When companies lobby they are making an investment. Chip companies, for example, expect far more in subsidies than what they have spent in lobbying in the past few years. This article by Max A. Cherney is published by Protocol. Here is an excerpt:
To make money, you’ve got to spend money. Chip companies have spent $100 million in lobbying expenditures over the last several years in hopes of getting 500 times that back from the federal government in the form of subsidies. That would be a healthy return on an investment.
The chip industry’s spending on lobbying has risen sharply in recent years, as lawmakers have been debating $52 billion in federal subsidies aimed at bolstering American chip production and innovation. To help convince lawmakers to set aside federal dollars for the industry, lobbying expenditures have increased roughly 50% since 2018, jumping to $46.4 million in 2021. Four years ago, chip companies spent $31.7 million in D.C., according to data from the Center for Responsive Politics.
By comparison, the internet industry — which includes tech giants Facebook, Google and Amazon — increased its spending by 18% to $90.2 million during the same period, according to the CRP data. Unlike chip companies, Big Tech has faced rapidly escalating issues in Washington prompting discussion of regulation that threatens to damage profits or break apart businesses.
Read the full article here. Also, visit the main Democracy Chronicles section on American Democracy, our section on Money Politics, or our articles on Political Lobbying.
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