Policy: Economy

How Obamanomics makes lobbyists and lawyers rich

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Beltway Confidential,Timothy P. Carney,Obamacare,Lobbying,Economy,Dodd Frank

"Regulations create jobs" is an actual argument by liberals. This is true in a way. Regulations create jobs for lobbyists and lawyers. The Hill's Megan Wilson reports:

Lobbyists are minting money from the surge in government regulations.

Top K Street officials say their regulatory work has accelerated in recent years thanks to the sprawling rule-making from the healthcare and financial reform laws.

“We’re in this situation now, where we have this strong executive branch [that is] taking full advantage of being able to do whatever they want,” said Rich Gold, a partner at Holland & Knight. ...

The increased focus on regulation coincides with a general rise in the regulatory state under both Democratic and Republican presidents. ...

Who benefits? For one, regulators:

The shift toward regulatory lobbying has created a voracious demand on K Street for former regulators, with firms paying top dollar to land their services.

Also, the staffers and congressmen who write the laws benefit. I've written for years about staffers and lawmakers drafting big laws that create huge regulatory processes -- and then cashing out to shape the regulation for the affected businesses (for instance, Dodd-Frank and Obamacare).

Take a second and think about the incentives this creates for staffers and lawmakers.

Also think about the deadweight costs it imposes on businesses. You can see clearly how Washington's gain is the economy's loss.

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