Money in Washington, or, How the Democrats Became Beholden to Business Interests

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Bill Moyers, who recently announced he will be retiring from weekly television to our collective detriment, shows that his style of intrepid journalism still makes for must-see-TV with his Friday episode of Bill Moyers Journal. Moyers interviews The American Prospect's Robert Kuttner and Rolling Stone's Matt Taibbi on the Obama Administration's various capitulations to the wills of monied interests from health care to financial reform. If you would like a succinct and informative look at how things have gone so wrong so quickly in Obama's still-young Administration, I highly recommend you take half an hour and watch the program. Hat tip to CitizenofEarth on DailyKos for drawing my (and others') attention to this episode.
In the Moyers discussion, Taibbi makes the argument that the Democrats, and especially Rahm Emanuel, Obama's Chief of Staff, have made a business decision to win the fundraising battle with Republicans by appeasing business interests:

And I think, you know, a lot of what the Democrats are doing, they don't make sense if you look at it from an objective point of view, but if you look at it as a business strategy- if you look at the Democratic Party as a business, and their job is basically to raise campaign funds and to stay in power, what they do makes a lot of sense. They have a consistent strategy which involves negotiating a fine line between sentiment on the left and the interests of the industries that they're out there to protect. And they've always, kind of, taken that fork in the road and gone right down the middle of the line. And they're doing that with this health care bill and that's- it's consistent.

In a sense, a connection can be seen between the health insurance industry's business model and the "business model" of modern politics: the only way to make profits is to deny the people who use your services the services that they have rightfully paid for, with that payment being, in this case, insurance premiums, votes, or public opinion. For instance, the insurance industry can use rescission and other nefarious tactics to deny health care to people when they need it most, and politicians (in this case, Obama and his minions) can use soaring rhetoric and populist talk to sell voters an idea of the politician they will get, and then when the rubber meets the road, they will aggresively capitulate to the monied interests who invested so heavily in their campaign over the will of the voters who voted them into office in the first place. The Democrats can only reap the "profits" of continued campaign financing from Big Business if they deny the will of the voters, since the reforms that voters overwhelmingly support will result in reduced profit margins for Big Business. The calculation it comes down to, as Robert Kuttner accurately places it in the Moyers interview, is that campaign donations from business will outweigh the wills of individual voters who will be turned off by a politician's being beholden to monied interests:

Look, there are two ways, if you're the President of the United States sizing up a situation like this that you can try and create reform. One is to say, well, the interest groups are so powerful that the only thing I can do is I can work with them and move the ball a few yards, get some incremental reform, hope it turns into something better. The other way you can do it is to try to rally the people against the special interests and play on the fact that the insurance industry, the drug industry, are not going to win any popularity contests with the American people. And you, as the president, be the champion of the people against the special interests. That's the course that Obama's chosen not to pursue.

It appears that Obama and his team have misread the situation in this country; they do not understand the deep-seated anger towards the companies and the individual CEOs and executives that have brought us to this point of a failing financial system that has brought the world to its knees, combined with a domestic health care system that is responsible for 22,000 deaths per year due to a lack of insurance and many thousands driven into bankruptcy due to catastrophic medical expenses. American voters can see that the decks are stacked against the little guys/gals, but sadly our political class still believes we can be deceived by positive talk and rhetorical spinup . I hope that Obama wakes up to the fact that he is widely being seen as allied with business interests against American interests, or else his presidency will become a failed one when that is the last thing that this country needs.