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Saturday, December 14, 2013

Think Tanks and Corporate Money

Our textbook explains that corporations try to influence public policy by supporting friendly think tanks.  The New York Times offers an example:
The defense contractor Northrop Grumman gave money to the left-leaning Center for American Progress, founded by John D. Podesta, as the nonprofit group at times bemoaned what it called the harmful impact of major reductions in Pentagon spending.

Pacific Gas and Electric sent in a donation as Mr. Podesta championed government incentives to promote solar energy and other renewable sources that the California company buys more of than nearly any other utility.
The pharmaceutical giant Eli Lilly was also a donor because of what it said was the Center for American Progress’s advocacy for patients’ rights — and just as the debate heated up in Washington over potential cuts to the Medicare program that covers Lilly’s most profitable drugs.
Mr. Podesta, named a senior adviser to President Obama, is not currently a lobbyist and therefore does not have to worry about the Obama administration’s self-imposed ban on hiring lobbyists to administration jobs. But he will nonetheless arrive at the White House after having run an organization that has taken millions of dollars in corporate donations in recent years and has its own team of lobbyists who have pushed an agenda that sometimes echoes the interests of these corporate supporters.
These financial ties offer a hint of the blurry lines in Washington between the research organizations like Mr. Podesta’s — which is a virtual external policy arm of the Obama administration — and lobbying shops. The ties could also cause some complications for Mr. Podesta as he heads into the West Win