Money Talks

“Most elected officials are brought up relatively privileged by class, connections, knowledge, or education. This upbringing, no doubt, impacts their worldview. Then, upon (and after) being elected, most politicians find a way to dramatically increase their wealth, enrich their families, and make sure their children get a huge head start. This cycle reinforces the notion that the game is rigged.” – Filthy Rich Politicians

In 2022, House leaders in both parties collaborated to change the House rules for members allowing additional financial support while conducting official business in DC.  In its first year, more than 300 members, spending nearly 6 million dollars, took advantage of the new windfall that reimbursed costs for food and housing, remuneration above and beyond their annual salaries of $174,000, and other added perks that come with the job. 

In Matt K. Lewis’s 2023 book, “Filthy Rich Politicians”, Lewis laments the growing gulf between rich politicians and the people they represent, with nearly half of all members of Congress now millionaires, while only 8 percent of Americans have reached such heights.  While an increasing number are born rich, or marry rich, most of the remaining have backgrounds in tech, the law, or in corporate enterprise.  Not only is more and more money needed to become elected, but politicians have significant opportunities to increase their wealth once in office.  Then, once their terms are up, a rising percentage of retiring lawmakers end up in lobbying firms or as consultants, further cashing in on their connections.    

Today’s congressional terms in office are vastly different from those of our young founders, who left their regular jobs to create and nurture their fledgling new country.  After serving their nation for a term, many returned to their lives to live under the laws they created.  For their constituents, the American dream allowed even those from humble beginnings to rise from honest work, as the government stayed largely out of their way.  Now, chronic obstacles set by the government make such aspirations harder to obtain.

Today, to run for office, candidates must leave their jobs and not only raise funds but commit an enormous amount of time to their campaigns.  Rich candidates fare best because they can tap their vast connections with schoolmates and business contacts, to raise money, and even self-fund their entire campaigns.  And while rich people can gamble and lose and return to their wealthy lives, the middle and working class cannot, making it less and less likely for them to be represented in the halls of Congress. 

Once in office, special opportunities allow members to grow their bottom line.  Book deals, insider information on corporations, and work trips, provide unlimited access to outside money.  Today, more than twenty percent of members have stock purchases that overlap with their work, allowing them to avoid market losses and take advantage of market gains.  Money can also flow to family members either through jobs with the campaign or jobs accepted in exchange for favored legislation. 

Wealthy people not only enjoy a distinct culture, unlike their constituents, but they grow up differently, obtaining important privileges at their fancy universities.  As such, rich legislators often support policies that may not be best for the average citizens.  When politicians mettle in domestic issues including housing and climate policies, they regularly lead to fewer options and higher costs.  Instead of helping those in need, they tend to favor their well-connected and wealthy acquaintances.  But that doesn’t stop dishonest politicians from posturing their support for the working class and poor, feigning that their best interests are in serving the little guy.   

The growing increase in inequality between politicians and their constituents has led to a populist movement, resulting, in part, in the election of Donald Trump.  Populism grew as faith in longstanding government institutions, the law, the media, and even the healthcare system after the COVID-19 debacle, collapsed.  The consequence of the growing divide was Trump himself, who despite his wealth, seemed to be the only one who voters thought couldn’t be bought.  While donors are the driving feature of the establishment, it’s the people who back the populists. 

As James Michener once claimed about missionaries to Hawaii, we can also affirm about politicians in Washington, that they came to do good, and they did very well, indeed.  Until we limit their power through term limits, bans on stock trades, and lobbying, the gulf between the haves and have-nots will only grow wider.