White House Strikes Back at Chamber of Commerce

A war of words and influence is breaking out between the White House and the U.S. Chamber of Commerce over the business lobby's opposition to most of President Obama's first-year agenda, Politico reported Monday. After the chamber launched a not-so-subtle effort last week to counter Obama's economic ideology, White House officials said they have been working directly with the group's corporate members to short-circuit its lobbying clout.

"It's happening with the deliberate hope and attention to weaken the influence of this institute and the business community in town," said Bruce Josten, the Chamber of Commerce's executive vice president for government affairs. Senior White House adviser Valerie Jarrett snapped back, calling the chamber's national "free enterprise" ad campaign "an awful waste of money . . . when you haven't tried to come in and work constructively with the administration."

The White House has made much of several prominent corporations' departures from the chamber over its opposition to climate change legislation, though the group says that none of its policies represent 100 percent of its members. Democratic lawmakers have gotten their shots in, as well: Rep. Barney Frank (D-Mass.) said the chamber has a "strong conservative ideology," and Rep. Brad Sherman (D-Calif.) said it is "totally disconnected from the local chambers in my district."

The most vicious front in the battle between the White House and the business association has been over Obama's proposed consumer financial protection agency, which would place severe restrictions on financial products and affect credit card and mortgage companies. The chamber spent millions on an ad campaign attacking the agency, and Obama himself painted the organization as a pillar of contemptible Wall Street power. Administration aides have cheered the departures of companies like Apple and Exelon from the group; Energy Secretary Steven Chu called the defections "wonderful."

Jarrett requested a meeting with chamber President and CEO Tom Donohue when she first learned of the group's free enterprise campaign, and says she asked why the group supported massive government bailouts of corporations if is truly a champion of the free market. "He didn't really have an answer," she said. But Josten said the chamber "stepped out of the box" to support the larger interests of the business community.