It is a cheap game for someone with millions of dollars even. ROI on these sort of political contributions can be absolutely insane. Apparently corporations on average receive ~$760 for every $1 spent influencing politics. Depending on the industry, ROI is anywhere from 5,000 to 77,000 percent.
> Depending on the industry, ROI is anywhere from 5,000 to 77,000 percent.
That is clearly not true. If that sort of ROI existed in anywhere near the general case, a lot more people and companies would spend a lot more money on it, and they don't. Perhaps there exists lobbying opportunities with these kinds of ROIs, but they are limited, and there definitely isn't a 5,000% floor on it.
I think the problem with the zerohedge article (and the report it summarises) is that, first, they seem to assume that all corporate welfare benefits the businesses doing the lobbying locally (not to businesses in general, which is probably more the case -- Ford lobbying against foreign competition will help Chevrolet equally, regardless of how much either firm spends on lobbying), and second, that corporate welfare only exists because of lobbying: Politicians still need to get elected, and creating industry, jobs and high-profile ribbon-cutting opportunities in their districts (regardless of whether businesses lobby them for it or not) is likely to remain a popular tactic in the absence of lobbying.
I agree fully with you -- I was trying to frame the comment inside the political calculus, in which actors can certainly redirect public funds in such away that it appears new jobs are created in their districts, even if it's often zero or negative sum for the economy at large.
http://www.zerohedge.com/news/2015-03-16/words-greatest-inve...