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How Lobbyists Wield Their Interest

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac are government-sponsored agencies. Because of this, they enjoy the illusion that the federal government guarantees their losses. Actually, the only advantage this sponsorship gives them over their competitors is lower interest rates, and any presumption of additional guarantees should have been lost when each of them became publicly traded entities. Their lobby was active in preventing more oversight or unfavorable changes in any of their existing regulations. Their effectiveness resulted in are our current sub-prime mortgage crisis.

Teachers’ Union

The teachers’ union is another special interest that maintains strong leverage over Congress through their substantial annual campaign contributions. It is typical for those in this powerful lobby to maintain status quo and resist change, because they feel that changes in the education system will harm their members. The lobby opposes:

• The voucher program — because it will reduce money school systems receive from the state for every student that attends classes. On the other hand, a voucher system will be especially beneficial to students, usually minority children, who attend the poorest quality schools in the nation. The plan is completely democratic, for it gives any parents desirous of a voucher, a portion of the state money allocated for each pupil, to pay for enrollment in a private school of their choice.

• The removal of ineffective teachers — because it threatens the job security promised by the union.

• Merit pay — because it supplants the established seniority system establishing teacher’s wages.
The current result of these oppositions is that America is “dumbing down.”

Teachers are so important; they’re like orchestra leaders. Excellent conductors encourage superb performances from their musicians through motivation, enthusiasm, and perseverance; inept conductors get lackluster performances reflecting their poor skills. Statistics reveal that each year spending on education is higher, the number of students per teacher is lower, and the results are worse. However, this year will be the exception because schools’ spending may be less due to the softening economy.

Trial Lawyers

The complex U.S. legal system requires attorneys to work exclusively in specific aspects of the law. Lawyers who specialize in trying cases are the most financially successful. This group has an unsavory reputation for good reason. The tort lawyer lobby is powerful in Washington, D.C., because it donates more money than any other campaign contributor and enjoys the empathy of the many elected legislators, who are, in many cases, lawyers. Laws are on the books to expose individuals, professions, and industries to expensive, often unnecessary, liability suits because of their effectiveness with Congress. The trial lawyers’ lobby prevents any needed legislation that would cap damage awards.
As a result, the health services have been seriously impacted. Hospitals and physicians are the victims of lawsuits, many unfounded, and the unrealistic awards are meted out by unsophisticated juries. Hospitals and health-care professionals have been forced to cut or discontinue their services because of rising insurance premiums (due in part to the numerous liability lawsuits). Certain medical specialties, such as surgery, cardiology, and obstetrics, have become shorthanded because of the high cost of malpractice insurance.

The liability laws have been cleverly crafted so that tort lawyers can claim responsibility against anyone or any entity even remotely involved. Consequently, lawsuits routinely name a multitude of defendants. Many of the named end up settling, even if they could prevail, because of the prohibitive cost of lawsuits. The person or company with the most money is the main litigant – what’s known as going after “the deep pockets.” Trial lawyers cause and have caused serious damage to industries, while earning huge fees for this disservice.

Lawyers earn the largest fees through class-action lawsuits, and tort lawyers are the instigators of today’s favorable class-action regulations. This one-sided piece of legislation allows attorneys to sue on behalf of individuals without getting the written permission of the majority of the class affected. Successful class-action suits result in millions of dollars for the barristers and far less for the people for whom the suit was filed. Many of these cases are based on technicalities and psuedo science.

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