In a packed ballroom in midtown Manhattan, Hillary Clinton is addressing hundreds of civil rights activists and labor leaders convened by the Rev. Al Sharpton for his annual National Action Network conference. The junior senator from New York starts slowly but picks up steam when she hits on the economic anxiety many in the room feel. "We're not making progress," she says, her sharp Midwestern monotone accented with a bit of Southern twang. "Wages are flat." Nods of agreement. "This economy is not working!" Applause. She's not quite the rhetorical populist her husband was on the campaign trail, but she can still feel your pain. "Everything has been skewed," Clinton says, jabbing her index finger for emphasis, "to help the privileged and the powerful at the expense of everybody else!"

It's a rousing speech, though ultimately not very convincing. If Clinton really wanted to curtail the influence of the powerful, she might start with the advisers to her own campaign, who represent some of the weightiest interests in corporate America. Her chief strategist, Mark Penn, not only polls for America's biggest companies but also runs one of the world's premier PR agencies. A bevy of current and former Hillary advisers, including her communications guru, Howard Wolfson, are linked to a prominent lobbying and PR firm--the Glover Park Group--that has cozied up to the pharmaceutical industry and Rupert Murdoch. Her fundraiser in chief, Terry McAuliffe, has the priciest Rolodex in Washington, luring high-rolling contributors to Clinton's campaign. Her husband, since leaving the presidency, has made millions giving speeches and counsel to investment banks like Goldman Sachs and Citigroup. They house, in addition to other Wall Street firms, the Clintons' closest economic advisers, such as Bob Rubin and Roger Altman, whose DC brain trust, the Hamilton Project, is Clinton's economic team in waiting. Even the liberal in her camp, former deputy chief of staff Harold Ickes, has lobbied for the telecom and healthcare industries, including a for-profit nursing home association indicted in Texas for improperly funneling money to disgraced former House majority leader Tom DeLay. "She's got a deeper bench of big money and corporate supporters than her competitors," says Eli Attie, a former speechwriter to Vice President Al Gore. Not only is Hillary more reliant on large donations and corporate money than her Democratic rivals, but advisers in her inner circle are closely affiliated with unionbusters, GOP operatives, conservative media and other Democratic Party antagonists.

It's not exactly an advertisement for the working-class hero, or a picture her campaign freely displays. Her lengthy support for the Iraq War is Clinton's biggest liability in Democratic primary circles. But her ties to corporate America say as much, if not more, about what she values and cast doubt on her ability and willingness to fight for the progressive policies she claims to champion. She is "running to help and restore the great middle class in our country," Wolfson says. So was Bill in 1992. He was for "putting people first." Then he entered the White House and pushed for NAFTA, signed welfare reform, consolidated the airwaves through the Telecommunications Act of 1996 (leading to Clear Channel's takeover) and cleared the mergers of mega-banks. Would the First Lady do any different? Ever since the defeat of healthcare reform, Hillary has been a committed incrementalist, describing herself as a creature of the "moderate, sensible center" whom business admires and rewards. During her six years in the Senate, she's rarely been out front on difficult economic issues. Given her proximity to money and power, it's not hard to figure out why she keeps controversial figures close to her--even if their work becomes a liability for her campaign.

Polling Czar

After the 1994 election, Democrats had just lost both houses of Congress, and President Clinton was floundering in the polls. At the urging of his wife, he turned to Dick Morris, a friend from their time in Arkansas. Morris brought in two pollsters from New York, Doug Schoen and his partner, Mark Penn, a portly, combative workaholic. Morris decided what to poll and Penn polled it. They immediately pushed Clinton to the right, enacting the now-infamous strategy of "triangulation," which co-opted Republican policies like welfare reform and tax cuts and emphasized small-bore issues that supposedly cut across the ideological divide. "They were the ones who said, 'Make the '96 election about nothing except V-chips and school uniforms,'" says a former adviser to Bill. When Morris got caught with a call girl, Penn became the most important adviser in Clinton's second term. "In a White House where polling is virtually a religion," the Washington Post reported in 1996, "Penn is the high priest."

Penn, who had previously worked in the business world for companies like Texaco and Eli Lilly, brought his corporate ideology to the White House. After moving to Washington he aggressively expanded his polling firm, Penn, Schoen & Berland (PSB). It was said that Penn was the only person who could get Bill Clinton and Bill Gates on the same line. Penn's largest client was Microsoft, and he saw no contradiction between working for both the plaintiff and the defense in what was at the time the country's largest antitrust case. A variety of controversial clients enlisted PSB. The firm defended Procter & Gamble's Olestra from charges that the food additive caused anal leakage, blamed Texaco's bankruptcy on greedy jurors and market-tested genetically modified foods for Monsanto. PSB introduced to consulting the concept of "inoculation": shielding corporations from scandal through clever advertising and marketing.

In 2000 Penn became the chief architect of Hillary's Senate victory in New York, persuading her, in a rerun of '96, to eschew big themes and relentlessly focus on poll-tested pothole politics, such as suburban transit lines and dairy farming upstate. Following that election, Penn became a very rich man--and an even more valued commodity in the business world (Hillary paid him $1 million for her re-election campaign in '06 and $277,000 in the first quarter of this year). The massive PR empire WPP Group acquired Penn's polling firm for an undisclosed sum in 2001 and four years later named him worldwide CEO of one of its most prized properties, the PR firm Burson-Marsteller (B-M). A key player in the decision to hire Penn was Howard Paster, President Clinton's chief lobbyist to Capitol Hill and an influential presence inside WPP. "Clients of stature come to Mark constantly for counsel," says Paster, who informally advises Hillary, explaining the hire. The press release announcing Penn's promotion noted his work "developing and implementing deregulation informational programs for the electric utilities industry and in the financial services sector." The release blithely ignored how utility deregulation contributed to the California electricity crisis manipulated by Enron and the blackout of 2003, which darkened much of the Northeast and upper Midwest.

Burson-Marsteller is hardly a natural fit for a prominent Democrat. The firm has represented everyone from the Argentine military junta to Union Carbide after the 1984 Bhopal disaster in India, in which thousands were killed when toxic fumes were released by one of its plants, to Royal Dutch Shell, which has been accused of colluding with the Nigerian government in committing major human rights violations. B-M pioneered the use of pseudo-grassroots front groups, known as "astroturfing," to wage stealth corporate attacks against environmental and consumer groups. It set up the National Smokers Alliance on behalf of Philip Morris to fight tobacco regulation in the early 1990s. Its current clients include major players in the finance, pharmaceutical and energy industries. In 2006, with Penn at the helm, the company gave 57 percent of its campaign contributions to Republican candidates.

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