Economic Inequality and Interest Group Bias

The over-representation of upper income groups in the U.S. interest system is a perennial concern for scholars of American politics. Growing income inequality, however, may result in even more pronounced upper class ``bias'' in the organized interest system for two reasons. First, because proportionally more financial resources are held by high-income individuals and interests, upper class groups potentially have greater means to become organized to influence elections and policy outcomes. Second, as inequality grows because redistribution or egalitarian policy interventions would be more costly to higher income groups they have an increased motivation to become organized. To examine whether growing inequality does result in growing upper class bias I examine the link between income inequality and the populations of lobbying and campaign financing organizations in the U.S. states. I also consider how rules regulating the deployment of financial resources in politics (i.e. lobbying and campaign finance laws) may condition the relationship between inequality and bias in the organized interest system.