[PEN-L:30444] Re: corporate poltiical contributions over-rated?

["Ian Murray" <seamus2001@xxxxxxxxx>]

corporate poltiical contributions over-rated?
----- Original Message -----
From: Devine, James

New York TIMES/September 19, 2002
Are Political Contributions Worth the Money?
By ALAN B. KRUEGER

With so much at stake, economists have long wondered why businesses and
interest groups do not contribute more to political campaigns. Individuals,
organizations and companies gave a total of nearly $3 billion to national
campaigns in 1999 and 2000.

That may seem like a lot, but it is only 0.15 percent of annual federal
spending. For perspective, note that spending on advertising and promoting
cigarettes was five times what was spent in all elections held in 2000.

There are two possible explanations why companies do not spend more: either
they receive a great deal for what they already give, so contributing more
is unnecessary, or they receive very little, so contributing more is
fruitless.

==================

The marginal productivity of rent-seeking?


washingtonpost.com
Airlines Put Hands Out -- Again
Citing Security Expenses, Carriers Lobby for More Federal Assistance

By Keith L. Alexander and Sara Kehaulani Goo
Washington Post Staff Writers
Saturday, September 21, 2002; Page E01


Just a year after carriers won a multibillion-dollar bailout for the U.S.
airline industry, they are back on Congress's doorstep, asking for more
help. This time they want relief from the additional security costs they
have faced since last year's terrorist hijackings.

Yesterday, Delta Air Lines Inc.'s internal Web site carried messages urging
employees to e-mail members of Congress in support of the industry's
lobbying effort. The airline plans to provide a similar link on its home
page next week to try to rally customer support.

"The solution is clear: The costs for strengthened federal aviation security
programs should be paid for by the federal government," said a message on
the site, which can generate e-mail on an employee's behalf and send it
directly to his or her representative.

full at:
http://www.washingtonpost.com/wp-dyn/articles/A46311-2002Sep20.html