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McCain's Lobbyist Problem

Depending on how you feel about using legislation to protect American jobs, you may agree or disagree with John McCain's opposition in 2003 to proposed amendments in a defense spending bill that would have "prohibited any money from being used to pay a foreign express cargo carrier." McCain chaired the Senate Commerce Committee, and was successful in defeating the amendments. That cleared the way for "the sale of Airborne Express cargo service to a German conglomerate that owns DHL."

The sale isn't playing well in southeast Ohio now that "DHL wants to combine operations with rival United Parcel Service and close its huge hub" in Wilmington, a move that would cost 8,000 to 10,000 jobs immediately and as many as 30,000 in the long term. Here's what's even worse for McCain:

[T]he Cleveland Plain Dealer reported that McCain's campaign manager, Rick Davis, previously worked as a lobbyist for the German group, Deutsche Post World Net, and was paid $185,000 to help engineer the 2003 deal, plus another $405,000 for other work. Davis helped Deutsche Post overcome objections in the Senate when the German company was negotiating the purchase, the paper reported.

Jake Tapper reports that this isn't the only problem with letting lobbyists run a campaign. [more ...]

Now, comes news that the Russian military has crossed a border into Georgia. "Russia should immediately and unconditionally cease its military operations and withdraw all forces from sovereign Georgian territory," McCain said. ... You may already know that McCain foreign policy director Randy Scheunemann represented the former Soviet republic of Georgia as a lobbyist between 2004 and 2006.

As of March 2008, Scheunemann no longer works as a lobbyist for foreign entities, but he remains a principal at his lobbying firm, which still has Georgia as a client. Awkward!

Voters will likely be less concerned about McCain taking foreign policy advice from lobbyists than they are about his willingness to take economic advice from lobbyists, particularly when that advice leads to a huge loss of jobs. McCain's promise to ask the Justice Department to review the proposed DHL merger for anti-trust violations is empty, given the Department's willingness to bless mergers during Republican administrations. Ohio voters are equally likely to be unimpressed with his promise "to help provide federal emergency grants and other aid to the displaced workers and devastated communities if DHL ends local operations." They want jobs, not job retraining and emergency assistance.

The larger question for McCain is whether he can credibly campaign as a different kind of Republican when he's surrounded by lobbyists. Barack Obama is running a radio ad (mp3) blaming McCain for the potential job loss. Whether or not you think the criticism is fair, it's likely to appeal to voters in a swing state who are worried about their jobs in a lackluster economy.

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  • Display: Sort:
    Confusing (none / 0) (#1)
    by Steve M on Fri Aug 08, 2008 at 02:49:13 PM EST
    it's not clear to me how outsourcing could possibly be a major issue in the express cargo industry.  I mean, if Fed Ex got bought out by the Germans, it's not like they're going to suddenly start sorting all the packages in Berlin.  American delivery jobs will always be in America regardless of who owns the company,

    There are valid reasons why you might not want foreign ownership of cargo carriers, but I don't see how protection of American jobs could possibly enter into it.

    closing operations (none / 0) (#3)
    by manish on Fri Aug 08, 2008 at 03:13:56 PM EST
    DHL plans to close its sorting hub in Ohio and outsource that part of the operation to UPS which is out of Kentucky.  This means more jobs in Kentucky for UPS workers, but the workers in Ohio get screwed.  On a net basis, probably some fewer jobs overall, but that doesn't help the people in Ohio.

    Parent
    But (none / 0) (#5)
    by Steve M on Fri Aug 08, 2008 at 03:15:25 PM EST
    that sort of thing happens all the time when there are all-American mergers, too.  I don't get what it has to do with foreign ownership.

    Parent
    Because (none / 0) (#6)
    by badger on Fri Aug 08, 2008 at 03:15:59 PM EST
    DHL is outsourcing their express hub to UPS, which means the jobs will be moving to KY (appropriate abbreviation for the OH workers), and there will likely be a large net loss of total US jobs overall due to scale and automation - it's not necessary to replace DHL workers 1:1, esp overhead workers - management, QC, maintenance, etc.

    However if you're making the point that DHL's foreign ownership isn't relevant, that's mostly true.

    I have mixed emotions about this - it's really a case of economic or market failure. Compared to FedEx and UPS, DHL and esp Airborne really suck, and the merger seemed to drag DHL down to Airborne's level.

    Outside the US and in one or two places inside, DHL was/is very good, but overall domestically they were pretty poor when I used them a lot. Airborne was worthless - one overnight package for us arrived 10 months later, and then only because our UPS driver happened to see it where Airborne left it and he delivered it to us as a favor.

    I never like to see people lose jobs, but I can't muster a lot of sympathy for DHL. It's not the workers fault though.

    Parent

    Ohio/DHL (none / 0) (#2)
    by Ennis on Fri Aug 08, 2008 at 03:06:17 PM EST
    This could be the whole magilla - game, set, match.

    lobbyists (none / 0) (#4)
    by ikez78 on Fri Aug 08, 2008 at 03:14:31 PM EST
    Is it really honest to pretend that one side or the other is somehow free of lobbyist influence?  Come on guys.

    One side (none / 0) (#7)
    by Ennis on Fri Aug 08, 2008 at 03:29:07 PM EST
    has a lot of angry people in Ohio - whether or not it's "fair."

    Parent
    DHL, (none / 0) (#8)
    by pie on Fri Aug 08, 2008 at 03:45:55 PM EST
    or as my husbad affectionately calls it:

    Delayed, Held up, and Lost.

    I bet it will play well in KY! (none / 0) (#9)
    by CST on Fri Aug 08, 2008 at 04:23:55 PM EST
    Good thing they are already a repub stronghold.

    I believe in free(ish) trade, but am also total hypocrit when it comes to using anything against repubs in an election.  So I say, let it rip Barrack!