October 5th, 2008

Grassroots Role in 2nd Bailout Vote – The Secret to Success

Posted by: Brad Fitch

After the first House bailout vote went down in flames, I posted a K Street Cafe entry suggesting that it was ideology – not the flood of emails and phone calls to congressional offices – that determined the outcome. I noted that it was not fear of voter backlash that motivated legislators, as 77% of the “no” votes came from House members who had nothing to fear since they won their last election with more than 55% of the vote. In today’s Washington Post Outlook Section, writer Eve Fairbanks offers more data to support this theory by pointing out that none of the freshman House Republicans, who are closely aligned with the conservative Republican Study Committee, voted “yes” on the first bailout vote. She suggests it was conservative ideology that dominated their decision-making process.

So what turned it around the second time? Certainly the tax sweeteners and higher FDIC protection limits motivated some, but there was more evidence in the weekend papers that our K Street Café colleague, Colin Delany, said it perfectly with his blog entry last week: it’s all about relationships. Those people who built a relationship with a member of Congress and communicated their interest in the legislation influenced the outcome. This is a crucial lesson in grassroots advocacy: there is a significant difference in legislators’ minds between those people with an opinion and those with an interest.

Saturday’s New York Times tells the story of Congressman Howard Coble (R-NC), who was swayed from “no” to “yes” in the span of a week, in part because a university president in Elon, NC explained how the credit crunch was hurting the institution. In Saturday’s Washington Post we hear how Congressman Elijah Cummings was influenced by a small business owner who feared he couldn’t make payroll because the bank had cut off his line of credit. Both legislators changed their votes.

There are two types of constituents who interact with lawmakers on policy questions: those who have an opinion, and those that have an interest (meaning, the policy affects them personally). Everyone has an opinion about the Iraq War, but only a small fraction of our population has a family member who is serving overseas. If a woman stands up at a congressional town hall meeting and says, “I think we should get out of Iraq,” the member of Congress will process that information one way. If the woman says, “I think we should get out of Iraq, and my son was just given his orders to ship out to Baghdad,” the legislator will have a completely different reaction.

Before the first vote in the House legislators heard from constituents who said, “I don’t like the idea of bailing out Wall Street.” Before the second vote they heard from constituents who said, “If this bill doesn’t pass I may have to lay off employees.” There is a profound difference in legislator’s hearts and minds between these to types of constituents. The first type might vote against them in the next election – a thought that is disappointing to a politician, but he can live with it. The second group weighs on a public official’s conscience until the end of time.

This is future of advocacy and portends who will win and lose when the 111th Congress convenes in January. Those groups with extensive grasstops networks who are skilled at advocacy and have built relationships with members of Congress will be the winners. One of the more sophisticated Knowlegis customers has built such a network (sorry, can’t reveal who they are). This group has categorized every grasstops member in their database with a score of 1 through 5. I asked the group’s government relations VP, “What classifies someone as a ‘1’?” He said, “That’s someone who can get their phone call returned from a member of Congress in one hour.” “How many of those do you have,” I asked. He replied, “You mean, in each congressional district?” Associations, corporations, and nonprofits who think like that will be on the winning end of every vote in the next congress.

Comments
Posted by: Steve Peek October 5th, 2008 at 8:21 pm

$700 BILLION BAILOUT CAN BE WIN-WIN-WIN FOR CITIZENS, BANKERS AND CONGRESS

My Senator, Barbara Boxer, responded to an email asking her not to vote for the bailout plan without considering more options. She said the primary reason she voted YES was because she heard from California the news that without the bailout California would not be able to ’sell voter-approved highway, school, and water bonds.’

Congress simply does not get that they not only have to do something, they have to do it right. What if there is a way to make everyone a winner?

Unfortuntely, I am old enough to recall previous decades. One recollection is of a time when all gasoline taxes went to the department of highways, both state and Federal. Before Congress moved these taxes to the general fund, my memory is we had little problems paying for infrastructure in our country. We were the world leader in expanding and improving roads. It makes me wonder why now we can’t keep California highways ahead of growth even with selling bonds.

Another memory is from the same era: when taxes collected for Social Security were earmarked only for Social Security, again, before Congress moved this money to the general fund. By correlating average U.S. salaries, cost of living, annual interest earned and cost of administration over the last thirty years, it is very clear that had Social Security money been kept out of the general fund it would today be, at worst, solvent and able to bear the increased demands placed on it by Baby Boomers. At best, assuming an investment return of 2% over prime, it would currently have an enormous surplus — enough to get us past the Baby Boomer demographic. It might be interesting for you to have someone run the numbers.

One of the reasons so many people opposed the bailout has to do with Congress, the institution. We may still have faith in our individual elected officials but Congress as a whole has provided so many examples of short sighted thinking, graft and corruption, and lack of intelligent thinking in the bills passed in teh last thirty years that the majority of Americans have a difficult time trusting the collective members currently sitting Washington.

Why not place $2,000 in every American citizen’s Social Security account (roughly $700 billion) and then loan the money to the financial institutions in trouble. Think about it.

Good luck, God bless,

Steve Peek

Posted by: Stephanie Vance October 6th, 2008 at 9:56 am

Great minds think alike. I was just blogging on this on the Advocacy New Approaches blog.

What I find most fascinating is that despite the fact that the financial services sector doubled their campaign contributions in the last 10 years, all their lobbying tactics could not put Humpty-Dumpty (or Lehman Brothers) together again. They were successful only when they incorporated grassroots strategies, including a widespread call to action from nearly every major business and retiree organization in DC (AARP, US Chamber, etc.)

To me, one of the big lessons here is that the “here’s my money, where’s my vote” approach to lobbying (which so many people think is effective) does not work or, at least, can’t trump good old-fashioned citizen outrage. Early in the week outrage worked against the bill — by the end, though, equally outraged citizens on the other side of the issue were able to turn it around.

Posted by: e.politics: online advocacy tools & tactics » Quick Hits — October 6, 2008 October 6th, 2008 at 3:17 pm

[...] Grassroots Role in 2nd Bailout Vote — The Secret to Success. [...]

Posted by: John Maszka October 6th, 2008 at 3:31 pm

This bailout is just one more example of the indivisible handjob stroking irresponsible CEOs and CFOs with billions so that they can run the American economy even further into the ground. So much for Keynesian economics. If the goal is to stimulate the economy, why not give the money directly to the American taxpayers? We could do twice as much good for the economy by giving half as much money directly to hardworking American taxpayers. A bird in the hand is worth two in the bush administration.

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