Lecture Notes on Interest Groups and Lobbying in the US

Introduction

• K Street is a symbol of lobbying power in Washington, D.C.
• Lobbying in comparison to other powers:
  • Congressional power: Capitol Hill
  • Presidential power: The White House
  • Judicial power: The Supreme Court
• Lobbyists represent business, trade associations, and citizens groups.

Importance of Lobbying

• Influences nearly every public policy issue.
• Larger number of lobbyists than journalists and congressional staffers.
• More money spent on lobbying than on elections.

Political Role of Interest Groups

• Interest Groups: Organized membership pursuing public policy goals.
• Examples:
  • National Rifle Association
• Session's focus:
  • Why the U.S. has a large interest group sector.
  • Differences in organization among U.S. interests.
  • Methods of lobbying.
  • Influence of interest groups.

Factors for Abundant Interest Groups in the US

1. Country's Size:
   • Not as significant as it seems.
   • Example: France's less organized interests.
2. U.S. Political System Structure:
   • Separation of powers offers multiple lobbying targets (e.g., Congress, State governments).

Organization of Interest Groups

• Economic Groups:
  • Well-organized due to economic activity.
  • Examples: Business firms, workers, farmers.
  • Business groups dominate lobbying.
• Non-Economic Groups:
  • Less organized and face the free-rider problem.
  • Example: National Rifle Association, college students.

Lobbying Process

• Congressional Lobbying: Involves information, campaign funds, and strategic targeting of lawmakers.
• PACs:
  • Source of campaign contributions.
  • 10,000 maximum contribution per candidate.
  • Primarily support incumbents.
• Executive Agency Lobbying:
  • Agencies influence policy interpretation and implementation.

Case Studies

• Dodd-Frank Act:
  • Illustrates congressional and bureaucratic lobbying.
  • Automotive industry lobbying led to auto loans exemption.
  • Financial sector lobbying on derivatives regulation.

Influence and Power of Interest Groups

• Right and need for groups to advocate policy issues.
• Pluralist Theory: Examines public interest through group distribution.
• Criticism:
  • Possible excessive power of some groups.
  • Balance with party system.

Conclusion

• U.S. has a large number of interest groups due to its political structure.
• Economic groups are more organized due to resources and incentives.
• Non-economic groups face organizational challenges.
• Lobbying involves strategic engagement with lawmakers and contributes significantly to policy.
• The influence of groups is balanced by other political systems like the party system.