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Posts Tagged ‘Michael Huffington’



Why Killing AB32 is a Long Shot and Other Bad Bets

Monday, March 29th, 2010

We happen to have in our hot little Calbuzz claws some summary results from a February poll by FM3 (Fairbank, Maslin, Maullin, Metz) for the defenders of AB32 that found that after voters are read the Attorney General’s title and summary for the measure to repeal AB32 they oppose it 46-37%.

According to the survey — 600 likely November voters, +/- 4% — opposition grows when voters realize oil companies are behind the drive to overturn AB32. Which won’t be hard to argue because it’s TRUE, as the Sac B Minus and others have noted. In fact, says Steve Maviglio, who’s hacking and flacking for the save AB32 forces, more than 72% of the money behind the effort to overturn AB32 has come from — Michael Huffington drum roll please — Texas oil companies you just can’t trust.

Another reason to like the opposition on this one: since the creation of initiatives in California, “no” has beaten “yes” two-thirds of the time. The only other polling we’ve seen was back in July, when PPIC asked whether people support the state law reducing greenhouse gas emissions to 1990 levels by 2020. Support for what is a description of AB32: 66% favor, 23% opposed.

We’re not sure what the effect will be of having Gov. Schwarzenegger — who has long been a defender of AB32 — suddenly skim back his support by calling for a “more carefully phased approach” in implementing the law. But as we get deeper and deeper into the campaign season, Gov. Schwarzmuscle becomes increasingly less significant. And we expect Crusty the General Brown to hammer on the climate-change issue relentlessly — in part because the environment is an issue that resonates with moderate, non-partisan voters who will ultimately decide the election.

Dumb and dumber: One of the dumbest, and most common, mistakes committed by political writers the world over (even Calbuzz may have succumbed once or twice) is to assume that the future will look like the present.

As Walter Shapiro notes, arguing persuasively in Politics Daily against over-interpreting the impact of health care reform on the mid-term election, the issues that are hot at the end of a campaign are seldom those that pundits focus on in spring or summer:

Cable TV news and hyperdrive Internet publications like the Politico tend to divine major political implications from everything, with the possible exception of Starbucks introducing a soymilk Frappuccino. The institutional bias that governs this type of political coverage is to overreact to the here and now. The working assumption is that the future will be just like the present except for the addition of a few random fluctuations to enhance the story line.

The Shapiro Thesis is, of course, the operating assumption underlying the apparent equanimity of Steve Poizner’s handlers in the face of eMeg’s 8,000 point lead in the Republican primary, and of Jerry Brown’s Zen-like shrugs at the sight of Whitman surging past him in the polls, on the strength of her all-eMeg-all-the-time TV offensive.

While Her Megness so far has had the luxury of framing and defining the election on her terms, should she turn out to be the Republican nominee for governor, things are likely to look very different down the road a piece.

Here’s a look at three low-radar factors that may mushroom into major matters in Whitman’s November match-up with Jerry Brown, or even the final weeks of Poizner’s uphill struggle against Ms. Head and Shoulders Potato Head:

The CEO factor – For now, eMeg keeps gaining traction for her core message that executive business experience is just about the perfect fit for what ails the government of California. But as we’ve noted repeatedly from the first weeks of the campaign, running a business has almost exactly nothing to do with managing the day to day political cross currents and rip tides of Sacramento, a point that is well amplified in a must-read piece by Newsweek’s Andrew Romano and Michael Hirsh:

Very little that happens inside a corporate suite is like governing a state or a country. CEOs, like generals, can issue orders and expect them to be carried out. Jobs and budgets can be pared by fiat, with little public controversy. It’s not nearly as simple for governors or senators—even presidents. Their authority is never absolute. They are constrained by the separation of powers and forced to ride the tiger of public opinion; they must persuade, cajole, and arm-twist to get their way.

As Harry Truman once said about his presidential successor, Dwight Eisenhower: “He’ll sit there all day saying do this, do that, and nothing will happen. Poor Ike—it won’t be a bit like the Army.” Beyond that, there’s rarely been a time in American industry when CEOs have been so discredited. The last “CEO presidency”—George W. Bush’s—ended up in a ditch. The CEOs of Wall Street have provoked outrage by awarding themselves record bonuses during the worst recession in decades—a recession they mainly caused.

The Goldman Sachs scandal – eMeg’s past shady, and legally questionable, dealings with the world’s largest greed head investment firm is the case study
that precisely makes the point about the dangers of CEOs grabbing the levers of government power, which is one major source of the seething resentment of voters across the nation.

What kind of business relationship can Californians expect their state to have with Goldman Sachs and firms like it if Meg Whitman becomes governor? Here’s a clue: In a report called “Corporate cash boosts Whitman,” the Associated Press reported that “The biggest donations came from New York investment bankers, hedge fund managers, attorneys and others.” If there’s one thing these guys know it’s how to prime the pump.

Not that Whitman’s old pals at Goldman haven’t already been profiting off California’s misery. They were hired to manage some multibillion dollar state bond offerings but, as reported in the Los Angeles Times, millions in fees didn’t stop Goldman from secretly undermining California’s credit rating. That hurt the very sales they were hired to manage. As the Times states, the firm “urged some of its big clients to place investment bets against California bonds” by “proposing a way for … clients to profit from California’s deepening financial misery.”

Ideology – The unintended consequence of Poizner running so hard to the right in the primary is that, for the moment at least, Whitman often appears to be a moderate Republican and, thus, a more attractive and more formidable candidate for the general election race against Brown.

But Press Corps Elders George Skelton and Peter Schrag have dug into eMeg’s much-trumpeted 48-page policy agenda (which the nit-picking Dan Morain estimates actually to be only about 20 pages, after subtracting the page presentation gee-gaws and glam shots of Herself) and concluded that any moderation perceived in eMeg’s views is mostly accidental, a perspective Brown has already seized on in his recent populist pronouncements.

Meg Whitman’s Republican rival calls her a liberal. He’s not even close. Political writers often describe her as moderate. That misses the mark too.

Supporting abortion rights — even state funding of abortions for the poor — doesn’t automatically make her a moderate. Not when she’s prepared to whack benefits for welfare moms — slash almost any program — to avoid raising taxes.

She opposes same-sex marriage but supports recognizing those unions allowed before Proposition 8 passed. That doesn’t make her a moderate either. Not when she insists on eliminating 40,000 state jobs.

Calbuzz bottom line: It’s usually a mistake to confuse rookie phenoms of spring training with the veteran ballplayers who usually make the big plays in the World Series.

Fuck you, you fucking fuck: Kudos to Carl Cannon for putting into clear historic context Joe Biden’s healthy cussing kudo to the President moments before Obama signed the health care reform legislation, a usage much panned by the prudes and prisses of the internets and cable TV. As Cannon notes the f-bomb has a proud and rich history in American politics, not least as used by his own father, the renowned Lou Cannon, upon beholding the beauty of a Sandy Koufax perfect game.

Swap Meet: Weakly Rumor, Crusty Snaps, 3 Dots

Saturday, January 30th, 2010

The record will show that Steve Poizner had just left a meeting with editors and reporters in Silicon Valley, a few minutes after 4 pm. Thursday, when his trusty flack knocked down the latest rumor that The Commish was quitting the governor’s race.

In response to our email inquiry, Poizner mouthpiece Jarrod (The Pagan) Agen texted:

Hahaha…sorry, my blackberry died. We literally just walked out of the San Jose Merc Ed Board….it’s usually better to spread these rumors when we aren’t sitting in front of a room of journalists. I’m sure Meg Whitman would like Steve to drop out of the race, but it is not happening.

Calbuzz is usually far too busy working on our short-iron game or our memoirs (“Settling Our Scores: Our Life in American Journalism”) to truck in such low-rent rumors, but the volume of intelligence traffic on this one got loud enough on Thursday to check out.

It’s not entirely surprising, of course, that such speculation would swirl, given yet another lousy Poizner showing in new Field and PPIC polls (the last time the story got heavily peddled also coincided with a round of fresh surveys, when he suddenly announced a $15 million donation to the cause).

And, if you ponder long and hard enough about it, it’s even possible to think of someone who might potentially benefit from spreading such a tale (“Yeah, that’s the Whitman campaign’s wet dream,” a key Poizner insider growled when we raised the rumor).

All pretty standard primary Kabuki, including the part when Poizner told the Merc Ed Board, “I don’t think the polls mean a lot” at this point. Except: amid the countless media iterations of the new horserace polls, including ours, it is important to keep in mind that Poizner is, um, actually right.

As Timm Herdt, the VC Star’s All-Madden political reporter, notes:

The last time there was a contested GOP primary for governor — in 2002 — former Los Angeles Mayor Richard Riordan held an even larger lead in the polls in January, which at the time was much closer to Election Day (the primary was in March instead of June back then).

Here are the numbers from the Jan. 29, 2002 Field Poll: Riordan 46 percent, Bill Simon 13 percent, Bill Jones 13 percent. That’s a 33-point lead. The Jan. 25, 2010 Field Poll shows Whitman at 45 percent and Poizner at 17 percent, a 28-point lead, with a lot more undecideds than there were in January ’02.

Clearly, there are differences between the two races — most notably the fact that Whitman stands ready to spend a whole lot more money than Riordan ever did, and Poizner won’t be helped, as was Simon, by an orchestrated effort by the incumbent Democrat (Gray Davis) to help undercut the GOP front-runner.

Still, don’t underestimate the power of the conservative grassroots in a closed Republican primary in California.

Good point, well taken.

Beyond the time-space continuum: Jerry Brown appeared to be time traveling again when he went on KGO-radio this week and launched an attack on…Gavin Newsom?

Seems Mayor Narcissus recently sniped at Brown for lacking the “fire in the belly” to run for governor and Crusty being Crusty, just couldn’t let it pass with, oh say, a gracious word or two for a vanquished opponent.

He’s been giving a lot of advice to the president and now me, and I’m sure there’ll be others because when you don’t have a lot to do, you can start checking out what other people have been doing.

Yo Jerry! The dude dropped out in October. Give it a rest, man.

Also notable was Brown’s take on the latest speculation (as reliable as the Poizner rumor, Costco Carla) that Difi is taking another look at running for governor:

The job of governor is going to be a very difficult and painful task.  It’s going to take all the skills and all the knowledge and all the will and the grace of God to get you through it. It’s not something anybody is going rush into other than those ignorant to what’s ahead.

There are a lot of people maybe who are standing in the wings and are looking to undergo a $150 million assault on their character and their record and their future.

Translation: Feinstein was permanently scarred by getting savaged by Michael Huffington’s millions in negative ads in 1994, then demurred on the 1998 gov’s race in part because she didn’t want $40 million of Al Checchi money dumped on her head. So WTF would she choose to go up against eMeg’s $100 million+ to run for the world’s worst job, when she could be sleeping in and exchanging witty banter in amusing Georgetown salons? Meanwhile Don Ringe’s latest political animated cartoon includes an exclusive interview with Herself about her views on the governorship.

Three dot lounge: HT to Robert B. Gunnison (the only erstwhile Capitol reporter whose name forms a complete sentence in Ebonics) for demanding we not miss Steve Harmon’s well-reported piece about why journos and other researchers have been denied access to Crusty’s official papers from his first tour as governor…Talk about news that stays news: one of the top stories on the Washpost RSS feed Friday morning was “Democrats confused about path ahead”…Nice thoughtful piece on the Supreme Court’s big campaign finance ruling by longtime Democratic operative and consultant Les Francis, seeking to hose down the easily excited types in his party…

Today’s sign the end of civilization is near: Pants on the Ground” guy not allowed inside Grammys.

Why Rich Guys Don’t Win Top Offices in California

Monday, May 4th, 2009

poiznerAs the 2010 field for governor takes shape, the top Republican contenders are a pair of successful former Silicon Valley businesspeople, each armed for the campaign with a self-made fortune.

megcropBoth Meg Whitman, who scored big at eBay, and Steve Poizner, who made his pile as a high-tech innovator, begin the race with the wherewithal to spend whatever it takes to win. If past is prologue, however, Whitman and Poizner will both end up political losers.

Pity the poor billionaire seeking high office in California : Not once in modern political history has a self-financed candidate captured a top-of-ticket party nomination and gone on to be elected governor or U.S. senator in the state.

This historic trend again marks California as a great exception, in contrast to states like New Jersey and Texas , where multimillionaires routinely prevail.
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Industrialist Norton Simon set the bar low for wealthy candidates in California when he tried and failed to oust Senator George Murphy in the 1970 GOP primary. Liberal shipping magnate William Matson Roth kept the losing streak intact when he lost the 1974 Democratic gubernatorial primary to a guy named Jerry Brown.

Since then, three wealthy businessmen who would be governor – Al Checchi (1998) Bill Simon (2002) and Steve Westly (2006) spent big but finished out of the money. So did Michael Huffington, who spent $100 million in losing to Sen. Dianne Feinstein in 1994, and Darrell Issa, who forked out millions of his car alarm fortune to stumble in the 1998 GOP Senate primary.

Gov. Arnold Schwarzenegger is the only self-funded candidate who’s made it to a top slot. However, he short-circuited the odds by avoiding a primary, where the Republican right wing would have battered him, to capture the governorship in the anomalous 2003 recall (funded largely by Issa) of Gray Davis.

“The problem is that there’s an innate suspicion about people running without a history in politics,” said Bill Carrick, a California-based political strategist who crafted Feinstein’s 1994 campaign defense against Huffington’s millions.

It is instructive that Feinstein prevailed with a bit of political ju-jitsu, transforming Huffington’s limitless resources from an asset into a liability, with TV attack ads that labeled him “a Texas oilman Californians just can’t trust.”

“There’s a group of voters who find the outsider, business candidate attractive,” Carrick said. “They’re white men over 50, with anti-establishment political views, who don’t like the status quo. But it never gets beyond that universe.”

Garry South, San Francisco Mayor Gavin Newsom’s chief strategist — who helped Davis defeat former Northwest Airlines CEO Checchi in the 1998 primary, and Republican financier Simon in the 2002 general election — cited several reasons for the failure of Golden State silver spoon candidates.

“They have too much money,” South said, noting that without normal budget constraints, rich candidates often fail to develop a coherent message or target it to voters. Checchi’s consultants, for example, produced a staggering 102 TV spots in 1998, airing 42 of them. Said South: “They think they can say everything about themselves to everybody.”

Unlike professional politicians, wealthy rookies lack a group of seasoned advisers, “so they go out and hire everybody in the Western Hemisphere and wind up with a big bloated campaign team with no real chain of command,” South said, adding that successful executives often underestimate the difficulty of running for office.

“They think because they’re successful in business, they’re smarter, better and more clever than anybody in politics,” he said. “They honestly don’t get that the things that they’re most proud of in their business life don’t compute in the political world.”

But Republican consultant Rob Stutzman, who works for Whitman, the richest of the current candidate crop, argued that as political reforms have squeezed contribution limits, individual wealth is almost a prerequisite for running in California .

“You have to have self-funding in order to run credibly statewide,” he said. “You can’t raise enough money at a fast enough clip to compete.”

Whitman strategists emphasize that she (like her rival, Insurance Commissioner Poizner) is aggressively raising money to supplement self-donations.

“Meg believes there have to be investors in the message and the mission,” said spokesman Mitch Zak, predicting that she will raise $5 million in outside contributions to go with $4 million she’s kicked in herself, by summer.

Although a third wealthy candidate – Guess Jeans co-founder Georges Marciano – plans to run as an independent, polltaker Mervin Field foresees that the economic meltdown will create a daunting political climate for rich candidates of every stripe.

“The state is in one hell of a mess,” Field said. “I believe voters will be looking for someone with a different resume.”

This article is also scheduled for publication in the San Francisco Chronicle on Monday, May 4.

Why Dianne Feinstein Won’t Run for Governor

Monday, March 16th, 2009

In 1987, then-Mayor Dianne Feinstein set off a civic soap opera in San Francisco, performing a public Hamlet act in weighing whether to seek the congressional seat made vacant by the death of U.S. Rep. Sala Burton, widow of legendary Congressman Phil Burton. Feinstein chose not to run and the seat was captured by a wealthy Democratic Party activist who had never held public office: Nancy Pelosi.

Ten years later, Feinstein, by then a U.S. senator, fueled a statewide political drama, spending months agonizing over whether to run for governor in 1998, in a race won by Lt. Gov. Gray Davis. Among those who didn’t run, because his potential funding was frozen until Feinstein finally chose not to go: Leon Panetta.

And five years after that, in 2003, she set off yet another round of what-will-Dianne-do? speculation in political and media circles by mulling a gubernatorial bid in that year’s recall. Again she didn’t run, eventually campaigning to help Davis keep his office; he lost, and Arnold Schwarzenegger became governor.

Now once again, Feinstein is playing coy, teasing reporters and confounding potential 2010 rivals with frequent smiling hints that maybe she will, or maybe she won’t run for governor. “U.S. Senator Dianne Feinstein is way out in front of her Democratic challengers should she decide to seek her party’s nomination,” reports the latest Field Poll. “Should Feinstein decide against running, the race becomes a much closer contest.”

As reporters who covered Feinstein over several decades as a mayor, statewide candidate (including her losing 1990 race for governor against Pete Wilson) and U.S. senator, we recognize the signs of her obsessive flirtation with the political spotlight, and offer three words you can take to the bank:

She won’t run.

Putting aside whatever psychological motives cause California’s senior senator to perform a dance of the seven veils anytime there’s a statewide opening, there are key reasons why the scenarios and swirls of speculation about a 2010 gubernatorial candidacy are a waste of time and breath:

Policy: As chairman of the Senate Select Committee on Intelligence and of the Subcommittee on Interior and Environment of Appropriations, Feinstein is better positioned, not only to pursue her passion for national security and foreign policy, but also her concern over big environmental issues such as water policy.

At a time when whoever serves as governor resembles Gulliver staked out by Lilliputians, Feinstein in the twilight of her career is unlikely to abandon the rarefied air of the Hart building to deal with 120 legislative gnomes in Sacramento, who are unlikely to pay her the level of respect she expects as grande dame of California politics.

“She would have no ability to deal with these novices in a term-limited legislature where Assembly speakers cycle in and out every year and a half,” said Garry South, San Francisco Mayor Gavin Newsom’s consultant in the governor’s race. “She doesn’t have the constitutional capability to deal with these legislators for 15 minutes.”

Politics: As a politician, Feinstein is risk-averse; as a campaigner she is often a cranky warrior, for whom the delights of having breakfast with local ministers at the Barstow Holiday Inn are well-eclipsed by the cozy bonhomie of Georgetown dinner parties. Feinstein despises primary fights and at least some Democrats positioning themselves for 2010 — Atty. Gen. Jerry Brown and Lt. Gov. John Garamendi come to mind — are unlikely to step aside for her, guaranteeing an expensive and exhausting battle.

Her Senate votes on Iraq, the Supreme Court, the Patriot Act and more would open her to scathing attacks from the netroots left. And though she’d probably survive those, the top two Republican contenders, Insurance Commissioner Steve Poizner and former EBay Chief Executive Meg Whitman, both are wealthy, self-financed and prepared to savage her.

Feinstein still bears scars from her 1994 near-death experience in the Senate race against former U.S. Rep. Michael Huffington (back when Arianna was a conservative), so taking on deep-pockets billionaires is among her less favored scenarios. Fear of being smacked around by the unlimited millions of erstwhile candidate Al Checchi, her husband’s former business partner at Northwest Airlines, kept her out of the 1998 race.

“She’d be facing a tough primary and a brutal general election,” said non-aligned Democratic pollster Ben Tulchin. “She’d be up against a billionaire no matter who wins the Republican primary.”

Personal: At 75, Feinstein already is older than the Golden Gate Bridge, the other iconic image of her hometown. Being one of 100 members of America’s most exclusive club suits the elite world view and atmosphere she finds most comfortable.

Beyond that, the wealth accumulated in China and other overseas investments during her years in the Senate by her husband, University of California Regents Chairman Richard Blum, would be eye-specked by every opposition researcher and investigative reporter in California, if not the nation, with the specter of a financial scandal, substantive or insinuated, hanging over her campaign.

At a time when a Democrat is president and her party owns big majorities in both houses of Congress, Feinstein’s clout in Washington is greater than ever, and still growing. Look for her to take yet another pass on the governor’s race, sealing her reputation as the chief window shopper of California politics.

This article was published in the Los Angeles Times March 16, 2009