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Archive for the ‘Lobbying’ Category

Every so often, I share an image that is unambiguously depressing. Usually because it suggest that freedom is slowly eroding.

I now have another addition to that depressing list.

Just as the Minneapolis Federal Reserve has an interactive website that allows users to compare recoveries and recessions, which is very useful for comparing Reaganomics and Obamanomics, the St. Louis Federal Reserve has an interactive website that allows users to compare national and regional economic data.

And that’s the source of today’s depressing chart. It shows median inflation-adjusted household income for the entire nation and for the District of Columbia. As you can see, the nation’s capital used to be somewhat similar to the rest of the nation. But over the past 10 years, DC residents have become an economic elite, with a representative household “earning” almost $14,000 more than the national average.

By the way, I put quotation marks around “earning” in the previous sentence for a very specific reason.

There is nothing wrong with some people accumulating lots of wealth and income if their prosperity is the result of voluntary exchange.

In the case of Washington, DC, however, much of the capital’s prosperity is the result of coercive redistribution. The lavish compensation of federal bureaucrats is a direct transfer from taxpayers to a gilded class, while the various lobbyists, contractors, cronyists, politicians, and other insiders are fat and happy because of a combination of direct and indirect redistribution.

I should also point out that the entire region is prospering at the expense of the rest of the nation.

By the way, some people will be tempted to argue that rising income levels in DC are simply a result of gentrification as higher-income whites displace lower-income blacks. Yes, that is happening, but that begs the question of where the new residents are getting all their income and why the nation’s capital is an increasingly attractive place for those people to live.

The answer, in large part, is that government is a growth industry. Except it’s not an industry. It’s increasingly just a racket for insiders to get rich at the expense of everyone else.

P.S. To close on a semi-humorous note, some cartoons are funny even if the underlying message is depressing.

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I’ve written many times that Washington is both a corrupt city and a corrupting city. My point is that decent people go into government and all too often wind up losing their ethical values as they learn to “play the game.”

I often joke that these are people who start out thinking Washington is a cesspool but eventually decide it’s a hot tub.

During the presidential campaign, Trump said he wanted to “drain the swamp,” which is similar to my cesspool example. My concern is that El Presidente may not understand (or perhaps not even care) that shrinking the size and scope of government is the only effective way to reduce Washington corruption.

In any event, we’re soon going to get a very strong sign about whether Trump was serious. With Republicans on Capitol Hill divided on how to deal with this cronyist institution, Trump basically has the tie-breaking vote on the issue.

In other words, he has the power to shut down this geyser of corporate welfare. But will he?

According the Susan Ferrechio of the Washington Examiner, Trump may choose to wallow in the swamp rather than drain it.

President Trump now may be in favor of the Export-Import Bank, according to Republican lawmakers who met with him privately Thursday, even though Trump once condemned the bank as corporate welfare.

Veronique de Rugy of the Mercatus Center is one on the Ex-Im Bank’s most tenacious opponents, and she’s very worried.

…if the reports are true that Trump has decided to support the restoration of the crony Export-Import Bank’s full lending authority, it would be akin to the president deciding to instead happily bathe in the swamp and gargle the muck. …If true, the news is only “great” for Boeing, GE, and the other major recipients of Ex-Im’s corporate welfare. It is also at odds with his campaign promises since much of the way the program works is that it gives cheap loans — backed by Americans all over the country — to foreign companies in China, Russia, Saudi Arabia, and the UAE. Restoring Ex-Im’s full lending-authority powers is renewing the policy to give cheap loans backed by workers in the Rust Belt to companies like Ryanair ($4 billion in guarantee loans over ten years) and Emirates Airlines ($3.9 billion over ten years) so they can have a large competitive advantage over U.S. domestic airlines like Delta and United. It continued to subsidize the large and prosperous state-owned Mexican oil company PEMEX ($9.7 billion over ten years). Seriously? That’s president Trump’s vision of draining the swamp?

Ugh. It will be very disappointing if Trump chooses corporate welfare over taxpayers.

What presumably matters most, though, is whether a bad decision on the Ex-Im Bank is a deviation or a harbinger of four years of cronyism.

In other words, when the dust settles, will the net effect of Trump’s policies be a bigger swamp or smaller swamp?

The New York Times opined that Trump is basically replacing one set of insiders with another set of insiders, which implies a bigger swamp.

Mr. Trump may be out to challenge one establishment — the liberal elite — but he is installing one of his own, filled with tycoons, Wall Street heavyweights, cronies and a new rank of shadowy wealthy “advisers” unaccountable to anyone but him. …Take first the Goldman Sachs crowd. The Trump campaign lambasted global financiers, led by Goldman, as having “robbed our working class,” but here come two of the alleged miscreants: Gary Cohn, Goldman’s president, named to lead the National Economic Council, and Steven Mnuchin, named as Treasury secretary. …Standing in the rain during Mr. Trump’s inaugural speech, farmers and factory workers, truckers, nurses and housekeepers greeted his anti-establishment words by cheering “Drain the Swamp!” even as the new president was standing knee-deep in a swamp of his own.

I’m skeptical of Trump, and I’m waiting to see whether Gary Cohn and Steven Mnuchin will be friends for taxpayers, so I’m far from a cheerleader for the current administration.

But I also think the New York Times is jumping the gun.

Maybe Trump will be a swamp-wallowing cronyist, but we don’t yet have enough evidence (though a bad decision on Ex-Im certainly would be a very bad omen).

Here’s another potential indicator of what may happen to the swamp under Trump’s reign.

Bloomberg reports that two former Trump campaign officials, Corey Lewandowski and Barry Bennett have cashed in by setting up a lobbying firm to take advantage of their connections.

The arrival of a new president typically means a gold rush for Washington lobbyists as companies, foreign governments, and interest groups scramble for access and influence in the administration. Trump’s arrival promises to be different—at least according to Trump. Throughout the campaign, he lambasted the capital as a den of insider corruption and repeatedly vowed to “drain the swamp,” a phrase second only in the Trump lexicon to “make America great again.” …Trump’s well-advertised disdain for lobbying might seem to augur poorly for a firm seeking to peddle influence. …“Business,” Lewandowski says, “has been very, very good.”

This rubs me the wrong way. I don’t want lobbyists to get rich.

But, to be fair, not all lobbying is bad. Many industries hire “representation” because they want to protect themselves from taxes and regulation. And they have a constitutional right to “petition” the government and contribute money, so I definitely don’t want to criminalize lobbying.

But as I’ve said over and over again, I’d like a much smaller government so that interest groups don’t have an incentive to do either the right kind of lobbying (self-protection) or the wrong kind of lobbying (seeking to obtain unearned wealth via the coercive power of government).

Here’s one final story about the oleaginous nature of Washington.

Wells Fargo is giving a big payout to Elaine Chao, the new Secretary of Transportation.

Chao, who joined Wells Fargo as a board member in 2011, has collected deferred stock options —  a compensation perk generally designed as a long-term retention strategy — that she would not be able to cash out if she left the firm to work for a competitor. Her financial disclosure notes that she will receive a “cash payout for my deferred stock compensation” upon confirmation as Secretary of Transportation. The document discloses that the payments will continue throughout her time in government, if she is confirmed. The payouts will begin in July 2017 and continue yearly through 2021. But Wells Fargo, like several banks and defense contractors, provides a special clause in its standard executive employment contract that offers flexibility for awarding compensation if executives leave the bank to enter “government service.” Such clauses, critics say, are structured to incentivize the so-called “reverse revolving door” of private sector officials burrowing into government. …Golden parachutes for executives leaving firms to enter government dogged several Obama administration officials. Jack Lew, upon leaving Citigroup to join the Obama administration in 2009, was given a cash payout as part of his incentive and retention awards that wouldn’t have been paid if he had left the firm to join a competitor or under ordinary circumstances. But Lew’s Citigroup contract stipulated that there was an exception for leaving to work in a “full time high level position with the U.S. government or regulatory body.” Goldman Sachs, Morgan Stanley, and Northrop Grumman are among the other firms that have offered special financial rewards to executives who leave to enter government.

This rubs me the wrong way, just as it rubbed me the wrong way when one of Obama’s cabinet appointees got a similar payout.

But the more I think about it, the real question isn’t whether government officials get to keep stock options and other forms of deferred compensation when they jump to government.

What bothers me much more is why companies feel that it’s in their interest to hire people closely connected to government. What value did Jacob Lew bring to Citigroup? What value did Chao bring to Wells Fargo?

I suspect that the answer has a lot to do with financial institutions wanting people who can can pick up the phone and extract favors and information from senior officials in government.

For what it’s worth, I’m not a fan of Lew because he pushed for statism while at Treasury. By contrast, I am a fan of Chao because she was one of the few bright spots during the generally statist Bush years.

But I don’t want a system where private companies feel like they should hire either one of them simply because they have connections in Washington.

I hope that Trump will change this perverse set of incentives by “draining the swamp.” But unless he reduces the size and scope of government, the problem will get worse rather than better.

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Two years ago, I wrote that Washington’s parasite class was having a very merry Christmas.

But I wasn’t mocking welfare recipients, many of whom actually deserve sympathy for getting trapped in the web of government dependency.

Instead, I was referring to the unearned wealth being accumulated by Washington’s gilded class of bureaucrats, cronyists, lobbyists, contractors, politicians, and other insiders.

To cite a truly horrifying statistic, the redistribution of money from America to Washington has made it the nation’s richest metropolitan region.

And it’s getting worse.

Let’s look at what Tim Carney just wrote in the Washington Examiner about Christmas on K Street.

It’s that magical season when Republicans and Democrats come together to look after the needs of corporate America, K Street lobbyists, and the U.S. Chamber of Commerce. …The highway measure is a huge win for industry while a loss for good governance. Far worse, however, is the…provision reviving the defunct Export-Import Bank, a corporate-welfare agency…K Street lobbied incessantly to revive Ex-Im, backed by President Obama, Hillary Clinton and nearly every Democratic lawmaker. …As a corporate cherry on top, the bill repeals a recent minor cut in federal crop insurance subsidies, a program that benefits financial firms… Congressional leaders are currently negotiating another year-end legislative package, the notorious annual tax extenders bill. …the bill will extend (at least for a short-time) green-energy subsidies: The Production Tax Credit for wind and the Investment Tax Credit for solar. …Almost all of them are crucial for some special interest and the revolving-door lobbyists they employ.

Tim points out that the feeding frenzy is bipartisan, which some people think is a measure of good policy.

Like me, though, Tim isn’t impressed when the Evil Party and the Stupid Party both conspire to produce bad policy.

As this legislation — the highway bill, the energy bill, the tax extenders, plus the omnibus spending bill—pass through both houses, expect hosannas to the “bipartisanship” and “compromise” involved. …there’s one common theme here: Corporate lobbyists win in almost every case.

But catering to the interests of K Street lobbyists is probably not a good strategy for Republicans.

Republican leaders are probably confused about why all their accomplishments and imminent accomplishments, including the highway bill, tax extenders and appropriations, haven’t dragged Congress’s approval out of the gutter—after all, everyone they talk to thinks Congress is doing a bang-up job.

Now let’s look at what Kevin Williamson recently wrote for National Review. His article is primarily about corruption in Chicago, but his observations apply just as well to how Washington operates.

Bill and Hillary Clinton, Barack Obama, Rahm Emanuel, Al Gore, and the rest of that sorry lot aren’t trying to get rich — they’re already rich, some of them wildly rich. They are building a patronage society. And building a patronage society costs a lot of money… The horrifying fact is that Barack Obama can make you a rich man — if you’re the right kind of man. If you operate a politically connected business, the government can direct the better part of $1 billion straight into your coffers… At the other end of the spectrum, a federal tormenter can be the end of your enterprise: Ask those Tea Party groups illegally targeted by Barack Obama’s IRS. Ask a voting-reform advocate who was targeted by the ATF in spite of not being in any business related to A, T, or F.

But it’s not just a case of undeserved goodies getting steered to political cronies.

Yes, that’s a problem, but the economic concern is that this type of economic model misallocates resources and leads to stagnation.

The Clintons’ game isn’t enjoying the $100 million in their checking account — it’s making use of the $44 trillion in American-owned assets as if they owned them themselves. Barack Obama doesn’t want a garage full of Rolls Royces — he wants a world in which Rolls Royce has to ask his permission before building a car or selling one.

In effect, a nation slowly but surely becomes Greece as more and more people either rely on benefits or have jobs in the bloated bureaucracies that dispense goodies.

…you cannot build a patronage society on patrons alone: You need clients. And that’s where the ever-growing public sector comes in. …There is effectively no one working at your local DMV, public school, police station, or IRS office who could earn even 80 percent of his government compensation in a private-sector job. …the really nefarious dependency agenda isn’t focused on the people who cash welfare checks, but on the people who write them, the vast bureaucracies of overpaid functionaries… Get enough of those and you have effective control over the entire economy — Chávez-style socialism without the nasty business of formal expropriation.

By the way, it’s not just libertarian types who worry about bloated government and cronyism.

Here’s an excerpt from a recent column by Robert Samuelson that succinctly captures an inherent problem with government. Writing about the reasons for diminishing productivity growth, he cites the work of Mancur Olson.

Olson revolutionized thinking about the political power of interest groups. …conventional wisdom held that large groups were more powerful than small groups in pursuing their self-interest — say, a government subsidy, tax preference or a protective tariff. …Just the opposite, Olson said in his 1965 book “The Logic of Collective Action.” With so many people in the large group, the benefits of collective action were often spread so thinly that no individual had much of an incentive to become politically active. The tendency was to “let George do it,” but George had no incentive either. By contrast, the members of smaller groups often could see the benefits of their collective action directly. They were motivated to organize and to pursue their self-interest aggressively.

Samuelson continues, elaborating on Olson’s insight about concentrated benefits and dispersed costs.

Here’s an example: A company and its workers lobby for import protection, which saves jobs and raises prices and profits. But consumers — who pay the higher prices — don’t create a counter-lobby, because it’s too much trouble and the higher prices are diluted among many individual consumers. Gains are concentrated, losses dispersed. This was Olson’s great insight, and it had broad implications, he said. In a 1982 book, “The Rise and Decline of Nations,” he argued that the proliferation of special-interest concessions could reduce a society’s economic growth. “An increase in the payoffs from lobbying . . . as compared with the payoffs from production, means more resources are devoted to politics and cartel activity and fewer resources are devoted to production,” he wrote.

The last part of the excerpt is crucial.

When we get to the point when businesses are focused on harvesting favors from Washington (such as bailouts, export subsidies, special tax preferences, etc), that is a very depressing indication of a cronyist economy rather than a capitalist economy. Of being Argentina rather than Hong Kong.

If you’re not already sufficiently depressed, my colleague Chris Edwards has a very good description of the lawmaking process. You should read the whole thing, but here are a few excerpts as a teaser.

In a romantic view of democracy, legislators act with the interests of the general public in mind. They grapple with policy issues, work toward a broad consensus, and pass legislation that has strong support. To ensure that funds are spent wisely, they frequently reevaluate existing programs and prune the low-value and harmful ones. They put citizens first and carefully limit their actions to those allowable under the U.S. Constitution. The problem with this “public interest theory of government” is that it has little real-world explanatory power. …we can better understand congressional actions by looking at incentives.

And when you look at how the process really works, you learn it is dominated by “rent seeking,” which is academic jargon for interest groups obtaining undeserved benefits via government coercion.

Members…seek federal benefits for their states because most of the costs will fall on other states. This is a major factor causing federal failure. The structure of Congress leads members to support programs that benefit their states but that are losers for the nation as a whole. …There is no built-in check—no invisible hand, as in markets—to guide members to make value-added decisions… Special-interest groups dominate policy discussions. Most witnesses to congressional hearings favor the programs being examined, and they focus on program benefits, not the costs. Most visitors to member offices on Capitol Hill are there to plead for special benefits. …Washington is teaming with lobbyists seeking special benefits—subsidies, regulations, trade protections—that come at the expense of the general public. …rent seeking is a two-way street. Jonathan Rauch of Brookings noted, “In the public’s mind, the standard model of lobbying in Washington involves special interests buying influence, in a sort of legalized bribery. In fact, the process more often involves politicians shaking down special interests.”

If you’ve read this far, you probably want to go take a shower and wash away the stench of Washington corruption.

But there’s one tiny glimmer of hope. If we can somehow figure out how to shrink the size and scope of government, we can reduce the problem. That’s the message of this video.

While we know the solution, our real challenge is that we can only shrink government by convincing politicians to change policy. Yet asking politicians to reduce government is like asking burglars to be in favor of armed homeowners.

And based on everything I wrote above, we know politicians generally have bad incentives.

But it’s not hopeless. While I certainly enjoy mocking politicians, they’re not totally immoral or even amoral people. Many of them do understand there’s a problem. Indeed, I would argue that recent votes for entitlement reform are an example of genuine patriotism – i.e., doing the right thing for the country.

So is there a potential solution?

Maybe. Let’s use an analogy from Greek mythology. Many politicians generally can’t resist the siren song of a go-along-to-get-along approach. But like Ulysses facing temptation from sirens, they recognize that this is a recipe for a bad outcome. So they realize that some sort of self-imposed constraint is desirable. And that’s why I’m somewhat hopeful that we can get them to impose binding spending caps.

We know there are successful reforms by looking at the evidence. And we know there is growing support from fiscal experts. And we even see that normally left-leaning international bureaucracies such as the OECD and IMF acknowledge that spending caps are the only effective fiscal rule.

So if Ulysses can bind himself to the mast and resist the sirens, perhaps we can convince politicians to tie their own hands with a Swiss-style spending cap.

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I’ve explained, over and over and over again, that big government is the mother’s milk of corruption.

Simply stated, a convoluted tax code, bloated budget, and regulatory morass create endless opportunities for well-connected insiders to obtain unearned and undeserved wealth.

Is this evidence that Washington is broken?

In a column for Real Clear Politics., Mike Needham of Heritage Action suggests that the conventional wisdom is wrong. Washington actually works very well, but not for the American people.

Washington isn’t broken. It is a well-oiled machine that works for the well-connected and responds to the well-heeled. This corrupt nexus of favoritism and cronyism tends to leave hardworking Americans behind. …as we’ve seen with Obamacare, the bigger the government, the bigger the Bigs become.

Is he right? Well, let’s look at some evidence. We already know Obamacare has been a boon for hacks from the Democratic Party.

But did you know that lots of GOP insiders also are cashing in because of Obamacare?

Let’s not limit our analysis to Obamacare.

There are many other examples of how the folks in Washington live on Easy Street at our expense. For instance, they enjoy lavish junkets. Here’s what the Washington Post reported back in September.

As Congress returned Tuesday…, some 14 House members were resting up from a week-long trip to Hawaii. …It sounded like a fine journey via military jet (business class) to stay at the oceanfront Sheraton Waikiki in Honolulu. Dinners were planned at the famous Hy’s Steak House — the superb porterhouse is always worth the $88.95 — and the upscale Roy’s Hawaii with its great fusion menu. (We hope they tried the lobster pot stickers.) …The schedule thoughtfully included substantial “executive time” in the afternoons. This, as Loop Fans know, is often a thinly veiled euphemism for some fine lounging at the pool, or exploring beautiful Hawaii.

This boondoggle was especially irksome to me since I was in Hawaii at the same time. But I had to pay my own way! And my hotel was right next to Hy’s Steak House, which had a very appealing menu, but I didn’t go because taxpayers weren’t financing my meals.

Speaking of integrity in D.C., here’s a story from the Washington Post that belongs in the is-anyone-actually-surprised category.

The Honest Tea firm, which makes organic iced tea, set up a stand offering bottles of its tea at 27 cities throughout the country, including D.C., and used the honor system by asking people to leave $1 in a box when they took a tea. But in the District’s Dupont Circle neighborhood, someone stole money from the box. Executives at Honest Tea wouldn’t say exactly how much was in the box but said it ranged between $5 to $20. The theft happened in the early morning, officials believe, and they did not report it to police. It was the first time in the six years that the company has been doing its experiment that someone has actually stolen money from the collection box, officials with Honest Tea said.

By the way, Dupont Circle is a ritzy part of town, not a low-income ghetto.

I’m guessing the thief is a lobbyist or bureaucrat, someone who already has a track record of taking other people’s money.

But if you really want to see Washington at its most unseemly, the Clinton machine symbolizes the corrupt nexus of big government and cronyism. Here are some passages from a report by Politico.

A spring 2012 email to Hillary Clinton’s top State Department aide, Huma Abedin, asked for help winning a presidential appointment for a supporter of the Clinton Foundation, according to a chain obtained by POLITICO. The messages illustrate the relationship between Clinton’s most trusted confidante and the private consulting company that asked for the favor, Teneo — a global firm that later hired Abedin. Abedin signed on with the company while she still held a State Department position, a dual employment that is now being examined by congressional investigators. …Abedin also worked as an adviser to the Clinton Foundation, the nonprofit founded by former President Bill Clinton.

This is amazing. Working for an influence-peddling company while on the government payroll as well?!?

And speaking of influence peddling, check out these excerpts from another Politico story.

Campaigns are required to file reports detailing registered lobbyists who round up donations, but that number is only a small slice of the fundraisers who work in some capacity in Washington’s vast influence industry… A quarter of the “Hillblazers” who bundled $100,000 or more for Clinton work at lobbying firms or public affairs agencies lobby at the state level or otherwise make their living from influencing the government on behalf of special interests… Clinton received at least $5.4 million from professional influencers, compared with $3.2 million from registered lobbyists disclosed to the FEC. For Bush, the equivalent figures are $1.02 million and just under $408,000.

The Hill also has a story about D.C. insiders flocking to Hillary Clinton.

K Street is banking on Hillary Clinton, with more than twice as many Washington lobbyists donating to the former secretary of State’s presidential campaign than any other candidate.  Clinton — the frontrunner for the Democratic nomination — received at least $625,703 from 316 registered lobbyists and corporate PACs during the first half of the year, according to disclosure forms. …Former Florida Gov. Jeb Bush ranks as a distant second in the influence industry, collecting $444,500 from 140 lobbyists.

And why are lobbyists coughing up cash?

For the simple reason that they want access. And with access to politicians, that means they get access to other people’s money.

…support from K Street can not only help boost a candidate, but also put lobbyists in good standing with the candidate in the event he or she takes the White House. …lobbyists have hedged their bets by supporting several candidates, sometimes at the request of clients, they told The Hill, asking for anonymity.

Though keep in mind that Ms. Clinton and her cronies are just the tip of the iceberg.

She’s more guilty than most for the simple reason that she actively wants to expand government, which would create even more opportunities for mischief.

Let’s also be fair in acknowledging that this problem exists in other countries. Indeed, it’s probably worse elsewhere.

Vote buying in India, for instance, can be especially challenging. Check out these passages from a Reuters report.

Village bachelors in northern India are demanding brides for votes in state polls next month because of a shortage of women after decades of illegal abortions of female fetuses, the Mail Today reported on Thursday.

Though it appears that some Indian politicians actually are willing to say no to voters.

Politicians have dismissed the demand, the report said.

Of course, it’s quite possible that the politicians are saying no in public and then somehow trying arrange brides behind the scenes.

Time to conclude with some excerpts from a story about our ruling class in Washington.

Thousands of clients using the affair-oriented Ashley Madison website listed email addresses registered to the White House, top federal agencies and military branches, a data dump by hackers revealed. The detailed data, released Tuesday, will likely put Washington, D.C., on edge. The nation’s capital reportedly has the highest rate of membership for the site of any city. Indeed, more than 15,000 of the email addresses used to register accounts were hosted on government and military servers.

The key words above are “highest rate of membership.” Yup, these are the people who think they should tell us how to live our lives. These are the clowns who think they can spend our money better than we can. These are the buffoons who want to direct and control the private economy.

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In the past, I’ve identified the world’s most misleading headlines and I’ve also identified the world’s least surprising headline.

Today, I’m going to share the world’s most disappointing headline.

When I first saw this story in USA Today, I thought it was time to celebrate.

Wow, I thought, what a great outcome. I’ve always wanted a restoration of federalism, but I never thought this is how it would occur.

So I decided to read the story to find out what’s causing DC’s well-deserved disappearance.

Alas, none of those reasons apply for the simple reason that the headline is an absurd exaggeration.

I hate to burst anyone’s bubble, but Washington isn’t really going away. Here’s what’s actually in the story.

…new research from the U.S. Geological Surveyand the University of Vermont shows that the land in the district — where the Lincoln Memorial was built on silt dredged from the Potomac River — is expected to fall 6 inches or more during the next 100 years.

Sigh, how disappointing.

In other words, we’re going to have to rely on old-fashioned methods if we really want to cut Washington down to size. Since it’s not going to disappear on its own, we’ll need tax reform, deregulation, and program terminations if we want to solve the problem.

And one fringe benefit of this approach, as pointed out by the Wall Street Journal, is that a smaller government means fewer lobbyists and special interest groups.

Businesses have no choice but to lobby a government that can cripple them with a single new regulation. …The real problem is the opportunities for corruption and special dealing that a too-large government provides. Every new regulation or twist of the tax code is an opening for some powerful Member to assist the powerful. But the solution is to reduce the size and scope of the regulatory state and to reform the tax code.

Amen. I’ve been arguing for years that big government means big corruption. I even narrated a video making that point.

But I think I said it best in this CNBC interview when I equated big government to a dumpster in an alley.

So we may not be able to sink Washington, but we can make it less of an unseemly nuisance by reducing the size and scope of the federal government.

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A few days ago, I had some fun by writing a tongue-in-cheek column about the world’s most misleading headlines.

Today, I want to share a strong contestant for the world’s most depressing headline.

It’s from The Hill, and it’s the lead to a story about giddy times for Washington’s lobbying community.

So why are lobbyists rolling in cash? What accounts for all the dollars flowing to the influence-peddling community?

The answer, as noted in the article, is that there’s been an end to gridlock.

Nearly all of Washington’s top lobby shops saw gains in revenue in the first half of 2015 as an uptick in activity within both Congress and the Obama administration translated to a boon for K Street. Following a period of relative stagnation in the two-year span preceding the 2014 elections, the Beltway’s biggest lobbying firms have broken through the malaise… “Corporations are a lot more optimistic about whether to invest in Washington,” said Marc Lampkin, a former aide to Speaker John Boehner (R-Ohio)… K Street’s top firm — Akin Gump Strauss Hauer & Feld — continued to bolster its advocacy revenue, earning $10.23 million in the second quarter. …“I think our success during the first half of 2015 reflects the…high degree of activity in Congress,” said Don Pongrace, head of the firm’s public law and policy practice.

In other words, an “uptick in activity” in what gives special interests an incentive to “invest in Washington.”

So the obvious lesson is that if you want to reduce lobbying in Washington, the best option is for Washington to do nothing. My personal preference is to make Congress a part-time legislature. That’s worked out quite well for Texas, so why not try it in the nation’s capital?

But if that option isn’t available, then I’m a big fan of gridlock. Simply stated, if my choices are for politicians to do nothing or to have politicians make government bigger, the answer is obvious.

Which is why I was initially very worried when I saw this headline from another story published by The Hill.

This sounds like my worst nightmare. The last thing we should want is productive politicians!

That’s sort of like having productive pickpockets.

But if you read the story, Governor Bush says he wants a lot of activity as part of an effort to shrink “the federal footprint.”

…the GOP presidential candidate said he’d announce tax and regulatory reform proposals over the “coming months,” as well as changes to entitlement programs and a replacement for ObamaCare. …”The overspending, the overreaching, the arrogance and the sheer incompetence in that city — these problems have been with us so long that they are sometimes accepted as facts of life…” Bush criticized Washington for operating on autopilot, ticking off a slew of pitches meant to push back against what he characterized as a needless expansion of the federal footprint.

And it’s true. Fixing all these problem will require lots of legislation.

So while I’m generally very uneasy with the notion of a “productive” Congress, I also realize that lots of reforms will be needed to restore economic vitality.

Now let’s consider one final headline. This one is from a report in the New York Times, and it also revolves around Jeb Bush and his campaign.

And here’s some of what’s in the article.

Jeb Bush…outlined a wide-ranging plan on Monday to rein in the size of the federal government and curb the influence of lobbyists who live off it. …His proposals, modeled on his record as a budget-cutting governor, amounted to…an assault on the culture of Congress

By and large, this sounds good.

But here’s the catch. You don’t need specific anti-lobbying reforms (such as Bush’s proposed six-year ban on lobbying when Senators and Representatives leave office) if you actually are serious about reducing the size and scope of the federal government.

Reducing the power of Washington is the best way of starving DC’s special-interest community.

Indeed, it’s the only genuinely effective way. I explain in this video that laws to control corruption in Washington don’t work because they don’t address the real problem of politicians having far too much influence over the economy.

I hope you noticed the balloon analogy at the end of the video. If you don’t like Washington’s parasite class, the only way to curtail their privileged existence is with smaller government.

By the way, I don’t want to imply that all lobbying is bad. It all depends on whether lobbyists are engaged in self-defense or extortion. Here’s some of what I wrote last year.

…lobbying is not necessarily bad. If a handful of business owners want to join forces to fight against higher taxes or more regulation, I’m all in favor of that kind of lobbying. They’re fighting to be left alone. But a big chunk of the lobbying in Washington is not about being left alone. It’s about seeking undeserved benefits by using the coercive power of government.

Moreover, I also pointed out two years ago that we need to respect what the Founding Fathers envisioned.

…the First Amendment protects our rights to petition the government and to engage in political speech.

So at the risk of repeating myself, I urge people to fix the real problem of big government and not get overly distracted by the symptom of favor-swapping and corruption in Washington.

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The Internet has made all of our lives better, in part because there’s been an accidental policy of benign neglect from Washington.

But that’s about to change.

Even though our economy already is burdened by record amounts of regulation and red tape, the FCC is pushing forward with a plan to turn the Internet into a moss-covered public utility.

This almost leaves me at a loss for words. It’s truly remarkable – in a bad way – that the bureaucrats at the Federal Communications Commission think that the Internet can be improved by a big dose of 1930s-era regulation and control.

My Cato colleague, Jim Harper, summarized the issue last month.

Do you want your Internet service provider to operate like the water company or the electric company?… the FCC has sought for years now to regulate broadband Internet service providers…like it used to regulate AT&T, with government mandated terms of service if not tariffs and price controls. This doesn’t fit the technical environment of the Internet, which allows for diverse business models. Companies that experiment with network management, pricing, internal subsidy, and so on can find the configurations that serve widely varying consumers and their differing Internet needs the best.

But the FCC apparently doesn’t like innovation, diversity, and experimentation and instead wants to impose centralized rules. And to justify its power grab, FCC regulators are reclassifying the Internet as “telecommunications carriers” rather than an “information service.”

Title II, which applies to “telecommunications carriers,” allows common carrier regulation of the type the FCC is trying to impose….This is so it can have more control over the business decisions made by Internet service providers. …”Net neutrality” is a good engineering principle, but it shouldn’t be a legal mandate. Technology and markets surpassed any need for command-and-control regulation in this area long ago. But regulators don’t give up power without a fight.

But maybe mockery is the best way to win this issue.

Here’s a new video from the folks at Protect Internet Freedom (the some people who put together the second video in this post).

If you’ve ever been at hold at the Department of Motor Vehicles or some other bureaucracy, this may cause uncomfortable and painful flashbacks.

And here’s another video, put together by Senator Cruz’s office.

Very well done, just like the humor Cruz’s office has deployed against Obamacare.

And speaking of humor, here are some new cartoons on the topic.

Though this next cartoon is my favorite because it so effectively captures my feelings.

The Internet has been a huge success, so why on earth would anybody think it will be better if a bunch of regulators can second-guess the free market?!?

If you want more cartoons on Internet regulation, here’s a collection that I shared last year.

P.S. Shifting to another topic, here’s a story that belongs in the category of “great moments in lobbying.”

Here are some excerpts from a story published by the Raleigh News and Observer.

Sex between lobbyists and government officials who are covered under North Carolina’s ethics laws does not constitute a gift that must be listed in disclosure reports, the State Ethics Commission said Friday. …The opinion was in a response to an inquiry from the Secretary of State’s lobbying compliance director, Joal H. Broun, in a letter on Dec. 15. …Broun’s request also wanted to know if that activity falls within the definition of “goodwill lobbying,” which is an indirect attempt to influence legislation or executive action, such as the building of relationships, according to state law, and is also considered lobbying.

I’m sure there are some serious points to be made, but I confess that my immediate reaction was to think about this cartoon.

Whether any “goodwill” is being created is a topic for another day.

That being said, you’ll be happy to know that actually procuring hookers is against the rules.

However, providing a prostitute to a legislator or other covered official would constitute a gift or item of value and would have to be reported on disclosure forms – which, of course, would also be evidence of a crime, the opinion says.

The good news is that this rule, if properly enforced, will protect a vulnerable group people from being morally corrupted.

But enough about the need to protect prostitutes from being contaminated by close proximity to politicians.

I want to close on a serious point. As I wrote the other day, the best way to reduce lobbying is to reduce the size and scope of government.

P.P.S. Actually, hookers and politicians have something in common.

P.P.P.S. If you liked my quip about protecting prostitutes from politicians, you’ll appreciate this Craig Ferguson joke.

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