Saving Capitalism Page #5

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pays more for pharmaceuticals...

than any citizens

of any advanced nation.

Why is it that we pay so much?

It has to do with the way in which

pharmaceutical companies

have got laws and rules

that protect them.

And that gives them huge market power.

And it also gives them

huge political power.

And that political power

is being exercised in all kinds of ways

to tilt the market in their direction.

In June of 2003,

the Medicare Modernization Act

came up for vote in the House.

This will be

a 15-minute vote.

It was a bill that was ostensibly intended

to help seniors pay

for prescription drugs.

But it would also bar the government

from interfering with negotiations

between manufacturers and pharmacies

and prescription drug plan sponsors.

In other words,

it would prevent the government,

with its huge purchasing power,

from negotiating cheaper prices for drugs.

So, as new drugs hit the market,

patients would have no choice

but to pay the costs

set by the drug companies.

The bill was over a thousand pages.

And it was rushed to a vote in the House

at 3:
00 a.m. the next morning.

We had leaders going around

and gathering around individuals

and trying to twist their arms

to get them to change their vote.

I think a lot of the shenanigans

that were going on,

they didn't want on national TV

in prime time.

On this vote, the ayes are 220,

and the nays are 215.

-The conference report is agreed to.

-

Without objection, the motion

to reconsider is laid upon the table.

This is a piece of legislation

that's hailed as a move toward

a free market.

But it's actually a government regulation

that benefits only a few at the top.

Similar manipulations of the rules

of our economy

are happening across our major industries.

Americans pay more for Internet service

than citizens of any other

industrialized nation,

and have some of the slowest speeds.

Because cable companies

have enough political power

to stifle competition.

We're paying more for airline tickets,

because airlines have merged

into just four major carriers

that barely have to compete

with each other.

We pay more for health insurance

as health insurers consolidate.

So, in every way, you see,

they're using their political power,

and that means you and I

and every other American

are paying more.

How do these industries

manage to get rules that benefit them?

It's no mystery.

Campaign contributions

buy access to government officials.

Well-funded public relations firms,

think tanks and research institutes

produce reports to promote those views

and sometimes even draft the laws

they want passed.

The tunes of lawyers

argue on their behalf

in courts and regulatory proceedings

in Washington.

Finally, there's the revolving door.

In the 1970s,

about 3% of outgoing members of Congress

became lobbyists.

In recent years,

42% of retiring representatives

and half of all retiring senators

have turned to lobbying.

Lobbying has been going on

since America's founding.

What has changed is the magnitude

of corporate lobbying

versus any other interests.

It's gone from a cottage industry

to an influence industrial complex.

Today,

corporate interests

spend $34

for every $1 dollar

spent by unions

and all public interest

groups combined.

In 2016,

they spent a total of

$3.15 billion on lobbying.

That's the equivalent

of $5.9 million

per member of Congress.

I'm kind of independent.

At times, I see both parties...

doing some stuff that I don't think...

that's what they were elected to do.

They don't care about

the promises they made to the people.

They care about the promises they made

to their backers.

They give them the money.

Most of us out here...

I don't contribute much

to the political deals, you know?

Because...

I'll vote for you.

If I vote for you,

that's all I should have to do.

I don't have to buy your loyalty to me.

Their money is their voice.

Why, excuse me, but where did I miss that?

Money is used to purchase something,

not as a voice.

You know?

So what are they purchasing?

They are purchasing

the influence of politicians.

Do you feel that

you are truly represented in Washington?

Do you feel that this country

is headed in the right direction?

No one does.

That's why I'm running for Congress.

My name is Dave Brat

and I'm a lifelong Republican

and conservative.

I'm ready to take economics and ethics

to Washington.

-Congressman.

-Hey, Bob. Nice to see you.

Good to see you.

Thanks for coming in.

Well, I appreciate you taking the time.

Seriously.

I know you're in the middle of a campaign

and this is an imposition.

-No, it's not. Pleasure to meet you.

-It's great to meet you, too.

-I have a lot to talk to you about.

-Great.

The Conservative Review...

has given you an award...

for being one of

the two most conservative Republicans

out of 247 Republicans in Congress.

Yep.

-You use the term "crony capitalism"...

-Yeah. Yep.

What do you mean by "crony capitalism"?

The big folks get together,

no matter what industry,

protect their turf,

at the expense of the small guy.

The government's job

is to make sure that doesn't happen.

Instead, the government's job

has turned into,

they make that happen.

I mean...

I'm not against business.

But I'm against this crony business

that takes advantage of the taxpayer.

I do think it's coming. People-

The intuition right now is clear.

Something is wrong.

All over the country.

Right, left, everybody.

Something is way off.

The old assumption has been that

division is Democrat versus Republican.

That's fading.

But what we are beginning to see is that

it's actually anti-establishment

versus establishment.

Yep.

It's people who don't want the big money

and the crony capitalism

versus the crony capitalists.

Democrats, Republicans,

conservatives, liberals...

There's gonna be disagreement

on a lot of stuff.

But if you could come together

on these fundamentals...

It's fine with me.

You're at a deeper level.

You've been teaching economics

and all that for 30 years.

I used to use your book.

- You used to use my book?

-Yeah.

-I used to-

-Can we just make-

-I have a book out, too.

-Can we get that again?

Congressman,

what do you think of the title?

Yeah, it surprised me a bit

coming from you,

but in a pleasant way.

I think you and I are united.

We could do this in the right way.

Ethics and capitalism together,

and we'll save the country.

-Congressman, thank you.

-Thank you very much.

Everything fundamentally

comes down to American democracy.

Is it working for most people?

Or is it working for a very small number?

Researchers at Princeton

and Northwestern University

wanted to find out

how much political power

ordinary citizens have.

They examined a 20-year period,

from 1982 to 2002.

They first discovered that if large

corporations and wealthy individuals,

regardless of political party,

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