White House press secretary Karine Jean-Pierre said during a recent press conference that America is “stronger economically” than ever —but that’s not the reality for everyday folks. The Consumer Price Index, a key gauge of inflation, rose 9.1% in June —gas is above $4.50 a gallon.
The Biden economy looks more like Jimmy Carter 2.0.
But despite record inflation and pain at the pump, there is one industry that continues to rake in massive profits. No, not gas and oil companies like the Biden Administration wants us to believe.
It’s lobbyists.
According to a report from The Daily Caller, federal lobbyists on K Street scored huge profits in the second quarter of 2022, bucking trends of other industries affected by the energy crisis.
“The lobbying boom was largely attributable to reconciliation negotiations between Democratic Sen. Joe Manchin of West Virginia and Senate Majority Leader Chuck Schumer of New York, as well hotly contested deliberations on whether to dole out subsidies to domestic semiconductor companies,” The Daily Caller reports.
That’s right. The more Washington struggles to get things done, the more lobbyists profit —K Street loves long, drawn-out negotiations and bills that just can’t get out of committee. They profit on inaction —and there’s no shortage of that in Biden’s Washington.
“There’s a lot going on, even if there’s not always a lot of progress,” said Marc Lampkin, chair of Brownstein’s government relations department. “That’s a part of the reason why everyone in Washington is seeing an uptick in business.”
K Street also loves dramatic shifts in power because of all the new legislation it brings. And the 2022 midterms are shaping up to be a bloodbath.
“With changes of control possible in the House or Senate, clients are asking us how best to prepare for the possibility of competing agendas between Congress and the White House next year, while also being prepared for the possibility of renewed legislative activity if the Democrats maintain control,” Michele Pearce, the co-chair of Covington & Burling’s public policy practice, told Politico.
So who’s dropping the most cash? A report from Politico gives us an idea. Top spenders include the Chamber of Commerce, a trade organization representing U.S. businesses, and the National Association of Realtors, which spent $15.8 million and $14.8 million respectively.
The revenue figures from the second quarter “definitely surprised me,” said Rich Gold, leader of Holland & Knight’s public policy and regulation group. “We’re in this space where we are performing well beyond what anyone should be doing.”
Washington bumbles, K Street thrives.
