5 Crazy Facts About Lobbyists - Follow the Money #11

Summary

This video script delves into the influence of lobbyists in modern politics, outlining five ways they impact political decisions. It reveals how lobbyists help politicians raise funds, write laws, and secure lucrative post-political jobs through the 'revolving door'. The script also discusses the effectiveness of lobbying, with companies seeing a 22,000% return on investment. It concludes by advocating for reforms to limit the corrupting influence of lobbyists, suggesting that while lobbying itself is not inherently evil, the current system allows for undue influence through money and favors.

Takeaways

• 💵 Lobbyists raise funds for politicians, often indirectly influencing their decisions through legal means.
• 📜 Lobbyists are sometimes involved in writing laws, as seen with Citigroup's influence on the 2014 budget deal.
• 🔄 The 'revolving door' phenomenon allows lobbyists to offer lucrative post-political careers to politicians, potentially swaying their actions while in office.
• 💼 The promise of high-paying jobs post-retirement can make politicians more amenable to lobbyists' requests.
• 🤝 Lobbying is a massive industry, with an estimated $7 billion annual impact, and much of it goes undisclosed due to loopholes.
• 💼 Many politicians transition into lobbying roles without officially registering, further complicating the transparency of lobbying activities.
• 💰 Companies can see a significant return on investment from lobbying, with studies suggesting a 22,000% return in tax savings.
• 🚫 Banning lobbying outright isn't the solution; instead, reforms should focus on how lobbying is conducted and the influence it wields.
• 🛠️ Proposed reforms aim to ban lobbyists from coordinating fundraisers, close the revolving door, and regulate 'shadow lobbying' to increase transparency.
• 🌐 There's a growing momentum for lobbying reform at various levels of government, indicating a potential for change in the future.

Q & A

What is the primary role of lobbyists in modern politics?

Lobbyists primarily act as advocates, influencing politicians and legislation on behalf of their clients, often businesses or interest groups.

How do lobbyists help politicians raise funds for their campaigns?

Lobbyists can legally organize fundraisers for politicians, effectively bringing in significant amounts of money for re-election campaigns without directly violating campaign finance laws.

What is an example of how lobbyists can influence legislation?

In the 2014 budget deal, 70 of the 85 lines that put taxpayers on the hook for risky bank trades were copied from model legislation drafted by Citigroup lobbyists, effectively allowing Citigroup to write its own rules.

What is the 'revolving door' in the context of lobbying and politics?

The 'revolving door' refers to the practice where lobbyists offer lucrative jobs to politicians and their staff once they leave office, creating a conflict of interest and potentially influencing their decisions while in office.

How prevalent is the revolving door phenomenon among retiring legislators?

The revolving door has become quite common, with half of all retiring senators and one-third of retiring House members becoming lobbyists, a significant increase from less than 5% in the 1970s.

What is the financial incentive for companies to engage in lobbying?

Companies can see a return on investment of 22,000 percent, where for every dollar spent on lobbying, they get $220 back in tax savings.

Why is it difficult to completely ban lobbying activities?

Lobbying is protected by the First Amendment as a form of free speech, allowing individuals and groups to advocate their positions to elected officials.

What are some proposed reforms to address the issues with lobbying?

Proposed reforms include banning lobbyists from coordinating fundraisers, closing the revolving door, and regulating 'shadow lobbying' to increase transparency and reduce the influence of money in politics.

How can the public get involved in efforts to reform lobbying practices?

The public can get involved by supporting initiatives and legislation aimed at lobbying reform, and by engaging with organizations that advocate for transparency and accountability in politics.

What is the role of lobbying firms like Akin Gump in the political landscape?

Lobbying firms like Akin Gump, which employ former members of Congress and represent major corporations and foreign governments, play a significant role in fundraising for political candidates and influencing policy.