Earmarks and lobbyists
September 12th 2007 22:33
We know that there is an entire lobbying industry in Washington. And, as we've seen, there have not been any serious attempts from either party to reign in earmarks. It doesn't take a rocket scientist to connect the two. There are plenty of lobbyists because lobbying works. Those who employ lobbyists are doing so because the rewards outweigh the costs. Normally, we don't have access to the costs/benefits of lobbying, but a recent Business Week article provided some insights into just how "profitable" lobbying is:
Did you get that? The AVERAGE payout is $28 in earmark revenue for every dollar spent on lobbying. I know you can't get those kinds of returns in a savings account. Honestly, you can't blame any group for lobbying. As long as they are not violating the law, it is simply part of the game.
I don't dislike lobbying in general. Every person and group should have the right to state their case before their elected officials. What I have a problem with is when groups give huge campaign donations or perks in an attempt to influence a politician's votes. That creates a playing field that is not level and it is usually the taxpayer who pays most dearly.
Also, some expenditures resulting from earmarks are worthy and necessary. However, there should always be an open and fair bidding process for that business. It should not automatically go to the most generous group. In the real world, we call that a bribe. On the other hand, many expenditures resulting from earmarks are unworthy and unnecessary. Those are disgraceful and should not be allowed to further burden the taxpaying citizenry.
So lobbying is a big business and we can see why. I just wish we had a government that cared more about its citizens than it does about power, perks, and the almighty dollar.
The results suggest a startling conclusion: On average, companies generated roughly $28 in earmark revenue for every dollar they spent lobbying. And those at the very top did far better than the average: More than 20 companies pulled in $100 or more for every dollar spent. By any standard, that's a hefty ratio: The companies in the Standard & Poor's 500-stock index brought in just $17.52 in revenues for every dollar of capital expenditure in 2006. Or look at the results in direct marketing, where an extremely successful campaign might bring in $5 in revenue for every dollar spent. "If mainstream American businesses got a 28-to-1 ratio in sales, they'd be ecstatic," says Steve Zammarchi, president and CEO of Wunderman New York, a sales and marketing firm.
Did you get that? The AVERAGE payout is $28 in earmark revenue for every dollar spent on lobbying. I know you can't get those kinds of returns in a savings account. Honestly, you can't blame any group for lobbying. As long as they are not violating the law, it is simply part of the game.
I don't dislike lobbying in general. Every person and group should have the right to state their case before their elected officials. What I have a problem with is when groups give huge campaign donations or perks in an attempt to influence a politician's votes. That creates a playing field that is not level and it is usually the taxpayer who pays most dearly.
Also, some expenditures resulting from earmarks are worthy and necessary. However, there should always be an open and fair bidding process for that business. It should not automatically go to the most generous group. In the real world, we call that a bribe. On the other hand, many expenditures resulting from earmarks are unworthy and unnecessary. Those are disgraceful and should not be allowed to further burden the taxpaying citizenry.
So lobbying is a big business and we can see why. I just wish we had a government that cared more about its citizens than it does about power, perks, and the almighty dollar.
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