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Bernie Sanders, Elizabeth Warren and the Working-Class Iowa Test

DES MOINES—A large “People Before Profit" banner hung over the double doors leading into the Iowa Event Center’s ballroom—the state’s largest—September 21 for the People’s Presidential Forum. The event was hosted by the national grassroots group People’s Action and two of its local member organizations, Iowa Student Action and the Iowa Citizens for Community Improvement Action Fund (CCIAF).

More than 2,300 people, most of them working-class—including groups of fast-food workers and tenant organizers—attended the discussion with four Democratic candidates: Bernie Sanders, Elizabeth Warren, Pete Buttigieg and Julián Castro. The candidates shared the stage with workers from Iowa and nearby Midwestern states, but also as far away as Honduras. The workers told stories of how they’d been adversely impacted by corporate greed and anti-union government policies, as refrains of “That ain’t right!” rang out from the audience.

The forum’s theme of “movement politics" presented a striking contrast to the day’s bigger-ticket event, the Polk County Steak Fry, where an estimated 12,000 people turned out to hear 17 Democratic presidential hopefuls give briefer, more conventional stump speeches. The all-important Iowa caucuses—the first voting contest of the primary—stands as a test of candidates’ strength in 2020.  

Brian McLain, 42, a member of the American Postal Workers Union (APWU) from the Des Moines suburb of Ankeny, appreciated the forum’s focus on universal healthcare, but was unimpressed by Castro and Buttigieg, as both declined to embrace Medicare for All. 

“Medicare for All is a big one for me,” said McLain, who supports Sanders. “It is one of my dealbreakers when it comes to presidential candidates.”

McLain described how he spent a decade of his adulthood in poverty, lacking access to healthcare coverage. That changed, he said, when the union he joined—the APWU—secured benefits for him and his family through collective bargaining.

But with three children now reaching adulthood themselves, McLain worries whether they will be able to access care as Republicans continue their efforts to dismantle what’s left of Obamacare. In Iowa, state Republicans also privatized Medicaid, which has reduced or eliminated coverage for many vulnerable residents, and undermined collective bargaining rights for public-sector unions.

Sanders has made his Medicare for All Act, a single-payer bill that would replace private insurance with a single federal health insurance program, a centerpiece of his campaign. Warren also supports the plan; in response to a questionnaire sent out by CCIAF ahead of the forum, Warren said the country ought to “start treating healthcare like the basic human right that it is.”

During the forum, Sanders said, “I have believed for my entire adult life that healthcare is a human right, not a privilege.” Citing the millions of un- and underinsured Americans across the country, he added, “We have a system today which is not only dysfunctional, it is incredibly cruel.” As of July 2018, more than 176,000 Iowa residents lacked healthcare coverage.

A poll conducted by the Des Moines Register and CNN and released shortly after the forum showed that 41% of likely Iowa caucusgoers support Medicare for All and want candidates to run on the program, while another 28% are “personally comfortable" with the plan but worry it could have adverse electoral consequences. The forum also featured discussion of other hot-button issues defining the Democratic primary, from the Green New Deal to affordable housing and student debt.

”The Green New Deal, if that’s a fad, it’s the last damn fad we’ll have the chance to join,” said Danielle Wirth, 65, a resident of Woodward, Iowa, who teaches courses on ecology at Iowa State University in Ames. “The planet is at risk.”

Wearing a shirt promoting the Green New Deal, a comprehensive plan to combat climate change and transform the economy, Wirth said she and her husband planned to caucus for two of the candidates at the forum—Warren and Sanders, respectively.

“My husband and I would like to see both Bernie and Elizabeth Warren get through the caucuses, because they both represent such fundamental, systemic change,” she explained. “We believe in intergenerational equity.”

Both candidates expressed support for the Green New Deal in the CCIAF questionnaire and were cosponsors of the initial Senate resolution endorsing the plan. Sanders called for moving “away from fossil fuels to 100% energy efficiency and sustainable energy.” Farmers across the state are already feeling the economic impact of climate change as rainier springs and hotter summers threaten crop yields.

The Register-CNN poll showed that nearly half of all likely Democratic caucusgoers in Iowa support the Green New Deal and want candidates to campaign on it.

“I think Bernie probably set the agenda for all of them,” said Gina Folsom, 69, a retired educator from Ames, referring to the senator’s rivals. “Four years ago, I don’t think any of them were saying these things. She plans to caucus for Sanders for her second time in February 2020.

The Register-CNN poll showed Warren as the top choice of 22% of likely Iowa caucusgoers, overtaking centrist rival Joe Biden for the first time by a 2-point margin. Sanders dropped to third place in the poll at 11%.

Sanders, though, appeared to be the favored candidate among the majority of the forum’s attendees, drawing the biggest audience in the ballroom and receiving the loudest applause. Forum speakers and other attendees recounted helping organize support for him in 2016 ahead of that year’s caucuses, which resulted in a virtual tie with eventual nominee Hillary Clinton.

While Warren’s positions tended to mirror those expressed by Sanders, there was a notable moment that set the two apart. Sanders supports a national rent-control policy, but in a discussion about housing reform, Warren suggested this approach wouldn’t work for all communities. “Writing a rent-control plan in Washington may work for Chicago,” she argued, “but it’s not going to work for Iowa City, or it may not work for Dallas.”

“Warren could be better on this, and we plan to continue engaging her and the rest of the candidates on a national homes guarantee that includes universal rent control,” said Hugh Espey, executive director of Iowa Citizens for Community Improvement, after the forum. He added that a national standard on rent control “would help states like Iowa and cities like Des Moines protect people against skyrocketing rents.”

In 2016, CCIAF endorsed Sanders for president. The group plans to back a candidate for 2020 in early November, organizer Shawn Sebastian said—but he cautioned against reading too much into a single poll because of the past tendency among Democrats in the state not to settle on a candidate until shortly before they caucus.

CCIAF’s focus will remain on policy issues regardless of its endorsement, Sebastian added.

“What the People’s Forum is trying to show is the enemy is not each other,” he said. “The [enemies are] the big-money corporations and the corrupt politicians who take orders from them, that try to divide us against each other.”

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Senate Antitrust Hearing Explores Big Tech’s Merger Mania

The Senate Judiciary Committee’s Subcommittee on Antitrust, Competition and Consumer Rights held a hearing last week to explore the competitive impacts of big tech companies’ massive string of mergers with smaller companies in the last handful of years. Before the Senate committee were experts in venture capital spending, the Federal Trade Commission (the agency tasked with merger reviews), and legal experts in antitrust law. 

EFF believes a hard look and update of mergers and acquisitions policy is one of many actions needed to preserve the life cycle of competition that has been a hallmark of the Internet. In the past, the Internet was a place where a bright idea by someone with modest resources was able to be leveraged from their home into the next big innovation. We have lost track of that as a small number of corporations now control a vast array of Internet products and services we all depend on and now appear to have formed a kill zone around their markets where the incumbents target the new entrants through an acquisition or substitution by the incumbent.

Mergers With Big Tech Have Been Pervasive 

What is undeniable is that big tech companies have engaged in a massive number of mergers over the years. In testimony provided by the American Antitrust Institute’s (AAI) witness Dr. Diana Moss, the number of mergers engaged in by Google, Facebook, Microsoft, Amazon, and Apple are not only prolific but have been on the rise year after year (see below AAI's chart). And yet, big tech mergers according to AAI’s research faced fewer actually challenges from the government than other sectors of the economy. A variety of reasons were brought forth by the witnesses such as the inability of the law to properly screen Big Tech mergers that typically include a substantially smaller company being acquired or just that the impact on competition and innovation were not apparent at the time.

Market Dominance by Big Tech Has Changed Startups and Venture Capitalists

Securing investment from venture capitalists has been a major factor for startups getting off the ground and becoming major corporations. This is because launching a startup is inherently risky, so investment is assessed on risk factors. We actually have some compelling evidence that shows a relationship between risk and investment, one study showed reducing copyright liability in cloud computing increased investment by potentially up to a billion dollars in cloud computing startups. As committee witness Patricia Nakache, herself a General Partner at a venture capital firm with extensive experience in launching startups, noted, they fail on average three out of four times. With an already low odds of success, the added pressure of incumbents dominating a handful of markets has raised the bar for startups raising money when they seek to challenge the dominant players.

Arguably one of the most troubling issues the committee witnesses raised with the Senate Judiciary Committee is the fact that mergers and acquisitions are now seen as a primary driving force to securing initial investment to launch a startup. In other words, how attractive your company is to a big tech acquisition is now arguably the primary reason a startup gets funded. This makes sense because ultimately these venture capital firms are interested in making money and if the main source of profit in the technology sector is derived from mergers with big tech, as opposed to competing with them, the investment dollars will flow that way. This has not happened in a vacuum though, but rather is further evidence that antitrust law is in dire need of an update because lax enforcement has changed investment behavior.

The Lack of Competition Today is Not Frozen in Stone

The United States has been here before. The very existence of our antitrust laws and competition policy in other business sectors have sprung forth as a response to a less than adequate competitive landscape. In fact, antitrust law and competition law played integral roles in the telecommunications market where the then the world’s largest corporation, AT&T, was converted from a regulated monopoly into a regulated competitive market years later. But policymakers gathering a strong understanding of the market’s structure is a necessary first step and EFF will continue to support Congressional efforts to explore ways to improve competition in the Internet marketplace.

 

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