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IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?

April 15, 2008

Tech companies plunked down some serious coin last year for lobbying efforts. Among the companies we watch here on the EDN news desk, IBM led the way, investing $7.9 million.

That’s according to the Center for Responsive Politics, which tracks lobbying spending on its Web site OpenSecrets.org and bases its information on data available from the Senate Office of Public Records. According to the site, computers/Internet ranked as the fourth industry in terms of lobbying dollars spent last year, shelling out nearly $111 million. Pharmaceuticals/health products, insurance, and electric utilities ranked in the top three spots, respectively. Total 2007 lobbying was up 8% from 2006 to nearly $2.8 billion, making it a record year (see "Total Lobbying Spending," left). The $111 million figure is more than double the $40 million in lobbying funds that came from computers/Internet in 1998 (see "Annual Lobbying on Computers/Internet," below).


IBM’s $7.9 million effort is a high for the company over the last nine years and puts IBM far above other players in the semiconductor world. But such investment from Big Blue is not entirely unexpected. While the company’s policy is to encourage its employees to participate in local politics “as private citizens, not as IBMers,” it has a long and involved history in American politics (see this Harvard paper on the Watson family’s influence).

And while its $7.9 million number stands out, IBM is not alone in putting its money where lobbyists’ mouths are. Other big-spender chip players who contributed to the computers/Internet category’s $111 million 2007 lobbying efforts include Intel, which spent nearly $1.8 million, and TI at about $2.8 million in spending. Outside of the chip space, Microsoft led all computer/Internet companies with $9 million to lobbying efforts.


Meanwhile, contributions from the computers/Internet industry are also on the rise, according to the Center for Responsive Politics. And tech seems to favor the Democratic Party, at least in recent elections. I’m not sure what the connection is there. Besides Bill Gates pushing for less stringent H-1B visas and reformed immigration,  I see little Democratic mindset from our corner of the tech world. And when I covered well-known Dem and former VP Al Gore from last year’s Embedded Systems Conference, that opened a whole can of worms.



Nevertheless, see the long-term contribution numbers from computers/Internet (above, right, and below) from the watchdog group. To be sure, the numbers are based on contributions of $200 or more from PACs (political action committees) and individuals to federal candidates and from PAC, soft money, and individual donors to political parties, as reported to the Federal Election Commission. While election cycles are shown in charts as 1996, 1998, 2000, etc., they actually represent two-year periods. For example, the 2002 election cycle ran from January 1, 2001 to December 31, 2002.  So the numbers shown for 2008 started January 1, 2007 and are current through March 3, 2008, the Center for Responsive Politics reports. So far, computers/Internet has contributed more than $15.5 million for the 2008 election cycle. That compares with about $18.5 million from the industry in the 2006 cycle and $29 million in the 2004 election cycle.

In the end, it doesn’t matter that the economy is struggling, that there may be layoffs mounting, and that R&D funds may be feeling the pinch. Politics is recession-proof, and when it comes to the likes of visa issues, NAFTA, green legislation, federal investments, IP rights, etc., tech wallets open and they open wide.

But what is the appropriate place for tech in politics? Are the above noted lobbying efforts and contributions excessive? Or are they in line with the value of what’s at stake in the coming election season? Share your thoughts below.

–Suzanne Deffree, Managing Editor, News

Source for above charts: Center for Responsive Politics
Editor’s note on the long-term contribution charts: * The above figures do not include donations of "Levin" funds (contributions that state and local parties can spend on voter registration and get-out-the-vote activities related to federal elections) to state and local party committees.
**Soft money contributions to the national parties were not publicly disclosed until the 1991-1992 election cycle, and were banned by the Bipartisan Campaign Finance Reform Act following the 2002 elections.

Posted by Suzanne Deffree on April 15, 2008 | Comments (6)

February 23, 2010
In response to: IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
guenstiges hotel commented:

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April 17, 2008
In response to: IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
W17053 commented:

I think SJ may be a little mistaken. I believe the millions of dollars came from tax deductions, i.e., taxpayers like us. My question is, why didn't {big company} invest 7.9M training, rather than lobbying to import more low cost labor. "They" would probably have spent less, but probably not tax deductible (or 'influence' congress).


April 17, 2008
In response to: IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
Steve Jones commented:

What irks me the most is this... Where do you think those Millons of dollars came from? It was included in the price of the very expensive products we as Microsoft customers purchased. In other words we supported Microsoft in their efforts to change the laws in their favor so they could make more money by, as Glemn Nelson pointed out, by hiring cheap labor... I wonder what other things these self centered greedy corporations are doing at our expense?


April 16, 2008
In response to: IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
W17053 commented:

I have a wild guess to your comment "tech seems to favor the Democratic Party, at least in recent elections. I?m not sure what the connection is there." My guess for the "connection" is that tech probably favors the majority power in Congress. It seems that if you want to pass legislation, you "lobby" or "contribute" to the people (majority) that can pass your agenda, and not to the minority that cannot. So much for representing your constituents (not to mention the unelected Super Delegates).


April 16, 2008
In response to: IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
Gordon Smith commented:

Dr. Nelson obviously has a MIcrosoft jones. Anyway, big business is just getting its ducks in a row expecting a Democrat win this fall. If they don't pay, they can't play, since Democrats have no issue with conscience, and would hold business hostage vs. big labor, economy be damned.


April 15, 2008
In response to: IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
Dr. Gene Nelson commented:

Microsoft (and its proxies) have spent unprecedented amounts to procure their desired legislative outcomes. From 1995-2000, inclusive, Microsoft lavished approximately $100 million on legislative expenditures. One of Microsoft''s lobbyists was Jack Abramoff, as was noted in a January, 1998 Mother Jones article, "The Microsoft Network" by investigative reporter Ken Silverstein. Abramoff is shown in the "Washington Wide Web" chart (please google on this title.) . Microsoft''s leadership role in the Business Software Alliance is shown in Rachel Burstein''s article, "Overseas Invasion", also in the January, 1998 issue of Mother Jones. Interested readers are invited to use the US Lobby Registration & Reporting Disclosure Page by googling on "Senate Office of Public Records" and choosing the second link, which ends with DoFn=0. Use a control key multi-select: Registrant Name: Kirkpatrick, Client Name: Business Software, Lobbyist Name: Abramoff. There are seven entries between 1998 and 2000. All of them involve lawyer-lobbyist (and felon) Jack Abramoff working for Preston-Gates (Bill Gates III''s father is a principal in that firm) with the Business Software Alliance as the client. If you would like to learn more, please read the engaging PDF version of author''s January, 2008 article, "The Greedy Gates Immigration Gambit," located by googling on this title. You will learn about the multiple instances of political corruption connected with Microsoft''s procuring three employer-friendly changes to H-1B visa legislation in 1996, 1998, and 2000. As was noted in the Center For Responsive Politics newsletter of October 2, 2000, by Holly Bailey (now at Newsweek) titled Cyberdemocracy III, "As the 106th Congress winds to a conclusion this week, members of the House and Senate are poised to vote on the high-tech industry?s most important lobbying issue of the year, an immigration bill that would expand the number of work visas available for skilled foreign workers.." This scandal is still active. One of the original members of "Team Abramoff," (corrupt) lawyer-lobbyist Michael P. Smith has been working for Cornerstone Government Affairs with the name Mike Smith (locate Cornerstone Government Affairs, enter, choose About and find the staff links) with Microsoft as the client. One significant lobbying issue is H-1B visas. ("Accidentally" called HB1 visas in the 2005 and 2006 disclosures.) This author advocates using the free citizen activism tools at NumbersUSA dot com to press for much-needed reforms of this corrupt set of policies.

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