Corporate lobbying and opportunity costs

Michael Massing makes an interesting point in the FT today, you can find an excerpt of the article here.

My takeaway from his comments is as follows:

  • 1. US corporates spend an awful lot of money lobbying government on a variety of issues
  • 2. The sectors that do the lobbying (eg automobiles, utilities, entertainment) spend this awful lot of money seeking to preserve the status quo
  • 3. That represents a significant opportunity cost
  • 4. They may get more bang for the buck in a global connected world by using the money to improve what they do

I must admit that I have not considered the opportunity cost aspect of the lobbying approach enough in the past. Thank you Mr Massing.

Let me know what you think

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