Congress and Fundraising. Opportunities to discuss course content Thursday 10-2 Friday 10-12.

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Presentation transcript:

Congress and Fundraising

Opportunities to discuss course content Thursday 10-2 Friday 10-12

Learning Objectives Analyze the theories of why people vote and apply them to the 2012 Election. Evaluate the strengths and weaknesses of how presidential and congressional elections are financed.

PUBLIC FINANCING IN 2012

Government Money in the Primary Federal Money is available in primary and general election There are Eligibility Requirements, caps on spending, and caps on raising. 22 million from the G, and 55 million cap on spending

Federal Money in the 2012 Primaries In 2012, no one accepts it Candidate strategy helped end this

Public Funding for General Election Each candidate could receive 91 million in public money It doesnt kick in until you are officially nominated This money served to reduce campaign costs and remove any potential for corruption

At the Presidential Level

This is Hard Money

WHY DO I NEED IT AND WHERE DO I GET IT? Money

Why I Need Money to Run for office It buys advertising and mobilizes voters It converts itself In Scares away challengers

I Will Lose Without it There is no public money available or it is foolish to take it The Cost of Winning a seat – 1.3 Million in the House – 7 Million in the Senate

WHERE WE GET OUR MONEY

Sources Individuals Parties Pacs Third Party Groups

How Much Can People Give?

Political Parties

The Role of the Internet Publicity Instant Access Low Opportunity Costs Currently favors the Democrats

Political Action Committees The Money Giving Arm of an Interest Group Can Give $5,000 per candidate per election

Different PACs have different Goals Issue PACS Labor PACS Ideological PACS Leadership PACS

PACS Give to Safe Seats Money flows to safe seats Giving money to losers has no return on investment If I wanted to buy seats, I would give to underdogs and closer races

Why do I give to Incumbents of any party? I care about the issues, not the label I want to keep my supporters in office Keep my enemies out

PACS Give to People Who Already Support them Corporations Love Everyone You want them to get reelected You want them to continue to support your ideas

Donors Do not Try and Switch People My money is not going to change their votes They wont take my money anyway

If Money Buys votes, why dont I give to undecided members Money could convince them to vote my way But what if it doesnt Its safer to hang on to it

If I wanted to Buy Votes? Than why do I give to my friends? I give my money to my strongest supporters You want them to get elected and reelected You want them to continue to support your ideas

In Texas Ted CruzPaul Sadler

The Goal Of My Money Access A chance to meet with legislators Ensure my views are represented

NEW MONEY IN ELECTIONS

Citizens United vs. Federal Election Commission Corporations and labor unions can spend unlimited amounts of undisclosed money to call for the election or defeat of candidates all the way to election day. Can include the magic words Cannot be in conjunction with a candidate or party

Independent Expenditures in 2010 From The RightFrom The Left

Super PACS Created by Speechnow Decision Can collect unlimited amounts of disclosed money Can collect from non- profits who dont Must be independent and can use magic words

501(C) nonprofits Can Spend Unlimited Amounts of Money Do not have to disclose their donors Cant use the magic words Cant be primarily engaged in politics

Top 501(c)s

Karl Rove: Best of Both Worlds American CrossroadsCrossroads GPS Super Pac Must Disclose Donors 501 (c) Doesnt have to disclose donors Can give to other 501(c) groups as part of social welfare goal

Sheldon Adelson 92 Million total 20.5 Million went to Newt Gingrich The biggest donor of 2012

The Super Donors

OUTSIDE SPENDING IN 2012

Top Outside Spenders: 2012

Outside Spending in 2012

Advantages of Super Pacs They Can Spend the Unlimited Amounts Level the Playing Field Say things that a candidate would never say

Disadvantages of Super Pacs Message problems Cost-effectiveness

Impact of the Super-pacs GOP outspends 2-1, but Hard Money is still better Tend to give to ideologically pure and long- shot candidates Will have to re-evaluate themselves

THE ELECTION The Republicans

Romney Perry Gingrich Santorum

Obamas Super Pac Strategy Previously If You cant beat them, join them Creates a super pac

Obama in the Summer Preemptive Attack Battleground States Cost-Effective

Overall Spending

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