As much of the U.S. struggles economically, Washington DC is thriving - particularly the city's lobbying industry.

Professor Joe Mason told Bret Baier during "Fox News Reporting: American Payday – The Big Squeeze" that Washington's main product is policy, but ultimately, this sale of policy can devolve into crony capitalism, as Mason asserts it has under the Obama administration.

Different lobbying groups should be able to state their cases in Washington, Mason said, but how do you know when when it's no longer sensible legislation and rational supervision, but favoritism and stifling regulation?

Mason said the regulatory industry is a drag on U.S. economic growth and job creation.

“We can continue to expand this, but it’s not going to do anything good for our economy or our country,” he said, asserting Obama has hurt free enterprise with burdensome regulation.

The president has disagreed, in a recent speech saying his agenda was in fact “pro-business” and “pro-economic growth.”

One thing everyone agrees on is that this Fall's midterm elections will be a referendum not just on the state of the economy, but on the Obama administration.

“I’m not on the ballot this Fall, but make no mistake, these policies are on the ballot. Every single one of them,” Obama said in a speech last week.

Watch the clip above and don’t miss a re-airing of “Fox News Reporting: American Payday – The Big Squeeze,” hosted by Bret Baier, tonight at 9p ET.