“Thanks to an astonishing political transformation, many chambers of commerce on the state and local levels have been abandoning (traditional) goals. They're becoming, in effect, lobbyists for big government.”
— Stephen Moore, Wall Street Journal, June 1, 2007
It is a question asked routinely — almost reflexively — during the last days of a General Assembly: “Will the Chamber score this?” The answer has consequences for legislators facing an electorate in a bad economic mood. It begs, though, a second question.
Each vote on selected bills counts for one percent of a legislator's total score in the “Legislative Vote Analysis” published each session. Vote wrong too many times and you lose the Chamber’s support. Consequently, you lose campaign contributors and gain challengers — primary challengers, if you are a Republican.
But here comes the second question: “Are the ratings grounded on economic principle?”
That answer has consequences as well — but for the Chamber itself. The introduction to the Chamber's annual ratings promises to determine whether a legislator is “part of the solution or part of the problem.” This is a boast that had better have something more behind it than hubris.
Fred McCarthy, a veteran Chamber executive and business lobbyist, posed questions about the Chamber's efficacy in his cover article for our fall journal. Dr. Tyler Watts, an economist and adjunct scholar of the foundation, also has questions.
“If the Chamber truly desires maximum prosperity and economic opportunity for Hoosiers, it must come to terms with some glaring inconsistencies in its legislative analysis,” Dr. Watts writes in a white paper released earlier this month by the foundation.
His analysis makes clear there is a difference between crony capitalism, which often includes the politically convenient public-private partnerships, and an economic climate that maximizes opportunity and prosperity for all Hoosiers — entrepreneurs, workers and taxpayers.
The Chamber’s most-recent ratings fall short of that ideal in three specific instances, Dr. Watts will argue:
n SB 584/HB1183 Local Indiana Business Preference — “The Chamber’s argument in support of this economically absurd bill essentially said that spending more on public works by state and local governments somehow promotes economic prosperity.”
n SB 72 Carbon-Dioxide Pipelines and Eminent Domain — “The ends don't justify the means. If they did, and our highest public goal was jobs, why not let any number of demonstrably able private entrepreneurs use state power to accumulate other people's resources for the sake of building their commercial empires?”
n SB 260 Clean-Energy-Improvement-Financing District — “The bill in question purports to subsidize energy conservation in general, and specifically the use of ‘clean’ energy. It might be pointed out that economizing on energy — which differs from strict conservation — needs no subsidy. In a market economy, businesses pay for the energy they use. To get more production from the same volume of energy inputs is rewarded naturally in the form of lower unit costs — i.e., higher profits.”
Separately, The Indiana Policy Review surveyed the roll call votes used for the 2011 ratings. It found 14 other scored “pro-business” positions that were arguable if not risible in the context of the state's economic troubles. They are characterized as either: a) issues “tangential” to the Chamber mission; b) examples of “neo-mercantile” rather than free-market policy; or c) indulgences in “socio-political” posture.
In the foundation's view, none of those Chamber recommendations would improve Indiana’s economic numbers.
Even so, if a legislator voted “wrong” on all of them, plus the ones identified by Dr. Watts, he would score near that mark (70 percent) where the Chamber withholds its endorsement. The mark, lest you imagine the Chamber is pro-business in any bipartisan way, neatly divides Democrats from Republicans in both houses. Also, members of the GOP leadership score so high relative to the rank-and-file it is as if they got an advance look at the answers.
Given all of this, we are left with the realization that there is no lobby for free-market economics at the Indiana Statehouse. There is only the Chamber, which a Statehouse wag refers to as "the research arm of our Tudor parliament." Tim Carney, author of “The Big Ripoff,” puts it another way: “State and local chambers have become corrupted by the lure of big-dollar corporate welfare schemes.”
That should be a concern for Hoosiers of all income strata and political persuasion. “Most ironically, those who have the most to gain from a more liberalized, competitive marketplace, such as the unemployed and the poor, tend to be economically uniformed and not prone to activism,” Dr. Watts writes.
“Each session, the Chamber faces a temptation to support ad hoc policies that visibly, immediately benefit this or that constituency,” he adds. This can over time weaken a state economy without countervailing leadership from the Statehouse or the governor's office.
The 27th edition of the Chamber's “Legislative Vote Analysis” succumbed to that temptation, weighing the Statehouse calculus toward waste, cronyism and subsidy. You should hope that the 28th edition takes greater care to address what will actually work — that is, free-market principles and a pro-business lobby sticking to its mission.
Craig Ladwig is editor of The Indiana Policy Review. A version of this essay ran in the Indianapolis Business Journal. Contact the author at cladwig@inpolicy.org.
Flashpoint
FLASHPOINT: Scoring the Indiana Chamber
- Flashpoint
-
-
FLASHPOINT:Bipartisan vs. Nonpartisan
During the primary election season there was much discussion regarding whether bipartisanship is a positive or negative attribute as it relates to the work of the United States Congress.
-
FLASHPOINT: School libraries essential for reading achievement
If the situation were not so serious, it would be laughable. How can we improve reading achievement if we make it more difficult to put books in the hands of our children?
-
FLASHPOINT: Lugar warns of 'unrelenting partisan mindset'
I would like to comment on the Senate race just concluded and the direction of American politics and the Republican Party.
-
FLASHPOINT: Is money a problem in politics? Depends on where you sit
The role of money in politics needs to be better understood. Does it make the political system work better, or is it a problem — and if so, how much of one?
-
FLASHPOINT: ‘Private’ clubs should be exempt from smoking bans
Over the past several years I have watched the Vigo County Council, followed by the City Council, and lastly the legislature of the great state of Indiana, wrestle with a smoking ban.
-
FLASHPOINT: Downtown developers should share more details on project
With all of the opinions being expressed about the fate of the 500 block of Wabash Avenue, one element is sorely missing: the details.
-
FLASHPOINT: Be careful when making accusations of ‘racism’
Perhaps, in a way that he doesn’t understand, Attorney General Eric Holder is correct in accusing America of being cowardly about discussing issues of race.
-
FLASHPOINT: Historic hotel demolition was shameful day for Terre Haute
In an April 13 article on the potential demolition of historic buildings at Fifth and Wabash for student housing, Mike Ellis says, “I love the old historic buildings and have always had a passion to see them saved and restored. I was an opponent of seeing the Terre Haute House come down and the new hotel go up,” he said. “I have been proven wrong with what that would do for Terre Haute.”
-
FLASHPOINT: Notes on saving structural history
There are several reasons why the historic buildings adjacent and west of Roger’s Jewelers should be saved, and why our downtown needs to protect and embrace our remaining historic fabric. First and foremost, rehab and reuse saves our historic buildings for future generations to experience, and the more architectural authenticity our downtown preserves, the more admired and “walkable” it will become.
-
FLASHPOINT: Can anyone hear the call from Farrington's Grove
On Friday, March 30, a dear friend was brutally attacked in broad daylight in an alley in the neighborhood I grew up in, on the edge of Farrington’s Grove.
-
FLASHPOINT: We have the power to co-exist without violence or prejudice
Innumerable forces in our lives, and throughout our society, seem to have convinced us that immediacy is best. We have to do it now. We have to have it now. We must go there now. We need it now!
-
FLASHPOINT: Issue surrounding Florida shooting fueled by race
I am writing as a mother and as president of the Terre Haute branch of the NAACP because there may be some who wonder why the shooting of Trayvon Martin has created such an uproar: “What exactly is the issue?”
-
FLASHPOINT: Indiana — open for business
With the 2012 legislative session in the rearview mirror, the two-year work of the 117th General Assembly elected in November of 2010 is complete.
-
FLASHPOINT: The Constitutional challenge to the Affordable Care Act
On March 26, the United States Supreme Court will begin three days of hearings with six hours of oral argument on the constitutional challenge filed by Indiana and 25 other states against certain sections of the federal health care law: the Patient Protection and Affordable Care Act, often referred to as “Obamacare.” This historic lawsuit will explore the limits of the power of Congress under the U.S. Constitution.
-
FLASHPOINT: The burning questions of ‘Fahrenheit 451’
“Remember the firemen are rarely necessary. The public stopped reading of its own accord.” — Ray Bradbury, “Fahrenheit 451”
-
FLASHPOINT: Wonderful place to be during a very hard time
University Hospital (Indianapolis), part of IU Health Group, is a wonderful place to be if you are seriously ill.
-
FLASHPOINT: America’s energy brings America jobs
The increase in fuel prices affects many aspects of our daily lives.
-
FLASHPOINT: Change coming to the Indiana Statehouse
The General Assembly is about to undergo a major face-lift. I’m not talking about new construction. I’m talking about destruction — partisan destruction, in fact.
-
FLASHPOINT: White House rejects Keystone XL: Sad day for U.S. workers
Imagine a project that could create 20,000 American jobs during construction, and as many as half a million longer-term positions.
-
FLASHPOINT: Graduation rates are up; great news for Indiana
As Hoosiers celebrate the conclusion of a truly remarkable Super Bowl experience, there is even more good news that should fill us with pride.
-
FLASHPOINT: Tech trail leading us into a dense, digital forest
It seems the Southwest Parke schools are the latest to play the laptop lottery game.
-
FLASHPOINT: Republicans enable war on middle class, unions
About six years ago at the pinnacle of the Bush/GOP Dictatorship, I began telling you that the wealthy and Corporate America were laying the ground work to politically, financially and physically take over America.
-
FLASHPOINT: Howey ignores truth to advance his agenda
Brian Howey’s Jan. 8 column about the U.S. Senate race proves once again that he will not allow the facts or journalistic ethics to get in the way of attacking Richard Mourdock and promoting his chosen candidate, Dick Lugar.
-
FLASHPOINT: Putting fairness first
This time of year, with chords of Auld Lang Syne still ringing in our ears, it’s not uncommon or unnatural to think of days gone by as being more desirable than the era we live in today.
-
FLASHPOINT: What really motivates right-to-work proposal?
You may have heard about the upcoming “right-to-work” legislation before our lawmakers in the next session of “law making.”
-
FLASHPOINT: The right-to-work debate: ‘Devil at Our Doorstep’
As the 2012 Indiana Legislative Assembly convenes, January will represent a tipping point for all Hoosiers’ individual freedoms as politicians and Big Labor draw battle lines to determine if Indiana will become the 23rd right-to-work state.
-
FLASHPOINT: State’s House Democrats will offer alternative for job creation
As the leaders of single-party control in state government outline their agendas for the 2012 session of the Indiana General Assembly, it is easy to be cynical about their intentions in the months to come.
-
FLASHPOINT: Community colleges must lead way in reshaping higher education
In the 1970s, I began what was three decades in the automotive industry. ... Today, in my position as president of Ivy Tech Community College of Indiana, I see higher education confronted with some of these same challenges.
-
FLASHPOINT: There’s little right about ‘right to work’ proposal
The danger contained in these three simple words – “Right to Work” — is that they sound so innocent.
-
FLASHPOINT: The next big movement? Reform Congress
We are living through one of the most remarkable times in recent history.
- More Flashpoint Headlines
-
FLASHPOINT:Bipartisan vs. Nonpartisan
Raw Video: Toddler Trapped in Washing Machine
Police: Man Arrested in Etan Patz Disappearance
Hurricane Forecast: 15 Named Storms Expected
Man Tells Police He Killed Missing Boy in 1979
NJ Official: NYPD Muslim Surveillance Legal
Vegas Grocer Deported to Face War Crimes Charges
Raw Video: Soldiers Plant Flags at Arlington
NYC Protests: the Revolution Will Be Scripted
Search Intensifies for Missing Louisiana Woman
Chicago U.S. Attorney Fitzgerald Resigns
Bloomberg: Man Implicates Self in Etan Patz Case
Neighbors of Etan Patz's Suspect: It's Shocking
Obama Highlights Economic Recovery Plan in Iowa
Sudden Storm Topples Wisconsin Trees
FAMU Bandmates: Victim Volunteered to Be Hazed
Texan Ranchers Remain Wary of Drought
14-year-old Texan Wins National Geographic Bee
Stuntman Makes Skydive Without Parachute in UK
Astrologers Predict Outcome of Presidential Race
Gulf Fishermen Reel From Seafood Troubles
Heidi Klum Goes Sheer
Shark Attacks Australian Fishing Boat
Snoop Dog throws 1st pitch at White Sox game
Raw Video: Robber Uses Drive-thru Window
Alison Brie Likes To Jog Naked
Kayaker Survives Trip Over Washington Waterfall
Alton's Best Burger Ever
Ellie Kemper's Stripper Surprise on 'Ellen'
Maddie the Balancing Dog On Cross-Country Trip
Crawford's Sexy Leather Look
Boys eyes 'removed with spoon'
Raw Video: Fight Erupts in Ukrainian Parliament
"Twilight" Stars Caught Kissing
Etan Patz Case: Suspect Arrested
Britney's Hot Pink Mini-Dress
Wrongfully accused rapist exonerated after 5 years in jail
Actress to Play Casey Anthony
Prince William on The Queen: 'Woman in Man's World'
Fight erupts in Ukrainian parliament over language bill.
