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Saturn Smith

Saturn Smith

Saturn Smith
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Ms.
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Everything posted here, and more random thoughts, are also posted at my web site: http://kepkanation.com.

Editor’s Pick
JULY 7, 2010 4:50PM

Why is the Chamber of Commerce so popular?

Rate: 10 Flag

There's a great profile of Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, up at Washington Monthly. The basic premise of the piece is this: Donohue's enormous lobbying group has made millions, and will continue to spend millions, purportedly supporting the interests of small businesses, while really supporting an extremely conservative pro-business, anti-little guy agenda that ultimately supports Big Banks, Big Oil, and, of course, Big Lobbying. An example:

The Chamber pounced early on Congress to dissuade it from passing the Consumer Financial Protection Agency Act. Donohue’s troops mounted grassroots and media onslaughts around the country, dispatching local chamber officials and business members to lobby local lawmakers, and running local advertisements directly targeting them. In Montana, the Chamber aired an ad targeting Senator Jon Tester that showed a man lying awake in bed in the middle of the night, staring at the alarm clock, while a voiceover intoned, “Call Senator Tester. Tell him to stop the CFPA, because small businesses can’t afford more economic pain.” The Chamber put millions into this sort of advertising.

Even uglier:

In other words, a large part of what the Chamber sells is political cover. For multibillion-dollar insurers, drug makers, and medical device manufacturers who are too smart and image conscious to make public attacks of their own, the Chamber of Commerce is a friend who will do the dirty work. “I want to give them all the deniability they need,” says Donohue. That deniability is evidently worth a lot. According to a January article in the National Journal, six insurers alone—Aetna, Cigna, Humana, Kaiser Foundation Health Plans, UnitedHealth Group, and Wellpoint—pumped up to $20 million into the Chamber last year.

My emphasis. I'm not sure it's a surprise, in the post-Citizens United world, to find out that the Chamber is a big, ugly, personified lobbying institute that has the backs of its biggest members. Yet I'm hard pressed to think of any other political entity that has so many openly proud members. Sure, many millions of people are registered Democrats or Republicans or even NRA members, but very few of us take those affiliations and post them on the wall at the place where we work as a sign of our credibility. When you walk up to a cash register, though, at nearly any small business, one of the first things you're likely to see is a plaque with that all-important first dollar earned, framed with a certificate issued by the Chamber of Commerce.

Membership in the local Chamber still holds a certain power and, strangely, a certain credibility. Want to be taken seriously as a local business? Join the Chamber. There is, however, absolutely no truth to that idea. The Chamber neither polices its membership nor particularly cares who joins. What does it take to join the Chamber? Short answer: money. (Long answer available at my Web site).

There's an enormous gap between the reputation of the Chamber locally and what its national function is. In part, this may be because local Chambers of Commerce tend to be less overtly political than the national chapter. Sure, they get involved in local issues -- zoning in particular comes to mind -- but the big national debates of the day, like health care and the environment, happen often without any influence from local chapters. Still, it's money from those little clubs and their members that make the big club's spending -- and its bragging about how it's 95 percent composed of small businesses -- possible.

The benefits of the Chamber seem to have decreased or at least become less relevant in recent years. There was a time, not that long ago, when a weekly networking meeting or a directory of other Chamber businesses might have been a big deal -- but with the advent of the Internet, getting your name out there isn't as door-to-door difficult as it used to be, and finding a business with which to, well, do business also isn't as challenging. So those who buy into the Chamber seem really only to gain the benefit of being in a club that has name recognition and a bunch of other members who also paid to be there. It is essentially a fraternity for businesses.

Like any fraternity, the bad deeds of a single chapter may not reflect the goals of the whole; the reputation of the national chapter, however, most likely will and should influence the make up of the regional and local houses.

So here's my question: why doesn't this work? Why do businesses -- progressive businesses, businesses led by those who want better health care and a cleaner environment -- keep on signing up for the Chamber even as it continues to work against the interests of everyday Americans and consumers? In my own town, where many businesses pride themselves on being model community citizens, even the restaurants most often lauded for their sustainability are members of the Chamber. I'd guess this is true of many other cities, too.

There's something to be said for the idea that if a whole bunch of forward-looking, environmentally friendly, anti-big-banking businesses joined the Chamber, it might have to change its ways, but that seems as likely as a Handgun, Inc. takeover of the NRA. Without these small-town, small-time memberships, the Chamber would lose if not most of their revenue, at least a great chunk of its legitimacy, but small businesses keep shooting themselves in the foot and joining up every single year.

Why?

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I think the Chamber is enhanced by it's false reputation of being good for everyone. Just like the Better Business Bureau, which ain't what it's cracked up to be either.
Yeah, I think it gets a boost from the number of people who believe it's a government organization. Yargh.
Well thanks for this! I was going to sign up with the Chamber of Commerce when I started my own small business but you've just changed my mind!
The local chamber has a canny shakedown going. Their message is clear if intimated: join or we blackball you. They can kill more business than a Wal*Mart on the same block. Imagine all the people in your town with money refusing to shop with you. There's much ado about scholarships and charitable donations to be sure but it's cover, pure and simple. If top down governnance has reactionary ideologues at the top, it's foot soldiers like members of the local chamber who perpetuate it. It's community organizing gone catawampus.
Stacey, you raise an interesting point. It's nearly impossible as a consumer to have any reaction against the Chamber, as well. Looking at the list in my own town, nearly every place I shop is a local if not national member. Frustrating.
Stacey/Saturn - Chamber of Commerce as the nouveau mafia. Nothing is sacred anymore. Literally nothing.
My experience with local C of Cs in the southern states was that of sometimes blatant but ever present corruption on a local and state level.

Where I am now they seem to be much more, ah, honest and community minded, in other words, they appear to be what I had always imagined such organizations to be. Then again I find the people in this part of the country (western Washington State) to be not only nicer and more polite, but a lot more honest too.
Not being good at group think, clubby acceptance, I proudly declare that in all our years of having a small business and doing business over a 25 year period with a break of about 8 years in there, we have never joined the chamber, never paid for advertising. We once had six employees. This time we are doing it even smaller. It works for us. It is hard work, but honest. The politicos around here are the mafia and their hand reaches pretty far into most of the non profits and business. Their gig is about over, as there was a growth spurt here before our recession commenced which brought in a lot of new people, who dang it, would just not conform to their bs. We actually have some equality in the party system here now. By jingo, life is floating along, very hard work and sacrifice being the key, not sucking up to beliefs we do not hold. We believe in community. R
Interesting to note, Sheila. Did you ever feel pressured to join the CC? I'm curious about how their recruiting works.
Rated, liked and FB'ed. Chamber Pot of Commerce is a better name for these orgs.
As Tom Paine said, all of human history is the story of the rich with their boots on everyone else's neck........and nothing's changed....This nation was founded by wealthy white men, for wealthy white men and no one else...the rest is myth...you know, our "great free nation" with "liberty and justice for all"....as if that's ever happened for one second!! The wealthy elite control the world for their own profit and purposes (and that's the definition of EVIL!!!), and in this country, the media openly serves them as does Congress, Wall Street, and now, even Obama........and I think of the kids who knocked on doors to get out the vote for him!! What a disappointment and a sell-out he is!!!
Actually, a useful target for a group that looks after business interests would the the exorbitant fees of the banking industry. IPOs, mergers and acquisitions don't merit the costs the bankers squeeze out of them. Most deals could be done for half the price without a drop in quality.
I quit the local Chamber of Commerce after the national group took such a vicious stance against health care reform. With my cancellation, I explained that they were NOT pro-small business and I was not sending my hard-earned dollars to fund a group opposed to my interests. More small business owners need to do the same and state that they do not represent Main Street businesses and employers.
Well done. When I see Chamber of Commerce, I always think "George Babbitt." Not a pretty sight then and now.
Same can be said of the Farm Bureaus in many states. How easy it is to fool the public!
The author wrongly mashes the U.S. Chamber of Commerce up with local chambers. Local chambers have no financial relationship with the national organization and little else in common. If they weren't providing value to their members, they'd go out of business. Large institutional members -- banks, hospitals, colleges -- often underwrite events, publications and programs which provide a marketing platform for smaller businesses.
For 90% of the businesses that join the Chamber, it's purely a local-level networking exercise. My father joined his local Chamber, as well as the local Rotary chapter, just to form contacts with more businesspeople in our area.

And for most of these members, the Chamber works. They host events, hold seminars, do basic marketing and promotions, and it generally results in more business for members in the local area.

The Chamber of Commerce as depicted in the WM article may as well be a completely separate organisation from this local-focused Chamber that most businesses join. I would go as far as to say that the local Chambers know full well that the national organisation doesn't give a crap about them, but there really isn't anything they can do about it. As for the headquarters run by Tom Donohue, he doesn't care about the local chapters either, instead he's using the organisation as a platform to run his own personal lobbying business.

I think the local-level Chambers of Commerce do a lot of good, although many members don't really participate much. Those that want to can get a lot from their membership. But the national-level organisation run by Donohue is just about the most perfect example of everything that is wrong with the American political system today. It would be bad enough that he was taking huge money from huge companies to prosecute their agenda like mercenaries, but he's even worse than that. As the article states, he prefers that issues are never resolved so he can keep dipping his snout in the trough over and over. This guy isn't trying to help anyone except himself, even the huge-money conglomerates who pour money in to get him lobbying in their favour are treated like blood donors.

I don't think I've read about someone who disgusts me as much as this guy, in the last 10 years. And that's quite a feat.
How much of a C of C’s power comes from it’s public perception? I'm a recently retired college professor, well educated by conventional standards (Ph.D. from a top research university); however, until after the 2000 election I had never paid much attention to politics or to business. I had always thought of the Chambers in positive terms.

I know better now. But if an ordinary person with my education and experience was snookered, then I bet a majority of my fellow citizens have been snookered as well. For them, a CoC endorsement or membership decal is a “Good Housekeeping Seal,” a guarantor of good quality.
These people are very sneaky. For example, I receive regular slick and sleazy email from an organization calling itself “The U.S. Chamber Institute for Legal Reform.” Sounds impressive, right? The emails cite examples of ridiculous lawsuits, and urge readers to support their campaign for “legal reform” so as to avoid such nonsense.

They are, of course, a division of the U.S. C of C, financed by huge corporations and dedicated to preventing private citizens from suing these corporations for malfeasance and misfeasance -- like, say, knowingly selling a vehicle whose gas tank is apt to explode in flames after even a minor collision.

How can we draw aside the curtain to show who’s pulling the levers, pushing the buttons, and funneling the de facto graft?
Let me say something nice about the CofC, and something not-so-nice.

I've noticed that the CofC seems to be very inclusive of candidates at their fora for candidates. They'll let in third parties, write-ins with even less of a chance of getting votes than the Libertarians or Greens, etc.

On the other hand, they endorsed the Democrat Gubernatorial Candidate Vince Sheheen instead of Nikki Haley, even before the runoff results were totalled. So clearly, they'd decided that someone who - WHAT A CONCEPT - wants to force South Carolina to REVEAL HOW THEIR STATE REPS AND STATE SENATORS HAVE VOTED ON BILLS (NO, I am NOT MAKING THIS UP!!!) is some sort of great threat to the free enterprise system. As some know, many of us on the extreme libertarian right have for years said that if we REALLY had capitalism and drastically cut government budgets and regulation, it would be the BIG CORPORATIONS and I mean the REALLY big corporations, that would take a hit. In my humble opinion, the recent endorsement by the SC Chamber of Commerce is very revealing. Of course, it could just be that they're sexists and racists and religious bigots - but since Sheheen is Lebanese (he's an A-rab - he's an A-rab) I'm suspecting it's more the "socialism for the rich while nobody's looking" thing that the Chamber supports, at least in SC.
Quite a few good-sized companies have DROPPED OUT of the Chamber of Commerce at various times due to disagreements with their consistently reactionary policies and lobbying.

The last big foorah of this kind wasn't very long ago -- Apple Computer (and several other major companies less immediately recognizable as brand icons) quit the Chamber over the Chamber's wacky position on Climate Change legislation.

The chamber wasn't just against efforts to rein in CO2 ... they put out a wacky anti-scientific rather genesis-oriented position/lobbying paper which clearly played well to the more conservative members, but was a big embarrassment as far as everybody else was concerned ... and then they were stuck because they wouldn't retract it and offend their conservative base, but they lost a whole lot of credibility over it ... deservedly so.
Great post on a topic very dear to my heart - how progressives can learn to stop shooting themselves in the foot.
When I figured out what the US Chamber does, I quit my local one. It was a tough choice b/c my local chamber does exactly what it says it's going to do: support small business, etc. The US one? UGH!
Our South Carolina Small Business Chamber of Commerce (www.scsbc.org) stands apart from most chambers. We were active supporters of national health care reform, advocated for Wall Street reform and have long supported comprehensive federal climate/energy legislation.--Frank Knapp, Jr., President
@Neil McLachlan & Frank Knapp:

I much appreciate your positive slant on local Chambers of Commerce. I tend to be instinctively wary towards any such organisation but as it happens, a longtime friend of mine is very active in her smalltown Chamber of Commerce and my sense of that chapter -- from what I've learned from her over the years -- is that it does serve pretty exactly the positive functions you've both of you described.

Don't really know what to conclude from that observation as to all the broader issues being discussed here but just thought I'd thrown in my two bits.

podunkmarte
Oops --

For "thrown" please read "throw", o.k.? [Maybe I need new glasses?!]

podunkmarte
Great article. At least now, we all know the real score with the Chamber. Not all people are aware of this fact.Josh Stu
Read your article with interest. Could Chambers of Commerce really be this bad? Well, upon reflection, I'd like to offer you a couple of thoughts on your very well penned article.

Perhaps this is a case of being jaded. There's an old Jerry Jeff Walker song with the phrase "goodbye jaded lover, you undercover queen for a day."....

Once you've seen the bad, it's hard to reflect on the good. But there is good, and certainly right here in River City. Well, it's actually the city of Oceanside, CA that I'm talking about. Been a chamber member here now for quite some time, and this Chamber of Commerce is all about doing something concrete and valuable for it's paying members. I'll agree that politically most Chambers (including this one) lack the substance (guts) to make it of any value, but certainly this Chamber provides lots of value. Let me give you a few examples:

The vision of the Oceanside Chamber of Commerce is to be the source for businesses seeking information and networking in the North County San Diego area. They provide a number of classes, all taught by participating local business men and women, on such diverse topics as Social Networking, Human Resources, Business Law, making your business better (profitable), community outreach to such groups as battered women and the vast U.S. Marine families nearby.

Do you get what you pay for if you're a member of this Chamber of Commerce?

Yep, and it's because we are looking locally, not nationally. We are looking individually, not across large trade groups. We are looking to shake a hand, not shake our heads.

Contact me if you'd like to see how we're making the Chamber of Commerce concept work.