Lobbying is a very profitable investment – $1 that banks spent on lobbying before the financial crisis produced an extra $500 of bailout funding

That’s the conclusion from Professor Diana Thomas of Utah State University. Check out a 2½ minute video:

 [youtube=http://www.youtube.com/watch?feature=player_embedded&v=bJJCtRT64FE#t=74s]

link: http://www.youtube.com/watch?feature=player_embedded&v=bJJCtRT64FE#t=74s

Some of her other research findings:

• If a business is looking for profit opportunities, sometimes seeking government favors are the investments with highest returns.
• Banks that spent money lobbying in the five years before the financial crisis were 40% more likely to get bailed out.

(hat tip Crony Chronicles)