LOBBYING

Although American corporations have been under intense financial strain in recent months, there is one category of spending they haven’t cut back on: lobbying and campaign contributions to influence government policy. Even Wall Street interest appealing for government help have spent millions lobbying congress some of them ranking among this year’s biggest campaign donors.

The US Chamber of Cammerce, the strongest voice in Washington for the business community, spent $30 million on lobbying in the third quarter of this year, more than twice as much as it spent for the same purpose in the previous quarter. The spending is part of the most aggressive election-year effort the chamber has ever made.

This month nearly two dozen chamber lobbyists blanketed Capitol Hill, leading a business coalition that pushed for swift passage of a financial rescue measure. Among other things, the chamber opposed any amendments that would make it easier to file lawsuits against banks and other enterprises receiving federal aid
through the rescue package. To maintain its influence after the election, the chamber is concertrating on Senate races.

One of the chamber’s top concerns was that a big Democratic win in November might lead to legislation that makes it easier for unions to organise workers. The chamber’s lobbying and campaign expenditures and from pro-business philanthropies. The chamber gives most of its contributions
to republicans.

Companies are taking in vast amounts of federal money with one hand and then paying money out of lobbyists and political campaigns with the other hand to figth new regulations aimed at averting similar problem. During the 2008 cycle, two banks that have agreed  to accept federal aid, JPMorgan Inc.., were among the top donors to campaigns, each giving nearly $4 million as of mid-October. The top corporate contributor from Wall Street was Goldman Sachs Group, which has many former executives involved in the Treasury Department rescue effort. The American Bankers Association sent 61 percent of its $2.3 million in contributions to Republican.

MY MONEY

Karthic Chidambaram, member, all India Congress of All India Tennis Association, is an advocate of private spending, which he believes will lead to economic growth. His views on money are radical and represent those of the young, emerging leaders today. “If we are tight-fisted during festive and ceremonial occasions, how will the retail market survive/  he asks. “People need to go and spend and live their life well so that the economy rolls.

He believes it is essential to celebrate festivals and ceremonies with the great ardour. “one must respect and be proud of one’s cultural heritage,” he says. “I don’t think we should be an austere nation, simply an austere nation is not necessarily a better nation.” We are a nation of happy people, and we should express our happiness. There is no need to exhibit coyness in celebration.

“suppose, during this festive season, everybody decides not to spend-no new clothes, sweets, jewellery, crackers. Imagine what will happen to Industries that churn out of this products. Calebration of marriages provide employment and business opportunity to many people who live on the fringes of the society. These people do not have the skill sets to take up any other profession, Nor do we have industries that can offer alternative job opportunities and absorb these people. According to karti, hoarding never leads to advancement. Curbing of expenditure will lead to stagnation and unemployment. It is only when we spend that the economy grows. The more you spend, the more the growth. Ofcourse, the spending should be within your means. It makes no sense to borrow and spend.

GOLD, a safe harbour?

With prices of gold expected to shoot up during the Indian marriage season beginning November, portfolio strategists have begun to advise clients to invest in gold. “with stock and real estate markets are not performing well, I am advising my clients to invest in gold as gold prices are set to boost in future,” says investment adviser. “Gold prices will shoot up to around Rs 16,000 per 10 grams in November during the marriage season.”

At present gold prices are hovering around Rs 14,000 per 10 grams. Investors can earn a return of anything between 15 and 30 per cent in just one month, These experts said. However, not everyone is equally optimistic as gold prices have been showing a lot of volatility in recent times. “The price fluctuations are very erratic. Nothing can be predicted in a market situation like this. No laws work in this kind of situation.” The general expectation is the prices will rise as
supply of the yellow metal is drying up. India is the world’s largest market for gold.