New Congress Likely to be More Pro-Consumer

AP Canvass Confirms Webb's Victory over Virginia's George Allen

By Joseph S. Enoch
ConsumerAffairs.com

November 9, 2006

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So does the future look brighter for consumers now that Democrats have taken control of Congress?

Most would say so. Republicans traditionally are pro-business, which in practice often means consumers get the short end of the stick.

That has certainly been the case for at least the six years Republicans have controlled Congress and the White House. It is difficult to think of a single piece of legislation that put the interests of the average consumer before those of business.

Within hours of retaking the House, Democrats were promising to work for the consumer and to be a more aggressive watchdog over corporate interests. With Jim Webb now a near certainty to unseat Republican George Allen in Virginia, Democrats will also control the Senate -- the first time in 12 years Democrats have had a majority in Congress.

An Associated Press canvass of 134 localities where voting occurred in Virginia found Webb with 1,172,538 votes and Allen with 1,165,302, a difference of 7,236. Virginia has had two statewide vote recounts in modern history, but both resulted in vote changes of no more than a few hundred votes.

Allen insiders have said that the California native, who affected a Southern accent and dressed in cowboy boots, was dispirited by the close vote and not likely to press for a recount. He had imagined himself a potential Presidential candidate prior to this year's disastrous campaign.

Allen alienated voters in Northern Virginia's Fairfax County, the state's most populous jurisdiction, when he referred to a young Webb campaign volunteer as "macaca," generally regarded as a racial slur.

Even Republicans in Fairfax, a wealthy and highly diverse suburb of Washington, were infuriated by the ethnically denigrating remark, especially coming from one who was himself an immigrant to Virginia.

The young man in question is a Fairfax County native who attends the University of Virginia, the state's prized and highly selective "public ivy." He graduated from Thomas Jefferson High School, Fairfax's nationally acclaimed magnet school for science.

"How dare he come here and insult our children?" an angry self-proclaimed Republican woman said in a discussion outside a polling place in leafy GOP-leaning Oakton, Va., Tuesday. "That kind of remark has no place in Virgina politics."

A New Focus

As the results of Tuesday night's election began to sink in, Washington's "other" lobbyists -- the ones who represent consumer interests and non-profit groups instead of big drug, telecommunications, financial service and energy companies, began to perk up.

Allen Korn, director of public policy for Safe Kids USA, a nonprofit that works to prevent child injury by any means including unsafe products, said that generally speaking, Democrats have been more open to consumer issues relating to children.

"Democrats, I believe, are a little bit more willing to look at the government's role in protecting children's lives sooner in the discussion than Republicans," Korn said.

Walt Sanders, a D.C. lobbyist who spent many years working at the Consumer Product Safety Commission under President Bill Clinton, echoed Korn's sentiments.

"I think Democratic control of the Commerce Committee will be generally supportive of consumer issues," Sanders said. "Generally in the past, the Democrats have been more willing to fund and support the efforts of the CPC (Consumer Product Safety Commission).

Early in the election-night victory galas and in the following day's newspapers, Democrats made it clear that they intend to fight for consumers' rights. One minute into her remarks, House Majority Leader-to-be Nancy Pelosi emphasized the Democrats' commitment to consumers.

"The American people voted for a new direction for a fair economy," Pelosi said. "And Democrats intend to work for an economy where all Americans participate in the prosperity of our great country."

Pelosi and the Democrats have promised to tackle six major issues within their first 100 hours of House control in January. Of the six, three are consumer issues.

Leading the list were constantly-rising pharmaceutical costs.

Wall Street Reacts

Wall Street was quick to assimilate the new order. Shares of Pfizer, Eli Lilly and Merck fell 45 cents, 56 cents and $1.84 respectively, in the wake of the voting results.

"The drug industry is on the top of the list of industries that would be uncomfortable if Democrats are successful in the elections," Ira Loss, an analyst at Washington Analysis told the Associated Press.

"I don't think there's any question that we're in for a more challenging political climate," Ken Johnson, senior vice president of Pharmaceutical Research and Manufacturers of America, which represents drug companies told the Gannet News Service. "It sounds good -- medicine negotiations on behalf of seniors. But in reality, we know that the government doesn't set prices, it dictates prices."

Pelosi promised to eliminate a rule that currently bars Medicare from bargaining for lower prescription drug prices.

Democrats also are expected to seek legislation allowing Americans to import prescription drugs from Canada and Europe, which is now illegal. Experts disagree on the potential savings to U.S. consumers because pharmaceutical companies could limit drug sales to nations that host export pharmacies.

Energy Policy

Democrats also hope to lower gas prices and work for a long-term energy goal. They hope to cut spending and dependency on petroleum and instead focus funds on alternative sources of energy while eliminating freebies to the oil companies.

The Republican Congress provided almost $3 billion in tax breaks and other financial incentives to the oil industry in energy legislation last year.

"You know, (oil companies are) making billions of dollars, charging us $3 a gallon, of course those folks don't need tax breaks," Howard Dean, chairman of the Democratic National Committee told Reuters. "We can use that money to balance the budget."

Education

Democrats in the House also hope to lower the skyrocketing price of college tuition and the student loan interest rates that follow.

In April, Sen. Richard Durbin (D-Ill.) and Congressman George Miller (D-Calif.) called for a 50 percent rate cut, to 3.4 percent for students with subsidized loans and to 4.25 percent for parents, in their Reverse the Raid on Student Aid Act.

With the Democrats now in control of the House, that reverse just could be possible.

"We will make college more affordable, and we will begin by making tuition tax deductible and cutting in half the interest rates on student loans," Pelosi said on Sept. 27.

Exceptions to the Rule

Of course, there are always exceptions to every generalization, and some Republicans who lost their seats this week will be missed by consumer advocates.

Korn, of Safe Kids USA, said Sen. Mike DeWine (R-Ohio), who was edged out of his seat by a Democrat, has fought hard for children's consumer issues over the years.

There have been a number of other issues where individual Republicans have fought for consumers. Rep. Tom Petri (R-Wis.) fought to keep moving companies from stealing consumers' money and property. Ironically, his efforts were reversed by another Republican, Sen. Kit Bond (R-Mo.), whose district includes the headquarters of several major moving companies.

But don't look for too much action too soon. With the Senate at or near a deadlock and a Republican Administration, legislative gridlock may be more the order of the day, said Robert Ebel, an energy expert at the Center for Strategic and International Studies.

"You've still got a Republican president so what can you get done?" Ebel told Reuters. "It's probably going to be two years where nothing is going to happen."

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