GOP Donors and K Street Fuel Third Way’s Advice for the Democratic Party

GOP Donors and K Street Fuel Third Way’s Advice for the Democratic Party

GOP Donors and K Street Fuel Third Way’s Advice for the Democratic Party

The Democratic think tank Third Way relies on money from corporate interests, lobbyists and Republican donors.

Copy Link
Facebook
X (Twitter)
Bluesky
Pocket
Email

Third Way, a centrist think tank that portrays itself as a Democratic group, has some advice for the party: avoid economic populism at all costs. In a column for The Wall Street Journal today, the group argues that the party should steer clear of creating a strong safety net, and criticizes Mayor-elect Bill de Blasio’s call for universal pre-K funded through an upper-income tax increase as a foolhardy idea for national Democrats.

As many have noted today, in reaction to the column, Third Way’s attacks on Social Security and Medicare fail on the merits. It’s bad policy, and it’s equally bad politics.

But for Third Way, a group founded in 2005 that is highly active on Capitol Hill, the think tank is merely defending the special interest groups that allow it to exist.

Buried inside the annual report for Third Way is a revelation that the group relies on a peculiar DC consulting firm to raise half a million a year: Peck, Madigan, Jones & Stewart. Peck Madigan is no ordinary nonprofit buckraiser. The group is, in fact, a corporate lobbying firm that represents Deutsche Bank, Intel, the Business Roundtable, Amgen, AT&T, the International Swaps & Derivatives Association, MasterCard, New York Life Insurance, PhRMA and the US Chamber of Commerce, among others.

The two organizations complement each other well. Peck Madigan signs as a lobbyist for the government of New Zealand on the Trans-Pacific Partnership free trade deal; Third Way aggressively promotes the deal. Peck Madigan clients push for entitlement cuts, and so does Third Way.

Notice that Humana, a major health insurance company, lists its $50,000 donation to Third Way not as a donation to a think tank but as part of its yearly budget spent on lobbying activity, up there with the Florida Chamber and other trade associations. The company views financial gifts to Third Way as part of its strategy for increasing its profit-making political influence.

What’s more, Third Way’s leadership has tenuous connections to the Democratic Party it hopes to shape. Daniel Loeb, a hedge fund manager listed as a trustee on Third Way’s 2012 annual disclosure, bundled $556,031 for Mitt Romney last year. Third Way board member Derek Kaufman, another hedge fund executive, also gave to Romney.

There is a long and storied tradition of corporate, right-wing interests seeking to shape the economic policies of the Democratic Party. The DLC, another Third Way–style group that folded in 2011, was funded by none other than Koch Industries. Richard Fink, a strategist to the Koch brothers who helped found what is now known as Americans for Prosperity, was on the DLC’s board.

Washington’s Big Business–friendly press has greeted the Third Way column as a “game changer.” But these arguments aren’t new, and neither are the strategies. Large corporations have many ways of finding useful surrogates, and Third Way is a prime example.

UPDATE: Daily Kos’s Hunter has a nice post noting how Third Way’s hatred of Senator Elizabeth Warren may relate to the fact that Third Way’s board is made up almost entirely of investment bankers and other Wall Street executives. Also worth considering, the anti-privatization drive of those “economic populism” types might rub some Third Way board leaders the wrong way—especially the one who sits on Correction Corporation of America’s board.

More Lee Fang: how the Turkey Lobby blocked child-labor regulations.

Hold the powerful to account by supporting The Nation

The chaos and cruelty of the Trump administration reaches new lows each week.

Trump’s catastrophic “Liberation Day” has wreaked havoc on the world economy and set up yet another constitutional crisis at home. Plainclothes officers continue to abduct university students off the streets. So-called “enemy aliens” are flown abroad to a mega prison against the orders of the courts. And Signalgate promises to be the first of many incompetence scandals that expose the brutal violence at the core of the American empire.

At a time when elite universities, powerful law firms, and influential media outlets are capitulating to Trump’s intimidation, The Nation is more determined than ever before to hold the powerful to account.

In just the last month, we’ve published reporting on how Trump outsources his mass deportation agenda to other countries, exposed the administration’s appeal to obscure laws to carry out its repressive agenda, and amplified the voices of brave student activists targeted by universities.

We also continue to tell the stories of those who fight back against Trump and Musk, whether on the streets in growing protest movements, in town halls across the country, or in critical state elections—like Wisconsin’s recent state Supreme Court race—that provide a model for resisting Trumpism and prove that Musk can’t buy our democracy.

This is the journalism that matters in 2025. But we can’t do this without you. As a reader-supported publication, we rely on the support of generous donors. Please, help make our essential independent journalism possible with a donation today.

In solidarity,

The Editors

The Nation

Ad Policy
x