The Rise of PACs
By the late sixties, a change was occurring in the political environment. The government, with the spending on the social programs and the war, was spending an ever larger percentage of the Gross National Product. At the same time, it was increasing its manipulation of the tax codes. The country was also starting to experience economic difficulties. The large trade surpluses had gradually shrunk, until eventually there were periodic trade deficits as foreign manufacturers began to penetrate American markets. It was in this environment of increasing private competition and increasing public control of resources that businesses began to focus on politics. A business which could convince a legislator to insert a favorable clause into a pending tax bill or who could influence the awarding of a government contract could realize a substantial profit. Now, more than ever, there was money to be derived from government. The phenomenal increase in both the number of Political Action Committees (PACs) and the amount of money they channeled into government had begun, as businesses began joining trade organizations and hiring lobbyists in record numbers in an attempt to influence government in their favor. With the government dividing an ever larger part of the costs and benefits of society, no business could afford to ignore what was going on in Congress. Government had become the new arena of competition for business.
A tendency of activist government was manifesting itself. Accompanying the governments increasing responsibility was its increasing control of resources. As a result of its high degree of social and economic control, there was a large and varied range of benefits to be had from government, which went to a broad spectrum of special interests. Because the government was in the habit of activism, there was an amazing degree of fluidity in the dispersal of these benefits. Consequently, the special interests constantly exerted pressure on the political system to insure maintenance of present benefits and in an attempt to receive even greater benefits. Put bluntly, they were fighting among themselves for whatever they could get and they do to this day.
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