Get Four
Free Issues

Subscribe to BW
Customer Service


Full Table of Contents
Cover Story
Special Report
Up Front
Readers Report
Corrections & Clarifications
Voices of Innovation
Technology & You
Media Centric
The Barker Portfolio
Business Outlook



News: Analysis & Commentary
In Biz This Week
Asian Business
European Business
Global Outlook
Retailing
Entertainment
The Corporation
People
Legal Affairs
Information Technology
Finance
Science & Technology
Developments to Watch
Government
Marketing
Inside Wall Street
Figures of the Week
Ideas -- Books
Ideas -- Viewpoint
Ideas -- Editorials


INTERNATIONAL EDITIONS
International -- Readers Report
International -- Corrections & Clarifications
International -- Finance
International -- Global Figures of the Week




NOVEMBER 7, 2005
GOVERNMENT

Unlikely Rebel On The Right
Meet Mike Pence, the conservative who's leading a revolt against runaway spending

GOP conservatives in the House have an almost robotic loyalty to the White House and to stern leaders such as Tom DeLay. How, then, to explain Mike Pence of Indiana? As a freshman in 2001, he fought President Bush's No Child Left Behind Act, which he considered a Big Government boondoggle -- and was badly defeated. In his second term, he tried to scuttle Bush's $720 billion Medicare prescription benefit -- and lost by a whisker. This year, Pence, horrified by exploding federal spending, led a backbench rebellion against a blank check for the costs of rebuilding after Hurricane Katrina.


But something surprising happened: He won. House leaders agreed to seek billions in spending cuts just days after DeLay insisted most of the fat had already been sweated out of the budget.

Pence, soft-spoken and prematurely gray at 46, is an unlikely rebel. An evangelical Christian and former radio talk-show host, he likes to recite Bill Cosby routines. But he has a bully pulpit for his jeremiads against runaway spending: leadership of the Republican Study Committee, a bloc of GOP budget hawks that includes more than 100 of the 231 House Republicans and is increasingly inclined to challenge its own leadership and a weakened President. While Pence has voted with Bush 95% of the time, it's the other 5% that sticks in his craw. "I've had reason to doubt [Bush's] commitment to limited government and fiscal discipline," says Pence, adding that "Hurricane Katrina laid bare a fiscal course...that was contrary to the hopes of millions of Americans."

That kind of criticism has many in the business community quietly applauding the backlash over big deficits. "Less government spending tends to be good for the long-term stability of the economy, which is good for business," says David K. Rehr, outgoing president of the National Beer Wholesalers Assn. But some corporate reps are concerned about Pence's emphasis on hot-button issues such as restricting immigration and battling Hollywood sex, which pit him against business interests. Indeed, cultural concerns drove Pence & Co. to block the leadership's hand-picked choice to replace DeLay, Rules Committee Chairman David Dreier (R-Calif.), an economic conservative seen as soft on social issues. That power play led many to speculate that Pence eventually hopes to follow the path of his political hero, Newt Gingrich, to the Speakership of the House.

The grandson of an Irish immigrant bus driver, Pence was working at an Indianapolis law firm when he decided to become a foot soldier in Gingrich's conservative revolution. After failed bids for Congress in 1988 and 1990, he decided that "God had other plans for my life." He became host of a syndicated talk-radio show on 18 stations until his winning 2000 race.

As a lawmaker, he has ruffled powerful feathers by repeatedly opposing GOP proposals to expand the reach of Uncle Sam. But he hasn't been a consistent foe of federal largesse. He backed a 2002 farm bill that steered benefits to his agricultural district. "I have voted for my share of spending," he concedes. In penance, he has offered up some home-state highway projects to help offset hurricane cleanup spending. He's even produced a five-year, $370 billion "hit list" that targets Bush pet projects like NASA'S return-to-the-moon initiative.

The White House isn't ready to give up its rockets, but Pence's rebels appear to have turned the tide. The Administration is emphasizing the need to produce a lean budget and House leaders are demanding that balky committee chairmen make cuts in their own fiefdoms. And Pence, the new power broker, will be in the middle of the dealmaking. If he wields his clout deftly, many colleagues believe that the next Newt could be a self-effacing Hoosier as comfortable quoting Scripture as the Contract With America.
 READER COMMENTS





By Eamon Javers in Washington

 BW MALL   SPONSORED LINKS
Buy a link now!

Get BusinessWeek directly on your desktop with our RSS feeds.XML

Add BusinessWeek news to your Web site with our headline feed.

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.

To subscribe online to BusinessWeek magazine, please click here.

Learn more, go to the BusinessWeekOnline home page

Back to Top



TODAY'S MOST POPULAR STORIES

  1. These Men Could Kill SarbOx
  2. This Year's Holiday Hit Toy: Zhu Zhu Pets
  3. America's Best Place to Raise Your Kids
  4. Picks of the Week: Intel, RIM, Wells Fargo
  5. Abercrombie & Fitch Bargains for a Rebound

Get Free RSS Feed >>
  MARKET INFO

Portfolio Service Update

Stock Lookup

Enter name or ticker



Media Kit | Special Sections | MarketPlace | Knowledge Centers
McGraw-Hill Cos.