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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.

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Presentation on theme: "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."— Presentation transcript:


2 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

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

4 3 Politics Liberal 30.0 Middle-of-the-Road, 28.3 Conservative, 36.3 Apolitical 4.8

5 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

6 5 Announcements--Tuesday Breakout--do Paper Case write-up. No class Thanksgiving week

7 6 Announcements--Thursday Breakout next week-- review Quiz 2 is in progress. It continues till next Monday

8 7 G302, Week 12: Coalitions and Lobbying

9 8 Park Place Entertainment Corp. Caesars Palace (Las Vegas) The Flamingo Hilton (Las Vegas) Atlantic City New Jersey casinos Mississippi casinos A 1998 spinoff from Hilton Hotels

10 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."

11 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

12 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

13 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.

14 13 The Rent Chain Distribution Channels Value Chain Inputs Labor Capital Community Logistics Customers Whole- salers Retailers Suppliers Operations Marketing Service Support Distri- butors Consumers Anheuser-Busch is a good example of a company that uses the rent chain

15 14

16 15 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.

17 16 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

18 17 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)

19 18 Western vs. Eastern Coal

20 19 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.

21 20 Logrolling: You vote for me on this, and Ill vote for you on that 1. Did the sign-in sheet get around? 2. If you answered a question, bring up a notecard for me.

22 21 What Do Lobbyists Do? Identify threats Track legislation Provide information about the issue Provide information about the issues politics Organise coalitions Influence public opinion

23 22 Lobbying matters most in interest-group and client politics ConcentratedDispersed Concentrated Interest group politics Entrepreneurial politics DispersedClient politicsMajoritarian politics Policy Benefits Policy Costs

24 23 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

25 24 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

26 25 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

27 26 Microsoft Political Donations $000

28 27 Soft Money and Hard Money 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

29 28 Soft Money For data on campaign contributions: For data on campaign contributions: See my own own contributions

30 29 People who help raise money matter 171,000 people contributed to George W. Bushs 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.

31 30 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

32 31 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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