Rent Seeking and How Campaign Funds and Lobbying in United States of Americas (US) Elections Affects the Legislative Process?

Abstract

It is a common knowledge that large donations or contributions received towards campaign funds, in any election, influences the legislative process in favor of the donors. This is applicable to Federal (Presidential and Congress) and State (Governor and State Congress) elections. Donors wield their power, through their elected candidates, to regulate government policies, legislations and actions after every election. For major donors, the contributions are investment and cost of doing business. This is especially applicable to the contributions to the candidates or political parties or their Political Action Committees (PAC) or Super PACs from wealthy individuals and corporate donors. However, it is difficult to measure the exact degree of its influence on government policies and decisions. This paper, through qualitative survey study, assesses and measures the donors influence on legislative process and how it has benefitted them. An attempt is made to find out the campaign finance laws and reforms enacted by the regulators in diminishing or reducing the influence. The contributions or donations as a second step lead to lobbying that covertly or directly affects the legislative process thereby being detrimental to the common interests of the society at large. It also affects the economic policies of the country and slows down the economic growth and its development. Contributions and Lobbying is a form of rent seeking and indirect corruption since the rent seekers are greatly benefitted. Redistribution of wealth and precious resources takes place from the tax payers to rent seekers. The candidates are focusing their energy and attention towards seeking contributions and donations. Thus, sacrificing their ideologies and not employing their energies on framing a comprehensive manifesto with good economic policies and other pertinent national interest issues. Hence, contributions do matter in elections. This subject has to be studied more in detail through further research.