Sunday, December 23, 2012

Lobbying pays: rewards for legislative favors edition

Sungmun Choi asks, “Do Interest Groups Reward Politicians for their Votes in the Legislature?” And answers: of course they do.  Choi examined monetary contributions paid by interest groups to members of the U.S. House of Representatives and found evidence that the politicians who voted for the 2008 bank bailout were rewarded in the form of "more monetary contributions from the interest groups in the financial sector after passage of the EESA."  Conclsion; "interest groups reward politicians for their favorable votes in the legislature, at least in the case of the EESA. Of the two hypotheses that I develop in the theoretical part of the paper, I find evidence for the hypothesis of the long-term relationship between interest groups and politicians." Paper at the link.

So let's recap.

  • Politicans need money to get (re-)elected: lobbying pays for that.
  • Politicians need jobs when they retire from public office: lobbying pays for that.
  • Lobbyists need clients who benefit from legal reform: lobbying pays for that.
  • And now we see that politicians need to be rewarded for their legislative votes: lobbying clearly pays for that, too.

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