Intro to Policy Process: Interest Groups/Lobbying

Lawmakers rely on several sources for policy-relevant information…

• CRS

• GAO

• Committee Staff

• Interest groups

What do interest groups do with information?

Collect specialized info, conduct technical analyses, write and distribute reports

Interest groups

Benefit-seeking organization that attempts to influence government. Have valuable policy information (they know best) and have much at stake financially.

What are the biggest interest groups?

Businesses, then unions. Pharmacy/healthcare, electronics, insurance. Groups that are heavily regulated

What actions do interest groups take?

• Washington contacting: appeals to government officials

• Ad campaign: media campaign to persuade voters

• Grassroots mobilization: persuade constituents to call their represntatives

Why so many interest groups? 

As government expands, new groups form. Opponents, then defenders.

Other venues for interest groups to lobby

1. Judiciary: file lawsuits, $ to litigants, legal expertise, amicus curiae

2. Administrative agencies: influence regulatory outcomes 

Legislator decision Making

Personal policy preferences, constituent preferences, party preferences. If not aligned, they’ll seek information from interest groups

Stages of legislative lobbying

1. Formulation of bills: lobbying early. Burning $ on ads for intimidation

2. Committee hearings/markups: providing public information so everyone knows where the group santds

3. Floor/conference: interests form coalitions and divide work by geograph

Defensive advantage

Because the process is so information-heavy and bills work through many stages, groups that want change must win at every stage. Status quo groups only need 1 stop. Better to target defense early, targeting a few members in a committee. 

Lobbyist effects on legislator choices

3-legged stool. Indirect on legislator choices by influencing other factors. Constituent policy preferences/electoral outcomes, partisan pressures, and personal policy preferences.

Access

• Convincing lawmakers to listen to your arguments

• Establishing a “regular relationship” to exchange information

• Becoming institutionalized in boards and commissions

• Actually having influence

Access-influence continuum

no access - positioning - messaging - influence

influence

Adjusting beliefs on the basis of lobbying information

Access helps lobbyists learn…

Scheduling of hearings, mark-ups, floor debates, votes, procedural strategies of committee chairs, position-taking strategies, planned amendments

Lawmakers’ goals

Lobbyists must appeal to their goals. Goals are interlinked. Influence to pass policy, policy for good constituents

1. Reelection: stances to take for constituents

2. Good public policy: policies yield intended outcomes

3. Influence within Congress: ability to shape legislation

Where do many lobbyists come from?

Congress. So, they know when and where to get information. And how to get access to lawmakers

Lobbyists provide information on…

• Likely outcomes from legislation

• Effects of existing policies

• Electoral ramifications of supporting a bill

• Political mood of Congress

Legislative decision-making uncertainty

If they were certain, lobbyists wouldn’t exist

Market for information

Legislators want to reduce uncertainty lobbyists invest $ to produce and spread information

Lobbyists shape legislators’ beliefs

Beliefs held when there’s uncertainty about merits of policies and how constituents view it. Lobbyists can reinforce existing beliefs or convince change. 

When is information useful?

Scarcity is key

Cheap information

Little strategic advantage. Can get it without interest groups

Valuable information

If groups can acquire/provide information more frequently than everyone else

Sources of group information

1. Invest in expertise (National Association of Realtors hires economists)

2. Extract information from membership. Directly involved in policy compliance (farmers) or call upon members to leverage information in testimony/letters. 

AI Case Study

Lobbying has increased exponentially as legislators start to try and regulate AI

2 Types of influence

1. Maintain/reinforce their beliefs to prevent future changes

2. Alter the direction of their beliefs about if a policy will work

2 types of lobbying strategies

1. Proactive: changing a Member’s policy position

2. Counteractive: prevent another group from making changes. 

Public Interest Era

1965-1978ish. Lots of regulation in the federal regulatory system. Creation of the EPA, lots of statutes that deal with healthy, safety, environment, etc. OSHA.  

New policy process of public interest era 

1. Congress passes a law (Motor Vehicle Safety Act)

2. Federal agencies implement through regulations (bureaucrats fill in details)

3. Courts and agencies enforce regulations by fines/lawsuits

Targets of regulation in the public interest era

Increased exponentially, used to only target specific industries. However, new regulations sent compliance costs across all of society (OSHA)

Business Mobilization

Started setting up government affairs offices, lobbyists, and PACs.

Small Firms

Chamber of Commerce and NFIB membership doubled to pushback against regulations. Small firms couldn’t afford to eat the costs, but couldn’t push compliance costs onto consumers in a competitive market

New influence strategies in lobbying

Old way: only if your industry was heavily regulated. Blocking unwanted changes. Contracts between firms and policymakers. Government contracts, tax breaks, industry specific regulations. However, 1970s brought a shift to modern lobbying, more forceful and coordinated. 

New way: built networks, generated mass campaigns. bottom-up campaigns combined with inside strategies. Gave $ to GOP challenges, bundling, $ to think tanks to shape political climate

Bundling

A firm’s executives give money individually

Walker lobbyist

Sold what was good for companies as good for America. Tax cuts for businesses. Not just blocking unwanted changes, but getting wanted reforms. Proactive, shaping public discourse, grassroots campaigns, cultivation of important figures in both parties. People replicated his strategies. 

Bill to create an Agency for Consumer Advocacy

Strong political support, agency would have procedural power. Business opposition unified: op-eds and magazine articles, groups flooded Congress, bill does not pass the House. Intense opposition. 

NLRB Reform Bill

Labor wanted to increase penalties for NLRB violations. Passed House, but blocked in Senate. Flooded DC, spending a lot of money. So structured and organized to hit every possible opponent of that bill.

Tax reform on Capital Gains Rates, 1978 Tax Bill

Carter campaigned on tax reform and increase capital gains. However, Carter signed a bill cutting capital gains. Congress ended in a pro-business bill

Big firms mobilize

Formed the Business Roundtable, top corporate CEOS. Mobilize CEOS to collectively lobby for their shared interests. 

National Labor Relations Board

Federal agency that adjudicates disputes between unions and businesses. Fines companies for violating labor laws.