The Profitability of Lobbying

In a surprising development, the Washington Post discovers that Congressmen make promises of funding in exchange for votes:

“It takes a while for most start-up companies to gain the confidence of a U.S. congressman and the promise of federal funds. But last year, a small Illinois company accomplished its goal in 16 days with the help of Rep. Peter J. Visclosky, a little-known Indiana Democrat who sits on the House committee that funds the Pentagon. […]

The congressman sponsored or supported at least $44 million in earmarks in fiscal years 2008 and 2009 for more than 15 technology firms that had hired K&L Gates as lobbyists. None of the companies operated in Visclosky’s home state, but nearly all of them donated to Visclosky’s campaign just before or soon after receiving the promise of federal money.”

This is more evidence of the twisted positive sum gain between lobbyists and lawmakers. Sure lawmakers benefit, but that’s because they have something very valuable to offer. Lobbying is a very profitable activity. According this study published in April this year, the $3 billion-a-year industry in Washington secures spectacular returns on investment such as “a single tax break in 2004 earned companies $220 for every dollar they spent on the issue — a 22,000 percent rate of return on their investment.”