An interest group is an organization of people who share a common
interest and work together to protect and promote that interest by influencing the
government. Interest groups vary greatly in size, aims, and tactics. Political
scientists generally divide interest groups into two categories: economic and
noneconomic.
Economic Groups
Economic groups, which seek some sort of economic advantage
for their members, are the most common type of interest group. Money has
significant influence in capitalist societies, so economic interest groups are
numerous and powerful. These groups are usually well funded because members
willingly contribute money in the hopes of reaping greater political influence
and profit.
Economic groups work to win private goods, which are benefits
that only the members of the group will enjoy. When a labor union agrees to a
contract, for example, its members benefit from the contract, whereas nonunion
members do not. If there is no private good incentive, people might choose not
to join (especially if there is a membership fee or dues). There are four main
types of economic groups: business groups, labor groups, agricultural groups,
and professional associations.
Business Groups
Business groups are the most common type of interest group; more than
half of all registered lobbyists work for business organizations. Some
business lobbyists work for a single corporation, lobbying solely for that
company. Businesses also form associations with companies from the same
industry to promote all of their interests. For example, the American
Petroleum Institute works on behalf of oil companies. Some groups act on
behalf of business in general. The U.S. Chamber of Commerce, for example,
seeks pro-business policies in general, not just policies that help one part
of the economy.
Because they are usually well funded, business groups tend to be very
influential. They work to promote the interests of private companies and
corporations by seeking tax cuts, regulatory changes, and other pro-business
benefits. Business groups do not always agree with one another, however.
What benefits one industry may harm another, so advocates for those
industries quite often work against one another.
Labor Groups
Labor groups represent unions, which work to increase wages and
improve working conditions for both skilled and unskilled workers.
Individual workers have very little power, but banded together, they can
wield significant influence. Labor unions have been a significant part of
American economic and political life since the late nineteenth century. At
the peak of the unions’ influence, roughly one-third of American workers
belonged to labor unions.
