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There aren't many Democratic Congressional candidates who can claim that they personally thwarted the agenda of organized labor in the most critical legislative battles of the past decade, but former Clinton White House aide Rahm Emanuel can--and does. Northwestern University, where Emanuel has served as an adjunct professor of communications studies, identifies him as the man who "coordinated the passage of NAFTA." In addition to getting the North American Free Trade Agreement "ball across the goal line," as Emanuel likes to put it, Clinton's former senior adviser for policy and strategy was also a point man for the Administration in fights with unions over granting China most-favored-nation trading status and over fast-track negotiation of a hemispheric free-trade-area agreement that union leaders call "NAFTA on steroids."

That résumé might not sound like one that would be a magnet for labor support. Yet, as the millionaire investment banker seeks the Democratic nomination for an open Congressional seat representing blue-collar Chicago neighborhoods hard hit by the loss of industrial jobs, Emanuel is running with the endorsement of the Illinois AFL-CIO. Weirder still is the fact that Emanuel's opponent in the close struggle to win the March 19 primary, former State Representative Nancy Kaszak, is a lifelong backer of union causes who speaks with passion about the devastation wreaked on Illinois by more than 37,000 lost jobs directly linked to the passage of NAFTA.

What gives? The national AFL-CIO defers to state federations on local endorsements. And Illinois AFL-CIO spokesman Bill Looby offers a realpolitik explanation of his federation's stance in the Kaszak-Emanuel race: "She had the good labor record, but he had the record of knowing his way around Washington. The feeling was, he could be more effective in Washington." Illinois politicos argue, however, that the federation's endorsement resulted more from the machinations of the Daley political machine, for which Emanuel has been a fundraiser, strategist and well-connected ally.

Emanuel is just one of a number of Democrats who, despite playing premiere roles in pushing a trade agenda that AFL-CIO president John Sweeney has referred to as "an assault on American workers, their families and their communities," enjoy AFL-CIO support in tight primary contests with Democrats who oppose unrestricted free trade. As in the 2000 presidential race, when the national federation went all out for Al Gore--who had consistently opposed it on trade issues--several state and local federations this year have made endorsements that are causing a lot of head-scratching among union members who embrace the "fair trade, not free trade" line.

In Texas, for instance, Representative Ken Bentsen, a Houston Democrat who helped the Bush White House secure its one-vote victory in December for fast track, won a dual endorsement just weeks later for an open US Senate seat--even though the man he shares the endorsement with, former Dallas Mayor Ron Kirk, clearly positioned himself on the opposite side of the issue. And divided labor loyalties in a freshly drawn Ohio Congressional district may well allow Representative Tom Sawyer, a frequent supporter of free-trade initiatives, to prevail over Ohio legislators with strong pro-labor records in a race to represent Youngstown and other steel-mill communities ravaged by the opening of US borders to cheap foreign steel.

When it's losing key Congressional battles over trade by a single vote, can labor really afford to send more Wall Street, not Main Street, Democrats to Congress? Paul Waterhouse, a top official with Teamsters Local 705 in Chicago, doesn't think so. "Unions begin to lose faith with their members when you tell them year after year after year that trade is the central issue and then at election time say never mind," says Waterhouse, whose 21,000-member local is backing Kaszak over Emanuel. Trade was a critical issue in convincing the Teamsters, the Machinists and a number of other blue-collar unions to break ranks with the state labor federation and endorse Kaszak. Indeed, to the extent that there is union "street heat" working the district, it appears mostly to be for Kaszak, who is described by Chicago Sun-Times columnist Steve Neal as having a record as "a genuine populist and community activist" that contrasts with Emanuel's "dubious claim that he has spent his life fighting for working families."

Intriguingly, the group that has placed an estimated $400,000 in advertisements on Chicago television complaining about Emanuel's support of NAFTA is not the labor federation that led opposition to the trade deal. It is EMILY's List, the national donors' network that backs pro-choice women candidates. EMILY's List was looking for an issue that would allow it to clearly distinguish Kaszak's Chicago roots from Emanuel's Washington-insider status. The Teamsters' Waterhouse says the group was wise to focus on trade policy. "Trade is an important election issue for working people in places where jobs are disappearing," says Waterhouse, who argues that unions need to recognize the power of the issue, as well as the importance of remaining consistent on it. "It really is a matter of credibility. We need to be the ones standing strong on these issues. If we say that trade is a central issue and then back people at election time who are on exactly the wrong side of the issue, we might as well say to politicians, Go ahead, screw us again."

He's created new projects, made new friends--and some bitter enemies.

We're told that this campaign reform is not
The end-all of the sleaziness we've got.
But it must have some worthwhile changes in it
If Tom DeLay and Hastert are agin it.

As the House of Representatives was about to begin debating a modest campaign finance reform bill, former Enron CEO Kenneth Lay was taking the Fifth before the Senate commerce committee. As the disgraced exec sat grim-faced at the witness table, Democratic Senator Fritz Hollings, chairman of the committee, used the nickname George W. Bush once conferred upon Lay, noting that there is "no better example than Kenny Boy of cash-and-carry government." Lay and Enron dumped millions of dollars into the political system--in hard-money contributions to candidates and soft-money donations to political parties--and spent millions more to hire politically wired lobbyists (including Republican Party chairman Marc Racicot) and to snag high-profile opinion leaders (like Bush economic adviser Lawrence Lindsey) as consultants. Executives were coerced to cut campaign checks to Bush and other politicians, Republican and Democrat. The goal was to game the system in Enron's favor--in regulatory agencies, in Congress, in state capitals, in the White House.

Enron, of course, was not unique in this regard. Why else would corporate executives invest millions in candidates and parties? If they're not receiving a return, shareholders should sue. (Enron may well have received favors from federal and state officials in the months and years before the company started collapsing and became too controversial to assist; the various Enron inquiries on Capitol Hill should be digging into this.) And the system seems to be working fine for most donors and the recipients, for the flow of money keeps increasing. In 2001 the two parties bagged $151 million in soft money--the large unlimited contributions given mainly by corporations, unions and millionaires--almost a 50 percent increase over 1999, the last nonelection year. The Republicans out-collected Democrats, $87.8 million to $63.1 million.

The Shays-Meehan bill, at the center of the latest House campaign finance debate, called for something of a ban on soft money for the national parties--a good move. But the legislation, similar to the McCain-Feingold bill in the Senate, still contained soft-money loopholes and, just as unfortunate, raised the limits on certain hard-money donations. If Shays-Meehan had been enacted years ago, it would have done little to slow down the Enron racketeers. That's why it's important for the debate to move beyond Shays-Meehan/McCain-Feingold. The long-term solution must be a system of public finance in which candidates can receive most of their campaign dollars in clean money, that is, funds that come from the no quid/no quo public till rather than the private pockets of the rent-a-politician crowd. The first run of clean-money systems in Maine and Arizona showed that such an alternative can work: There were more contested races, more women and minorities running and a more level playing field. The vast majority of both states' legislators and statewide officials will run "clean" this year, and it looks as though the Massachusetts Supreme Court will force the implementation of that state's clean election law for this year's election. Legislation is advancing in several other states.

In the past few years, the reform debate in Washington has been too modest. The authors of the reform bills deserve credit for pushing against a mighty tide of self-interest, but Enron shows how far special interests will go to rig the system. True reform has to go as far.

The success of Michael Bloomberg's $69 million race for Mayor of New York against Mark Green was widely seen as a setback for campaign finance reform. But the Bloomberg campaign demonstrated the limits of campaign finance reform under the Supreme Court's interpretation of the Constitution, not its failure.

Hurray for campaign finance reform--well, kind of.

On March 5 San Franciscans will have the opportunity to vote for an
electoral system that elected "Red Ken" Livingstone as London's Mayor and
Mary Robinson as Ireland's President and catapulted

It was the start of another Conservative Political Action Conference--the annual gathering of several thousand activists--and Republican Party chairman Marc Racicot, in unexciting fashion, was telling the right-wingers his party would push the Bush agenda "in civil tones." Civil tones, though, are not usually embraced at CPACs, where attendees often denounce liberals as socialist buffoons, the media as a hotbed of anti-conservative bias and less-right Republicans as sellouts intimidated by the powers of a diabolical left. A year ago conservatives scuttled Racicot's appointment as Attorney General, claiming he was not sufficiently antiabortion. Now, as he spoke, the Rev. Lou Sheldon, a leading social conservative, told me he heartily approved of Racicot: "He makes the establishment happy, and he's telling us the party platform [against abortion] is not going to change in 2004." Is that enough for the religious right? Don't its members want to hear more social conservatism from George W? Nah, Sheldon replied. "He doesn't have to stroke us and then have James Carville beat him up for that. We're not going anywhere." He then applauded enthusiastically for Racicot.

Throughout CPAC, it was clear that Bush is aces with a mostly satisfied, still-going-strong conservative movement and that the ideologues of the right don't have much space to wage battles separate from Bush's agenda. David Keene, chairman of the American Conservative Union, noted that conservatives currently have two concerns regarding the Administration. First, will it use the national security crisis to impede civil liberties more than necessary? Second, will it become enamored of government as a solution to ills beyond the war on terrorism? But no one at CPAC wanted to point fingers over such matters.

Conservatives seemed content to let Bush be Bush. Few CPACers called for pushing the Administration to do more to end abortion, or to beat back affirmative action, or to replace the income tax. When advocates criticized Bush policies, they did so without assailing Bush. NRA CEO Wayne LaPierre soundly condemned the expansion of government power since September 11--"wand rape" at airports, "vast new powers" for the CIA, FBI e-mail intercepts--but he refused to blame Bush or Attorney General Ashcroft (both of whom have been slavish to the NRA on its core issue) for these liberty-threatening developments. Fiscal conservatives voiced anger over Bush's new budget for its overall increase of 9 percent (although it contains severe domestic cuts). "We do not need more money for Peace Corps, AmeriCorps, education," huffed Stephen Moore of the Cato Institute. "It's important we remain stalwarts of small government." But he did not attack the President or his aides. The war, Keene remarked, "takes the edge off the criticism of most conservatives. The first obligation of government is defense, and conservatives are happy to have a President who rises to the occasion. They are willing to put up with a lot to see that."

With a pro-gun, antiabortion, pro-tax cut, anti-Kyoto, pro-military guy riding high in the White House, CPACers appeared less crabby than in previous (Clinton-era) years. Still, there was the usual grousing that Democrats are better streetfighters than Republicans (I kid you not) and that the media are arrayed against conservatives. (Don't these people watch MSNBC, which now airs theocratic Republican Alan Keyes?) When a delegate asked Racicot about anti-Republican media bias, he griped that it's tough "to get a conservative message across," because that requires "a higher level of incisive analysis" and calls on people to engage in "a higher level of conduct." He added, "Children don't always like to hear what's passed on to them in terms of advice and counsel, and I think that's true with the conservative message."

Several speakers, including antifeminist Phyllis Schlafly, urged conservatives to mount a crusade against illegal aliens and to lobby for antiterrorism profiling focused on foreigners. (Right-wing strategist Grover Norquist, representing yay-for-cheap-labor and business-oriented conservatives, warned his comrades not to engage in activity that could alienate immigrant communities.) M. Stanton Evans, a founder of the modern conservative movement, suggested that the right could score points by decrying the "dismantling" of the national security system, which he attributed to political correctness. "CIA agents are sitting out in Langley," he explained, "sewing diversity quilts." (A CIA spokeswoman I contacted said its employees do not engage in the forced sewing of feel-good quilts. She noted that ten years ago a group of CIA employees who were quilting hobbyists fashioned a quilt on their own time.)

The tone was one of quiet triumphalism. Most speakers appeared in sync with Karl Rove's belief that voters will appreciate Bush's handling of the war and reward Republicans in this year's elections. Columnist Fred Barnes opined that it's silly to believe that Democrats can trump the war on terrorism with issues like the patients' bill of rights. Talking head Chris Matthews praised Bush and Defense Secretary Rumsfeld as "grown-ups" who exude "authenticity" and poked Democrats as the party of "whining." But GOP political consultant Marc Rotterman voiced a note of caution, foreseeing a Democratic effort to "Enron this Administration" by accusing Bush of neglecting domestic concerns, being in league with big business and raiding Social Security. "At the end of the day," he observed, "the economy always comes into play. If we're still at slow growth rates, it will impact Congressional races. I am not sure Bush's popularity translates to the House and Senate races."

Still, as pollster Kellyanne Conway maintained, at this point conservatives have little grounds for worrying or complaining. "George W. Bush has been more Reagan than Bush. His record now is impervious to conservative criticism." Does that pose difficulty for the die-hard conservatives who might want more--or perhaps less--from Bush? "Well," she said with a wink, "for some conservatives it is easier to be against something. But they're going to have to wait."

Back in the spotlight, he condemns the trading of political favors for cash.

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