Tag Archives: lobbying

I Guess It Isn’t the Money….

Dispatches from the Culture Wars reports:

“By employing a plethora of tax-dodging techniques, 30 multi-million dollar American corporations expended more money lobbying Congress than they paid in federal income taxes between 2008 and 2010, ultimately spending approximately $400,000 every day — including weekends — during that three-year period to lobby lawmakers and influence political elections, according to a new report from the non-partisan Public Campaign.

Despite a growing federal deficit and the widespread economic stability that has swept the U.S since 2008, the companies in question managed to accumulate profits of $164 billion between 2008 and 2010, while receiving combined tax rebates totaling almost $11 billion. Moreover, Public Campaign reports these companies spent about $476 million during the same period to lobby the U.S. Congress, as well as another $22 million on federal campaigns, while in some instances laying off employees and increasing executive compensation.”

To put these numbers in perspective, these corporations spent three times as much lobbying for preferential treatment as they paid in taxes.

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Surprise, Surprise

Last week, there was a fair amount of publicity about a study issued by the Justice Policy Institute that found—drum roll, please–that private prison operators lobby for more stringent criminal laws.

In other news, the sun rose in the east yesterday.

There are certainly instances in which government outsourcing makes sense, but operating prisons is not one of them. As many observers of what I call “privatization ideology” warned when the first private prisons began operating, incarceration for profit is simply untenable: the incentives involved are inconsistent with good public management.  Prisons aren’t businesses, and they cannot and should not be run as businesses.

When a company’s profits depend upon jailing more people for longer periods, it shouldn’t come as a surprise that those companies will lobby for ever-more draconian laws and extended sentences. If that lobbying is successful, it will cost taxpayers much more than they saved by outsourcing (assuming the much-touted savings are real to begin with.)

It isn’t just prison outsourcing that threatens to distort policy-making. The United States no longer has a military draft, and we currently have more “contractors” in Iraq and Afghanistan than we do citizen-soldiers. As I pointed out in a paper several years ago, in the wake of the Abu Ghraib scandal, there are significant moral, legal and strategic problems that arise when governments essentially hire mercenaries to do their dirty work. For one thing, it is far easier to opt for a military “solution” to a problem when the Congressman casting the vote can simply “hire” soldiers, and doesn’t have to go home to his district and justify drafting his constituents. For another, the multi-national companies that provide the “soldiers for hire” have a vested economic interest in military combat.

Private prison operators lobby for stricter sentencing. Does anyone really believe that private companies providing combat services won’t lobby for war?

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