[NIFL-LD:2860] An Issue of Conscience.

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Dennis Jaffe                    
May 26, 2000    

Dennis Jaffe is a former Executive Director of Common Cause New Jersey, a 
citizens organization promoting integrity in the political process. Jaffe is 
releasing this only as a private citizen. 
Further information is being posted at http://riskybiz.cjb.net. 


Monday, my father summed up NJ's Democratic Party: "morally bankrupt." 

We were discussing the U.S. Senate campaign. Jon Corzine, former Chief 
Executive Officer (CEO) of the investment firm Goldman Sachs, is running 
against former Governor Jim Florio. 

This election is very troubling.

The Center for Analysis of Public Issues reported in April that Goldman Sachs 
ousted Corzine as CEO in 1999 after incurring half a billion dollars in 
trading losses. NJ Reporter cites Lisa Endlich's Goldman Sachs:The Culture of 
Success. "Some banking partners felt that rather than be elevated, (he) 
should have been made to bear some responsibility for the firm's troubles, 
many of which originated in his division."

There's more. NJ Reporter's Barbara Fitzgerald wrote, "When Corzine (first) 
arrived, there were nine people in the department. One day, seven of them got 
up and walked out." 

In 1994, he became CEO. Some executives wanted out of the firm, Endlich 
writes, because of the "risky trading Corzine had supervised ... 36 partners 
left and withdrew their capital."

Yet, Corzine, reported Fitzgerald, "was credited with raising the company's 
morale and employing better risk management procedures." Robert Rubin, former 
Treasury Secretary under President Clinton, praised Corzine. "I think he was 
a terrific leader." 

Weeks after Corzine's forced retirement, U.S. Senator Frank Lautenberg 
announced he would not seek re-election. An American success story like 
Lautenberg, Corzine began to explore a run for the seat.  

He hadn't voted in a primary since 1988, (NJ Reporter). His November election 
voting record was mediocre. But in 1999, NJ Democratic insiders went "gaga" 
over Corzine, who had given big bucks to Democrats outside NJ. His new-found 
eagerness to distribute his financial resources to local Democrats was 
greeted by cash-strapped party leaders with outstretched hands.

Now, Corzine is under fire for an obscene tactic he privately initiated over 
a year ago. Tapping resources of his own and of key allies, he strategically 
steered over half a million dollars to targeted party officials responsible 
for picking the candidate who receives party backing and superior ballot 
position. 

His gifts amounted to over $1,000 a day for over a year. Bergen Democrats 
received $90,000. Hudson Democrats … $65,000. Democrats in Union … $50,000. 
Middlesex … $30,000. Mercer … $20,000. Corzine: "that's the way you 
encourage other people to feel good about you." (New Jersey Reporter, April 
2000) I find it offensive. But those county party leaders endorsed him - and 
gave him a huge built-in competitive advantage. Two Congressmen and a 
prominent attorney were pushed out of the race.

Since 1982, Frank Lautenberg, a longtime loyal Democrat, has financed his 
U.S. Senate campaigns with millions of his own dollars for TV ads. So what's 
the difference between his campaigns and Corzine's?

It isn't that Corzine is shattering spending records - including the $30 
million spent by California Republican Michael Huffington, who spent $8 
million to win his 1994 U.S. Senate.

What he has done is unprecedented. Unparalleled. Never done before. The 
significance of what has been going on has simply not been conveyed to New 
Jerseyans.

If Corzine hadn't first contributed hundreds of thousands of dollars to party 
insiders, his candidacy would have been doomed. Why has he given so much 
money to party leaders who have endorsed him? Why? Why has he given so little 
money to those insiders who have not endorsed him? Why? If there were no 
opportunity to receive a party line endorsement, does anyone think Jon 
Corzine and his top backers would have contributed such huge amounts of money 
to local officials? 

Based on the incredibly successful results Corzine had with his private 
tactic with political insiders, why didn't he continue handing out 
contributions to the rest of the citizens of the state? It has been projected 
by the Associated Press that he will spend about $100 per vote in this 
election. That's beyond the pale! It's not worse than, more obscene than, or 
scarier than what's been done before. It's incomparable. Instead of spending 
$30 million or $100 per vote to tell the public how much he cares about doing 
social good, why didn't he just send everybody a check? The answer is that 
that would have exposed what he was doing.
 
The Democratic Party once prided itself in being "for the little guy, " 
supposedly committed to giving families the best shot at living "the American 
Dream." The party appears to be more committed to providing opportunity for 
multi-millionaires, bond houses, and real estate developers.

The June 6th primary election to nominate a successor to U.S. Senator Frank 
Lautenberg is a contest between rank-and-file Democrats and Wall Street 
businessmen seducing party insiders with tempting offers of cash to arouse 
their affection. It is more than just a contest between Florio and Corzine. 
It's about the soul of the Democratic Party. About its very reason for being.

Mr. Corzine comes across as a likable, successful guy. A bold liberal 
favoring wealth redistribution, universal gun registration, universal health 
care, gay marriage, and free college education for high school students 
graduating with a B average.

Florio isn't "warm and fuzzy." Say what you want, but even a conservative 
Republican legislature kept in tact most of the "Florio $2.8 billion tax 
increase." It's easy to attack him as an arrogant taxer. But Republican 
legislators didn't come close to honoring its promise to "roll back the 
Florio tax increase."

Florio can also play ugly. A pro-Corzine state senator lost a legal 
appointment with Florio allies. Florio has blemishes, too. But what has 
transpired between Corzine and local Democratic insiders is an unprecedented 
poisoning of our political system. It is incomparable.

Nominating a Democrat for U.S. Senate shouldn't be about privately auctioning 
off endorsements to a rich, unemployed Wall Street executive, whose firm was 
a lead underwriter for Republican Governor Whitman's $2.8 billion bond act - 
the largest state bond at that time in U.S. history. It should be about a 
platform of ideas and principled beliefs. At least the GOP wears its Wall 
Street stripes on its sleeves. The Democrats may talk "working class," but 
their behavior reeks of big money.

Mr. Corzine's refusal to join Florio in a debate sponsored by the NJ League 
of Women Voters and ABC-TV is the height of arrogance. His voting record is 
embarrassing. His private campaign methods are obscene. The Democratic 
Party's selling of its soul to Wall Street is sad and hypocritical. Some 
Democrats say they're for Corzine because they want to win. Can you imagine 
Al Gore and Jon Corzine teaming up on campaign finance reform? I mean in 
favor of it!

>From a more personal perspective, as a Jew, I am particularly disappointed in 
the Anti-Defamation League for establishing one standard on how to respond to 
insensitive statements by the rich and powerful, and another on how to 
respond to everyone else. The Rev. Jesse Jackson gets the third degree when 
he makes a comment about "Hymietown." But Jon Corzine is given a free pass 
when he reportedly makes comments about Italian-Americans being freed from 
jail by Jewish lawyers. According to the New Jersey Jewish News, Corzine has 
given huge contributions to the ADL. Shame on them.

As a gay man, I am also in disbelief that a man who networks well in 
Washington, D.C. and on Wall Street can come out of nowhere to gain the 
endorsement of a brand-new NJ organization named Stonewall Democrats. Corzine 
has promised this newly-created organization to support gay marriage. I 
applaud him for that. I don't have confidence he has the political persuasive 
skills to advance this cause. Florio said he's not prepared to support gay 
marriage and admitted it might be due to generational differences. For crying 
out loud, former Governor Florio signed one of the first statewide civil 
rights acts in this country protecting gays and lesbians from discrimination.

>From Jews to Italians to high school drop-outs, Mr. Corzine seems to say a 
lot of risky things. It is beyond me - simply beyond me - that he could get 
away with describing high school graduates who didn't go to college, and high 
school drop-outs as "reprobates," which the dictionary defines as "morally 
unethical." 

Former U.S. Senator Bill Bradley, in his presidential bid, powerfully 
preached "Politics should be about the power of ideas, not the size of one's 
wallet." NJ and our nation need to hear Bill Bradley's voice.

The Democratic Party needs to be reclaimed by rank-and-file Democrats, and 
taken away from the gripping control of big money. The sad state of affairs 
is that too many Democratic officials - no different than the Republicans - 
are beholden to party leaders who have given them jobs, and the citizens of 
this state have been done a terrible disservice. The state's voters have been 
denied the opportunity to hear the ideas and platforms of a number of 
accomplished Democratic officials - like Congressmen Bob Menendez and Frank 
Pallone - because insiders traded endorsements for huge infusions of cash for 
their campaigns. 

The money newly given to local Democrats by a candidate whose firm was hired 
to administer the largest statewide bond issue in our nation's history when 
it was enacted, who then publicly said the bond issue was not in the best 
interests of the taxpayers, and who hasn't voted in years truly signifies a 
poisoning of the political system. It makes clear the need to eliminate NJ's 
party line endorsement primary system. It makes clear we need a resurgence of 
local citizen activism more than ever before. 

Jon Corzine told NJ Reporter, "I am a risk taker." How can NJ citizens afford 
to risk their futures with Jon Corzine after even Goldman Sachs dismissed him 
on the heels of a $500 million trading loss?

Corzine's and Democratic officials' actions have disgraced NJ before the 
nation. Tuesday, June 6th, rank-and-file Democrats can signal that they are 
taking back the party by turning out in record numbers to cast the best vote 
they can in this election. We have much work to do to take back this 
democracy from the grip of big money politics. We can succeed. We can't 
afford the risk of letting it continue.

Now is the time in history to re-assert citizen control of government. NJ is 
the place. The real truth about the unprecedented poisoning of our political 
system as has taken place in this election provides an unprecedented 
opportunity to make the case to the American people that our quality of life 
is inextricably intertwined with the challenge we face of cleaning up the 
American political system. 

Those who control the purse strings of political campaigns exercise power in 
controlling our government. It's that simple. Citizens are upset about bad TV 
commercials - and more so about maybe paying for them. But, as long as the 
rich and powerful finance campaigns, the quality of life that citizens are 
entitled to shall be sacrificed, and the quality of life for contributors 
will be enhanced. Citizen financing needs to begin locally. We need to 
re-build our democracy from the ground up.

Let the clean-up begin. A finer man than Bill Bradley to lead this effort, 
there is not.



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