Case of The Eli Lilly Bandit

1. Case of The Eli Lilly Bandit • Exemption from liability – who slipped this in during a conference committee? • Have special interest groups taken over?

2. Interest Groups • Are there too many? Just enough? • Does money talk? If so – how loudly? • James Madison in Federalist #10 said: The sphere of influence must be extended in order to prevent any one group from having too much power.

3. Are corporate special interests out of control after the Citizen’s United ruling? Are they so powerful that they control Washington politics?

4. So just what is an interest group? • An interest group is an organization whose members share common concerns and try to influence government policies affecting those concerns. Interest groups are also known as lobbies; lobbying is one of the ways in which interest groups shape legislation and bring the views of their constituents to the attention of decision-makers. Interest groups also provide information promoting a particular point of view or offer support for reelection. Some interest groups, like antiabortion groups, exist primarily to do the lobbying of their group. For other organizations, like labor unions, corporations, or the military, lobbying is secondary to a variety of other activities.

5. Special Interest Groups – The factions that our founders dreaded? or the voice of the people? • Private/nongovernmental • Protected under the 1st amendment in the Bill of Rights • Try to influence public policy – promote policies that affect a defined group in society • 36,000 K Street lobbyists – an explosion of special interest groups and money spent primarily occurring since 1960.

6. Special interest Groups v Political Parties • Interest groups are often policy specialists, whereas parties are policy generalists. Parties • Nominate candidates • Win election and govern • Broad inclusive platform – positions on 100’s of issues Special Interest Groups • Influence elections – help get officials elected favorable to their cause • May support either party or some candidates in either party • Lobby for their cause – promote the narrow interest of their group

8. 3 Theories About Special Interest Groups

9. Theories of Interest Group Politics • Pluralist Theory suggests that interest groups serve an important function and allow more voices in the conversation. • Interest groups are a linkage institution in government • Groups compete • No one group is likely to become too dominant • Groups usually play by “the rules of the game” • While some groups have money – other groups have more people…big business vs. unions

10. Elite Theory suggests that real power lies in the hands of a few and that these few hold multiple positions of power. • More groups doesn’t mean anything because the groups are unequal in power • Awesome power is held by large multinational corporations • The few that have power – have interlocking power (in multiple positions of power • Other groups win minor battles – but big decisions are won by the elite

11. Who’s got the Power in America? Does money buy power? Who cares what the poor think?

12. Hyperpluralist Theory suggests that the pluralist system is out of control. Too many groups. By trying to please every group – you create contradictory, confusing and expensive policy. • Confusion • Overspending • Gridlock results

13. Special interest groups role as a linkage institution. • Help raise concern about issues. • Get issues on the political agenda An amplified voice of the people? Helps get issues on the policy agenda

14. The Iron Triangle and Special Interest Groups Nuke Power Industry, key members of Congress, Nuclear Regulatory Industry.

15. Soooo? What interest groups might interest you? • http://www.learner.org/courses/democracyinamerica/dia_14/dia_14_ct.html

16. Small Groups more successful than large ones???? • Potential Groups – All the people that might be a part of the group. • Actual Group – Those people who actually join

17. Collective Good If the U of M Alumni Association got discounted rates on U of M sporting events for ALL alum – then everyone would get that benefit – whether they belong to the Alumni Association or not.

18. Free-Riders Those who benefit from the collective good without paying dues or being an active member of the Alumni Association – they are called Free-Riders.

19. Olson’s law of large groups • The larger the group – the more free-riders • In a class action suit – all members of the class will receive a portion of the settlement • Who has more incentive to participate • The consumer (who will share with potentially millions of others • The businesses who are impacted by the settlement and have to pay damages

20. Selective BenefitsBy offering benefits only to those that actually join – large groups can overcome Olson’s Law.

21. Olson’s theory is that the smaller group will be more well organized. • Lobbying costs and benefits are focused and concentrated • Small groups have organizational advantage • Clear economic advantages understood • Business and corporate groups can finance efforts Who are the most powerful special interest groups? How many of them represent business and corporate concerns?

22. Fortune Magazine top 25 special interest groups 2001 1.  National Rifle Association2.  American Association of Retired People (AARP)3.  National Federation of Independent Business4.  American Israel Foreign Affairs Committee 5.  Association of Trial Lawyers of America6.  AFL-CIO7.  Chamber of Commerce of the United States of America8.  National Beer Wholesalers of America9.  National Association of Realtors10.  National Association of Manufacturers11.  National Association of Homebuilders of the United States12.  American Medical Association13.  American Hospital Association14.  National Education Association of the United States15.  American Farm Bureau Federation16. Motion Picture Association of America17.  National Association of Broadcasters18.  National Right to Life Committee19.  Health Insurance Association of America20.  National Restaurant Association21.  National Governors' Association22.  Recording Industry Association of America23.  American Bankers Association24.  Pharmaceutical Research and Manufacturers of America25.  International Brotherhood of Teamsters

24. Money Helps…but doesn’t always win the day • Michigan Proposals 2012 • Prop 6 – MattyMaroun spent $33 million to block the building of a new bridge. • Unions spent $10 million • to get collective bargaining rights into the constitution

25. Four Methods of Special Interest Groups 1. Lobbying • Paid employees of corporations, unions or associations • “For Hire”

26. Lobbyists offer - • Expertise/advice • Testimony • Language for bills • Campaign $ - get the group they represent behind the candidate • Alternative view – new ideas that a Congressperson can attach their name to Looking at this chart – Who has influence over laws governing global warming?

27. Can lobbyists actual persuade members of Congress to change their mind? • Threaten? • Bribe? • Inform and persuade. • Primarily activate and reinforce?

28. 2. Electioneering • Getting the candidate elected • PAC’s – who do they support? • Incumbent advantage • Why do they support them? • On committees that are important to their interests • Very supportive of issues important to them • From a district or state where they had facilities • Helping them with executive and regulatory agencies • In leadership positions that enabled them to influence issues that affect the PAC

29. Other Electioneering Activities of Interest Groups Get members to run for office Send delegates to the convention to influence the party platform Get volunteers to help on campaigns Officially endorse candidates

30. 3. Litigation • Groups fight for their interests in court • Many civil rights groups fought their battles in court not Congress • Amicus Curiae Briefs • Attempt to influence courts • Filed by parties that have an interest in the outcome of the case • Filed by parties not actively involved in the suit • Regents of the University of California v. Bakke: 100 amicus briefs filed • Class Action Suits – often filed by interest groups (Erin Brockovich)

31. Class Action Lawsuits

32. 4. Going Public… • Like politicians – interest groups pay attention to public opinion and try to rally their members to support/protest legislation • Interest Groups want a positive public image – and often pay for ad campaigns to get it.

33. Going Public can mean: • Mass protest • Grass roots letter writing/email campaigns http://forcechange.com/136065/save-giraffes-from-extinction/ • Gulf spill hay video: https://www.youtube.com/watch?v=k5SxX2EntEo • Kevin Costner: https://www.youtube.com/watch?v=Jx5XgUYDQ3k • Parody in Media http://www.youtube.com/watch?v=2AAa0gd7ClM • BP Response: https://www.youtube.com/watch?v=sW11NUyKyp8

34. Classifications of Special Interest Groups • Economic interest – business , trade associations, and unions. Agricultural • Professional Groups (i.e.. doctors, lawyers, etc) • Public Interest (i.e. environmental, civil rights, consumer protection) • Single-Issue Those which promote a segment of the population (AARP) or a particular interest (MADD) • Ideological (religious or political)

35. Economic Interest Groups • Government doesn’t determine wages/prices/profits – but can influence these through: • Regulations • Tax advantages • Subsidies • Government contracts • International trade policy

36. Labor Interest Groups (Economic) • Labor unions are interest groups – press for policies to ensure better working conditions and higher wages • OSHA standards • Child labor laws • Minimum wage • 8 hour work day • Union Shop • Requires workers to belong to the organization that supports them (avoid free-riders) • Right to work laws – supported by business interest groups – outlaw the union shop – can’t require membership in a union as a condition of employment.

37. Business Interest Groups (Economic) • 70% of all interest group organizations in Washington represent business • Growing faster than any other type of interest group • Many compete against each other More/better mass transit More/better roads

38. Professional Groups

39. Consumers and Public Interest Groups • Seek the public’s collective good – everyone benefits • Seek to protect the public from harm • https://www.youtube.com/watch?v=evU6HedLyqg • http://www.youtube.com/watch?v=-OcIwPx-SCs • http://www.youtube.com/watch?v=HmqlhnPt1qk

40. Environmental Interest Groups(Public Interest) • Concerned with environmental protection • Often conflict with goals of energy producers

41. Single Issue Groups

42. Single Issue Groups • Narrow focus • High intensity • Dislike compromise • Issues that often evoke strong emotions

43. Ideological Interests • Brown vs. Board of Education is the result of the work of NAACP Interest Group • Groups like NOH8 work for the passage of rights for the LGBTQ community

44. Religious Based(Ideological) Pat Robertson holds up the Christian coalition voter Guide

45. The Good and the Bad Good Points Bad Points

46. The Good and the Bad Good Points • Give a voice to the people • Add to checks and balances • Expert specialized information • Demonstrates issues people care about Bad Points • Special Interests not concerned about the whole picture • Free rider problem • Low income – less powerful underrepresented

47. So what do the 3 theorist’s think? Pluralists: Elite Theorists: Hyperpluralists:

48. So what do the 3 theorist’s think? Pluralists: Madison would be happy – a group for every interest and another to counter that group – opens the door for everyone to participate and good dialogue to occur – no one gets too much power. Elite Theorists: Business groups are proliferating. PACS and money distorts the democratic process. The powerful PACS are buying votes in Congress and state legislatures Hyperpluralists: Too many competing interests that no one wants to say no to. Causes gridlock or contradictory policies and is creating bigger and bigger government

49. Scope of government • Special interest groups strive to maintain established programs that benefit them. • Is government bigger as a result? YEEEEEESSSSSS