Master Plan Podcast – Episode: "The Heist" Detailed Summary

Release Date: October 22, 2024

Overview

In "The Heist," the tenth episode of the award-winning podcast series Master Plan by The Lever, host David Sirota, along with guest James Bopp, delves deep into the orchestrated dismantling of campaign finance regulations in the United States. This episode unpacks how a strategic series of legal decisions and political maneuvers have systematically transformed the U.S. democracy into what Sirota describes as a "kleptocracy." The conversation illustrates the metaphorical heist that allowed wealthy individuals and organizations to legally manipulate political discourse to their advantage, sidelining public interest.

The Heist: Steps and Execution

Sirota frames the episode as a heist narrative, outlining a three-step plan employed by conservative strategists and wealthy donors to undermine democratic safeguards:

1. Disable the Surveillance System ([09:02]–[09:27]): This refers to eliminating disclosure laws that acted as "security cameras" monitoring political contributions. The Citizens United decision served as the catalyst, allowing unrestricted political spending by corporations and unions without mandating donor transparency.

2. Disarm the Last Remaining Campaign Finance Cops on the Beat ([19:36]–[26:43]): This involved delegitimizing and defunding regulatory bodies like the IRS, which were responsible for overseeing nonprofit organizations and ensuring compliance with campaign finance laws. The episode details how the 2013 IRS scandal, where conservative groups were falsely accused of targeting non-conforming nonprofits, was leveraged to defund and discredit the agency.

3. The Getaway Plan ([54:08]–[58:22]): This final step focused on making corruption nearly impossible to prosecute by narrowing legal definitions and leveraging Supreme Court decisions. High-profile cases were overturned, setting precedents that protected corrupt activities under the guise of free speech.

Key Supreme Court Cases

A significant portion of the episode analyzes pivotal Supreme Court rulings that have facilitated the master plan:

• Doe v. Reid (2010): Challenged Washington state's disclosure laws, with Bopp arguing that such transparency violated the First Amendment. Despite his efforts, the court upheld the disclosure requirements, marking only a temporary setback for the strategists ([00:50]–[05:30]).

• Skilling v. United States (2016): Former Enron CEO Jeffrey Skilling's conviction for fraud was partially overturned. The Supreme Court limited the scope of "honest services fraud," ensuring that only explicit bribes and kickbacks constituted federal crimes ([36:09]–[40:40]). Justice Ruth Bader Ginsburg authored the unanimous decision, narrowing the legal definitions and thus protecting a broader range of corrupt activities.

• McDonnell v. United States (2016): Former Virginia Governor Bob McDonnell's corruption conviction was overturned. The Court's narrow interpretation of "quid pro quo" transactions meant that accepting gifts without explicit exchanges was no longer prosecutable, effectively legalizing a gray area of political corruption ([41:52]–[50:40]).

• Kelly v. United States (2020): Convictions related to the Bridgegate scandal were reversed, further weakening anti-corruption laws by distinguishing between monetary bribes and non-monetary favors ([52:03]–[53:22]).

• Snyder v. United States (2024): The latest case involving Indiana Mayor James Snyder saw the Supreme Court unanimously reverse his corruption conviction, setting a precedent that devalues anti-corruption statutes by allowing after-the-fact payments without explicit quid pro quo arrangements ([54:08]–[58:22]).

The Role of 501(c)(4) Organizations

The episode highlights how 501(c)(4) social welfare organizations became pivotal in the master plan. Originally intended for non-political activities, a 1959 IRS rule change allowed these groups to engage in limited political lobbying without losing their tax-exempt status. Post-Citizens United, there was an explosive increase in the formation of 501(c)(4)s, which funneled vast amounts of "dark money" into politics anonymously.

James Bopp explains, “[23:48]” how these organizations were used to bypass disclosure laws:

"After Citizens United, California law enforcement officials, led by then Attorney General Kamala Harris, started enforcing rules requiring these groups to submit a non-public list of their major funders. [26:19]"

Impact and Consequences

The strategic dismantling of campaign finance laws has had profound effects:

• Decline in Corruption Prosecutions ([58:43]–[59:33]): Official corruption convictions nationwide have plummeted by over 49% between 2003 and 2022. The Supreme Court's rulings have made it exceedingly difficult to prosecute public officials for corrupt activities that fall outside narrowly defined legal parameters.

• Empowerment of Dark Money: Wealthy donors and corporations can now exert unparalleled influence over political processes without accountability, undermining the democratic principle of equal representation. As Bopp states at [58:27]:

“The number of official corruption cases brought by the federal government for bribery, graft and conflicts of interest is now near its lowest point in 35 years.”

• Erosion of Public Trust: The manipulation of legal systems to protect the interests of the wealthy erodes public trust in democratic institutions and fosters cynicism among the citizenry.

Conclusion and Future Outlook

"The Heist" paints a grim picture of American democracy's current state, heavily influenced by legal and political maneuvers designed to entrench the power of the wealthy elite. However, Sirota offers a glimmer of hope by hinting at a forthcoming backlash against the master plan in the series' finale. The final episode promises to explore the efforts of activists and reformers striving to reclaim democracy from the grips of corruption.

Notable Quotes with Attribution and Timestamps

• James Bopp ([02:09]):

  "I want those views to be either accepted or rejected on their merit."

• David Sirota ([02:37]):

  "But unlike Hans Gruber in Die Hard, Bopp was not dreaming of walking off into the sunset just yet."

• James Bopp ([04:08]):

  "The First Amendment does not protect you from criticism or even nasty phone calls."

• Ron Doyle ([17:23]):

  "The justices are anxious that big donors would be revealed and harassed and that it violates their First Amendment rights."

• James Bopp ([58:05]):

  "You could let me go and I'll give you $10 million each. It's not a bribe."

Final Thoughts

"The Heist" intricately weaves legal history, Supreme Court dynamics, and political strategy to elucidate how a calculated conspiracy has reshaped America's democratic landscape. By framing the deregulation of campaign finance as a meticulously planned heist, the episode underscores the severity of the threat posed by unchecked political influence and sets the stage for the final installment, which underscores the resistance mounting against these machinations.