Demonstration in the Wisconsin capitol building. The governor was attempting to limit the rights of government workers’ unions.
In this chapter we consider the influence of interest groups and lobbyists on elections and legislation. We start by taking a historical look at the role of interest groups, and then we categorize interest groups into types.
Next, we analyze what makes interest groups powerful and explore how they seek to influence elections and public policy. Finally, we evaluate the success of lobbyists in their efforts to influence government.
When a group of people share a common interest, they can form interest groups or even political parties to enact their goals into public policy. The Founders called these groups “factions,” and they worried that majority factions might trample on the rights of minorities.
As he explained in Federalist No. 10, James Madison thought factions were inevitable. He felt that people were going to pursue their self-interest at the expense of the interests of others and of the community as a whole. Since factions can’t be prevented, Madison sought to limit their effects.
The Constitution separates governmental power into three branches, and each branch checks and balances the others. Terms of elective offices are staggered, so factions have to be around for a while if they hope to get their way.
Madison also counted on the existence of many factions competing with one another to limit their effects. This competition is called pluralism and it is the hallmark of the U.S. governing system. How well has pluralism worked? There is concern today that certain groups, such as corporations, unions, and wealthy individuals, have inordinate influence, preventing effective interest group competition.
Interest groups can coalesce around any shared concern or goal. Some groups are based on demographic characteristics such as race, ethnicity, gender, age, religion, occupation, or sexual orientation. Other groups form around shared policy goals, such as opposition to gun control or abortion.
The term “special interest” is usually used to describe a group whose goals are contrary to the public interest. But what is the public interest? Groups with widely divergent policy goals all claim that they are in accord with the public interest.
Interest groups sometimes start off as social movements. A social movement forms when people who share a common concern take action to get their issue on the political agenda. The Bill of Rights supports social movements by protecting the rights to free speech, free assembly, and due process. Examples of social movements include women’s suffrage, civil rights, gay rights, animal rights, anti-tax, anti-war, anti-immigration, and environmental causes.
The Tea Party appears to have some of the characteristics of a social movement, but it is simply a subunit within the Republican Party.
During the Arab Spring of 2011, several groups united in a movement to bring down Egypt’s government. Sometimes the movement’s mass protests became violent.
James Madison used the term “faction.” Can you answer this question about the term we’d use today?
When the Founders used the term faction, they were referring to what we would today call an interest group or a special interest. Political parties can also be described as factions.
Interest groups can be large or small, formal or informal. Some interest groups claim to represent people who are not members. For example, the American Automobile Association claims to represent all motorists, even those who do not pay to join. In this section we will examine how we categorize interest groups.
Because of the large number of economic interests, economic interest groups are the most numerous. These groups seek public policies that benefit themselves financially.
Large corporations are interest groups unto themselves. They use political contributions to get favorable public policies. Smaller businesses can band together to form interest groups, such as the Small Business Federation.
Businesses of a single type also join together in trade associations, such as the National Association of Realtors. The broadest trade organization is the Chamber of Commerce.
Laborers can form unions to represent their interests in areas such as wages, benefits, and working conditions. Unions began to form during the Industrial Revolution.
The U.S. has one of the lowest rates of unionization of industrialized countries, with only 12% of the workforce unionized. The AFL-CIO represents about three-quarters of unionized workers. The proportion of workers who belong to unions has fallen as the nation has switched from a manufacturing to a service economy.
Union membership is optional in states with so-called open-shop laws. In states with closed-shop policies, membership is compulsory as a condition of employment to avoid the free rider problem.
Unions have strong communication channels with members, and typically endorse Democratic candidates, but they have been unable to stop Democratic presidents from signing free trade agreements.
How might aspects of American culture and ideology help explain the relatively low unionization of the American workforce? Do you know why rates of unionization are even lower in Germany and France?
How can you explain the steady upward growth of the labor force without a comparable growth in the unionized labor force?
Barack Obama meets with labor union members over breakfast during his 2008 campaign for the Democratic presidential nomination.
Unions are associated with blue-collar workers, but white-collar workers also have professional organizations, such as the American Bar Association for lawyers and the American Medical Association for doctors. Most professions are regulated and licensed at the state level, so these associations often focus their lobbying efforts on state governments. Professional associations, like all economic interest groups, are large donors to political campaigns.
Some interest groups focus on a single policy issue, such as abortion, gun control, or immigration. Members of single-issue groups are often ideologically motivated and unwilling to compromise on the public policies they are pursuing. Both pro- and anti-choice groups are examples of single-issue groups.
One of the largest and most powerful single-issue groups is the National Rifle Association, which boasts 4 million members, all dedicated to preventing gun-control legislation.
Emerging from the social movements of the 1960s is a type of group that claims to represent the public interest. Common Cause is an example of a public interest group. They publish reports on current issues and seek to make the political process more open and inclusive.
Founded by consumer activist Ralph Nader in the 1970s, public interest research groups, or PIRGS, as they are known, try to represent consumer interests in public policy.
Why is it harder for consumers to band together to form interest groups than, say, lawyers or ranchers?
The interest groups we’ve looked at so far try to influence domestic policies that affect their members or the public at large.
Some interest groups concern themselves with U.S. foreign policy. The Council on Foreign Relations is the most prestigious of these groups, but there are many groups that support or oppose free trade, or take stances on specific issues, such as China’s relations with Tibet or the Arab-Israeli conflict.
Another type of interest group is the nongovernmental organization, or NGO. NGOs are usually concerned about a global issue such as human rights or the environment. They work to raise public awareness and affect government policies. Examples of major NGOs include Greenpeace, an environmental NGO, and Amnesty International, an NGO concerned with human rights and the treatment of prisoners.
Governments constitute interest groups in and of themselves. Cities lobby state and national governments, and states hire Washington lobbyists. All levels of government and types of official have a lobbying organization to represent their interests. Examples of these organizations are the National Governors Association and the National League of Cities.
Government employees also form a major interest group that is subdivided by profession. Public educators, for example, are members of the National Education Association, which functions as a professional association, labor union, and public sector interest group all in one. The NEA endorses political candidates and is 3.2 million members strong.
Americans join interest groups for both emotional and financial reasons. Some join groups that focus on a common interest, such as hunting or fishing. These groups may lobby for policies favorable to their interest, such as a reduction in fishing license fees or a longer hunting season. Some, such as military veterans, join groups because of a shared identification.
The American Legion and the Veterans of Foreign Wars serve a social function in helping veterans connect with other veterans. They lobby Congress for policies that help veterans, and help veterans navigate the Veterans Administration bureaucracy.
Women’s organizations, such as the League of Women Voters and the National Organization for Women, advocate for equal rights. The League of Conservation Voters and the Sierra Club focus on preserving and protecting the environment. Some track the voting records of elected officials and produce score cards so that the public is aware of how their elected representatives are handling issues that are important to them.
Which environmental group has the most members? What is the most common strategy used by environmental groups?
As a quick review, try to answer this question about interest groups.
Economic interests are represented by more groups than any other type. Money is a powerful motivator.
Participation of individuals in interest groups has been called collective action or public choice. Getting people to participate is challenging, because people who don’t participate can sometimes derive the benefits. For example, if you don’t join your workplace union but the union secures better working conditions and benefits for all workers, you’re getting a free ride.
Unions are unique in being able, in some places, to coerce membership to avoid the free rider problem, but most groups have to contend with it. If the Sierra Club lobbies successfully for policies that result in cleaner air, you get the benefits of cleaner air even if you’re not a dues-paying member of the Sierra Club.
The more members an organization has, the more influence it has with politicians. To increase membership, groups often provide incentives to join, such as discounts on goods and services, free merchandise with the group’s logo, magazines just for members, and member events. Governments overcome the free rider problem through taxes, but private organizations cannot usually be as coercive and must rely upon incentives.
Some groups are concentrated geographically, such as automakers in Michigan and Cuban Americans in Florida. Other groups, such as the American Medical Association, have members in virtually every Congressional district in the country. In general, dispersal enhances a group’s influence but concentration certainly helps at the state and local level—and at the national level if the concentration is in a key battleground state.
The greater a group’s resources—such as money, volunteers, expertise, and reputation—the broader its reach into centers of power. A national group with active chapters in every state can lobby more government officials at all levels than a smaller one.
There are three types of members in most mass-membership organizations. The first type comprises the full-time leadership of the organization. These people rely on the second type of member, people who are intensely involved with the organization, organizing meetings and activities. The last type of member is the most numerous —members who pay dues but don’t otherwise participate in the organization’s activities.
As you might expect, single-issue groups have stronger cohesion than groups with more general aims. For example, Planned Parenthood has a strong and well-organized national network, and its goals are well understood by its supporters.
For groups that are more diverse, such as a business organization that has both large chain stores and small shops as members, the leadership must tread carefully to balance the interests of all its members and not alienate any segments. Even within factions there can be factions.
The American Association of Retired Persons, or AARP, is a large, influential organization of people who are over 50 years of age. The organization makes itself heard concerning issues of interest to older people.
Because of the separation of powers, the U.S. government provides many access points for lobbyists. But many groups focus their lobbying efforts on the public as much as on government officials. They use the Internet, U.S. mail, signs, newspapers, leaflets, and every other available means of publicity to influence voters.
Businesses enjoy an advantage here because they have more money to spend on advertising. Groups increasingly rely upon the Internet, especially social media, to reach the public. The Internet has made civic participation easier. Organizing activities such as marches and rallies and petitions is facilitated by the Internet, and so is making donations.
Groups have traditionally relied on mass mail campaigns to reach individuals, and computers have made this means of communication faster and cheaper. Many groups rely on e-mail as well as U.S. mail, and have access to much more specific lists of recipients than in the past.
Before new regulations go into effect, they are published in the Federal Register, and the public is given a time to get in touch with the government agency responsible for implementing the regulation. Lobbyists use this opportunity to present written responses, draft alternative regulations, and speak at hearings on the proposed rules.
Sometimes groups will find elected official unsympathetic to their policy goals, as happened during the civil rights movement. In this situation, interest groups turn to the courts, as did the NAACP, where they often have more success in appealing for constitutional rights.
In addition to filing lawsuits, groups can file amicus curiae briefs in cases in which they are not a party. The arguments in these briefs are sometimes cited in judicial opinions. Interest groups file these “friend of the court” briefs quite often; 136 were filed in the recent health care reform case.
Another technique used by groups is protest. Groups hold demonstrations to show elected officials how much support their cause has, and how passionate that support is.
A recent example of protest is the Occupy Wall Street movement. The movement began in New York and spread to other cities. Groups protested the increasing disparity of wealth and income in the U.S., and sought to put this issue on the political agenda.
Nonprofit groups are limited in what political activities they can engage in legally, so they form separate political action committees, or PACs, that contribute money to political candidates. Super PACs are a new form of PAC that have no legal limits on the amount of money they can spend on supporting or opposing candidates. Individuals can contribute to campaigns in a way that makes their interests clear, using a process called bundling, in which individual contributions are gathered and presented to the candidate together.
Many groups are officially nonpartisan and contribute to both parties to be assured of a warmer reception for their lobbyists. There’s also a tendency of groups to give money to the incumbent, regardless of party. Can you figure out why this is?
Over time, though, many groups find that their policy position is better represented by one party, and they contribute to that party accordingly.
Groups publicly endorse candidates and publish scorecards of candidates’ voting records on the issues that concern them.
Occasionally groups will form a political party to represent their interests, but the two-party system makes this method of influence largely ineffective today. Instead, groups are more likely to work through existing parties, as does the Tea Party, which is not a political party, but a faction within the Republican Party.
One exception is the Green Party, a political party formed by environmentalists. The Green Party fields candidates in national, state, and local elections but has been rightfully accused of splitting the vote, taking votes away from one of the major parties.
Like-minded groups sometimes form cooperative groups to coordinate their efforts and increase their influence.
Vote 4 Energy, a group backed by the American Petroleum Institute, advertised widely in 2012 on the theme that energy resources are important and people should vote with energy in mind. What do you think of industry-backed groups posing as grassroots or independent groups?
We’ve included PACs in our discussion of interest groups. Can you answer this question about PACs?
PACs are a separate division of an interest group that makes contributions to political candidates.
Lobbyists are hired by interest groups to influence policy positions and decisions. Their name comes from the fact that they used to hang around lobbies of buildings where politicians worked in the hope of catching their attention.
Today, lobbying is quite sophisticated. Although lobbyists are by definition biased, they provide information to all three branches of government, as well as the public. They prepare legislation and testify at legislative hearings. Their contributions also cover most of the costs of political campaigning. But their influence on legislation is controversial, since it is blatantly biased.
Lobbyists are, not surprisingly, often former public servants. Because they have connections, and know how the system works from the inside, they are sought after by lobbying firms. Since lobbying is a lucrative profession, some elected officials enter public office intending to serve only until they have enough experience to be snapped up by a lobbying firm. This career path is so common, it is known as the revolving door.
The main tools at the disposal of lobbyists include their knowledge of their policy issue, their personal charm and persuasiveness, their personal influence, and, of course, money.
One method of building personal influence is to participate in an issue network. Issue networks are special relationships among interest groups, congressional committees and subcommittees, and government agencies that share a common policy concern. They can become so strong that they almost form a fourth branch of government.
Although the public tends to fear the unscrupulous lobbyist who has a politician’s ear, the truth is that lobbyists are not that influential. There are many interest groups with different policy perspectives all competing at the same time for influence.
The single most important thing that lobbyists do is raise money for political campaigns. Interest groups can also provide volunteers for campaign activity, and quietly support an incumbent by not helping challengers.
Interest groups provide two types of information. Political information consists of who supports what, and how strongly. Substantive information includes the impact of proposed laws and technical language to go into the legislation.
Interest groups try to influence public opinion so that the voters will contact elected officials and put pressure on them to support or reject policies. Interest groups often use e-mail and U.S. mail campaigns, as well as television and radio advertising, and banner ads on the Internet.
We’ve learned about lobbyists. Try to answer this question about the profession.
More than half of former elected officials become lobbyists. Former agency employees become lobbyists, too, but they are banned from lobbying their former agency.
We’ve mentioned that the most powerful tool wielded by interest groups is money. Money can be contributed directly to candidates seeking public office or it can be donated to political parties. Interest groups can also give money to other interest groups, and also spend money on campaigning independently of candidates and parties.
When groups spend money on candidates, they expect to be repaid with access and influence.
PACs are the political arm of interest groups. They are allowed to contribute funds to political parties and candidates for public office. The goal of these political contributions is to put candidates in office who support policies that the interest group favors and then influence how they act and vote.
There are 4,611 PACs registered today, the majority of which represent corporate interests.
These contributions are listed in millions of dollars. What is the overall trend for PAC contributions during this time period?
Which PACs have contributed less in the last decade? Which have contributed more? What types of groups are represented by these PACs? Do any of them surprise you? Are there any PACs you expected to be in the top ten that are not listed?
A new kind of PAC, the Super PAC, came into existence in 2010 after the Supreme Court declared limits on campaign spending by corporations to be a violation of free speech rights. The case of Citizens United v. FEC opened up vast new spending possibilities for corporations, unions, and other well-funded interest groups.
Elected officials sometimes form their own PACs, called leadership PACs, to spend money on favored candidates and bolster their leadership aspirations.
Super PACs can spend huge amounts of money.
PACs give one dollar to challengers for every nine dollars spent on incumbents. Candidates do not receive all of their funding from PACs, but PACs provide enough—about 42% on average—to give incumbents an almost insurmountable advantage.
Over time, how has the distribution of PAC money changed? Why do PACs contribute so disproportionately to incumbents?
PACs are limited to contributing no more than $10,000 per candidate in each federal election. Individuals used to be limited to contributing $2,000 but the Bipartisan Campaign Reform Act of 2004 raised that limit to $5,000 for the primary and general election combined.
PACs target their contributions to officials in leadership positions, such as committee chairs and party leaders, because they wield the most influence in the legislature. PACs give slightly more money to whichever party controls Congress at a given time.
Interest groups use various channels of communication, such as the telephone, e-mail, and the U.S. mail, to persuade their members to vote their way in upcoming elections.
Interest groups have also used so-called soft money contributions to political parties as a way to bypass limits on the amount of contributions they can make to specific candidates. We will discuss soft money more in the next chapter.
Recently, interest groups have started spending money directly on advertising rather than contributing to candidates or parties. This direct method of communication with voters allows them to sidestep disclosure regulations. The Citizens United decision effectively removed all limits on how much groups can spend on issue ads that mention candidates, so they are going to be a major feature of electioneering for the foreseeable future.
In this photo, Matt Lauer of the the Today Show is asking Congressman Todd Akin about his controversial statement that women who are victims of “legitimate rape” rarely get pregnant. After negative publicity, some groups decided not to spend money on his 2012 campaign. He lost the election.
Groups or individuals can make unlimited independent campaign expenditures—that is, expenditures that aren’t contributed to a candidate or party. The Supreme Court declared limits on independent expenditures to be unconstitutional in 1976. In addition to their PAC contributions, groups spend millions on independent expenditures. Although this spending is unlimited, it must be disclosed to the Federal Election Commission.
In 2010, Crossroads spent $4.5 million on ads attacking the Democratic candidate in the Illinois Senate race, and a related group spent $6 million on attack ads against the Democratic candidate in the Colorado Senate race. These expenditures dwarf what PACs can contribute.
Which group spent the most? Can you tell from the names what interests are represented by all the groups and who might be funding them? Which names are specific and which are vague?
Interest groups have always looked for ways to get around disclosure requirements. Reformers and the Supreme Court have tried to link disclosure to use of certain phrases such as “vote for” or “vote against,” but it has been easy for groups to avoid words that trigger disclosure requirements and still get their message across.
Campaign finance reform legislation and Court cases have changed the playing field for interest groups in recent years. As new rules were enacted, groups simply reorganized to find ways to circumvent them. The Bipartisan Campaign Reform Act, or BCRA, in 2004 was the largest piece of reform legislation, although it has been significantly weakened since.
So-called 527 organizations get that name from section 527 of the IRS code that gives the groups their tax-exempt status. An example of a 527 organization is the Swift Boat Veterans for Truth, who organized to oppose John Kerry’s presidential campaign and utilized advertising effectively.
An important part of campaigns is registering new voters and canvassing them about their views on issues. In this photograph, a volunteer from an interest group focusing on get-out-the-vote efforts gets survey responses from a Minnesota family.
Please answer this brief review question about interest groups and PACs.
Corporations have formed more PACs than other interest groups, in large part because of their greater financial resources.
We have noted that incumbents have an advantage over challengers, since PACs are more likely to give money to a proven winner than take a risk on a challenger. But how much does the money flowing from interest groups into political campaigns influence electoral outcomes? And how much does it influence policy? The short answer, of course, is that it depends.
Many groups contribute to a single candidate, so the influence of any one group can theoretically be tempered. It’s certainly true that money from well-funded interest groups can help a candidate stay in the race longer, as happened with both Newt Gingrich and Rick Santorum in the 2012 Republican primary race.
But even with lots of interest group money to support a campaign, it is ultimately the voters who decide who wins and loses. In addition to campaign contributions, interest groups attempt to mobilize voters with electioneering activities such as voter registration drives, providing absentee ballot forms, and publishing websites with information on candidates’ views.
At the beginning of the chapter, we discussed James Madison and his great fear of the “mischief of factions.” If Madison were to return to see the state of factions and their mischief today, he would doubtless be surprised by the involvement of lobbyists and special interest groups in the political process.
Many people are alarmed by the policy influence of single-issue groups and well-funded industry groups. Some express concern that interests are not represented equally. It’s easier, for example, for a single wealthy industry to lobby for lower water pollution standards than for poor residents who live near a polluted river to lobby for higher pollution standards.
When lawmakers try to appease multiple groups with opposing policy views, it can lead to inefficient, incoherent, or delayed policies. Also, the tendency for groups to back incumbents gives them a tremendous advantage in elections.
There have been some weak legislative attempts to restrict lobbying and reform campaign financing, but the Court has eased regulations on interest group activity, especially in the area of financial contributions. The Lobbying Disclosure Act of 1995 requires candidates to disclose who their donors are, but Super PACs can get around this requirement easily.
Perhaps the most important role that interest groups play is fostering self-government. They provide a mechanism for citizens to work together to pursue common policy objectives.
Super PACs have a lot of money to spend. Can you answer this review question about super PACs?
Super PACs take out ads that are cleverly designed not to endorse one candidate, so as to sidestep disclosure laws. They can also delay disclosure of campaign contributions until after an election is over so that voters and other candidates don’t know who owns each candidate until it’s too late.