A Fresh Start for Campaign Reform
I'm looking forward the chance to start a discussion here for a change, instead of just responding, though responding is always easier! And I'll confess that I'm worried about this discussion because I wrote “Mismatching Funds” to challenge a movement – the campaign finance reform movement – that I've been a part of and that I largely admire but that I want to see reexamine its basic operating assumptions. There's a pretty serious critique in the article of the assumptions of the movement, but also some things that I wish I’d stated a little better.
To start at the middle of the article, with something I should have said more clearly: I very much believe that the most fundamental problem to be addressed in American politics is the extent to which radical economic inequality reinforces and in turn is reinforced by inequality in the political system.
To me that's an issue a hundred times more important than, say, congressional redistricting procedures. But I think there is more than one way to adjust that balance, many of which don’t even fall under the traditional rubric of “campaign finance reform.” Making it easier to organize a union, for example, or cleaning up the tax code so it is harder to manipulate for the benefit of particular economic actors, would all help to break the self-reinforcing nexus of political and economic power. All require power to achieve, but so does campaign finance reform. (One of the points I make in the article was that when I first got involved in campaign reform in the mid-1990s, it was billed as “the reform that would make all other reforms possible”; now many progressives tend to think that if you had the political capital to achieve campaign reform, you would equally be able to enact universal health insurance or other substantive reforms, so why spend the capital on a pure process reform.)
The campaign finance reform movement, in the ten years since it really took on new life as a cause, has mostly pursued a wildly literal approach to the relationship between economic and political inequality, and I think it has led the movement down a kind of rabbit-hole. Seeking principally to “get money out of politics,” and armed only with the rationale of reducing “corruption or the appearance of corruption,” the movement starts off by banning “soft money,” or money raised by political parties from corporations and unions, in unlimited amounts. Then, realizing that this leaves the loophole for political committees that aren’t the parties, McCain-Feingold goes on to limit spending on any advertising in the weeks right before an election that mentions a candidate. Then independent 527 committees emerge in the 2004 election, reformers chase them down, and realizing that the same activities could be run through a non-profit, they start to ask whether non-profits might, at some point, have to be subject to regulation. Then the issue emerges of blogs and whether they could become a conduit for big money, which they could, of course, and then that leads to a big fight.
Each of these questions has its own logic, its own legal questions, and pros and cons in its own terms. Of course, having set out to ban soft money, any path that might allow such money to come back into politics is a loophole that could make the original ban worthless. So you chase one loophole after another and then another.
But at some point you have to say stop, and instead of arguing the narrow question of whether blogs or non-profits should be potentially subject to regulation, ask, How did we get on a path that only makes sense if we can regulate blogs, regulate every ad that mentions a candidate, or regulate non-profits? Since there will always be some loophole, chasing loopholes increases the value of whoever controls the loopholes that remain. And even if you could close every potential loophole, that's an undesirable result -- too much other speech would be accidentally and inappropriately fall under a regulatory rubric. This is what leads me to say “take the libertarian arguments seriously.”
And so when you find yourself in such a situation, you have to go back and find another path. I believe the alternative path is one that leads to thinking about expansive solutions to money in politics, not restrictive ones. You have to make it easier to run for office, easier to challenge an incumbent, easier to organize, easier for alternative voices to be heard, and boost the value of small donations.
Now one point that I expect, and hope, respondents here will make is to argue that full public financing, of the sort that I described briefly in the article and that is in place in Arizona, Maine and soon Connecticut, is that alternative. Indeed, I cited the Arizona system as an example of the kind of small-donor democracy I support. And there are the beginnings of movement on full public financing at the federal level.
In the article, I didn't explain my only caveat about that approach, which is that I think that full public financing, to work, requires a fair amount of restrictiveness of its own. Candidates who accept public financing in such a system have to agree to take NO private funding beyond the initial qualifying contributions. That requires a similarly aggressive policing of loopholes, so that candidates don't take public funding and then layer large amounts of outside money on top of it. It's a fairly closed system.
Systems like the New York City public financing system, which matches small contributions fourfold, have an advantage in that they don't have to restrict other sources of money. They are open ended, and the more a candidate can raise in small contributions the better. That most candidates participate and that there is very little outside money in these systems is a notable advantage.
But this is a much smaller difference than the difference between the family of purely limits-based approaches to campaign finance, and the family of expansive approaches, from full public financing to matching funds to vouchers and tax credits. All of those approaches can, in different ways, accelerate what's good and healthy and improving in our politics, and thereby help offset the political power of economic inequality.
And so my main point is to begin to articulate the goals and promises of the campaign finance reform movement in those terms: Open the system rather than restrict it. Encourage what's healthy in politics. Accept that there is a role for private money in politics, as an expression of intensity of political views. And think of values other than corruption.











Comments (40)
I'm willing to listen, but I'm awfully skeptical. First, can small donors seriously reverse the huge GOP spending advantage? It sounds a bit like hopes that killing estate taxes will help average families. And I think liberal bloggers underestimate that advantage when they characteristically blame the Dems for every loss.
Second, do reasonably strict financial caps on contributions outlaw the grass roots? It'd seem that cutting off money cuts off big money, whereas it'd have to be an awfully low cap to cut off services and activities that have little or no monetary return. If my services are worth so much, how come all the time I've spent on this Web site hasn't paid me a dime?
John
http://www.haberarts.com/
March 14, 2007 8:25 AM | Reply | Permalink
Enhancing the value of small donations sounds good, but it will not be enough. We should also work to reduce campaign spending. The greatest expenditures are on broadcast advertising. Broadcasters are licensed by the public. We can change the terms of their licenses so the stations are required to give blocks of time to the FEC. Let's make it for a fairly brief period of time before each election, so maybe we can shorten the campaign season while we're at it. All of a sudden, the FEC has some very nice carrots to hand out to the candidates who decide to play by the rules. The only real negative impact is to broadcaster profits, but they can afford it, and it couldn't happen to a bunch of nicer guys.
March 14, 2007 8:43 AM | Reply | Permalink
Two thoughts. [No record but above average for one day]: If I buy a share of stock I do not intend, or want, one penny of that investment to be available to the CEO or Board of Directors, to give to a party or candidate of their choice. I don’t see how this is justified and if it cannot be justified I don’t see why it is legal. It is not the same as a union supporting a position or person with funds contributed voluntarily to a political action fund.
One suggestion I have heard that I like is to require that all campaign contributions be anonymous. Memory fails on where I heard this idea but as I recall the legality and practical implementation of such a law was addressed.
March 14, 2007 9:10 AM | Reply | Permalink
Find a way to repeal the "money = speech" gift to the wealthy; barring that, enact laws that tax lobbying firms that lobby for "for profit" entities, repeal tax deductibility for contributions to lobbying firms that lobby for "for profit entities", repeal any tax deductions for political candidates and parties.
or
Go to your Plan B :)
PS: I like the idea of public financing.
March 14, 2007 9:23 AM | Reply | Permalink
I don't believe anything can be done to halt the corruption of the system. That it is corrupt is a fact we're going to have to live with, because politicians themselves are unwilling to stop it.
The only possible way to exercise some control is to enact term limits and limit benefits for congress to the time served in congress.
March 14, 2007 9:34 AM | Reply | Permalink
one thing i'll say about edwards is that he's is in favor of public campaign financing. the others? don't know.
March 14, 2007 9:35 AM | Reply | Permalink
Playing devil's advocate a little:
It can be justified because it helps increase the value of the company. Buying congresscritters (or better yet presidents/vice-presidents) can often be very lucrative. Especially if you're a defense contractor. I've heard it said that public corporations are legally obligated to focus on the bottom line. What better investment is there? ;)
March 14, 2007 9:45 AM | Reply | Permalink
I have become, in the past couple of years, a pessimist on this topic. Even if you have public financing of campaigns -- a necessary first step in my view -- there will still be corporations with billions of dollars to spend and massive economic incentives to find a way to use that money (it's just another investment for them, after all), to shape public policy. If they can't do it by directly buying politicians, they will find ways to use the money to directly influence public opinion.
What I fear here is that meaningful front end reforms locking out old school corruption will result in the birth of institutional-level Scaifism: corporate financing of nominally money-losing media ventures that amount to nothing more than propaganda. As sophisticated as advertising and PR have become in the past few decades, such a scenario is more dangerous than the relatively open corruption we currently have. Rush Limbaugh and Sean Hannity underwritten (through a dozen shell corporations and non-profits, of course) by Exxon-Mobil.
In times of peace, the wise man prepares for war. -- Horace
The blade itself incites to violence. -- Homer
March 14, 2007 9:52 AM | Reply | Permalink
I'm not quite so pessimistic as BevD, but it's naive to think you can negate the influence of money in politics.
Loopholes can always be found, and as with the tax code, sometimes complex restrictions work to the advantage of the rich who have the resources to get around them.
Public financing will not stop the wealthy from using the airwaves to influence elections, and established parties will use it to enrich themselves with a high bar stopping third parties from developing.
I want to know who is giving what to whom. Full disclosure of every dollar spent to influence our elections seems reasonable.
March 14, 2007 11:24 AM | Reply | Permalink
The comments above by Luigi, BevD & epistemology are correctly seeing the forest for the trees in my opinion. But Mark Schmitt in his ideas is at least not trying to ignore that forest either.
If you regulate what can be done in election campaigns, everyone with an agenda will just go outside of campaigns and try to influence that way. PAC's were created in response to campaign finance reform.
On my local TV station the other night, New York One, I heard that the New York state health care unions banded together with the hospitals and some insurance companies to spend $100 million in advertising & lobbying to defeat Governor Spitzer's attempt at Medicaid budget cuts! 100 million on a single issue, a budget cut, nothing to do with an election!
We have free speech which allows those with money to buy a printing press as it were & those without the money to band together to afford one. The savviest guy/group as to getting money and making a resounding message wins, was ever thus. Don't see how the internet is going to change that over TV, it's just going to be a case of a message on the home page of the most popular sites or portals eventually costing a fortune.
Money buys the ability to influence & the more communication methods, the more opportunity to influence. You can't get around that.
I was really intrigued for a moment byby JohnW1141's idea of "for profit" exclusion, but then I thought for a moment and remembered: how expensive is it going to be to really truly continually police the funding sources for non-profit PAC type groups? And how detrimental will that be to free speech? Big Brother enters in at some point.
March 14, 2007 12:06 PM | Reply | Permalink
This could be how one form of public financing might work; all contributions go into one fund and its doled out by some formula. Perhaps each State gets an amount proportional to State population, then split the it 50/50 between candidates.
Naturally this needs more work.
This may also put the brakes on the ever over inflated increasing amounts of money needed to run.
March 14, 2007 12:10 PM | Reply | Permalink
P.S. Also, on the "corruption" end, you do get into an "eye of the beholder" problem sometimes. I get the impression that many on this website think Joe Biden corrupt for pandering to some of the desires of the Delaware credit card industry, and just a few days ago so many were upset that Rep. Wexler was "pandering" to AIPAC.
The problem is that sometimes voting constituents might like some of that "corrupt" pandering, they might actually expect Joe Biden to make sure the credit card industry is happy to do biz in their state and Wexler might know likewise what his constituents expect from him on the matter of Israel.
March 14, 2007 12:15 PM | Reply | Permalink
No one could be as pessimistic as I am on this issue. In my opinion, it's not just campaign finance reform, but reform period, that is needed.
Congress was never meant to be a "job" or a "career" lasting a lifetime, but it has, with all the attendant woes of benefits, job protection, favoured "suppliers", pensions, office perks, and most importantly power bases which accumulate over time and with seniority.
It's amusing to mull over means to reform campaign financing, but the problem isn't the means of financing, it's the way incumbents use that financing to hog power and shut out newcomers that is the problem. Being elected to congress should be an honour bestowed by the people, but instead it's become a career in USA Inc., and the people are becoming employees answerable to management - they tell us what they're going to do and how much we're going to pay them to do it. I don't find that conducive to representative government although it has become conducive to congress as an industry turning out a product paid for by high end consumers.
What I find truly offensive is that they don't even bother to try and hide the corruption anymore, in fact, they've legislated it.
March 14, 2007 12:23 PM | Reply | Permalink
Ironically, it may turn a profit, if you consider what we're paying now, directly and indirectly. :)
Free speech would still exist, the first part of my post mentioned repealing the "money = speech" ruling somehow.
I agree, its the monkey wrench thrown into the works, keeeping Big Brother at bay.
March 14, 2007 12:27 PM | Reply | Permalink
I do find pandering a form of corruption - in my opinion, corruption is more than the money issue - it is the accumulation of power to individuals that is most corrupting and detrimental to the system.
March 14, 2007 12:40 PM | Reply | Permalink
I see no evidence that term limits have done a thing about the influence of money on state and local politics in New York. They just remove some processes and people from the influence of elections. Besides, we can strive to control money without amending the constitution, although I agree that the "money = speech" ruling is a huge, unforgiveable obstacle.
John
http://www.haberarts.com/
March 14, 2007 12:45 PM | Reply | Permalink
My own fear is a population so programmed by mass media that Big Brother would be unnecessary. In many ways we aren't very far from that already. I'm all for changing the finance laws, it's just that I see it as the tip of a much bigger iceberg.
In times of peace, the wise man prepares for war. -- Horace
The blade itself incites to violence. -- Homer
March 14, 2007 12:50 PM | Reply | Permalink
JohnW1141 said:
Same funding for Independents and upstart Parties?
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Democratic Candidate for US Senate, Wisconsin 2012
March 14, 2007 1:43 PM | Reply | Permalink
The incumbent's edge is not just how much money, but when.
Especially in swing States, the Presidential cycle can create huge distortions in the ad market. Feingild began buying time on the all-important 2004 Green Bay Packers broadcasts in 1999. By the time his Republican opponent had won a September Primary, the same slots were costing 8 times as much.
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Democratic Candidate for US Senate, Wisconsin 2012
March 14, 2007 2:02 PM | Reply | Permalink
good point...
March 14, 2007 2:55 PM | Reply | Permalink
If the Indies and Upstarts met some as yet determined parameters, yes. Equal money to all who qualify.
My using "50/50" was misleading, insinuating just 2 parties, sorry.
March 14, 2007 3:05 PM | Reply | Permalink
On the local level, the experience of the last two federal campaign cycles, contrasting sharply with a statewide election with completely different rules in the off-year between, bore out the dire warning of the California Democratic Party that caused them to join the Republicans' lawsuit against the McCain-Feingold law: It has made local party organizations all but meaningless.
Local party committees are forbidden to do registration drives within 120 days out from a federal primary or general election. In Virginia, that means in a federal year we have the two weeks following the mid-June primary for such activity -- period.
We are forbidden to do any kind of spending to put out a generic Democratic message or GOTV activity other than face-to-face, even if we're not mentioning the federal candidates by name or office: no radio, no newspaper ads, no high school football programs, no billboards, no leaflets, no phone banks from our office or on phones we pay for. All of that can only be done by the campaigns themselves, or with materials they provide. A clear edge for campaigns rich enough to provide materials, but even then they're not going to be locally tailored.
Without email, currently exempted, we'd be cooked. These rules kill any role for party activity in small, rural areas, where the advantages of local knowledge are greatest and where (because of small numbers of voters and marginal performance) only the most cash-laden campaigns will ever spend money on such things.
The contrast with our 2005 governor /lt. governor / attorney general / state legislative campaigns, where we could do all these things as long as we kept records of our spending, was instructive. Our only role in the federal campaign system anymore is to raise money.
And yet these are the exactly the kinds of localities where party activity and visibility can make big gains. The effects of these restrictions must be even more agonizing for comparable communities in states with statewide elections during federal campaign years (the majority).
It's a disgrace, and it needs to be reversed in time to keep our hands from being completely tied in 2008. But I doubt it will be.
The specific reform that could change all that is to allow local committees to take part in and spend freely on campaign activities as long as the money is raised locally. We shouldn't have to form a federal campaign committee and commit ourselves to reporting every 30 days into eternity just to raise and spend about $20,000, as long as we raise and spend it locally.
March 14, 2007 4:32 PM | Reply | Permalink
I believe in mandatory free airtime. I'm not a big fan of taxpayers having to purchase campaign commercials because Government already enforces their monopoly privilege to broadcast on their assigned frequency. That should be payment enough. Broadcasters should give us our campaign ads for free: 1 minute a day for House candidates, 3 minutes for Senate and 5 for President. To Constitutionally prevent a big spender from buying advantage in the form of extra airtime, there'd have to be a matching clause. Any candidate may buy extra ads at the market rate, but then all their opponents should get an equal ammount free.
March 14, 2007 5:12 PM | Reply | Permalink
Campaign finance reform is largely a fraud. It is a public relations racket designed to distract people from the fundamental issues of social and economic inequality by perpetuating the illusion that the problem of power can be addressed independently of the problem of wealth.
You can't erect a wall between wealth and power because wealth is power. The things people possess - the things we describe as "wealth" - are the things people desire. So to possess something is to have control over the objects of desire, and the more your possessions are desired, the more wealth you have. And clearly, if you control the objects of people's desires you thereby control those people.
So wealth finds a way; it will always find a way. It flows inevitably into exchanges, and these include exchanges involving special political governmental consideration. No matter what gaps are plugged and what walls are erected, it takes about half a second for wealth to work out a new route through them, over them and around them.
The only way to do something about the unequal influence over government is to do something about the underlying social and economic inequality itself.
March 14, 2007 5:15 PM | Reply | Permalink
Your analysis on the workings of wealth is excellent, but your solution is incomplete . Won't "wealth", those with the power, fight those trying to do something about the underlying social and economic inequalities?
March 14, 2007 5:38 PM | Reply | Permalink
Yes, it will. So the only solution is to counter wealth per capita with the solidarity of wealth in numbers. If for example, the combined wealth of the bottom 75% is equal to that of the top 25%, then the bottom 75% can be an effective coalition for redistributing wealth downward from that top 25% group.
March 14, 2007 5:49 PM | Reply | Permalink
Good answer, thanks. It will be difficult, but I guess doable when enough of the 75% stop allowing the demogogues to use them.
"Demogoguery falls on fertile ground."
March 15, 2007 5:42 AM | Reply | Permalink
The suggestion you are thinking of is from a book by Ackerman & Ayres, "Voting with Dollars." There are two parts of their plan. One part is to provide a fund so that every registered voter would receive on average $50 every presidential election year, $25 every year their senatorial candidate presented himself, and $10 every two years for their Representative. A little over $15 per year. The second part is to have a pool into which donors put their money anonymously and have three days to change who it goes to, or perhaps to withdraw it. This would sever the quid pro quo. Candidates would never really know who gave them money or if a promised amount was actually deposited. The donor would have less grounds to trust that any promises would be delivered on since the candidate could not know if the money was in fact proferred.
Their logic is that in the 19th century, elections were public and this led to rampant vote buying and ballot stuffing. With the advent of the right to a private ballot, the system cleaned up immediately.
I disagree with the authors that this would mean that you don't need limits. A large enough donation would by its very existence be somewhat traceable. But probably not a $2000 donation.
I also like clean money elections, but they might actually take more civic pressure, and have more details to work out, and with the current decline in civic activity, I am not optimistic that many more states will have the political will to risk losing their power, i.e. giving up their incumbant protection racket, to make the necessary changes.
And by all means require the media to cover the elections. It's the least they can do, given that they are not bothering to give us the news.
March 15, 2007 6:59 AM | Reply | Permalink
How do you distinguish between pandering and listening to ones constituents? Especially when you personally disagree with those being listened to?
For example do you think Hillary Clinton's refusal to apologize outrageous or brave for her refusal to pander?
Daniel A. Greenbaum
March 15, 2007 8:44 AM | Reply | Permalink
RJB writes
If the anonymity proposed is to establish a firewall between donors and the candidates or parties receiving the donations, I can see some merit to the idea, but it would mean the end of $1,000.00 a plate dinners. (That might not be a bad thing... lots of rubber chickens would have their lives saved).
If there are insurmountable obstacles to this kind of anonymity, then I might entertain the opposite idea: no anonymity in the funding of political operations. I could accept the idea of corporate contributions if the names of the corporations and the officers authorizing the contributions were available freely an in a timely fashion. If I held stock in such corporations, I could raise a firestorm at the next meeting or mount a challenge to the board. If I didn't hold stock in the corporation, I could refuse to patronize it. I visit Buy Blue now, to get some idea of which commercial enterprises are friendly to my interests and which are not. This introduces at least a measure of economic democracy in my decision making.
The same, of course, would also be true of unions, or the non-profits which have sprung up as a way around the campaign reform initiatives. Make them transparent too. Publish names of donors to them, and publish names of the members of their boards who authorize funds to what campaigns.
Some of this apparatus is in operation already. Unfortunately an upgrade seems to have swallowed my bookmarks on my office machine, but I remember a website last election cycle where I could punch in a zip code and get a distribution map of contributions, color coded, with amounts included, and I found this absolutely fascinating.
There would have to be safeguards included...the practice of bundling contributions ended, for one thing, and prohibitions against retaliation for contributions employees might make to causes with which their organizations disagree. But given my choice between an unenforceable anonymity and a complete transparency, I think I come down on the side of the latter.
aMike
March 15, 2007 9:09 AM | Reply | Permalink
Thanks.
March 15, 2007 9:17 AM | Reply | Permalink
I think the Clinton "apology issue" is something cranked up by the media.
March 15, 2007 10:38 AM | Reply | Permalink
aMike,
I find I tend to give more thought to a subject after I make a comment than before. The payoff is intelligent well thought-out feedback.
I still see theoretical merit in the idea but I also see problems in the practical application so if I had to, or got to, make a choice right now I would go with your conclusion.
I would still like to hear discussion on the legal right of CEO’s to use other people’s money to influence politics. Maybe I am a bit cynical because I know that for, say, a stock option on a million shares of Haliburton at year 2000 prices I would be wiling to do the same.
Did I just admit that I have a price too?
March 15, 2007 10:43 AM | Reply | Permalink
Nope.
You admitted you have the kind of sense of humor which makes me grin for several minutes, and then return to that grin a wee bit later for an encore.
aMike
March 15, 2007 11:06 AM | Reply | Permalink
I think she's pandering by not apologizing. Seriously. She thinks that the majority of Americans would rather have a leader who is sure of him/herself than one who is right. Sound familiar? The scary thing is, she may be right.
Listen to her non-apology. It's ridiculous. She says that it wasn't a mistake to give Bush the powers she voted to give him, but rather that Bush used them poorly. That makes no sense. In hindsight, at least, one can see that it was a mistake to give him those powers if for no other reason than that he did use them poorly. Arguably (although few on this site would argue it), it was an understandable mistake. It was still a mistake.
March 15, 2007 11:31 AM | Reply | Permalink
hmmm, I've mostly seen it promoted on the "liberal blogmedia." I haven't seen anyone go as far as "Hillary Clinton, war criminal" yet, but I must say I wouldn't be surprised if I do, it's gotten close.
March 15, 2007 11:39 AM | Reply | Permalink
I LOVE the mandatory free air time idea. Even if it only applies to broadcast (because broadcast airwaves, as opposed to cable bandwidth, are public property, leased to operators) it would be effective, if only because the broadcast spectrum still reaches far more people than the cable connections do.
But, aside from practicality, I love the idea because it's morally right. The spectrum is public property. Elections are a public endeavor. Use a public property to help a public endeavor. No paid political broadcast ads, just an equal amount for all candidates to do with as they will. And... not just all major party candidates, either. All candidates recognized in a majority of states for national elections or by the state or municipality for local elections.
thosethingswesay.blogspot.com
March 15, 2007 6:02 PM | Reply | Permalink
Paul W
March 16, 2007 1:55 PM | Reply | Permalink
Isupport full public funding for campaigns but find the discussion about possible drawbacks valuable. I still think full public funding would present fewer dangers from loopholes than the mess with private funding we have at present.
Arizona and New Mexico have had four voting cycles using full public funding with increasing use of it by candidates each time, and the AZ governor has been elected twice using it. Does anybody know what the loophole story has been so far in those two states?
March 16, 2007 2:11 PM | Reply | Permalink
In the past matching funds have been used to weed out candidates that weren't serious contenders without having to subjectively evaluate which candidates to fund. I.e., third party candidates are also able to acquire matching funds.
What if the matching funds limit were altered to be dynamic, rather than static? E.g., that limit could be set to the money spent by the most profligate candidate. If candidate A has raised $200 million for their campaign chest, candidate B has raised $130 million, and candidate C has raised $75 million, then candidate B gets an extra $70 million (to take them up to the $200 million mark of candidate A) and candidate B just gets their matching $75 million. This would create some interesting strategies. This limit would adjust as the campaign progressed and would have to account for situations where candidate A was ahead of candidate B in raising funds, but then candidate B raised more money. This wouldn't be too difficult, but I'll leave it as an exercise for the reader. ;)
March 17, 2007 11:30 AM | Reply | Permalink