How Corporate Lobbying is Poisoning America: The Hidden Crisis Behind Our Food and Pharma Systems

Purpose:

This report is designed for citizens of the United States to better understand how lobbying and large corporations have harmed regulatory practices across many industries. This paper will detail how these practices have negatively impacted our food and pharmaceutical systems.

Central Idea:

Lobbying and considerable corporate influence have been a part of the United States politics for a long time. Lobbyist groups work with politicians to advise and write policy recommendations. However, these recommendations are rarely for the betterment of society; instead, they are used to help corporations make more money at the expense of the average American. Politicians whose campaigns are primarily funded by these corporations often reserve their better judgment in favor of passing legislation that keeps their donors happy. The system incentivizes corruption, which results in regulatory practices that harm the consumer. 

Key Sections:

1. The Health of United States Citizens: The United States is the unhealthiest developed country in the world. Although it spends the most money per capita on healthcare, the result is a chronically ill and obese society. 

2. The Food System: The United States’ food system is in a dire state. The majority of the food supply is laced with toxic chemicals. 

3. Lobbying Effects Within the Food System: The FDA has not been doing its job and has instead been ceding power to large corporations like Tyson, Coca-Cola, and General Mills. While the profits of many of these mega-food corporations have been climbing, our population's health and food quality have been declining.

4. The Revolving Door Practice: The FDA, also known as the Food and Drug Administration, has been intertwined with food and drugs in the United States for many years, resulting in public officials regulating their former and future employers. 

5. The Pharmaceutical Industry's Backward Incentives: The pharmaceutical industry is incentivized to have a sick population. A chronically ill society is the best outcome a pharmaceutical company can ask for because they will continuously be using their products.

6. Solutions: How can we reduce the effects of large corporations and special interest groups' control over legislation?

 

The Current State of Health in the United States:

The United States is the most unhealthy developed country in the entire world.  Obesity within the United States has risen to unforeseen levels over the last 60 years. Back in 1960, the obesity rate was approximately 12 - 13 %, and today, it has nearly quadrupled. According to World Obesity, 1 in 5 children are obese, and 43% of adults are obese. For comparison, the obesity rates of some countries that spend much less on health care are Japan at 6%, South Korea at 7%, and France at 10%. The United States spends much more on healthcare yet has the sickest, and most unhealthy population in the developed world. How can such a paradox exist? Obesity has led to unforeseen levels of chronic illness within our population. According to the CDC, 42% of Americans have two or more chronic illnesses. The United States spends 4.9 trillion dollars a year on healthcare.  The U.S. nearly doubles the likes of the next highest country on a health expenditure per capita basis.  Despite our enormous investments in healthcare, according to World O Meter, the United States has the 48th highest life expectancy for its population. The ranking is behind that of less developed countries such as Panama, Albania, Chile, Costa Rica, and others. 

Figure 1: Peterson-KFF Health System Tracker

Note: The United States spends more than any other country on healthcare. 

Figure 2: Stephan J. Guyenet

Note: Obesity levels have been rising at unforseen rates in the United States. 

 

The Food System:

The collapse of public health within the United States can largely be attributed to a toxic food supply. The effects of mega corporations such as General Mills, Coca-Cola, Tyson, and others have resulted in regulations that favor their profits rather than the American consumers’ health. The United States’ food system allows for many practices that have been banned in countries throughout the world. Under current regulatory practices, ingredients generally recognized as safe (GRAS) don’t go through the FDA approval process. It is the responsibility of food corporations to report to the FDA if they have any ingredients believed to be dangerous. This creates an immense conflict of interest as companies are regulating themselves. Companies are inclined to continue to use ingredients that benefit their profits, taste, and shelf life, even though they know it is dangerous. Self-reporting is a flawed system and is a breeding ground for corruption. The result is that toxic ingredients are added to many foods to help grow a company's profits. Some other regulatory concerns are that U.S. farmers are using 72 pesticides that are banned in Europe and double the amount of antibiotics used in livestock compared to Europe. The FDA also has not banned ingredients that are banned throughout the world. Some examples are below:

Food dyes such as Red 40, Yellow 6, among others: 

Dyes  are used to make product colors match the flavor description. They have been shown to alter the behavior of children and create hyperactivity. 

Recombinant Bovine Growth Hormone (rBGH):

rBGH is used to increase milk production in cows by altering the cow’s hormones. There are concerns that the hormone-altered milk poses many risks to human health such as an increased risk of cancer. 

Butylated Hydroxyanisole (BHA) and Butylated Hydroxytoluene (BHT):

BHA and BHT are preservatives used to prevent seed oils from turning rancid. There is widespread concern over the effects these preservatives have on endocrine functions and the risks of cancer.  

Azodicarbonamide:

Azodicarbonamide is a whitening agent and dough conditioner. Studies have shown the additive to be carcinogenic. 

These are just a few ingredients permitted for use in the United States. Thousands of other additives are permitted in the United States that are banned elsewhere. 

 

Figure 3 and 4: Food Babe

Note: U.S. food regulations allow for many more chemicals and additives that impact the safety of the products. Ingredients are altered for products in other countries to fit regulations. 

The stark difference in ingredients between the United States products and European products is striking. In the United States, food is produced based on the assumption of “innocent until proven guilty.” Therefore any food, additive, preservative, chemical, or other product must be proven to be dangerous and cause long-term harm. This results in many ingredients being allowed that are nearly certain to be detrimental to human health, but haven’t been fully proven to be yet. Conversely, in Europe, they utilize a precautionary approach. Products that are likely to be dangerous for human health are banned. The result is the FDA  allows the usage of over 10,000 additives, while in Europe, only around 400 are approved. 

 

Lobbying Effects Within the Food System:

So, if many of these ingredients are slowly poisoning the population, why would the government allow food manufacturers to use these products? Because the government is not actually making these decisions. Big corporations and lobbyist groups have taken a grip on many policy decisions. These ingredients increase their profits, make their food more addictive, better tasting, easier to produce, cheaper, and give it a longer shelf life.

Figure 5: Large Food Corporations Revenues 

Note: Revenues for the mega food corporations have been climbing at fast rates, while public health has been declining. 

For example, a loaf of bread in Europe might go bad after a few days. A loaf of bread in the U.S. will likely stay good for weeks and will have fifty ingredients in it rather than the required flour, salt, and water. Politicians listen to what their donors tell them to do. Once the money stops coming in, they lose their position and their power. The lobbyists provide “information and expertise” to policymakers. The “information and expertise” they provide align with the interests of the large corporations and special interest groups who fund the political campaigns. In turn, politicians have been supporting the requests of many of these large food corporations in regulatory bills and appointments within the FDA and other agencies. The current system incentivizes politicians to bend their knees to the requests of their donors. This issue is not just within the food system. It results in policies across a wide range of industries that favor the profits of large corporations rather than the well-being of its citizens. The result within the food industry is an environment where large corporations have continued to achieve strong recurring revenues at the expense of the general health of the population. 

 

The Revolving Door:

The revolving door practice is one of the leading influences of current political movements. From the government to industry past regulators, policymakers, and public health officials leave their positions to work for companies they once regulated. On the other hand, industry workers are often brought into government positions where they help influence laws and policies that benefit their former employers hence the revolving door. This creates a massive conflict of interest if someone who is regulating large corporations knows that they will work for one of these companies. Will they want to hurt that company's profits? An example of the revolving door is that nine of the past ten FDA commissioners went on to work for drug companies or on the board of directors for drug companies. The food and drug industries have become very connected due to revolving door practices, leading to corrupt policy decisions across both sectors. 

 

The pharmaceutical industry's backward incentives: 

The pharmaceutical industry is incentivized to maintain a sick population, as a chronically ill society is the best customer for pharmaceutical companies; they will consistently rely on their products. American society has largely become chronic ill due to the toxic food supply. The connection between the pharmaceutical industry and the food industry creates a dynamic that benefits both sectors while jeopardizing public health. 

Profit margins in the pharmaceutical and healthcare industries have surged to levels comparable to, if not exceeding, those of banks, creating a powerful incentive to keep society unhealthy. Unlike other countries, the United States allows these companies to set medication prices freely. A company holding a patent on a specific drug can charge whatever price it deems appropriate. In contrast, other countries impose price caps on medications, making them more accessible to consumers. The situation has worsened due to the influence of lobbyists within the U.S. government, hindering Medicare, insurance companies, and HMOs from negotiating prices.

As these companies rake in substantial profits, many are merging and forming larger corporations. This consolidation limits the availability of generic options, which were once more accessible, and reduces competition in the healthcare market, further monopolizing it and inflating pharmaceutical prices. Currently, nothing prevents this trend, and the American government allows it to continue, heavily influenced by large corporate interests.

At the current rate of monopolization and price inflation, the American healthcare system faces a troubling future. The initial claim that these companies profit from a sick society will only ring more true. As the healthcare industry becomes less accessible, the prevalence of chronic illnesses, side effects from inadequate care, and increased profits for those companies will likely rise. The American healthcare and pharmaceutical industry is long overdue for regulation, and achieving meaningful change will require significant effort.

figure  6. Pharmaceutical corporation profits

 

Solutions: 

In addressing the multi-faceted situation surrounding the healthcare industry and private sector, we want to highlight key points that are essential for our audience to understand moving forward. Our main goals are to limit the revolving door practice in these sectors, reduce lobbyists' influence on government, increase transparency for the American people regarding lobbyist activities, and establish a nationwide law that restricts lobbying practices in the United States.

Removing the Revolving Door Practice

To tackle the issue of the revolving door practice, we propose implementing a cooling-off period. While some states have already introduced this practice, the duration and rules regarding what individuals can do during this period vary and lack clarity. We believe that creating streamlined, uniform rules applicable across all states would promote fair practices and minimize loopholes.

Lobbyist Limitations

We also advocate for a ban on individuals representing or advising facilities for a period of six years after leaving government positions. This measure would reduce direct communication between former officials and their previous roles, fostering competition among various factors. By doing so, we can dismantle the current system that supports the monopolization of government processes. While it’s valuable for individuals to advise and enhance governmental operations, allowing them to continuously shape policy for their own benefit is concerning.

Consistent Laws 

As previously mentioned, there is currently no uniform policy governing lobbying across the United States. Therefore, a single, comprehensive law applicable nationwide would be optimal to prevent individuals from moving to different states to exploit varying regulations.

Increasing Transparency  

One of the most critical aspects needing improvement within the government is transparency. Effective communication and openness are vital for a government to connect with its citizens. We believe the government must thoroughly inform the public about lobbying practices, ensuring that people are educated about their implications and understood limitations.

These key points will serve as the foundation of our argument for petitioning against lobbying practices. American citizens should not have to put in excessive effort or extensive research to understand the flawed practices affecting their daily lives. This presentation aims to inform the audience about some practices that may go unnoticed, encouraging them to take action by signing our petition. We hope that this will inspire the audience to adopt a stronger stance on the issue and join our efforts to create meaningful change.

 

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