Lobbyists And Big Government: Perfect Together

In the Manchester Union-Leader, John Stossel explains why most efforts to reform the so-called lobbying problem fail:

None of the reforms gets near root of the problem.

The root is government power. When government is free to meddle in every corner of our lives and regulate the economy through taxes, regulation and subsidies, then “special interests” have every incentive to work on the politicians to preserve their turf or gain an advantage.

A tax, regulation or subsidy can make the difference between an industry’s success and failure. If the government were not giving preferential tax treatment to ethanol, the corn farmers and ethanol processors would have to find something else to do because their product can’t compete against regular gasoline on a level playing field.

In a real free market, a company succeeds only by making things consumers want to buy and keeping costs low enough that the market price yields a profit. Sadly, in our mixed economy, success can be achieved another way: by lobbying the government for advantages over one’s competitors.

The prospect of favorable government intervention creates incentives for producers and their lobbyists to strive to satisfy legislators and bureaucrats instead of consumers. The resulting competition for privileges sets the stage for the improper relationships that reformers fret about.

The irony is that the “good government” types favor big government, so they undermine their own efforts to eliminate corruption.

None of this is news, of course, but the fact that these arguments keep having to be repeated to a public that isn’t listening is, quite honestly, disheartening.

  • Ben Franklin

    “When the people find they can vote themselves money, that will herald the end of the republic.”