The lobbying game
IThe biggest lobbying effort by far? The U.S. pharmaceutical industry, appropriately nicknamed “Big Pharma.” … Over the past two decades the pharmaceutical industry has spent $4.45 billion, far outpacing all other industries on lobbying outlays.
n American politics it has been long accepted that businesses need to influence legislation and tame regulation from time to time through political action. American industrialists formerly depended on their trade organizations to represent their interests in Washington.
But as industries grew more powerful and Congress more complex, corporate management decided a more concentrated and specialized effort was necessary. Thus, the concept of “lobbying” and “lobbyists” was developed.
Today we expend much time, energy and ink on determining which lobbying groups spend the most money and effort in trying to influence federal and state government policies. Many have identified the NRA (National Rifle Association, aka National Republican Association) and the firearms and ammunition manufacturers as our number one lobbyists.
But based on numbers of lobbyists and money spent, the NRA isn’t even in the ballpark. The biggest lobbying effort by far? The U.S. pharmaceutical industry, appropriately nicknamed “Big Pharma.” But let’s take a closer look at how much effort and money each U.S. industry group spends on seeking to influence the U.S. government’s decisions and policies.
Over the past two decades the pharmaceutical industry has spent $4.45 billion, far outpacing all other industries on lobbying outlays. The biggest corporate spenders?
The Pharmaceutical Manufacturers of America and Pfizer Inc. Pharmaceutical lobbyists are primarily interested in blocking all efforts to establish a government-run health care system, ensuring new products are approved and get on the market in a timely manner and in protecting intellectual properties. The pharmaceutical lobbying effort is distinguished by the total money spent and the percentage of lobbyists that are former government employees in the health care sector.
Bordering on monopolistic practices, Big Pharma has been able to prevent large government agencies such as the Veterans Administration and Medicare from negotiating better prescription drug prices based on volume purchases as other large purchasers enjoy. And the manufacturers rather arrogantly have never even offered to defend the rationale behind this policy.
Not even close to Big Pharma, in second place with an annual budget of $2.98 billion, is the American insurance industry. This includes health, property and vehicle insurers. They became particularly active following the passage of Affordable Care Act (Obamacare). In 2019 the biggest single spender on health care lobbying was Blue Cross/blue Shield.
Occupying second place are the electric utilities with an annual budget of $2.5 billion. Their chief concerns are resisting clean air enforcement regulations, waste storage and cybersecurity.
Next to last in lobbyist spending are business associations. They spend a little less than $2.5 billion lobbying on issues such as labor regulations, protecting intellectual property and reducing corporate taxes.
Last among the big lobbying spenders are the miscellaneous manufacturing and distributors that spend a relatively paltry $1.9 billion annually, with the National Association of Manufacturers being the industry’s top lobbyist.
Other lobbyists of note include hospitals/nursing Homes ($1.8 billion) and education ($1.7 billion).
Although corporations are limited in their donations to political campaigns their employees may belong to Political Action Committees (PACS) which are less restricted in their efforts. How is this influence peddled? Through politicians’ campaign contributions, of course. But also through seminars and conferences, in name only, at plush, exotic overseas resorts at which the legislators’ families are also invited and royally treated.
With several sensitive issues soon to come up for discussion and vote, expect the lobbyists to pull out all the stops in 2021. Are we being left out? How much did you contribute to your legislative representatives’ campaigns this year? Personally, I’m embarrassed.