Greenberg13e PPT Ch07

The Struggle for Democracy
Thirteenth Edition, 2020 Presidential Election Edition
Chapter 7
Interest Groups and
Business Power
Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved
Learning Objectives
7.1 Compare and contrast opposing viewpoints about the
role of interest groups in a democracy.
7.2 Describe different types of interest groups.
7.3 Explain why interest groups form and proliferate.
7.4 Analyze the methods and activities interest groups use
to influence political outcomes.
7.5 Describe the inequalities of the interest group system.
7.6 Assess the effectiveness of regulations designed to
control interest groups.
Crippling the Environmental
Protection Agency
Learning Objective 7.1
Compare and contrast opposing viewpoints about the

role of interest groups in a democracy.
Interest Groups in a Democratic
Society: Contrasting Viewpoints
 The Evils-of-Faction Argument

 The Pluralist Argument
The Evils-of-Faction Argument
 Warning by Madison in The Federalist No. 10
 Why are interest groups dangerous?
■ Self-interested
■ No regard for public interest
■ Examples, according to critics of the groups
The Bosses of the Senate
Journal 7.1: Bosses of the Senate
How has the public’s view of the Senate changed, if at

all, since the "Bosses of the Senate" cartoon was
issued?
Is there any basis for believing that the situation today
is substantially different from that of the late
nineteenth century?
The Pluralist Argument
 Interest groups benefit democracy
■ Elections not specific enough
■ Easy to create, free to join
■ Power dispersed, easy to access
■ Highly democratic
Figure 7.1 The Pluralist View of
American Politics
Describe different types of interest groups.
The Universe of Interest Groups
 Private Interest Groups
 Public Interest Groups
Private Interest Groups
🞑 Types of private interest groups
■ Business
■ Vast resources
■ The professions
■ Well-represented
■ Labour
■ Unions
■ Economic not ideological
■ Decline in membership has weakened power
A Rare Victory of Sorts
Table 7.1 The Diverse World of Interest
Associations (1 of 2)
Private Interest Groups Interest Subtypes Association Examples
Business Corporations that lobby on Boeing

their own behalf Google
Koch Industries
Microsoft
Trade associations Chemical Manufacturers Association
Health Insurance Industry of America
Peak business organizations Business Round Table
Federation of Small Business
The professions Doctors American Medical Association
Dentists American Dental Association
Accountants National Society of Accountants
Lawyers American Bar Association
Labor Unions International Association of Machinists
Union federations AFL-CIO
Table 7.1 The Diverse World of Interest
Associations (2 of 2)
Public Interest Groups Interest Subtypes Association Examples
Ideologies and causes Environment Environmental Defense Fund

Pro-choice National Abortion Rights Action League
Pro-life National Right to Life Committee
Anti-tax Americans for Tax Reform
Civil rights National Association for the
Advancement of Colored People
Human Rights Campaign
Nonprofits Medical American Hospital Association
Charitable American Red Cross
Government entities State National Conference of State
Legislatures
Local National Association of Counties
Recall Governor Walker
Journal 7.2: Recall Governor Walker
How might state government employees without

collective bargaining rights express their interests to
their supervisors and managers?
Public Interest Groups
 Advocacy groups
■ Ideological motivation
■ Race, ethnicity, gender, sexual orientation
■ Environmental causes or moral issues
■ Professional, paid staff
■ Supported by donations
■ Little membership involvement
 Government associations
 Nonprofit organizations
Explain why interest groups form and proliferate.
Interest Group Formation
and Proliferation
 The Constitution
 Diverse Interests
 A More Active Government
 Disturbances
Lobbying Gridlock
Journal 7.3: Lobbying Gridlock
Why, one might ask, is Washington so often the scene

of snarling gridlock of the political variety? Some
might blame the lobbyists. Would you?
The Constitution
 First Amendment protections
■ Free speech, press, assembly
■ Right to petition government
 Variety of access points
■ Federalism
■ Checks and balances
■ Separation of powers
■ Contrast with unitary system
Diverse Interests
 Types of diversity
■ Demographic groups
■ Causes and issue positions on them
■ Complexity of economy
 Industry lobbyists
■ Google, Facebook
A More Active Government
 Taken on more responsibilities
 Far more regulation today
■ Financial industry example
 Hypercompetition in the global economy
■ Protectionist policies
 Government programs and initiatives
Disturbances
 Groups form when interests are threatened
■ Disturbance theory
■ Changes in social or economic environment
Lobbying for Ethanol
Journal 7.4: Lobbying for Ethanol
Besides billboards, what are some other powerful

tools that interest and advocacy groups use to
influence public opinion?
Pro-Life Youth
Journal 7.5: Pro-Life Youth
Are demonstrations, both for and against a woman’s

right to choose, likely to change the opinions of very
many people about abortion?
Are there other tactics that might be more effective?
Analyze the methods and activities interest groups

use to influence political outcomes.
What Interest Groups Do
 The Inside Game
 The Outside Game
The Inside Game (1 of 2)
 The politics of insiders and ”good ol’ boy”
networks
 Bribes versus persuasion
■ Access is critical
■ Lobbyists are former Congress members, staff, bureaucrats
 Works best for narrow, technical issues
Staffers to the Rescue
Journal 7.6: Staffers to the Rescue
Do you think congressional staffers should be allowed

to lobby their former colleagues and acquaintances in
the legislative branch after they have left public
service? Why?
The Inside Game (2 of 2)
 Lobbying Congress
■ Two objectives:
■ Get bills or provisions they favor passed
■ Stop bills or provisions they do not like
■ Financial contributions
 Lobbying the executive branch
■ Providing technical information
 Lobbying the courts
■ Amicus curiae briefs
■ Involvement in judicial appointments
Planning Strategy
Celebrating a Historic Supreme
Court Decision
The Outside Game
 Grassroots lobbying
 Mobilizing membership
■ Letters and phone calls
 Organizing the district
 Shaping public opinion
 Getting involved in campaigns and elections
Figure 7.2 Interest Group Report
Cards, a Select Sample
SOURCE: Data from legislative ratings of Americans for Democratic Action, the League of
Conservation Voters, the American Conservative Union, and the National Taxpayers Union.
Critical Thinking 7.1: Interest Group
Report Cards, a Select Sample
Compare the ratings each senator received from these

interest groups. Why might some groups rate a senator
favorably and another group rate them poorly?
In other words, what might these groups be looking
for when they rate a senator?
Could these ratings be helpful for citizens who are
looking for information on how well their senators are
doing their jobs?
The Fox Guarding the Chicken Coop
Journal 7.7: The Fox Guarding
the Chicken Coop
Is there any way to minimize the appointment of

people to head regulatory agencies who are opposed
to the basic missions of these agencies?
Or is this simply the outcome of a democratic process
where the president can appoint whomever he desires
to carry out what he promised during his election
campaign?
Describe the inequalities of the interest group system.
Interest Groups, Corporations,
and the Wealthy
 Representational Inequality
 Resource Inequality
 Access Inequality
 The Privileged Position of Corporations
Figure 7.3 The Many Ways Privileged
Actors Influence What Government Does
Representational Inequality
 Power goes to most organized
■ Lobbying dominated by business interests
■ Labor union clout
 Advocacy groups
■ Members and contributors: higher incomes, education than
general public
■ Focus on quality of life issues
Resource Inequality
 Business interests dominate
■ Dodd-Frank Bill
 Political action committees (PACs)
■ Represent wealthy interests
 Citizens United v. FEC (2010)
Two Billion Dollar Losing Bet
Journal 7.8: Two Billion Dollar
Losing Bet
Should Congress and the executive branch increase

regulations designed to prevent banks from taking too
many risks with depositors’ assets, or are such matters
best left to those running financial institutions?
Table 7.2 Major Spending On Federal Lobbying, 2018
(By Industry Sector)
Sector Total Spending

Health $567,753,091
Finance/Insurance/Real Estate $536,700,649
Miscellaneous Business $518,988,850
Communications/Electronics $425,931,932
Energy/Natural Resources $326,570,586
Transportation $247,341,137
Other Business Groups $242,380,010
Ideology/Single-Issue $149,193,370
Agribusiness $134,875,131
Defense $126,279,097
Construction $ 62,792,917
Labor $47,788,405
SOURCE: Based on Center for Responsive Politics, Influence and Lobbying, Ranked Sectors, 2018.
Access Inequality
 Access to government decision makers
■ Hiring former regulatory staff
 Iron triangles
 Issue networks
■ Looser, more fluid than iron triangles
Figure 7.4 The Iron Triangle: The Cozy
Politics of Defending America
The Privileged Position
of Corporations
 Corporate advantages
■ “The business of America is business”
■ Economic well-being tied to business
■ Too big to fail
■ Mobility results in leverage
 Business does not always get its way
■ Environmental, health & safety regulations
 Unbeatable political coalitions
■ Cannot be said about any other sector
Figure 7.5 Applying the Framework: How Has
Business Fared on the Roberts Court? (1 of 2)
SOURCE: Lee Epstein, William M. Landes, and Richard A. Posner, “How Business Fares in the Supreme Court,” Minnesota Law Review 97,
no. 1 (2012); Lee Epstein, William M. Landes, and Richard A. Posner, “When It Comes to Business, the Right and Left Sides of the Court
Agree,” University Journal of Law and Policy 54 (September 16, 2013), pp. 33–55. Also see Tom Donnelly, “Roberts at Ten: Chief Justice
Roberts and Big Business,” (Washington, DC: The Constitutional Accountability Center, issue brief, July 30, 2015).
Figure 7.5 Applying the Framework:
Structure
• Constitution: Decisions of Supreme Court, a co-equal
branch of government, are effectively binding public
policy.
• Culture: Small business has always been highly regarded
by Americans, and this sometimes extends to business in
general, even to big companies.
• Economy: The sources of most fortunes in the United
States are tied to stock holding or holding executive
positions in large corporations.
• Economy: Intense global competition influences
American corporations to focus on cost reduction—
especially with respect to wages—and less
accommodation to labor unions.
Political Linkage
• Interests: Corporations and other pro-business
interest groups and advocacy organizations like the
U.S. Chamber of Commerce are powerful forces in
Washington.
• Interests: Labor union membership and political
influence in Washington have declined.
• Parties: The Republican Party has long stood for
low taxes, low regulation, and small government.
For a period, Democrats supported tax cuts for
business and deregulation (though that has now
changed).
Government
• Presidents and the Senate: Republican presidents
George H. W. Bush, George W. Bush, and Donald
Trump nominated and the Senate confirmed strong
conservatives for Supreme Court vacancies.
∙ Presidents and the Senate: Democratic

presidents Bill Clinton and Barack Obama
nominated and the Senate confirmed justices who
were liberal on social issues but moderate on
business issues.
∙ Courts: Pro-business Chief Justice John Roberts

has proved to be an influential and effective
leader..
Action
• Domestic Policy: The Roberts-led Supreme Court
sides with business and against labor unions,
workers, and consumers in a majority of its rulings.
Figure 7.5 Applying the Framework: How Has
Business Fared on the Roberts Court? (2 of 2)
SOURCE: Lee Epstein, William M. Landes, and Richard A. Posner, “How Business Fares in the Supreme Court,” Minnesota Law Review 97,
no. 1 (2012); Lee Epstein, William M. Landes, and Richard A. Posner, “When It Comes to Business, the Right and Left Sides of the Court
Agree,” University Journal of Law and Policy 54 (September 16, 2013), pp. 33–55. Also see Tom Donnelly, “Roberts at Ten: Chief Justice
Roberts and Big Business,” (Washington, DC: The Constitutional Accountability Center, issue brief, July 30, 2015).
Figure 7.6 Effective Tax Rates for the 400
Richest Families in America
SOURCE: Data prior to 2002 are from Thomas Piketty and Emmanuel Saez, “How Progressive Is the
U.S. Federal Tax System?” Working Paper 12404, National Bureau of Economic Research (July
2006), Table A3. All other data are authors’ calculations based on Internal Revenue Service tax rate
tables..
Assess the effectiveness of regulations designed to

control interest groups.
Curing the Mischief of Faction
 Disclosure
 Revolving door
 McCain–Feingold and follow-ups
 Influence of money continues to increase
Shared Writing (1 of 2)
The federal minimum wage and 40-hour workweek were first introduced in
1938 by Congress under the Fair Labor Standards Act (FLSA). FDR, president
at the time, claimed the law was “the most far-sighted program for the benefit of
workers ever adopted,” arguing that fair wages ensure a “minimum standard of
living necessary for health, efficiency and general well-being.” The FLSA
established standards affecting employees in the private sector and in
government sectors at all levels, minimum wages, overtime pay, employment
record keeping, and youth employment.
At the time of this writing, workers covered by the federal minimum are entitled
to a wage of not less than $7.25 per hour. Although the federal minimum wage
has been increasing steadily since the end of World War II, it has actually
remained pretty stagnant in real-dollar terms. In fact, today’s $7.25 minimum
federal wage is actually less than it was in the late 1960s in terms of buying
power, after increases in the cost-of-living are factored in.
Shared Writing (2 of 2)
Many states also have minimum wage laws. In 2016, for example, California
passed legislation that will eventually increase the statewide minimum wage to
$15 per hour. Think about state and federal policies regarding minimum-wage
levels in relation to the overall efficiency and strength of the economy, as well
as their impact on U.S. citizens.
Now construct a brief argument for or against this proposition: Increases in the
federal minimum wage would have the effect of increasing the standard of living
for the lowest socioeconomic classes and would not increase the level of
unemployment in the United States. How would you defend your position to a
fellow student? What would be your main line of argument? What evidence do
you believe best supports your position?
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The Struggle for Democracy

Thirteenth Edition, 2020 Presidential Election Edition

Compare and contrast opposing viewpoints about the

 The Evils-of-Faction Argument

How has the public’s view of the Senate changed, if at

Describe different types of interest groups.

Business Corporations that lobby on Boeing

Ideologies and causes Environment Environmental Defense Fund

How might state government employees without

Explain why interest groups form and proliferate.

Why, one might ask, is Washington so often the scene

Besides billboards, what are some other powerful

Are demonstrations, both for and against a woman’s

Analyze the methods and activities interest groups

Do you think congressional staffers should be allowed

Compare the ratings each senator received from these

Is there any way to minimize the appointment of

Describe the inequalities of the interest group system.

Should Congress and the executive branch increase

Sector Total Spending

∙ Presidents and the Senate: Democratic

∙ Courts: Pro-business Chief Justice John Roberts

Assess the effectiveness of regulations designed to

This work is protected by United States copyright laws and is

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