Lobbyists Spend A Record $3.5 Billion In 2009: Did Average Citizens Profit From These Efforts?

For most people, 2009 marked a year in which many of us had to pull back and tighten the reins on our own personal budgets as a result of the overall downturn in the economy. Apparently, for some segments of society this was not the case. Did you know that lobbyist spent nearly a record $3.5 billion lobbying the federal government in 2009? Recently, I came across some interesting and compelling statistics compiled by the Center for Responsive Politics, a political watchdog group, that I’ll share with you in today’s post that gave me several moments of pause.

For example, companies and special interest groups spent a record $3.47 billion on federal lobbying efforts in 2009, this amount represented a 5% increase over statistics reported in 2008. Lobbyists were not deterred by the Great Recession, the decline of the dollar, bank failures, TARP bailouts, or near 10% unemployment nationally and far worse unemployment rates in a number of individual states. One lesson learned: lobbying appears to be a growth industry heading into the future if you are seeking employment and job security. In other words, lobbying appears to be a recession-proof industry.

The Obama Administration and Congress were busy over the past year pushing forward a number of hot-button issues like health care reform, financial regulatory reform, climate-change and other controversial legislation. In a year when Congress was busy debating such wide-ranging ideological issues lobbyists were paying close attention on the sidelines.

A number of industry sectors notably stand-out as the deep pocket and influential lobbyists. The pharmaceutical and health industry spent an estimated $266.8 million lobbying on health care reform—this happens to be the largest amount ever spent by a single industry in a one year period of time. Business associations spent $183 million on federal lobbying. Oil and gas lobbyists spent $168.4 million. The insurance industry spent $164.2 million. At the end of the day, all of these industry sectors that I mention spent more in 2009 than they did in 2008. However, the electric utility industry spent $144.4 million, slightly off the 2008 pace for that industry segment. To recap, the top five industry sectors in terms of spending were the following:

1. Pharmaceutical and Healthcare Industry ($266.8 million)
2. Business Associations ($183 million)
3. Oil and Gas Industry ($168.4 million)
4. Insurance Industry ($164.2 million)
5. Electric Utility Industry ($144.4 million)

The single largest institutional lobbyist was the U.S. Chamber of Commerce, an association that represents roughly 3 million businesses in various industries, which distributed $145 million for lobbying activities at the federal level. The Chamber of Commerce has consistently held the top spot as the largest single spender over the past nine (9) years. 2009’s figure of $145 million spent on lobbying activity by the Chamber of Commerce marks a 6% increase over 2008 figures.

I promise you that I’m not making these figures up. You can see them for yourself. A wonderful website www.opensecrets.org compiles and breaks down the numbers that I’ve just shared with you. As a citizen, and probably thinking along the same lines as other citizens, when I come across data like this I’m left scratching my head and asking one simple and basic question. Has spending such vast sums on lobbying improved the quality, scope, and reach of legislation and policy emanating out of Washington to make the everyday lives of a greater multitude of citizens better and more productive? I have my own answer and opinion in response to the question that I pose. I can only imagine what your response would likely be in answering this question.