Eric Cantor was a congressman from Virginia and was House majority leader. He was known for being particularly friendly to Wall Street and the giant, multinational corporations.
In the June Republican primary, his Virginia constituents got fed up with this and booted him, choosing to nominate Cantor’s challenger, David Brat, instead. Conservative Erik Erikson explained at FOX, that Cantor’s Virginia constituents did this because, “K Street, the den of Washington lobbyists, became his chief constituency.”
Cantor didn’t bother to finish his current term supposedly representing his Virginia constituents. He resigned from office effective August 18.
Just two weeks later Cantor has gone to his reward. Cantor will receive a huge, fat, lucrative, awe-inspiring, 1-percent-making, mansion-jet-and-yacht-buying, zillion-figure paycheck from his Wall Street/corporate constituents. He will become board member, vice chairman and managing director of investment bank Moelis & Co. (It typically takes longer than two weeks to negotiate a senior position like this one, if you know what I mean.)
Cantor earned this senior investment banking position with his vast experience in investment banking, if you know what I mean. (Cantor has a law degree, and a Masters in real estate, and worked in real estate development for his father before entering the clearly more lucrative field of representing certain constituencies, if you know what I mean.)
“Eric has proven himself to be a pro-business advocate and one who will enhance our boardroom discussions with CEOs and senior management as we help them navigate their most important strategic decisions,” Moelis CEO Ken Moelis said in a statement.
Wink, wink, nudge, nudge, say no more, if you know what I mean.
Take The Gold Or Take The Lead
Our system has become corrupted and everyone knows what I mean. Everyone understands that government officials who “play ball” can get a huge paycheck after leaving government if they help certain big businesses while serving in government. The Nation explains, in When a Congressman Becomes a Lobbyist, He Gets a 1,452 Percent Raise (On Average), Secret deals, bribery and “buying” members of Congress are commonplace in today’s government. (See also: Tauzin, Billy.) (And: Public Interest Groups Call For Corruption Investigation Into Prescription Drug Law.)
Neil Barofsky was Special United States Treasury Department Inspector General overseeing the Troubled Assets Relief Program (TARP). In the preface to his book Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street, Barofsky explained that people in government are given two choices, “the gold or the lead.” From the NY Times review, (emphasis added, for emphasis)
Mr. Barofsky, wearing an unseasonal wool suit at odds with a “Washington-appropriate wardrobe,” is poised to let the hostess seat them at a front table of her choosing, but Mr. Allison insists on a private table in the rear. Then he gets down to business.
“Have you thought at all about what you’ll be doing next?” Mr. Allison asks Mr. Barofsky, soon adding, “Out there in the market, there are consequences for some of the things that you’re saying and the way that you’re saying them.”
“Allison was essentially threatening me with lifelong unemployment,” Mr. Barofsky concludes, and alternatively suggesting a plum government appointment some day if Mr. Barofsky would simply “change your tone.”
When Mr. Barofsky tells his deputy of the exchange, the deputy says, “It was the gold or the lead,” resorting to the lingo of their joint experience prosecuting Latin American drug kingpins in New York: Cooperate and share the riches, or don’t and get plugged.
There are “consequences” if you don’t play ball. But if you do play ball, there are rewards. And everyone knows it.
Cantor represented Wall Street instead of Virginia in the Congress. His Virginia constituents didn’t like it, and booted him. Cantor has gone to his reward: a big pot of Wall Street gold. And everyone knows it.
Solution? Make it a law: No person employed by the government in any capacity may receive compensation in any form that is significantly greater than the compensation they received for their public service, for a period of five years.
This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.