Thursday, May 19, 2011

What is a Lobbyist?

What is a Lobbyist?


Lobbyist - noun. A mythical blood-sucking humanoid originating from tales in the eastern...just kidding.  But this playful mix-up in definitions isn't too far from what most people think of when they hear that someone is a lobbyist.  The fact is, lobbyists are people who represent a wide range of groups before legislators.  Lobbyists can try to persuade politicians to save the whales or allow them to be hunted even more.  For every cause, there is someone who is against it and both sides will pay a professional to represent them in local, state or federal government.  They can be paid ridiculous sums of money or they can do it for free.  These are the professionals or common people that represent the many different voices of our nation.

So They're Not All Vampires?


I hate to disappoint, but no, lobbyists are not all vampires.  Many of them are very nice people who really believe in the causes they are lobbying for.  But some are vampires.  The stereotype (like all stereotypes) comes from old and new practices of rich people funneling money to politicians.  In the past, when there were no laws against this, people just gave money straight to the politician for a number of different reasons.  They could want the politician to vote a certain way on a law, get them to make favorable conditions for their business, or block a law they dislike.  The practice still continues, but through a bunch of mechanisms too complicated for a normal person to want to understand.  Let's just say that some insiders have called our government "a system of legal bribery".  It's true to a certain extent.  But giving a politician money doesn't guarantee anything.    Let's take a look, for instance, at Swiss Bank UBS and their political contributions of the past few decades.

A Case Study on Corporate Giving


http://www.washingtonpost.com/politics/ubs-invests-in-washington/2011/05/18/AFXlPk6G_graphic.html

If you look at that graph, you will find that contributions are distributed in roughly equal amounts to both parties.  This is strategic and many corporations spread out their money this way to secure an avenue for future discussion IF the candidate wins the election.  They don't want to be seen as taking sides and frankly, they don't care who wins.  What they care about are favorable rules for their business operations, so this strategy makes complete sense.

There are other times when industries give heavily to politicians, like when they're in a crap-load of trouble.  The banking industry increased their lobbying efforts by throwing hundreds of millions of dollars at their lobbyists and at politicians.  Big oil does the same.  Do they always get what they want?  Not always, but at the very least they can soften the blow, which usually comes in the form of over regulation or other policies that would seriously hurt their business.  This doesn't happen just because of the money.  Let me explain.

Politicians: Masters of Nothing


Most politicians do not have a wide range of practical experience outside of politics, but we expect them to know everything.  Politicians are informed on various topics by their staff, so that they can appear to know what the hell they are talking about.  Industry insiders are also, unfortunately, where most politicians get their information from.  If I want to know more about what helps and hurts banks, I want to talk to a banking expert.  Those experts are usually people in the industry, or worse, they are academics who are often paid by the industry.  Every politician is looking for "professional/academic" knowledge.  They do this to a fault and are influenced by the same people that they must regulate.  This, combined with the fact that they get huge campaign contributions (which they need to run their expensive campaigns to get reelected to keep their jobs) makes the cycle ever more vicious.

So, it's not all lobbyist's fault.  Many academics are in on the scam too.  Go ask a few prominent Harvard Economics professors involved in writing favorable papers on derivatives and other toxic assets for money.

Why Does This Matter?  (When Citizens Are Absent)


It matters because when citizens remain silent and disengaged from politics, we leave our government to the mercy of the voice of lobbyists, academics and industry insiders.  These people can be good or bad, but they don't necessarily represent you.  How can your elected representatives speak for you if you don't say a word to them?  When citizens are absent, the vacuum does not remain empty.  It gets filled with others who are fighting for what they want.  Don't get pushed out by cynicism.  Take your government back.  Get involved.

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