Lobbying in Good Times and in Bad

Money plays a big role in US politics. There are two primary ways of amassing political influence: donations to campaigns and political action committees (PACs) and lobbying. With no limits on lobbying expenditures, this activity has historically garnered the largest spending. In today’s markets, firms cannot be successful without considering their political environment. Because of this, competitive market behavior and political rent-seeking (like lobbying) have become strategic complements, and firms redistribute their spending across market and political activities based on which arena offers the best chance at increasing revenues