Ch09 Interest Groups Organizing for Influence.docx

Chapter 9 Interest Groups: Organizing for Influence Chapter Outline I. The Interest-Group System A. Economic Groups B. Citizens’ Groups C. The Organizational Edge: Economic Groups vs. Citizens’ Groups 1. Unequal Access to Resources 2. The Advantages and Disadvantages of Size II. Inside Lobbying: Seeking Influence through Official Contacts A. Acquiring Access to Officials 1. Lobbying Congress 2. Lobbying the Executive 3. Lobbying the Courts B. Webs of Influence: Groups in the Policy Process 1. Iron Triangles 2. Issue Networks III. Outside Lobbying: Seeking Influence through Public Pressure A. Constituency Advocacy: Grassroots Lobbying B. Electoral Action: Votes and PAC Money IV. The Group System: Indispensable but Biased A. The Contribution of Groups to Self-Government: Pluralism B. Flaws in Pluralism: Interest-Group Liberalism and Economic Bias C. A Madisonian Dilemma Learning Objectives Having read the chapter, you should be able to do each of the following: Explain what an interest group is and how these groups differ from a political party. Discuss the different types of interest groups and their constituencies, and compare and contrast the organizational advantages and disadvantages of economic and citizens’ groups. Define lobbying and explain its objective; list the tactics employed by interest groups in the lobbying process. Compare and contrast the processes of inside and outside lobbying, their targets in the power structure, and the circumstances in which either are most effective. Discuss the difference between iron triangles and issue networks and the prevalence of each today. Discuss the activities of political action committees and their influence on the election process. Explain pluralist theory and interest-group liberalism. Discuss the major weaknesses of the pluralist argument. Discuss the conflict between the advocacy of self-interest as the basic prerequisite for a free society and the government’s responsibility to protect and preserve the public interest (the Madisonian dilemma). Also, explain how James Madison’s constitutional system of checks and balances resulted in an increase of special interest influence. Chapter Summary A political interest group is composed of a set of individuals organized to promote a shared concern. Most interest groups owe their existence to factors other than politics. These groups form for economic reasons, such as the pursuit of profit, and maintain themselves by making profits (in the case of corporations) or by providing their members with private goods, such as jobs and wages. Economic groups include corporations, trade associations, labor unions, farm organizations, and professional associations. Collectively, economic groups are by far the largest set of organized interests. The group system tends to favor interests that are already economically and socially advantaged. Citizens’ groups do not have the same organizational advantages as economic groups. They depend on voluntary contributions from potential members, who may lack interest and resources or who recognize that they will get the collective good from a group’s activity even if they do not participate (the free-rider problem). Citizens’ groups include public-interest, single-issue, and ideological groups. Their numbers have increased dramatically since the 1960s despite their organizational problems. Organized interests seek influence largely by lobbying public officials and contributing to election campaigns. Using an inside strategy, lobbyists develop direct contacts with legislators, government bureaucrats, and members of the judiciary in order to persuade them to accept the group’s perspective on policy. Groups also use an outside strategy, seeking to mobilize public support for their goals. This strategy relies in part on grassroots lobbying—encouraging group members and the public to communicate their policy views to officials. Outside lobbying also includes efforts to elect officeholders who will support group aims. Through political action committees (PACs), organized groups now provide nearly a third of all contributions received by congressional candidates. The policies that emerge from the group system bring benefits to many of society’s interests and often serve the collective interest as well. But when groups can essentially dictate policies, the common good is rarely served. The majority’s interest is subordinated to group (minority) interests. In most instances, the minority consists of individuals who already enjoy a substantial share of society’s benefits. Focus and Main Points The author focuses on interest groups and the degree to which various interests in American society are represented by organized groups. He believes that economically powerful groups dominate the group system, a belief not shared by pluralist thinkers. The chapter begins with delineation between economic and citizens’ groups, and offers an explanation for differences in the degree to which various interests are organized. The chapter then explores the lobbying process by which interest groups seek to achieve their policy goals and evaluates its impact on national policy. The differences between inside and outside lobbying are examined, along with the various forms of activity each entails. The chapter concludes with a discussion of how the group system is simultaneously indispensable and flawed. The main points are as follows: Although nearly all interests in American society are organized to some degree, those associated with economic activity, particularly business enterprises, are by far the most thoroughly organized. Their advantage rests on their superior financial resources and on the private goods (such as wages and jobs) they provide to those in the organization. Groups that do not have economic activity as their primary function often have organizational difficulties. These groups pursue public or collective goods (such as a safer environment) that are available even to individuals who are not group members, so individuals may free ride, choosing not to pay the costs of membership. Lobbying and electioneering are the traditional means by which groups communicate with and influence political leaders. Recent developments, including grassroots lobbying and PACs, have heightened interest groups’ influence. The interest-group system over-represents business interests and fosters policies that serve a group’s interest more than the society’s broader interests. Thus, although groups are an essential part of the policy process, they also distort that process. Major Concepts single-issue politics The situation in which separate groups are organized around nearly every conceivable policy issue and press their demands and influence to the utmost. interest group Any organization that actively seeks to influence public policy economic groups Interest groups that are organized primarily for economic reasons but that engage in political activity in order to seek favorable policies from government. private (individual) good Benefits that a group (most often an economic group) can grant directly and exclusively to individual members of the group. citizens’ (noneconomic) groups Organized interests formed by individuals drawn together by opportunities to promote a cause in which they believe but that does not provide them significant individual economic benefits. collective (public) goods Benefits that are offered by groups (usually citizens’ groups) as an incentive for membership but that are nondivisible (such as a clean environment) and therefore are available to nonmembers as well as members of the particular group. free-rider problem The situation in which the benefits offered by a group to its members are also available to nonmembers. The incentive to join the group and to promote its cause is reduced because nonmembers (free riders) receive the benefits (e.g., a cleaner environment) without having to pay any of the group’s costs. lobbying The process by which interest-group members or lobbyists attempt to influence public policy through contacts with public officials. inside lobbying Direct communication between organized interests and policymakers, which is based on the assumed value of close (“inside”) contacts with policymakers. iron triangle A small and informal but relatively stable group of well-positioned legislators, executives, and lobbyists who seek to promote policies beneficial to a particular interest. issue network An informal and relatively open network of public officials and lobbyists who have a common interest in a given area and who are brought together by a proposed policy in that area. Unlike an iron triangle, an issue network disbands after the issue is resolved. outside lobbying A form of lobbying in which an interest group seeks to use public pressure as a means of influencing officials. grassroots lobbying A form of lobbying designed to persuade officials that a group’s policy position has strong constituent support. political action committee (PAC) The organization through which an interest group raises and distributes funds for election purposes. By law, the funds must be raised through voluntary contributions. interest-group liberalism The tendency of public officials to support the policy demands of self-interested groups (as opposed to judging policy demands according to whether they serve a larger conception of “the public interest”). Practice Exam (Answers appear at the end of this chapter.) Multiple Choice 1. Which nation has been famously labeled “a nation of joiners”? a. France b. Italy c. the United States d. Germany e. Great Britain 2. Which of the following is NOT a professional group? a. American Association of Retired Persons b. American Association of University Professors c. American Medical Association d. American Bar Association e. None of these is correct, as all represent professional groups. 3. The reality that about 90 percent of regular listeners to National Public Radio do not contribute to their local station is illustrative of a. the iron triangle. b. issue networks. c. the free-rider problem. d. inside lobbying. e. outside lobbying. 4. What is the primary means of lobbying for the American Civil Liberties Union? a. inside lobbying b. outside lobbying c. protest politics d. networking on the Internet e. litigation 5. An iron triangle works to the advantage of a. interest groups. b. congressional subcommittees. c. government agencies. d. all of these: interest groups, congressional subcommittees, and government agencies. e. None of these answers is correct. 6. Most political action committees represent a. citizens’ groups. b. government groups. c. business groups. d. labor groups. e. incumbent office holders. 7. ________ wrote that “Liberty is to faction what air is to fire.” a. James Madison b. Theodore Lowi c. John McCain d. Bob Livingston e. John Stuart Mill 8. The AFL-CIO is a. the dominant business association in the U.S. and the single largest spender on lobbying efforts in the country. b. the dominant independent union in the U.S. c. the dominant labor group in the U.S., and is composed of nearly sixty affiliated unions. d. the business association of the major domestic auto manufacturing companies. e. the oldest business association and still represents some 14,000 manufacturers. 9. The 2008 congressional passage of legislation that provided the Treasury Department with $700 billion in taxpayers’ money to rescue troubled financial institutions is a demonstration of what observation made by economist Mancur Olson? a. Issue networks are less effective than iron triangles but more prevalent, because they are quickly formed on an ad hoc basis. b. Traditional methods of external outreach such as letter writing can influence lawmakers if a large enough body of citizens participates. c. Citizens’ groups are able to muster the kinds of resources that business groups can, if they have a large enough membership. d. Small groups are ordinarily more united on policy issues and often have more resources. e. Lobbyists for government clients can be just as effective as lobbyists for private or public organizations. 10. How have PACs affected long-standing partisan divisions in campaign funding? a. Their interest in backing incumbents has blurred those divisions. b. Their favoring of Republican candidates has increased the power of Republican lawmakers. c. Their favoring of business interests has brought a further entrenchment of those partisan divisions. d. Because PACs tend not to favor either party, there has been no lasting effect on partisan funding divisions. e. The imbalance of PAC contributions to Republican candidates has brought legislation designed to reduce the division. 11. Congress receives more mail from members of ________ than it does from members of any other group. a. the American Civil Liberties Union b. Greenpeace c. Common Cause d. the American Association of Retired Persons e. MoveOn 12. Political action committees can contribute ________ per candidate per election under federal law (the total including both primary and general elections). a. $1,000 b. $10,000 c. $25,000 d. $50,000 e. $100,000 13. The “size factor” advantages a. public interest groups. b. business groups. c. labor unions. d. environmental interest groups. e. None of these answers is correct. 14. The National Rifle Association is a. a public interest group. b. a single-issue group. c. an ideological group. d. both a public interest and a single-issue group. e. None of these answers is correct. 15. Which of the following is a disadvantage for citizens’ groups? a. They cannot generate profits or fees as a result of economic activity. b. They must contend with the free-rider problem. c. Their members don’t usually receive material benefits. d. All of these are disadvantages for citizens’ groups: They cannot generate profits or fees as a result of economic activity; they must contend with the free-rider problem; and their members don’t usually receive material benefits. e. None of these answers is correct. 16. Which part of Washington, D.C. is populated almost entirely by lobbying firms? a. C Street b. New Jersey Avenue c. 13th Street d. Pennsylvania Avenue e. K Street 17. What do the Christian Coalition, the American Conservative Union (ACU), and the Americans for Democratic Action (ADA) have in common? a. They are all dominated by conservatives. b. They are all dominated by Democrats. c. They are all dominated by conservatives and Democrats. d. They are all ideologically-motivated groups. e. They are all economic groups. 18. What new development has helped citizens’ groups overcome the free-rider problem and reach more donors? a. computer-assisted direct mail b. e-mail lists c. websites d. all of these: computer assisted direct mail, e-mail lists, and websites e. None of these answers is correct. 19. Which of the following groups routinely engage in lobbying? a. National Rifle Association b. National Organization for Women c. U.S. Conference of Mayors d. National Governors Association e. All these answers are correct. 20. Who coined the term “interest-group liberalism”? a. Madison b. Lowi c. de Tocqueville d. Schattschneider e. Jefferson True/False 1. A defining characteristic of any interest group is that it exists to promote a single specific policy in a particular political arena. a. True b. False 2. “Pluralists” believe that the actions of interest groups in general have a strongly positive impact on society. a. True b. False 3. Purposive incentives to group membership are based on the opportunity to participate in a cause in which one believes. a. True b. False 4. The free-rider problem presents problems in attracting members to economic interest groups. a. True b. False 5. Grassroots lobbying efforts by companies failed to alter the 2000 legislation that resulted in the permanent normalization of trade relations with China. a. True b. False 6. In comparison with citizens’ groups, economic groups have an easier time gathering the resources necessary for organized political activity. a. True b. False 7. Lobbyists rely primarily on members of Congress who share their views. a. True b. False 8. An issue network is a stable set of bureaucrats, legislators, and lobbyists who are concerned with policies beneficial to their common goal. a. True b. False 9. The great bulk of PAC funding is given to incumbents seeking re-election. a. True b. False 10. An interest group seeking favorable coverage by the news media is engaging in outside lobbying. a. True b. False Essay What are the four general types of economic groups? What are the types of citizens’ groups? What are the targets of inside lobbying? Identify and explain two flaws in pluralist theory. How do interest groups pose a Madisonian dilemma in American politics? Answers to the Practice Exam Multiple Choice Answers c 11. d a 12. b c 13. b e 14. b d 15. d c 16. e a 17. d c 18. d d 19. e a 20. b Multiple Choice Explanations Alexis de Tocqueville described the United States (c) as “a nation of joiners” during his visit to America in the 1830s. The AARP (a) is citizens’ group, one of the most influential in the United States. The free-rider problem (c) applies to individuals who receive goods even when they do not contribute to a group’s effort. For the ACLU, legal action (e) is the primary means of lobbying government. An iron triangle is a small and informal but relatively stable group of bureaucrats, legislators, and lobbyists who seek to promote policies beneficial to a particular interest (d). By far, business groups (c), i.e. corporations, influence the political process through campaign contributions, more so than any other type of interest group. These contributions are made through the political action committees that represent them. Madison (a) penned this statement in Federalist No.10. Although there are some major independent unions, such as the United Mine Workers and the Teamsters, the dominant labor group is the AFL-CIO (c), which has 12 million members in its nearly sixty affiliated unions. The legislation passed by Congress to rescue the financial institutions demonstrated the lobbying power of a few financial institutions with efficiently targeted resources. Organizing the taxpaying community to fight the use of their money in this fashion would have been nearly impossible, because as Olson put it “the larger the group, the less it will further its common interests.” Thus, the correct answer is (d). Business interests are especially pragmatic. Although they tend to favor Republican candidates, they are reluctant to anger Democratic incumbents. Thus some of the partisan division in fundraising has been reduced as a result (a). Grassroots lobbying is a specialty of the AARP (American Association of Retired Persons). Congress receives more mail from the AARP (d) than any other group. Under existing federal law, PACs can contribute $10,000 (b) per candidate per election; candidates can receive $5,000 in the primary campaign and $5,000 in the general election from PACs. According to Mancur Olson, “the size factor” advantages business groups (b). The NRA is a noteworthy example of a group that is organized to influence policy in just one area (b). The correct answer is (d). Citizens’ groups are always challenged when it comes to fundraising and the fact that many people benefit from the group’s activities without paying dues. K Street (e) has become synonymous with lobbyists. The correct answer is (d), because they all have a broad agenda that derives from a philosophical or moral position. Computer-aided direct mail and the Internet have greatly expanded the fundraising reach of citizens’ groups (d). Along with traditional interest groups, states, cities, and other governmental units lobby heavily, so (e) is the correct answer. 20. Lowi (b) uses the term “interest-group liberalism” to describe the tendency of officials to support the policy demands of groups that have a special stake in a policy. True/False Answers 1. b 6. a 2. a 7. a 3. a 8. b 4. b 9. a 5. b 10. a Essay Answers The four general types of economic groups are business groups, labor groups, farm groups, and professional groups. More than 50 percent of all groups registered to lobby Congress are business organizations. They concentrate their activities on public policies that affect business interests, such as regulation, taxes, and tariffs. Labor groups have diminished in size along with the number of unionized workers, but are still very active. The primary goal of labor groups is to promote policies that benefit workers in general and union members in particular. Farm organizations represent another large economic lobby. Farm groups and their members do not always agree on the issues. For example, some groups side with big agribusiness, while others represent the interests of smaller family farms. Most professions have professional groups, which seek to promote the interests of their members. Some citizens’ groups are organized around a social grouping and seek to advance its interests, such as the National Association for the Advancement of Colored People (NAACP) and the National Organization for Women (NOW). Single-issue groups are organized to influence public policy in just one area. Ideological groups have a broad agenda that is based on a philosophical or moral position. The lines between these groups are not clearly drawn, and it is very difficult to classify citizens’ groups. Some single-issue groups, for example, are highly ideological, while others are exceedingly pragmatic. The targets of inside lobbying are the officials of all three governmental branches. Lobbyists seek to influence members of Congress for obvious reasons. With the support of Congress, interest groups can obtain the legislative assistance that is required to achieve their policy objectives. At the same time, members of Congress benefit from inside lobbying. Members of Congress are confronted with a large volume of legislation every year. Lobbyists, particularly those that have developed close relationships with members of Congress, provide important information and assist the members in identifying bills that deserve their careful attention and support. As the scope of the national government has expanded in the last few decades, lobbying of the executive branch has increased in importance. Bureaucrats make key decisions and develop policy initiatives that Congress later makes into law. Lobbyists, by working with bureaucrats, can influence policy decisions at the implementation and initiation stages. In return, interest-group officials provide agency representatives with information and support when their programs are reviewed by Congress and the president. Finally, the broad reaching impact of federal judges has also made lobbyists realize that the judiciary can assist in achieving their goals. Interest groups routinely seek to influence the selection of federal judges. Group members also rely on lawsuits in their efforts to influence the courts. Although pluralist theory is compelling by many standards, it is also subject to criticism from different perspectives. One perspective is delineated by Theodore Lowi, who utilizes the term interest-group liberalism to describe the tendency of political officials to support the policy demands of the interest groups that have a special stake in the policies in question. In his estimation, it is the group as much as the government that decides public policy, and the collective interests of society are not addressed. A second flaw in pluralist theory is the claim that the interest group system is representative of the general population. Pluralists realize that well organized interests have more influence than others, but contend that the interest group system is relatively open and that few interests are at a serious disadvantage. Yet organization is a political resource that is not distributed equally among interest groups. In particular, economic interest groups, especially those representing large corporations, have many resources that other groups lack. As a result, critics contend that the interest-group system is biased toward big business. 5. James Madison clearly realized that interest groups would pose a dilemma in American politics. Although he was concerned that some groups would wield too much influence on the political process, he felt that a free society entailed the pursuit of self-interest on the part of its citizens. Ironically, his solution to the problem of factions has become part of the problem. The American system of government was designed to prevent a majority faction from becoming all-powerful at the expense of minority interests. This same system, however, makes it possible for minority factions to gain government support. By gaining the backing of a relatively small number of government officials, lobbyists representing a small sector of society can influence public policy, which in turn has broad implications for society as a whole.