The Best Government Money Can Buy

Cinema Libre Studios

R1 DVD

Filmmaker Francis Megahy takes us through the world of the Washington lobbyist and shows their insidious effect on Government policy. A lobbyist is simply a person hired to push a particular client’s viewpoint to politicians to buy influence or Government favour or an economic outcome that will benefit them. Such access is guaranteed by Freedom of Speech enshrined in the U.S. constitution but it was never envisaged that the freedom would be used this way. Lobbying is a way of achieving power in government without having to face the voters. It is surprising how frank and open the lobbyists interviewed by Magahy are about the way they can circumvent democracy.

The reason they have so much influence is simple – money. House of Representatives members are only elected for two years (Senators for 6 years) so as soon as you get into the house you must start fundraising for your next election. An estimate has it that 30% of your time will be spent fundraising for your next election. Although a lobbyist is not actually offering you a bribe, money will be made available for that next election in campaign contributions – if you follow the lobbyist’s guidance. Professional fundraisers are often part of the lobby groups. Most Americans are indifferent, probably because they don’t know what is really going on.

As an example of the size of the problem, there are 535 Representatives and Senators in the U.S. Government. There are 14000 registered lobbyists, plus the unregistered ones and the fundraisers. In 2008 – 2009 they spent 16.7 billion dollars influencing votes on various issues.

Banks and financial interests are the highest contributors to election campaigns. After the recent Global Financial Crisis, who got the Government bailout money? The same banks that had caused the crisis in the first place. It is estimated that a good lobbyist can get you 100 dollars gained for each dollar spent. “Dollar Democracy” is overlaid on voter democracy. Lobbyists may even write the proposed legislation such as the Energy Bill which “accommodated the oil and gas companies by continuing tax breaks.” $65 million spent lobbying government members gained tax savings over the next ten years of $30 billion for the energy companies. President Obama tried to repeal this legislation so the money could be used to bail out the U.S. economy, but with so many politicians influenced by the energy lobby nothing has happened.

During a recent Salmonella outbreak in the U.S. a law passed requiring country of production labelling. Lobbyists successfully held off its enforcement for six years. The public wanted this labelling, the food companies didn’t. It is still not enforced. The biggest spender in this campaign was the Chamber of Commerce representing small businesses.

A perk for politicians is that when they retire they may be hired by a lobbyist firm because of their contacts and influence. Retired politicians or public servants can make more than they got in Government wages. “Strategic adviser” is often the term used – not quite a lobbyist but the difference is vague.

Lobbying is used for a wide range of special interests. Bans on imports of foreign-made drugs which are cheaper than the U.S products are one outcome in favour of the U.S. pharmaceutical industries. This was shown particularly in the move to negotiate lower drug prices with U.S. makers for bulk supplies for the medicare system. It was defeated in the House Committee responsible for such deals. The leader of the committee responsible for administering the scheme for seniors and the disabled now makes $2 million per year working for the drug companies lobby group.

Health insurers also lobby heavily against a public health care system. So far they have succeeded.

Lobbyists do not care about the public interest – tobacco, health care. Theoretically public interest can hire their own lobby groups but they just don’t have the money to fight the corporate lobbyists. The tobacco industry lobby alone spends more than all the public interest groups combined. The health industry lobby recruited 300 new lobbyists in 2009 to fight Obama’s improvements to the medicare system

How can this system be changed? The most effective way seems to be public funding of elections – you can spend the amount allocated to you and no more. This of course threatens lobbyists’ jobs if private funding is outlawed. “Incumbents favour the present system because it keeps them in office. They have little interest in changing the system that got them where they are today”. No matter how determined a president may be to change the system he still has to get those changes through Congress.

No member of Congress would be interviewed for the film.

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