Weekend Economists Watch the Stars Falling June 12-14, 2015

[Demeter]

24. Robert Reich on the Even Bigger Hidden Menace Behind the Hastert Sex Scandal

http://www.alternet.org/economy/robert-reich-even-bigger-hidden-menace-behind-hastert-sex-scandal?akid=13188.227380.yWEHz7&rd=1&src=newsletter1037542&t=12


Unfortunately, making obscene amounts of money as a lobbyist after serving in Congress is perfectly legal...Washington has been rocked by the scandal of J. Dennis Hastert, the longest-serving Republican speaker in the history of the U.S. House, indicted on charges of violating banking laws by paying $1.7 million (as part of a $3.5 million agreement) to conceal prior misconduct, which turns out to have been child molestation.

That scandal contains another one that’s received less attention: Hastert, who never made much money as a teacher or a congressman, could manage such payments because after retiring from Congress he became a high-paid lobbyist.

This second scandal is perfectly legal but it’s a growing menace.

In the 1970s, only 3 percent of retiring members of Congress went on to become Washington lobbyists. Now, half of all retiring senators and 42 percent of retiring representatives become lobbyists.

This isn’t because more recent retirees have had fewer qualms. It’s because the financial rewards from lobbying have mushroomed, as big corporations and giant Wall Street banks have sunk fortunes into rigging the game to their advantage....


REICH MAKES SOME PRACTICAL SUGGESTIONS OF REFORM==SEE LINK