The Future of American Business Models

Regulators are increasingly making decisions based on party line votes, rather than independent assessments. Influencing Our Independent Judicial System: Judges at all levels, including the Supreme Court, are now frequently appointed through partisan-driven processes (see Figure 8). This has resulted in the confirmation of judges who may not have met the necessary qualifications, as determined by Nonpartisan organizations like the American Bar Association (ABA). Amy Coney Barrett, who was confirmed to the Supreme Court in 2020 with a vote of 52-48, made history as the first justice to be confirmed without any opposition votes from the nominating president's party since 1869. In contrast, Justice Ruth Bader Ginsburg, whose seat Barrett filled, received a bipartisan vote of 96-3 during her confirmation in 1993.The separation of powers within our government institutions has been gradually weakened. Partisan infiltration and regulatory capture enable parties to exert greater influence on public policy, resulting in the delivery of more legislation to their core constituencies. This further exacerbates the challenges for emerging political contenders.

The Historical Role of Business in Elections and Government Affairs

In the past, businesses have primarily focused on making significant political contributions when it comes to their involvement in politics. Indeed, the business sector has long been the primary financial supporter of our political system. Business has a rich history of political involvement, which can be traced back to the Gilded Age in the late 19th century. During this time, powerful business figures emerged and exerted their influence in politics, leveraging their vast resources to shape public policy and gain special advantages.Citizen dissatisfaction with business' role led to the Progressive Era Reforms, which resulted in the implementation of numerous rules to enhance political competition and reduce business influence. However, in the present day, business once again holds significant sway in politics through six primary channels.Advocating for the interests of industries or companies in legislation, rather than prioritizing the public interest. In 2020, the amount of reported lobbying by business reached an astonishing $3 billion, accounting for a staggering 88% of all disclosed federal lobbying expenditures. The amount spent on federal lobbying by non-profit entities, such as advocacy groups, was $41 million. However, this pales in comparison to the staggering $6 billion per year spent on unreported or "shadow" lobbying by business lobby groups. Several studies have presented compelling evidence that business lobbying can be a profitable strategy by influencing regulation and other policy solutions.

As an illustration

 

the pharmaceutical industry allocates a significant amount of money each year to influence Congress in favor of policies that enable them to raise the prices of prescription drugs. When it comes to insulin for diabetes treatment, the prices in the United States are more than 10 times higher than those in other countries. 27The nation's top health insurance organization contributed over $100 million to support the United States. The Chamber of Commerce's efforts to undermine the Affordable Care Act were facilitated by the redirection of funds. Insurance companies used the Chamber as a front to publicly support healthcare reform, while secretly financing lobbying against it. In yet another distressing case involving pharmaceutical companies, they invested a staggering $740 million to effectively undermine federal and state regulations aimed at curbing the over-prescription of opioids. These regulations were proposed by concerned citizen groups in response to the devastating opioid crisis, which claimed the lives of nearly 500,000 Americans from 1999 to 2019. Corporate PACs have a significant fundraising advantage over labor unions when it comes to delivering funds. In 2020, business-related PACs accounted for a staggering $5.9 billion in campaign spending, which made up almost 60% of the total amount.Many companies often support politicians from both parties, aiming to gain influence and strengthen relationships with both sides in order to shape public policy.

Hiring former government officials to advance special interest policies.

A significant portion of registered lobbyists consists of individuals who have previously held positions in the government, including former members of Congress, congressional staffers, and former executive and regulatory agency officials. Many of these individuals work for companies or lobbying firms, and approximately half of them find ways to avoid registering as lobbyists by exploiting loopholes in the disclosure rules. This practice, commonly referred to as the "revolving door," has proven to be highly effective in shaping legislation. However, it has also led to a lack of independence within the federal government and its regulatory agencies. During the Trump administration, over 350 individuals with previous lobbying experience were selected for high-level positions, including within the Health and Human Services department.Secretary Alex Azar.30 The outcome may be legislation that is ineffective and works against the best interests of the public. Many former government employees and appointees have close ties to powerful industry interests, or they may be influenced to align themselves with these interests during their time in government, with the aim of securing a lucrative industry job once their term ends.Company campaign contributions are made to support the election of candidates who align with industry or company agendas, and to establish connections with elected officials.As we discussed, it is clear that business plays a major role in funding our political system and election campaigns.