We often hear claims that lobbyists have undue influence on the legislative process. These claims are usually accompanied with horror stories of how some industry has used lobbyists to enact a bill that harms consumers, home owners, or some other group. While there is an element of truth in these claims, they fail to identify the real travesty.
It is important to understand that lobbyists essentially do two things: defend the rights of their client, or seek legislation that grants special favors to their clients.
For example, when the legislature considered a bill that would place restrictions on the freedom of micro-breweries to sell directly to consumers, lobbyists for the brewers were defending the rights of their client. At the same time, lobbyists for beer distributors fought for the bill and the special favors that it granted to the distributors. The former is proper and just; the latter is nothing more than cronyism. But our wrath should not be directed at the lobbyists. It should be directed at a political system (and its defenders) that gives government the power to grant such favors.
As another example, in an article titled “The Insurance Lobby has Destroyed Texas Property Rights,” the author notes that many home owners and businesses who suffered damage during Hurricane Harvey haven’t received settlements from their insurance company. The reason, he claims, is
a 15-year assault waged by insurance companies and their lobbyists on the rights of property owners.
This insurance industry campaign has undermined policyholder protections designed to keep insurance affordable, guarantee basic coverage, and hold insurance companies accountable for handling claims unfairly.
The author goes on to note numerous favors granted to insurance companies by the legislature. And who does he blame? Those asking for government favors–insurance companies and their lobbyists–rather than the legislators who grant those favors.
If government did not have the power to grant such favors, lobbyists would have no motivation to attempt to influence legislators. But when government has the power to dispense unearned benefits to some at the expense of others, the legislative process becomes a battle to determine who will benefit and who will be victimized.