The Dark Side of Corporate Influence: Game Theory and Monopoly in US Politics

The United States political system has long been criticized for allowing corporations to buy influence through a legal mechanism known as corporate lobbying. This practice, while sanctioned under law, has led to a perilous form of legalized corruption, undermining the rule of law and public trust.

Corporate Lobbying: A Dark Cloud Hovering Over US Politics

The landmark case Citizens United v. Federal Election Commission intensified corporate lobbying by allowing unlimited spending on political campaigns. This has been labeled as legalized corruption by many, as the decisions made are often in favor of the corporations' interests, rather than the public's.

The system needs to regulate and restrict corporate influence rather than legalize it, as it has become a perversion of democratic principles. With corporations holding more power each year, voters' influence is diminishing significantly. The economic principle at play here is similar to that of nineteenth-century economic systems, such as slavery and industrial pollution. Each party acts in self-interest to degrade the environment or disenfranchise voters, not because of ill intent, but because it seems economically rational.

In the context of the described economic systems, self-interest can be disastrous. The economic environment incentivizes poor outcomes, necessitating government intervention through laws and regulations to ensure the best result for society. However, the majority of corporations are not intrinsically evil; predatory lenders might be an exception. Focus here is on understanding and mitigating the negative impact of corporate lobbying on public policy.

Corporate Lobbying as an Economic Arms Race

Observing the trend closely reveals that corporate lobbying is an economic arms race, leading to monopolies and concentrated power. This is a game theory scenario where if companies do not use lobbyists, they risk going out of business due to higher costs compared to their competitors who do. This is not just about profits; it is about survival.

Such behavior is not limited to the past. The early days of industrialization saw similar behaviors, such as slavery and industrial pollution, where the primary goal was to maximize profits. Not all industrialists aimed to destroy the earth; they merely reduced costs by dumping waste. Similarly, corporate lobbyists are not trying to disenfranchise voters; they are simply ensuring their clients, the corporations, are not disadvantaged.

Public Policy Under Corporate Influence

Corporate lobbyists have a dominant role in shaping public policy. The ACA (Affordable Care Act) should have been a single payer system, reflecting what the majority of citizens desired, but it was not because of health insurance lobbyists who bought votes from both the GOP and Democratic parties. This manipulation of public sentiment highlights the power of corporate lobbying in shaping policy outcomes.

Ironically, the Dodd-Frank Act, often seen as a reform, was also influenced by corporate lobbying. Financial corporations were allowed to escape their fair share of punishment, ultimately leading to the undoing of laws like Dodd-Frank. This exemplifies the cycle of corporate lobbying and its detrimental impact on public policy.

Corporate Lobbying's Cycle of Influence

The cycle of influence by corporate lobbyists continues, with their rational incentives driving them to strengthen their hold on power. Like the economic incentives in historical monopolies, the key factor here is the ability to leverage power through lobbying, regardless of the public's best interest. The only entities setting the rules are the corporate lobbyists, ensuring their position remains unchallenged.

This cycle is troubling, but it is also understandable when viewed through the lens of game theory and corporate incentives. What needs to change is the perception and regulation of corporate influence, ensuring that the principle of the rule of law and the will of the people are upheld in the face of powerful economic interests.

In conclusion, while corporate lobbying is a complex issue, understanding its mechanisms and impacts is crucial for fostering a more transparent and democratic political process. It is imperative to address this issue head-on to protect the interests of all citizens and ensure the stability and fairness of the political system.