How to Buy Political Favor

"They want what every first term administration wants--a second term."
--Robert Ritter (Clear and Present Danger)

In its current form, the US government can be seen as a fluid market for political favor. Sellers are politicians who have power to forcibly take resources from some and give them to others. Buyers are special interest groups (SIGs) who would like to receive some of those resources.

How do SIGs buy political favor? There are three primary ways.

1) Campaign contributions. Primarily, these funds go toward marketing initiatives aimed at influencing voter thought process. These programs are largely composed of propaganda and smear. The quid pro quo is that if a SIG contributes to money to a candidate's campaign, then the candidate owes the SIG favors if he/she wins.

Currently, campaign contributions get lots of attention because of rules purportedly governing their limits. Plus, contributions are also 'measureable.' Unless, of course, savvy contributors have found ways to game the system, which renders the accounting system largely meaningless.

However, fidelity of the campaign contribution system is neither here nor there, because there are other ways to buy political favor.

2) Out of office 'grants.' Murray Rothbard used to say that to really understand why politicians do what they do in office, you need to study their lives outside of office. For example, examine their careers pre- and post-Washington, as well as changes in their personal fortunes while in office. SIGs could hold sway over candidates by employing them in lucrative roles before entering public office (e.g., Dick Cheney at Halliburton (HAL)), by employing them in lucrative roles after leaving public office (e.g., Bob Rubin at Citigroup (C)), or perhaps even by helping them improve their financial position while being in public office (e.g., any current Congress person w/ stock or real estate holdings).

3) Voter blocs. Perhaps the 'best' way for a SIG to buy influence is to offer the seller of political favor a large homogenous group that can be influenced to vote a certain way by the group's leadership. If your group measures in the hundreds of thousands, or perhaps millions, then that's alotta purchasing power.

When government is for sale, there is no larger market on the planet than the market for political favor. If you're a buyer, then there's lots of ways to submit your bid.