The basic view that big business is pulling the strings in Washington is one of the major myths of our time. Most American political decisions are not in fact shaped by big business, even though business does control numerous pieces of specialist legislation. Even in 2019, big business is hardly dominating the agenda. U.S. corporate leaders often promote ideas of fiscal responsibility, free trade, robust trade agreements, predictable government, multilateral foreign policy, higher immigration, and a certain degree of political correctness in government—all ideas that are ailing rather badly right now.
To be sure, there is plenty of crony capitalism in the United States today. For instance, the Export-Import Bank subsidizes U.S. exports with guaranteed loans or low-interest loans. The biggest American beneficiary is Boeing, by far, and the biggest foreign beneficiaries are large and sometimes state-owned companies, such as Pemex, the national fossil fuel company of the Mexican government. The Small Business Administration subsidizes small business start-ups, the procurement cycle for defense caters to corporate interests, and the sugar and dairy lobbies still pull in outrageous subsidies and price protection programs, mostly at the expense of ordinary American consumers, including low-income consumers.
And these days, the footprint of such crony capitalism appears especially prominent because of U.S. President Donald Trump, who is a preeminent practitioner of the doctrine.
All that said, the data just does not support the view that big business is the dominant force shaping the U.S. government today. For instance, corporations spend about $3 billion a year lobbying the federal government. That sounds like a lot of money, but it is very little in comparison to the approximately $200 billion they spend each year on advertising. To put the $3 billion in perspective, that is about equal to how much General Motors spends on advertisements during a year; Procter & Gamble is higher yet, spending $4.9 billion a year on advertising.
If corporations have such amazing influence over federal policy, why are they spending only $3 billion or $4 billion on lobbying when they could be investing at a more fervent pace and shifting around the allocation of much, much more government money? Well, corporations aren't actually so much in control.
The Citizens United Supreme Court decision of 2010 has contributed to the impression that corporations are all-powerful in U.S. politics. After all, a company, whether for-profit or nonprofit, can now spend money on campaigns and so-called electioneering communications without general restrictions. It sounds like big business has been taking over U.S. politics and there are no longer laws to stop it.
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