Big businesses affecting government expenditures

As people and nations get richer, they are willing to allocate more money to insure against economic risks such as income loss and unexpected large expenses. They also are willing to pay more for fairness — extension of opportunity and security to the less fortunate. Bigger governments may be more prone to adopt policies that stifle business, reduce competition among firms, or waste resources. They may run up debts that channel resources into interest payments instead of productive activity.

Big businesses affecting government expenditures

Share via Email Cigarettes: Chris Ison What does a tax-avoiding, polluting, privatising corporation have to do to get its way with the British government? Lobbyists are the paid persuaders whose job it is to influence the decisions of government. Typically, they operate behind closed doors, through quiet negotiation with politicians.

And the influence they enjoy is constructed very consciously, using a whole array of tactics. Lobbyists operate in the shadows — deliberately. As one lobbyist notes: Whether facing down a threat to profits from a corporate tax hike, or pushing for market opportunities — such as government privatisations — lobbying has become another way of making money.

Here are the 10 key steps that lobbying businesses will follow to bend government to their will. Once this narrowly framed conversation becomes dominant, dissenting voices will appear marginal and irrelevant.

The referendum on an alternative voting system was not, as anticipated, so much a conversation about the merits of first past the post. They led with the claim that switching to AV would deny troops badly needed equipment and sick babies incubators.

How corporations influence the government? | | Confront Corporate Power

The Yes camp lost the vote two to one. Spin the media The trick is in knowing when to use the press and when to avoid it. The more noise there is, the less control lobbyists have.

As a way of talking to government, though, the media is crucial. Messages are carefully crafted. Even if the corporate goal is pure, self-interested profit-making, it will be dressed up to appear synonymous with the wider, national interest.

At the moment, that means economic growth and jobs. Get the messaging wrong and you get fiascos such as High Speed 2 HS2. Westbourne reframed the debate to make it about jobs and economic growth. The new messaging focused on a narrative that pitted wealthy people in the Chilterns worried about their hunting rights against the economic benefits to the north.

The strategy was "posh people standing in the way of working-class people getting jobs," said Bethell. Private healthcare also regrouped after the wrong messages went public. As Andrew Lansley embarked on his radical reforms of the NHS, private hospitals and outsourcing firms were talking to investors about the "clear opportunities" to profit from the changes.

Lobby group The NHS Partners Network moved quickly to get everyone back on-message and singing from "common hymn sheets"as its chief lobbyist David Worskett explained. The reforms were about the survival of the NHS in straitened times. Just nobody mention the bumper profits.

That looks like special pleading. What is needed is a critical mass of voices singing to its tune. This can be engineered. The forte of lobbying firm Westbourne is in mobilising voices behind its clients.

Thirty economists, for example, signed a letter to the FT in in support of HS2; businesses endorsed another published in the Daily Telegraph.

Big businesses affecting government expenditures

Westbourne was also hired in to lobby against the top rate of tax, although who was behind its "50p tax campaign" remains a mystery. A quick glance, though, revealed it included five managers from the Switzerland-based banking giant Credit Suisse. Buy in credibility Corporations are one of the least credible sources of information for the public.

What they need, therefore, are authentic, seemingly independent people to carry their message for them.

Fiscal Policy

One nuclear lobbyist admitted it spread messages "via third-party opinion because the public would be suspicious if we started ramming pro-nuclear messages down their throats".

The tobacco companies are pioneers of this technique. Their recent campaign against plain packaging has seen them fund newsagents to push the economic case against the policy and encourage trading standards officers to lobby their MPs.

British American Tobacco also currently funds the Common Sense Alliancewhich is fronted by two ex-policemen and campaigns against "irrational" regulation. Sponsor a thinktank "The thinktank route is a very good one," said ex-minister Patricia Hewitt to undercover reporters seeking lobbying advice.Some countries with high government spending, most notably Italy, Belgium, and France, do score low on ease of doing business.

But others, such as Denmark, Finland, and Sweden, score quite high. because government spending per capita is more meaningful than total government spending: $ billion in federal spending in amounted to $3, per person then, but would only finance $1, per person in From trying to stop plain packaging on cigarettes to pushing through HS2 and opening the countryside to fracking, big business employs lobbying companies to persuade government to meet their.

The public sector and fiscal policy. The public sector, which involves government spending, revenue raising, and borrowing, has a crucial role to play in any mixed economy.

The impact of big-box retailers on communities, jobs, crime, wages and more: Research roundup Below are a series of studies that shed light on the effects of big-box retailers on other businesses, employment, wages, crime and health.

Evidence on Local Externalities and Local Government Policy from Big Box Bankruptcies”. Daniel is a former McKenna Senior Fellow in Political Economy. Most government spending has a negative economic impact. The deficit is not the critical variable. The key is the size of government.

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