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Posted by Dan Mitchell

https://danieljmitchell.wordpress.com/2026/01/26/the-swamp-is-prospering-under-trump/

http://danieljmitchell.wordpress.com/?p=94802

As an economist, I dislike protectionism because it makes the economy less efficient and reduces prosperity.

As a citizen, I dislike protectionism because it enriches D.C. insiders such as lobbyists.

But Trump’s trade taxes are just part of the problem.

Washington is basically a racket for the benefit of the political class. And the bigger government gets, the greater the opportunities for sleaze.

And since government is getting bigger under Trump, nobody should be surprised that lobbyists are making out like bandits.

Let’s start with some excerpts from a Politico report by Caitlin Oprysko.

President Donald Trump’s second term is already delivering a massive payday for Washington’s top lobbying shops… Thirteen of the largest 20 firms by revenue reported growth of 10 percent or more compared to 2024. In total, they brought in nearly $824 million, up from $595 million during the final year of the Biden administration. …While federal lobbying spending has been climbing steadily for the past decade…Trump’s aggressive use of executive power and influence is supercharging the trend. …Some of the firms that saw the most dramatic windfalls were those with close ties to Trump and top administration officials. Ballard Partners, which counts Attorney General Pam Bondi and White House chief of staff Susie Wiles among its alumni, signed more than 200 new clients after Trump’s election. …Looking ahead, lobbyists expect trade to continue driving client interest in 2026.

And those clients want lobbyists with connections to the Trump Administration.

Here are some excerpts from an article Tim Carney wrote last year for the Washington Examiner.

How did Amazon executives react when Trump won the White House? They hired Brian Ballard, Trump’s old lawyer, major donor, and Florida finance director, who was presently raising money for the president’s inauguration, to be Amazon’s lobbyist. Amazon contributed more than $50,000 to that inauguration. This is how Washington, D.C., works under Trump. Its mercurial and axe-grinding president threatens a private company, specifically or vaguely, and the company responds by hiring his friends as lobbyists. The racket lacks subtlety under Trump, but it’s not new. Democrats, including former President Barack Obama and Senate Minority Leader Chuck Schumer (D-NY), have long practiced this sort of shakedown politics expertly. In fact, it’s inevitable… The government’s power to regulate and tax, that is, its power to destroy, gives Trump leverage, and he is not a man to let leverage go unused. …Trump…is just functioning as those who wield federal power always function: using government power to extract value from private companies. Sometimes, this means hiring friends and family. Sometimes, it means cutting campaign checks. Sometimes, it means helping the incumbents politically.

The bottom line is that I was unhappy when Democratic insiders were benefiting from big government and I’m unhappy once again now that Republican insiders are benefiting from big government.

Heck, I don’t like bipartisan sleaze, either.

P.S. I fully endorse and embrace the right to lobby. It’s part of the 1st Amendment. And I also acknowledge that lobbying is good when people or businesses come together to protect themselves from predatory behavior by politicians and bureaucrats. But even ethical lobbying is economically inefficient. Which is why good policy is small government and small government is also good government.

• Lobbyists would have far fewer clients if we had a simple and fair flat tax instead of the current, convoluted internal revenue code.
• Lobbyists would have far fewer clients if we had genuine free trade instead of Trump’s chaotic and ever-changing protectionism.
• Lobbyists would have far fewer clients if there was less red tape, meaning businesses could concentrate on satisfying consumers.
• Lobbyists would have far fewer clients if the health care sector wasn’t so dominated and driven by government programs and policies.
• Lobbyists would have far fewer clients if we had small government so that the corrupt process of earmarks dried up and evaporated.

In other words, let’s go back to a small federal government, as envisioned by America’s Founders.

https://danieljmitchell.wordpress.com/2026/01/26/the-swamp-is-prospering-under-trump/

http://danieljmitchell.wordpress.com/?p=94802