It was the best of times. It was the worst of times.
The plight of lobbyists in Washington is definitely a tale of two cities.
[img]308|left|||no_popup[/img]
Sorry about the Dickensian literary allusion, but when it comes to trials and tribulations of Washington’s power elite, only epoch metaphors will do.
Influence-peddling in this nation's seat of power has always been thought to be a recession-proof industry.
K Street, home to most D.C. lobbyists, is to Washington what Wall Street was to New York. The only difference between the two is that the reach of the K Street mob stretches much deeper into the pockets of every American taxpayer, and mostly does its dirty work in the seams and shadows, outside the glare of public scrutiny.
Is It New Orleans or Washington?
In years past, as the nation has made its transition from one presidential administration to the next, the flow of new money to buy influence has made K Street feel more like the party atmosphere on Bourbon Street at Mardi Gras than a staid corridor of power.
With so much federal money up for grabs, you might think that Washington's lobbying corps is licking its chops. But the steep downturn in the economy even has suits on K Street worried.
Making matters worse for the influence industry is President Obama's strict ban, with a few well publicized exceptions, on lobbyists working in his administration.
During prior presidencies, Democratic and Republican, there has always been a revolving door between private sector lobbyists and the new government. Every presidential transition team has relied on a cadre of "experienced and knowledgeable" insiders to staff key positions.
The new President's prohibitory rhetoric against employing lobbyists in his administration, however, has left K Street scrambling.
K Street is still a beehive of activity, especially with more than $1 trillion in stimulus money and tax breaks on the table. But these policy changes, along with a stumbling economy, have left a lingering a pall of uncertainty over the fortunes of the entire lobbying industry.
Traditionally, every industry, no matter how big or small, has had its own Washington lobbyist. Frequently, major businesses, like tobacco and oil, will have their own governmental affairs offices or industry associations employing hundreds of specialists whose only job is to garner influence for their masters.
Tighten or Loosen?
In the midst of the worst economic slide since the 1930s, industry leaders are rethinking their priorities. Sophisticated business people are being forced to make hard choices between keeping the lights on, paying seven-figure retainers to lobbyists in order to gain uncertain influence on Capitol Hill.
Like private industry, cities, counties and states rely heavily on lobbyists to make certain that their voices are also heard. Severe revenue shortfalls at every level of government, with no real relief in sight, have likewise led to a sharp cutback in these governmental lobbying expenditures.
No one believes that lobbying and influence peddling in the nation's capital will suddenly disappear. Like lawyers, everyone hates lobbyists until his or her pet program or budget item is on the chopping block.
Lobbyists, like certain hard-shelled insects, will survive the fallout of the economy and the new political climate. But in the meantime, even the power elite are being forced to adjust their positions along with their seven-figure incomes.
John Cohn is a senior partner in the Globe West Financial Group[ based in West Los Angeles. He may be contacted at www.globewestfinancial.com
