Attacking Kimmel; Corporate Money Machine In Democratic Primaries w/ Luke Goldstein | MR Live
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Summary
Takeaways
- ❖A new Democratic money machine, including 'Majority Democrats' and 'The Bench,' is funneling significant dark money into Democratic primaries nationwide.
- ❖These groups use a 'nesting doll' structure of PACs, LLCs, and shadowy consultancies to circumvent campaign finance laws and coordinate closely with favored candidates.
- ❖Seth London, a venture capitalist and former Obama administration operative, is the architect of this network, aiming to shift the Democratic Party to a more moderate, centrist stance.
- ❖Donors are primarily tech and finance billionaires, with their business interests often aligning with the policy positions promoted by the network's policy arm, the Searchlight Institute.
- ❖The FCC, under Trump, is weaponizing its power to attack perceived political opponents, exemplified by its review of Disney's TV license in an attempt to get Jimmy Kimmel fired.
- ❖The increasing reliance on independent expenditures and dark money has coincided with a growing disillusionment with both parties and a disconnect between popular proposals and policy outcomes.
Insights
1The 'New Democratic Money Machine' and its Structure
Investigative journalist Luke Goldstein details a methodical political operation, referred to as the 'new Democratic money machine,' comprising twin organizations: Majority Democrats and The Bench. These groups are actively involved in Democratic primary races across the country, backing centrist candidates. They possess a massive war chest, primarily funded by dark money and a small number of billionaires from the tech and finance industries. The operation is designed to influence elections at an unprecedented scale, often by pushing the boundaries of campaign finance laws through complex structures of PACs, LLCs, and consultancies.
Luke Goldstein's reporting for The Lever, discussing Majority Democrats and The Bench, their funding from tech/finance billionaires, and their involvement in races like the Michigan Senate primary (backing Mallerie McMaro) and Texas Senate primary (supporting James Taler Rico).
2Exploiting Campaign Finance Loopholes through Consultants
The core of this money machine's strategy involves exploiting loopholes in campaign finance laws, particularly regarding coordination between outside spending vehicles (Super PACs) and candidate campaigns. While direct coordination is illegal, these groups use consultants who work for both the PACs and the campaigns. This creates an unusual relationship that raises campaign finance concerns, as it allows for a level of collaboration that blurs the lines of legal separation. The Federal Elections Commission (FEC) has increasingly blessed such arrangements, including joint fundraising committees that can include Super PACs.
Goldstein explains the post-Citizens United dual-track system, where Super PACs can spend unlimited amounts without direct coordination. He highlights how this network uses consultants as intermediaries, noting that the FEC has approved practices like America Pack hiring canvassers and joint fundraising committees including Super PACs.
3Architect and Ideological Agenda: Seth London and the Searchlight Institute
The entire operation is largely the brainchild of Seth London, a venture capitalist and former Obama administration operative. London authored a memo after the 2024 elections that served as a blueprint for this network, advocating for a more moderate, centrist Democratic Party. His vision includes creating PACs to intervene in primaries and hiring specific consultants. The network also includes the Searchlight Institute, a policy arm that pumps out proposals influenced by the same donors funding the electoral operations. These policies often align with the business interests of the tech and finance billionaires, such as specific approaches to data center regulations.
Goldstein identifies Seth London as the founder of the consultancy 'Precinct' and the author of the blueprint memo. He links the Searchlight Institute, its board (including Steven Mandal and Simone Cox, connected to TSMC and Nvidia), and its policy papers (e.g., on data centers) to the network's ideological and business interests. Mallerie McMaro's campaign site features a policy proposal identical to the Searchlight Institute's.
4Trump Administration's Weaponization of FCC Against Jimmy Kimmel
The Trump administration is actively attempting to use the Federal Communications Commission (FCC) to retaliate against comedian Jimmy Kimmel for a joke he made about Melania Trump. Trump publicly called for Kimmel's firing by Disney and ABC, and the FCC is reportedly preparing a review of Disney's TV license. This is framed as a direct attack on free speech and a hypocritical stance by the administration, which previously criticized the Biden administration for merely suggesting social media moderation during a public health emergency.
Sam Seder discusses Trump's public statements calling for Kimmel's firing () and the FCC preparing a review of Disney's TV license (, ). Kimmel's joke about Melania having 'a glow like an expectant widow' () is cited as the catalyst.
Bottom Line
The 'anti-corporate PAC money' stance adopted by many candidates, including those backed by this new money machine, is becoming a 'relic' post-Citizens United, as individual billionaires can now directly fund Super PACs and influence elections without corporate intermediaries.
This rhetorical shift allows candidates to appear independent while still benefiting from massive, often undisclosed, individual wealth. It masks the true nature of financial influence, making it harder for voters to discern who truly funds a campaign's agenda.
Progressive movements need to update their messaging and focus on 'anti-billionaire money' or 'anti-dark money' rather than just 'anti-corporate PAC money' to accurately reflect the current landscape of campaign finance and expose hidden influences.
The network's focus on 'fresh faces' and 'younger' candidates like Mallerie McMaro, rather than explicitly ideological shifts, is a strategic way to triangulate between establishment and progressive wings, presenting a moderate agenda in a more appealing package.
This tactic aims to co-opt the desire for change and new leadership while maintaining a centrist policy orientation, potentially neutralizing progressive energy by offering a superficially appealing alternative that doesn't fundamentally challenge the status quo.
Progressives should scrutinize not just a candidate's age or 'freshness' but deeply analyze their policy positions and funding sources to identify if they genuinely represent a progressive shift or are merely a rebranded centrist approach.
Key Concepts
Political Entrepreneurship
This model describes individuals who identify political 'market gaps' (e.g., a perceived need for a centrist Democratic party) and then build complex organizational and financial structures to fill those gaps, often leveraging loopholes and attracting wealthy donors whose interests align with the desired political outcomes. Seth London is presented as a prime example, creating a blueprint and executing it to influence party direction.
The Dark Money 'Squid' Network
This refers to the nebulous, multi-tentacled structure of interconnected PACs, hybrid PACs, LLCs, and consultancies that operate with significant funding from undisclosed or loosely disclosed sources. This network allows for extensive, often legally ambiguous, coordination with campaigns, making it difficult to trace influence and accountability, effectively creating a 'shadow' political operation.
Lessons
- Investigate the funding sources and consultant networks of candidates, especially in Democratic primaries, to identify potential influence from 'dark money' groups like Majority Democrats and The Bench.
- Advocate for stronger campaign finance reforms that address individual billionaire spending and the opaque operations of hybrid PACs and consultancies, moving beyond the 'corporate PAC money' focus.
- Scrutinize candidates who claim to be 'progressive' but receive significant backing from centrist, billionaire-funded networks, particularly regarding their stances on economic populism, government intervention, and tech-related policies.
Notable Moments
Discussion of Trump's efforts to get Jimmy Kimmel fired by the FCC over a joke about Melania Trump, highlighting the weaponization of government agencies against perceived political opponents.
This illustrates a direct attack on free speech and the potential for regulatory bodies to be used for political retaliation, contrasting sharply with past criticisms of government involvement in content moderation.
The hosts' strong criticism of Mallerie McMaro's cynical attack on Medicare for All, framing it as a betrayal of fundamental Democratic principles and a dangerous precedent.
This moment underscores the ideological battle within the Democratic Party, where some candidates are willing to undermine core progressive policies by associating them with unpopular figures like Donald Trump, revealing a deep cynicism and lack of vision.
Debate on the political future of Senator John Fetterman, with the hosts asserting he has 'lit his career on fire' and is unlikely to be reelected, contrasting with the idea of him being a 'new Federman' for other candidates.
This discussion highlights the consequences of political shifts and perceived betrayals, emphasizing that while some politicians tack to the center, Fetterman's actions are seen as uniquely self-destructive and potentially opening up his seat for a progressive replacement.
Quotes
"Our first lady, Melania, is here. Look at So beautiful. Mrs. Trump, you have a glow like an expectant widow."
"Jimmy Kimmel should be immediately fired by Disney and ABC. Thank you for your attention to this matter, President Donald J. TRUMP."
"I think a great place to start to dial that back would be to have a conversation with your husband about it."
"The dark money phenomenon now is actually much larger on the Democratic side, even than it is on the Republican side."
"It shows a complete lack of vision and a cynicism that is basically really I would say disqualifying from constituting herself as a progressive or calling herself."
Q&A
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