Campaign Finance. INTEREST GROUPS Criticisms: 1.Interest groups push their own agenda, which is not always in the best interest of most Americans. 2.

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Presentation transcript:

Campaign Finance

INTEREST GROUPS Criticisms: 1.Interest groups push their own agenda, which is not always in the best interest of most Americans. 2. Better organized + better funded = more influence. ($ may not buy congressional votes, but it buys access to a congress member.)

Congressional Limitations related to SIG’S: ▪Lobbyists must register with the Federal government. ▪Two year “cooling off” period for former Senators -1 year for former House members before working for a SIG. (“Revolving Door” –leave gov’t, become a lobbyist or key executive in corporations, foundations or universities) ▪Limitations on/disclosure of campaign donations.

What industries/SIG’s spend the most on lobbying? According to OpenSecrets.org, the following data was recorded by the Senate Office of Public Records. The top 10 industries for 2014 were: MILLIONS!!! Pharmaceuticals/Health Products - $65,420,126 Insurance - $40,008,093 Electric Utilities - $38,288,418 Computers/Internet - $35,597,059 Business Associations - $35,448,590 Oil & Gas - $33,880,219 TV/Movies/Music - $28,511,338 Securities & Investment - $26,670,959 Misc. Manufacturing & Distributing - $23,650,110 Hospitals/Nursing Homes - $21,985,808OpenSecrets.org,

Campaign Finance: FYI… U.S. Senate seat now costs $10.5 million to win, on average, while US House seat costs, $1.7 million average of $14,351 every day between Jan and election day, 2012 in order to pull of a win in Senate, while the victorious House members raised $2,315 per day

Observations? *=Pres. Elections

How much was spent on 2012 Presidential Race? OpenSecrets.org is a nonpartisan guide to money's influence on U.S. elections and public policy.

Currently, who is spending more…Dems or Reps? Total number of dollars spent this year (2014) on Midterm campaigns. $800,000,000 million+

Sources of Campaign Money Presidential candidates-part private donors and part from Fed. Gov’t (Gov’t matches what they raise up to $250 per person (after $5000 raised from 20 states) Congressional Candidates – all from private parties PACS can five up to $5000 to a presidential candidate. How much can I contribute?

Brief History of Campaign Finance Reform: FEDERAL ELECTION COMMISSION (FEC): Established in 1975 following Watergate. Administers and enforces Federal campaign finance laws. Requires disclosure of all expenses/set limits PACs can spend “unlimited amounts” Buckley v. Valeo, 1976 Money = Freedom of Speech 3 minutes

PAC (Political Action Committee) = group set up by a corporation, labor union or interest group that raises and spends campaign money from voluntary donations. ● SIGs give 100 times more $ to incumbents in the House =investment in the future (incumbents win almost 90% of elections.) ● Traditionally: ● Labor PAC’s give to Democrats ● Business PAC’s favor Republicans

PAC $ Top Recipients

Bipartisan Campaign Finance Reform Act: (McCain-Feingold) 2002 Banned PACs from running ads 60 days before and election, 30 days before a primary. Bans “soft money” = $ given to the party rather than a specific candidate. LIMIT INFLUENCE OF PACS…

527’s and 501’s (named for the tax code #) come about= PAC’s by another name…run issue oriented ads 527’s = loophole for non-coordinated groups to put out good or bad info about candidates. Candidate Y runs an ad that says, Candidate X has a record that includes awful things. If these awful things continue, people will come to your house, steal your money and shoot your dog. Be sure to vote on election day.” Because the ad “educates” people on an issue and doesn’t tell them to vote for a particular candidate, it is party building and can be paid for with soft money.

SUPREME COURT CASE: Citizens United v. FEC 2010 (Conservative Lobbyists v. Federal Election Commission) Corporations (are like citizens), unions and other special interests have a constitutional right (FIRST AMENDMENT -protects political speech) to spend as much as they like to advocate the election or defeat of political candidates Video: Hip Hughes min. Video: Hip Hughes - Start at 7:40- Citizens United

2010 Super PAC is born (Independent Expenditure Only Committee) raise unlimited sums of money from corporations, unions, associations and individuals, spend unlimited sums to overtly advocate for or against political candidates. prohibited from donating money directly to political candidates. As of October 14, 2014, 1,209 groups organized as Super PACs have reported total receipts of $367,450,272 and total independent expenditures of $204,504,470 in the 2014 cycle.

What is a Super PAC (2 min video) m7-uU m7-uU

Comedian Stephan Colbert SUPER PAC SELPyNSohttp:// SELPyNSo 2 min. yYBE0mD-shttps:// yYBE0mD-s 8 min.

Oh, Super PACs! A music video GjtRI GjtRI 3 minutes

McCutcheon v. FEC 2014 Alabama Businessman -Republican ($21.5 billion net worth) v. Federal Election Commission Continue limits on donations to a single candidate, currently $5,200 ($2,600 each for a primary and general election), but said the law cannot restrict the number of candidates to whom a donor can contribute. (Freedom of Speech -1 st Amendment) an individual donor who elects to give the maximum to every presidential, House and Senate candidate and party committee could spend up to $3.6 million per election cycle!! Keith Hughes explains min. Keith Hughes explains -

Campaign Finance Timeline

What does all this $ buy? Buys votes? Buys access? (undue influence?) Buys favors? Quid pro quo -"something for something" (Earmarks: a provision in a law that provides a direct benefit to a client - SIG)? To be continued…..in Unit 4(Congress)

A video that also explains Campaign Finance (if needed as another resource) y4 y4