The perception that politics is corrupted by the influence of big corporations is a widespread and often valid concern. The sheer need for continued widespread private donations to match corporate donor influence is a sure sign of “money talks” in today’s political arena. This viewpoint is clearly visible when related to campaign finance, lobbying, and political behavior. Here’s an overview of some of the factors that influence our political landscape, leading to corruption in politics.
Campaign Contributions and Super PACs
Corporations and wealthy individuals often make large donations to political campaigns through Super PACs (Political Action Committees) and other mechanisms. These contributions are often targeted to political parties or individual candidates to gain influence over candidates and elected officials. Corporations and wealthy individuals often donate equally to campaigns, should either campaign gain power. A more sinister approach is to make contributions where the origin of the funds is not disclosed, further contributing to a lack of transparency and potential corruption. https://hbr.org/2022/01/corporate-political-spending-is-bad-business
Lobbying
Corporations often spend billions of dollars annually on lobbying efforts to influence legislation or regulations in their best interest. This inevitably leads to policies that benefit corporations, special interest groups and wealthy donors, at the expense of the voting public’s best interest.
The phenomenon, where former politicians become lobbyists or corporate executives, and vice versa, creates close ties between government and business, leading to conflicts of interest. https://www.theatlantic.com/magazine/archive/2024/07/wolves-of-k-street-book-review-lobbying/678523/
Regulatory Bodies
Corporations exist to benefit themselves and their benefactors. It is the job of governmental regulators to enforce business practices and national security. Corporate donors often develop substantial influence over regulatory bodies, leading to a situation where agencies tasked with regulating corporate industries instead act in the interest of those industries.
This influence often results in weakened code enforcement and regulations, leading to policies that favor corporate interests over consumer protection. Compromised regulators lead to compromised political candidates that run for public office. https://www.investopedia.com/terms/r/regulatory-capture.asp
Political Favoritism
Politicians may grant preferential treatment to corporations and individuals that are major campaign donors, including favorable government contracts, tax policies and government subsidies.
Political favoritism can lead to a “mob rule” mentality, where corporate donors can influence the drafting of legislation, leading to laws that benefit them while possibly harming small businesses, workers, or the environment. https://onlinelibrary.wiley.com/doi/full/10.1111/ajps.12254
Campaign Donations Gain Access
Corporations with significant financial resources have much greater access to politicians and lawmakers, compared to ordinary citizens or smaller organizations. This leads to less public interest policies in favor of those policies and projects backed by resources to “buy” influence. https://www.theatlantic.com/business/archive/2015/04/how-corporate-lobbyists-conquered-american-democracy/390822/
Campaign Finance Laws
There are loopholes in campaign finance laws that allow corporations to channel money into politics and political campaigns in ways that are not always regulated or easy to trace. – Court rulings such as the U.S. Supreme Court’s Citizens United v. FEC ruling in 2010, have allowed for increased corporate spending in elections by equating money with free speech, an incredible stretch of constitutional interpretation. By doing so, corporations can “put money where their mouth is” giving them more corporate influence. https://www.ncsl.org/elections-and-campaigns/campaign-finance-laws-an-overview
Public Perception and Trust
The visible influence of corporations and wealthy donor money in politics erodes public interest and trust in the democratic process, leading to cynicism, despair and disengagement among voters. In this way corporations present the illusion of following our democratic process.
Even if actions are legal, the appearance that donations result in political favors contributes to the perception of corruption. https://www.pewresearch.org/politics/2023/09/19/public-trust-in-government-1958-2023/
Direct To Email And Postal Mail Donations
Politicians, political parties and special interest groups have taken matters into their own hands by going directly to email and postal mail donations. In 2023 I received 2 to 4 pieces of mail every day, directly from these groups, each presenting a compelling story for their political stance. Each letter ended with, ”You can help now by donating…..from $15 up to $2,500….”, followed by the need to match big donor or corporate money from the opposing political party. From January 1, 2023, to January 1, 2024 I received 724 such requests by mail and countless requests by email. Here is a small sample:
“Republican Party Assessment Project, Election Integrity Task force, Secure America Alliance, Liberty Taskforce, Turning Point USA, Tea Party Express, American Conservative Agenda, American Energy Alliance, Liberty Council, Heritage Action for America, Ultra MAGA Pac, Citizens United, plus 122 other Groups and Organizations.”
Mitigate Influence Of Big Corporations In Politics
Attempts have been made to mitigate the influence of big corporations in politics:
- Lobbying Regulations: Proposals to regulate lobbying more strictly, including requiring detailed disclosure of lobbying activities and expenditures.
- Ethics Rules: Rules to prevent conflicts of interest and the revolving door access between government and corporations.
- Citizen Engagement: To encourage greater citizen participation and grassroots efforts to counterbalance corporate influence.
- Donation limits: Greater transparency in campaign contributions.
Corruption in politics and government is driven by corporate influence and the significant financial power corporations wield in campaign financing, lobbying, and policy-making. The division between Democratic (liberal) and Republican (conservative) ideals are moving ever further apart.
Additionally, the LGBTQIA+ movement is no longer just about gender identity issues but has now become a political movement adding to the chaos in government spending and politics. Gay Pride Month advocates, for example, recently sent out mailers: “Get involved in creating freedom for your community by volunteering for governmental movements and donating to gay rights activism organizations”https://www.sfgmc.org/blog/lgbtqia-meaning The question is, since when is “money” the determining factor in politics and government? In a statement by Alexander Tyler,1787:
“A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess (money) out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”
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