Washington lobbying booms as economy tanks

By Alexander Bolton
Posted: 12/23/08 03:29 AM [ET]

Washington’s influence industry is humming steadily while the national economy is declining in what several economists predict will be the worst recession in 50 years.

More than half a million Americans lost jobs last month, and the value of most 401(k) plans plunged, yet government and public-relations pros in town expect to make a lot of money over the next two years.

Fueling the industry along K Street is an anticipation of sweeping changes that President-elect Obama and the newly emboldened Democratic Congress will pursue together — from ending Bush-administration tax cuts to enacting the broad health reforms proposed during the campaign.

Such change had the dark-paneled dining room of the Capital Grille, one of the city’s most posh hangouts for lobbyists and lawmakers, packed on a recent afternoon at lunchtime, even though Congress had quit town for the year and traffic downtown was light.

Rep. Robert Aderholt (R-Ala.), a senior member of the House Appropriations panel, sat in a dimly lit booth with his chief of staff and two other companions. Diners at nearby table discussed the ascension of Rep. Sam Graves (R-Mo.) to the ranking Republican slot on the Small Business Committee.

A manager at the Capital Grille, where lunch can run a couple hundred dollars, said there’s been no drop-off in business, even while other retailers are reporting their worst Christmas season in decades.

Many industries, ranging from oil to financial-services companies, are terrified about the prospect of layers of new regulation and higher corporate taxes under the new Democratic regime.

“A number of interests are extremely concerned that they are going to be hit with legislation, and this includes a number of parties who have not had to worry in the Republican era and now see a major threat,â€