Lobbying Provides 22,000% Return on Investment
A new study from the Government Accountability Institute revealed that for every dollar corporations spent on lobbying in 2004, they received $220 in return — a 22,000% return on investment! This study confirms that cronyism, or crony capitalism, is a huge problem today. Instead of success being determined by the free market and the rule of law, the success of a business is dependent on the favoritism that is shown to it by politicians in the form of special tax breaks, federal or state government grants and other incentives.
According to the study, 50% of corporations have politicians on their board, and 30 corporations spend more on lobbying than they pay in taxes. General Electric, for example, spends $100,000 every single day to influence and lobby Congress. This rampant cronyism stretches across both political parties as half of the Republicans who were part of the 1994 “Contract with America” are now lobbyists after leaving Congress.
When wealth is created in the private sector everyone benefits, but when money is taken from taxpayers and distributed to the well connected through Washington, DC or Lansing only those with access to the breaks will benefit.
Time to end cronyism and embrace economic freedom.
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