California has become an increasingly expensive place to wage a campaign. This is especially true in the large expensive cities of Los Angeles and San Fransisco. Political consulting firms have grown more powerful over the last two decades, and one of the services they offer, direct mail, has become and expensive yet integral part of any successful candidate.
Since 2004, Mack|Crounse has been the industry leader of direct mail consulting. The firm has had a huge impact on the California political landscape, working for many progressive Democrats all across the state, they even worked on the Obama campaigns, and made millions along the way.
However, this past week Mack and Crounse split and the powerful firm dissolved.
http://www.rollcall.com/news/conflicting_interests_split_top_democratic_firm-223371-1.html?pg=1
It appears Crounse had been taking jobs for Democratic candidates who were running against fellow Dems in top two primaries. Crounse acted on their behalf unbeknownst to Mack through a shell corporation. Though none of the campaigns conflicted with Mack|Crounse clients directly, they were opposite many of the unions and organizations that employed Mack|Crounse.
When Mack heard the news, the firm folded. Both men have taken several employees from the old firm and plan to start new, competing firms.
Aside from being a bizarre and intriguing story, the breakup of Mack|Crounse has some immediate political implications. As one of the largest firms in the state, their breakup may create a power vacuum leading to the rise of several smaller up and coming firms. The two men will try to retain as many of their old clients as possible but remains to be seen how much of a consulting shuffle this will cause.
This story also highlights how modern California politics work. In a state now controlled by a Democratic super majority, Democrats pitted against Democrats has led to more and more uglier struggles between candidates, lobbyists, and consultants with similar visions. The top two primary has led to fiercer primary battles within parties. It has also become clear that direct mail is here to stay, especially in high populated areas like Los Angeles. Consultants have a growing role in California politics, as they experience economic growth it is imperative for a firm to prevent greed from blinding their overall vision and goals.
California is often thought of as the poster child for liberal politics and is very influential in the Democratic Party, nationally. I don't think it's an accident that Nancy Pelosi, who's district consists of most of San Francisco, as become such a leader among her colleagues in the House. Also Senators Diane Feinstien and Barbara Boxer are two of most senior senators as well as being especially influential among their party. From the perspective of an economics major, I think that having more competing firms will be a good thing for Democrats. The state that produces some of the most influential democrats ought to have the best political consultancy firms and the competition will help this to happen.
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