The Business of Politics

Many lawmakers viewed politics as a business enterprise that would line their pockets with money. One cabinet officer grumbled, “A Congressman is a hog! You must take a stick and hit him on the snout!” Senators were elected by state legislatures, and these bodies were often controlled by well-funded corporations that generously spread their money around to gain influence. In both branches of Congress, party leaders handed out patronage to supporters regardless of their qualifications for the jobs (a practice known as the spoils system). Modern-day standards of ethical conduct did not exist; nor did politicians see a conflict of interest in working closely with corporations. Indeed, there were no rules to prevent lawmakers from accepting payments from big business. Most congressmen received free passes from railroads and in turn voted on the companies’ behalf. To be fair, most politicians such as Senator Sherman did not see a difference between furthering the legislative agenda of big corporations and promoting the nation’s economic interests. Nevertheless, the public held politicians in very low esteem because they resented the influence of corporate money in politics.

The 1890 Congress stands out as an example of fiscal irresponsibility. Known as the Billion Dollar Congress, the same Republican legislative majority that passed the Sherman Anti-Trust Act adopted the highest tariff in U.S. history. Sponsored by Ohio congressman William McKinley, a close associate of the industrialist Marcus Hanna, it lavishly protected manufacturing interests. Congress also spent enormous sums on special projects to enrich their constituents and themselves. Republicans spent so much money on extravagant enterprises that they wiped out the federal budget surplus.