Sunday, November 01, 2020

In the Defense of (some) Lobbyists

I am the daughter of a lobbyist so more often than not, my defenses of lobbying come off as biased and empty. It’s hard to make a solid case with all the damning evidence that exists. My case is not made in the defense of lobbyists that lobby for inefficient regulations or to support industries that harm consumers and the environment. But my dad lobbies for places like Special Olympics, Save the Children, Grand Valley State University (along with other schools), NAHC, and companies that work to clean Michigan rivers. 


In “The Theory of Economic Regulation”, Stigler discusses how the state can and does hurt industries or firms through “its power to prohibit or compel [and] to take or give money…” These actions taken by the state affect the allocation of resources - meaning they can move resources away from firms that were being used effectively. The lobbying my dad is doing for his clients is not to snag some regulation that will create barriers to entry or hurt competitors who produce substitutes. He works to ensure that his clients get the funding they deserve and need - this means talking with members of Congress to keep clients at QAE when they could potentially be forced to operate at lower levels of efficiency due to a poor allocation of resources (Q* < QAE). 


This article discusses slashes in budget faced by community health centers in the midst of Covid-19. Operating with the proper allocation of resources, efficiently, and to provide the most social benefit (QAE) would arguably not look like budget cuts in the middle of a global pandemic. In this case, I would categorize the efforts of a lobbyist for community health centers as less of the rent-seeking, sleazy, looking to increase my bottom line behavior and instead, an effort to ensure that resources are not misallocated and that we don’t move away from QAE. Sometimes lobbying is not about coal companies lobbying down green energy legislation or sugar industry lobbyists authoring reports about the inconclusive links between sugar and bad health or NRA lobbyists consistently back laws that weaken gun-control after tragedies like Sandy Hook and Marjory Stoneman. Sometimes - despite bad press - lobbying is about making sure community health centers across the country can stay afloat or granting funding to clean polluted rivers in Detroit or helping Save the Children continues to help underserved kids get a good education.

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