Krugman on Corporate Lobbyists

Originally uploaded by stephennuno

Krugman laments the influence that corporate lobbyists are having on the current health care debate. I agree, but I don’t know how creating a central health insurance plan will not help further increase the influence of corporate lobbyists. The transaction costs of lobbying a single entity is far lower than having to lobby, say, fifty separate entities. If Krugman wonders why corporate lobbyists reside in Washington, he need only look at the growth in federal outlays since Nixon’s presidency, a point in time he argues rational discussion over health care would have been possible. Centralized power only helps to maximize the lobbying dollars spent by corporations. Its no mistake that the growth in lobbyists power in Washington has increased with the growth in centralized power.


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