Money and Politics Reference Ch 7.3

How much money do Americans spend on campaigns? Do wealthy contributors “buy” government influence? Should the government limit contributions and/or expenditures?

On what might they have spent all that money? 2004 How much money was spent in the presidential election between Bush and Kerry? $ 2 BILLION On what might they have spent all that money?

On what might they have spent all that money? Radio, tv, proffessional campaign managers, newspaper advertisements, pamphlets, mailers, butttons, posters, bumper stickers, websites, travel expenses

Where do they get all that money? Private Contributions Small ($5-10) 10% of voters Wealthy Individuals and Families Candidates and their families PACS Temporary Fund-raising organizations Social events Telethons Internet Direct Mail Public Finance Subsidies (grants)

Per capita Spending 1960 -- $2.54 per voter 1980 -- $13.87 per voter

2000 House: Highest: $1.5-2m, avg. 840,000 Senate: highest $7.3m percandidate Soft money= +$470m

Why do people give? Political participation Belief or Ideology Rewards Appointments Influence Social recognition Policy objectives

Hard Money v. Soft Money MoveOn.org Program For America Fund Hard Money= money raised and spent to elect Congress and President Soft Money= funds given to party organizations to “promote the party” Candidate recruitment Voter Registration Get on the Vote Campaigns It’s a loophole--$200-$500 million per election cycle MoveOn.org Program For America Fund

PAC-Political Action Committee Political arm of special-interest groups BIPAC (business-industry) COPE (AFL-CIO) “Unconnected Entities” usually organized around an ideological interest EMILY’S List –promoting women candidates

Should the amount of money spent on political campaigns be restricted? What problems could arise from the need to raise so much money to be competitive?

Arguments for Wealthy individuals, unions, corporations, and interest groups use political contributions to advanced their own legislative agendas, undermining the will of the people. Wealthy contributors may actually determine who is elected to office. The need to raise large amounts of money may discourage qualified persons from running for office. Preoccupation with money-raising may keep office holders from doing their jobs.

Arguments against Placing caps on campaign spending is an unconstitutional limit on freedom of speech. Spending limits could prevent lesser-known challengers from getting their message out. Attempts to reform campaign financing often create new problems. Examples: 1) The Federal Election Campaign Act of 1971 created Political Action Committees (PACs), which generated even higher levels of campaign spending by interest groups. 2) To avoid provisions of BCRA, wealthy donors are giving huge sums to independent organizations that engage in political activities. Campaign reform can be achieved by relying on complete disclosure of fund sources rather than spending limits or public financing of political campaigns.

Congress has attempted to regulate campaign financing 1907 prohibition of business spending 1971 Federal Election Campaign Act 1974/1976 amendments to FECA-response to Watergate. Bipartisan Campaign Reform Act of 2002 Strongly-worded laws, not well enforced….WHY?

FEC Federal Election Commission Require the timely disclosure of campaign finance data Place limits on campaign contributions Place limits on campaign expenditures Provide public funding for several parts of the presidential election process

1. disclosure No one can contribute in the name of another No cash gifts greater than $100 No foreign contributions All funds must go through the election committee Loans/contributions >$200,note source/date $5,000 or greater reported within 48 hrs. $1,000 within 20 days of election.

2. Contributions Limits No person can contribute more than $2100 for primary, $2100 for general election. No person can contribute more than $5000 to a PAC No person can contribute more than $26,700 to national party committee Total max per federal election cycle, $101,400 No corporate or labor union contributions (only PACs) 1972 W. Clement Stone 2 million to Nixon

3. Expenditure Limits Supreme Court ruled limits unconstitutional (violation of the 1st Amendment) Can be limited if candidate accepts FEC subsidies Limits (2004) PRECONVENTION $37 MILLION General Campaign $74.6 million Can collect up to $18.6 m primaries, $75m general

4. Public Funding Taxpayers can designate up to $6 of their tax refund to public funding Complicated criteria to qualify

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