President Joe Biden signed a law aimed at helping renewable energy businesses in the United States. One of the companies benefiting from this law is solar panel maker First Solar. That business is seeing bigger profits because of the Inflation Reduction Act.
Before President Biden was elected in 2020, he promised to spend a lot of money to fight climate change. First Solar, one of the biggest solar companies in the country, saw an opportunity. Company executives and investors gave $2 million to the Democratic Party. That included $1.5 million directly to President Biden’s campaign. After Biden became president, First Solar spent $2.8 million on lobbying. This means they hired persuasive people, called lobbyists, to talk to government officials. The goal was convincing legislators to support their company and their industry. Lobbyists work with persistence to try to persuade the government to do things that favor their clients.
First Solar’s profits have grown because of new federal subsidies. Subsidies are like financial support from the government. Many industries in U.S. history have benefited from subsidies. Agriculture is one example—but it’s not the only one. In the case of First Solar, subsidies could be worth up to $10 billion over the next decade. A First Solar spokesman suggests the subsidies will create new jobs and boost the economy.
First Solar’s story is one example of how companies use lobbyists to influence what happens in Washington. It also shows how a piece of legislation, shaped by a team of lobbyists and potentially influenced by a flood of campaign cash, can yield significant financial returns for those who can gain the ear of people in positions of power.
Some people argue against lobbying. They say lobbying gives an unjust advantage to companies with big funds. They object to the methods for gaining lawmakers’ attention—such as making large contributions to political campaigns.
Those claims may have merit. But lobbyists also work to make good ideas into law. Lobbyists can help lawmakers learn about issues that are important to common folk and smaller businesses too. That gives those groups a say in what laws are made and how those laws are written. It helps them get support from the government for their industries.
Why? It’s important to know who influences government decisions and how it is done to promote progress and justice.
