How do PACs and Lobbying industry affect democracy in the US? Pressure Groups How do PACs and Lobbying industry affect democracy in the US?

What is a PAC? Political Action Committee (PAC) — Political committee organized for the purpose of raising and spending money to elect and defeat candidates. Most PACs represent business, labour or ideological interests. PACs may receive up to $5,000 from any one individual,.

The role of PACs No. of PACs has mushroomed; 1974 – 608, 1996 – 4,079 FECA limits PACs to $5,000 per election Criticisms of PACs; Protects elected officials from accountability – 2000, 392 of 399 House incumbents (98%) re-elected. 4-1 financial advantage. Can lead to corruption Leads to incoherent policies and inefficiency

PAC funding of Parties Political Parties Candidates aren't the only ones raising record amounts of cash -- the political parties collect hundreds of millions of dollars each election cycle. The parties may only raise "hard money," which is given by individuals and political action committees and is subject to federal contribution limits. Until November 2002, the parties also could raise unlimited "soft money" from corporations, labour unions and wealthy individuals. 2005 - 2006 Totals Democratic Party $599,670,996 Republican Party $707,164,475  

Lobbying Lobbying Overview In addition to campaign contributions to elected officials and candidates, companies, labor unions, and other organizations spend billions of dollars each year to lobby Congress and federal agencies. Some special interests retain lobbying firms, many of them located along Washington's legendary K Street; others have lobbyists working in-house. US Chamber of Commerce $ 338,324,680 General Electric $161,645,000 AMA $ 157,247,500 American Hospitals Assoc. $138,084,144 Pharmaceutical Assoc. $115,008,600 AARP $112,732,064 Edison Electric $107,132,628 National Assoc. Realtors $103,890,000 Northropp Grumman $103,151,474 Business Roundtable $101,660,000 Top Spenders, 1998-2007

‘Lobbyists gets local’ Increasing no. of lobbyists being employed to lobby federal govt for local / state govts 2 x amount of money being spent since 2000 $34mn spent in first 6 months of 2007 Denver - $2.9mn since 1999 – homeless,gangs ‘Our lobbyists serve as a constant reminder to the representatives in Congress about the problems and issues we’re facing in Colorado’

Negative / Positive features of Pressure Groups

Criticisms of interest group activity 1) The lobbying industry often employs former members of Congress and administrative officials. Examples – i) Of the 100 most senior officials serving in the Clinton administration, 51 are now lobbyists or work for companies that undertake lobbying work. ii) 22% of those leaving congress in 1990s became lobbyists. Rauch regards the lobbying industry as ‘parasitical’. Rauch refers to the ‘whirlpool in Washington, sucking up investment capital, talent, energy’. Example – Farmers, despite only employing 2% population receive subsidies.

Criticisms of interest group activity 3) Conservative critique; ‘producer capture’ – which means that particular groups have used their political influence to secure and maintain a privileged economic position. Example – Taxi drivers persuading city authorities to prevent would be competitors from entering the market. Use of covert tactics – Example – Christian Right standing candidates for positions on the Boards of Education, as concerned parents or independents and ensure teaching of creation rather than evolution. Those associated with left also critical of corporate lobbying which restricts reforms that they regard as essential. Example – Health reforms (SCHIP / Prescription drugs)

Criticisms of interest group activity PAC contributions end up buying of candidates. i) Also distort policy making process. Example – 1990 – 80 PACs supporting the state of Israel. $1.2 million to those who served on the Senate Foreign Relations Committee. ii) Undermine political parties – in terms of being primary source of funding for elections. iii) Reinforce incumbency – by giving majority of money to incumbents. 9) Many groups are single issue groups. Example – US Term limits, Pro Choice, pro life. Interest groups are unrepresentative of the public – companies dominate the lobbying process. Mass population is marginalised. Washington DC is now a ‘capital so privileged and incestuous in its dealings, that ordinary citizens believe it is no longer accessible to the general public’. 7) Foreign companies are using the lobbying industry to their advantage. Example – 125 law and public relations firms were working on behalf of Japanese businesses.

Positive features Ethics in Government Act – prohibits senior government officials from lobbying their agency for one year after they leave office; for 2 years on specific matters over which they exercised supervision. Interest groups strengthen political process. They can provide legislators with specialist information. Groups can be a sounding board by decision makers at the policy formulation stage of the legislative process. Example – President Johnson consultation with AFL-CIO, to gauge public opinion on his anti poverty proposals. 4) There is considerable hostility towards decision makers in Washington DC, and group activity can bridge the gap between the electorate and those at DC.