Latin American 4.6 Other 2.3. Religion. Catholic 32.8 Methodist 9.2 Lutheran 6.0 Other Protestant 19.2 Jewish 9.1

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Ethnicity

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  1. Ethnicity African 2.4 East Asian (China, Japan, Korea), 8.5 Other Asian, 8.7 British/Irish, 21.5 German/Scandinavian/Dutch 35.4 Other European 18.1 Latin American 4.6 Other 2.3

  2. Religion Catholic 32.8 Methodist 9.2 Lutheran 6.0 Other Protestant 19.2 Jewish 9.1 None 10.4 Atheist 1.3 Muslim 1.2 Hindu 1.8 Eastern Orthodox 1.2 Other 1.9

  3. Politics Liberal 30.0 Middle-of-the-Road, 28.3 Conservative, 36.3 Apolitical 4.8

  4. Origin Foreign 12.8 American non-Indiana, 40.5 Indiana city, 10.1 Indiana suburb 13.5 Indiana town 16.9 Indiana rural 6.7

  5. Announcements--Tuesday • Breakout--do Paper Case write-up. • No class Thanksgiving week

  6. Announcements--Thursday • Breakout next week-- review • Quiz 2 is in progress. It continues till next Monday

  7. G302, Week 12: Coalitions and Lobbying

  8. Park Place Entertainment Corp. • Caesar’s Palace (Las Vegas) • The Flamingo Hilton (Las Vegas) • Atlantic City New Jersey casinos • Mississippi casinos • A 1998 spinoff from Hilton Hotels

  9. Senator Corzine said to the CEO of Park Place, June 28, 2000 that he "does not mean to be pushy but he has to know before the meeting with the president if he can count on you for $16,000."

  10. Two Interesting Dates • Aug. 30, 2000 • Dismissal of rival's appeal of favorable court decision, following BIA recommendation • Park Place donates $16,000 to the Democratic Party • October 6, 2000 •  BIA declares tribal court cannot enforce $1.8 billion judgment against Park Place • Park Place donates $10,000 to the Democratic Party

  11. What you will learn today • How to form a coalition to help fight your political battle • What lobbyists and campaign contributions are good for

  12. Coalition Formation • Figure out who should be on your side • Make sure they know they should be on your side. • Solve the free rider problem and get them to help.

  13. Customers Inputs Value Chain Logistics Labor Whole- salers Consumers Capital Operations Distri- butors Community Marketing Suppliers Retailers Service Support The Rent Chain Distribution Channels Anheuser-Busch is a good example of a company that uses the rent chain

  14. Example: Construction Waste • A state proposed allowing builders to bury solid waste on the construction site, with appropriate inspection by the cities. • The lobbyist representing disposal companies had to decide what to do. • First, he contacted environmentalist groups.

  15. Who would make the best coalition partner to oppose the disposal bill? (a) Builders (b) Construction unions (c) Non-union construction workers (d) Landscaping companies (e) Local governments

  16. Example:1977 Clean Air Act Amendments How should sulfur dioxide emissions be reduced? • “Scrubbers” on new power plants? • Low-sulfur western coal? • Eastern coal produces ~ 4 lbs sulfur/MBTU • Western coal produces ~1 lb sulfur/MBTU • A ceiling on pounds of sulfur/MBTU of coal? (EPA proposal)

  17. Western vs. Eastern Coal

  18. The Strange Coalition • Environmentalists were strong in the West. They supported scrubbers and opposed Western mining. • Eastern coal companies and the United Mineworkers union found allies in the Sierra Club.

  19. 1. Did the sign-in sheet get around? 2. If you answered a question, bring up a notecard for me. “Logrolling”: You vote for me on this, and I’ll vote for you on that

  20. What Do Lobbyists Do? • Identify threats • Track legislation • Provide information about the issue • Provide information about the issue’s politics • Organise coalitions • Influence public opinion

  21. Lobbying matters most in interest-group and client politics Policy Benefits Policy Costs

  22. The Inside and Outside Games • The “Inside Game”: contact officials directly • The “Outside Game”: get other people to contact officials: • Grassroots:get your members and friends to write letters • Astroturf:hire a lobbying firm to create real or simulated grassroots support • Grass-tops:get your members who already have ties to the officials to contact them

  23. Example: The New Jersey Cable TV Ass. • A $39 million tax on cable TV was proposed. The NJCTA killed it by sending a packet to each member company suggesting: • A 30-second public-service ad from NJCTA • Letters to newspapers (with a sample for them) • Ask employees to write to legislators • Letters to legislators from the general manager • Give antitax postcards to subscribers and employees (150,000 were mailed in, which the NJCTA sorted and delivered to legislators) • An antitax phone message for customers on hold

  24. Campaign Contributions: Can You Buy a Congressman? • “Money buys access, not action”. Contributions are part of informational lobbying • In client politics, a contribution may make a direct difference • Contributions help elect people with positions you like--but, free rider problem

  25. Microsoft Political Donations $000

  26. Soft Money and Hard Money • http://www.opensecrets.org/basics/law/index.asp • Corporations cannot donate directly to candidates • Before 2002, corporations, unions, and individuals could donate unlimited amounts for “party-building” • 1999-2000, the national parties raised $495M in soft money, 2/3 from 800 donors of $120,000+ • Soft money was banned in 2002

  27. Soft Money • For data on campaign contributions: http://www.opensecrets.org/lobbyists/index.asp • See my own contributions...

  28. People who help raise money matter • 171,000 people contributed to George W. Bush’s 2000 presidential campaign. • Bush had 150+ “Pioneers”, who each committed to raise at least $100,000-- e.g., $1,000 each from 100 people. • Obviously, he would be grateful to the Pioneers and listen to them in staffing the new administration.

  29. Top PACs of 2000-2001 • Assn of Trial Lawyers of America $1,370,753 • Laborers Union $1,240,500 • Machinists/Aerospace Workers Union $1,204,500 • American Fedn of St/Cnty/Munic Employees $1,202,000 • Intl Brotherhood of Electrical Workers $1,106,150 • Teamsters Union $958,821 • National Auto Dealers Assn $953,650 • National Assn of Realtors $926,595 • United Parcel Service $864,406 • Service Employees International Union $857,999

  30. Top Soft Money Donors, 2000-2001 (1,000s of dollars) • Organization Dems Repubs • American Fedn of St/Cnty/Munic Employees 1,466 0 • Service Employees International Union 1,209 20 • International Game Technology 100 1,115 • American Financial Group 0 1,200 • Philip Morris 56 1,134 • Communications Workers of America 1,115 0 • AT&T 485 579 • Freddie Mac 550 500 • Loral Spacecom 1,020 0 • Governor Bush Cmte 0 1,000

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