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Faultlines

Here’s an interesting article in TNR by Clay Risen about restiveness in the Chamber of Commerce, particularly the small business side, over its goosestepping adherance to the GOP line.

…at the same time the Chamber was drifting to the right, the interests of its larger members began to diverge from those of its small-business constituency. Several fissures have emerged. For one, the rise of offshore manufacturing means that smaller firms, which tend to be at the bottom of the supply chain, have been forced to cut costs significantly or lose out to overseas competition. “They are more and more being told that their prices have to look like what the big guys are getting from China,” says Josh Bivens, an economist at the Economic Policy Institute. “If they’re not poised to do that, they lose out.” Meanwhile, chains like Wal-Mart are pricing small retailers out of the market, offering more products at lower cost. And because they buy primarily from other multinationals (who can supply large quantities of cheap products) small manufacturers are getting squeezed as well. But because big business invariably has more money to contribute, its influence in setting the Chamber’s priorities means that the needs of smaller firms have been largely ignored. “For small businesses, their adversary used to be government regulation,” says Marks. “Now it’s big business.”

For these guys, paying taxes is the least of their problems. They are concerned about health insurance inflation and low educational standards and a whole host of other things, while the Chamber is blathering on rellentlessly about tort reform. And, their biggest threat is the rapaciousness of the corporate oligarchy. The way it’s going the new ownership society is going to have a few successful owners and a whole mess of untermenchen serving them. (But, don’t worry, they’ll be able to save five dollars a week in their 401K’s, so they’ll be “owners” too.)

The story of how the Chamber became Tom Delay’s bitch is also quite interesting. It’s pretty much the story of how the GOP whips its own if it steps out of line. It’s not really a big tent; it’s a big S&M parlor:

The Chamber was initially supportive of Clinton’s plan; William Archey, its chief lobbyist, and Robert Patricelli, chair of the Chamber’s Health Committee, even met regularly with the administration to iron out key points of disagreement. The Chamber, as Patricelli said at the time, saw Clinton’s managed-competition proposal as a reasonable solution to what it considered a crippling problem for businesses. But Republicans feared that a health care win would solidify Democratic dominance in Washington, and so they began browbeating the business lobby into opposing the plan. In late 1993, Ohio Congressman John Boehner told Archey and Chamber President Richard Lesher that it was “the Chamber’s duty to categorically oppose everything that Clinton was in favor of.” Republicans made public statements about the Chamber becoming “irrelevant,” and a klatch of conservatives–such as Boehner and Georgia Senator Paul Coverdell, along with lobbyist Grover Norquist’s “Wednesday Group” of anti-Clinton, anti-health-care-reform lobbyists–hinted that unless the group changed its tune, they would retaliate, perhaps by telling constituents to quit the Chamber or by creating a competing organization more sympathetic to the right.

If Junior doesn’t manage to eke out another dubious “victory”, it’s going to be interesting to see some of these fault lines break. The problem with humiliating people by forcing them to pledge fealty against their will is that they don’t mean it. They’ll stab you in the back the first chance they get. The GOP fight over “who lost the permanent majority” will be a lot of fun to watch.

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