1. The Political Process

2. The Political Process What is a democracy?
Lawrence Lessig’s Ted Talk
Money in Politics Facts
What is a democracy?
Everyone has the same political power.
Is this a democracy?
Does any one person’s vote = any one person’s vote? YES, mostly
Does any one person’s political power = Any one person’s political power?
Is the US a democracy or is the US a plutocracy?
What is a plutocracy?
Government by the wealth, for the wealthy, of the wealthy
What are the mechanisms that the wealthy use to gain political power?
We will study:
How much does money influence politics?
How much should money influence politics?
What should we do about it?

3. The Facts! Money in elections (are they free or fair?)
Bill Gates’ $ = the money of 106 million Americans
In 2004 those who outspent their opponents won election 94% of the time
Over 2 billion dollars was spent on the 2016 presidential election alone!!

4. Check This Out!!
Who is the money in politics good for? Who is the money in politics bad for?
The President…

5. Takers
Average US congressional campaign >$1 million Incumbents win >98%
Average senate race >$5 million Incumbents win >85%
90% of PAC money goes to incumbents
Those who outspend their opponents win over 90% of elections
OVER 40 SENATORS ARE MILLIONAIRES!
Millionaires in Congress…NPR Report

7. Givers
Donors who gives more than $200 to a congressional candidate make up 1/4 of 1% of the population. 95% are White  80% are men  50% are over 60 80% have family incomes > $100,000  20% have income > $500,000 Their contributions give them access to their representatives. >50% had formally met with their member of congress since the last election >30% had formally met with their senator

8. Super-PACs http://www.opensecrets.org/pacs/superpacs.php
are a new kind of political action committee created in July 2010 following the outcome of a federal court case known as SpeechNow.org v. Federal Election Commission. Technically known as independent expenditure-only committees, Super PACs may raise unlimited sums of money from corporations, unions, associations and individuals, then spend unlimited sums to overtly advocate for or against political candidates. Super PACs must, however, report their donors to the Federal Election Commission on a monthly or quarterly basis -- the Super PAC's choice -- as a traditional PAC would. Unlike traditional PACs, Super PACs are prohibited from donating money directly to political candidates. As of October 11, 2012, 931 groups organized as Super PACs have reported total receipts of $394,249,275 and total independent expenditures of $348,694,658 in the 2012 cycle. See more on Outside Spending.

9. Is this good news? How much power do you have?
Why do people give this sort of money to politicians?
Controversial businessman and banker Charles Keating said, “has my financial support in any way influenced several politicians to take up my cause. I certainly hope so.” When another businessman was asked if his $300,000 donation to the democratic party have him access to Clinton replied, “of course. The only reason I gave money is to get access.” He continued , “I only regret now that I didn’t give $600,000.” Fundraiser Johnny Chung said about the business of campaigns that “The White House is like a subway, you have to put in coins to open the gates.”
Have you talked to your representatives lately? Who do they represent?
Call capitol switchboard → Ask for a formal meeting with your representative or senator. See what happens.  Capitol switchboard →   White House → or

10. Interest groups (special interest groups, pressure groups)
Define
List & give examples of the five types of Interest Groups in the book
Perform a cost/benefit analysis of the effect of interest groups on democracy
List any interest groups you are in:
List the five types of interest groups, explain each and give actual examples.
How do interest groups get what they want?
Write a law reforming interest groups.

11. Lobbyists Questions… What is lobbying? What are lobbyists?
We have many negative connotations of lobbying.
What do lobbyists do that is positive?
Inform and educate decision makers in government
Educate and mobilize public opinion
Prepare legislation
Testify before legislative hearings
Contribute to cost of campaigns
Do lobbyists have too much influence over government?
How many lobbyists are there per member of Congress?
There are 61 lobbyists for each member of Congress.
When lobbyists move from government to lobbying this called going through the revolving door.
Should we regulate revolving door lobbying?
Gucci Gulch – Lobbyists on average make 3 times the salary of congresspeople. Is this good?
Are government officials like Michael Deaver who leave government service to lobby for foreign governments traitors? He lobbied for Singapore, South Korea and Canada and made $1.2 million.

12. Who do our representatives represent? Are we being bought and sold?
Lawrence on Lobbyists!
Interest Group Terms…

13. $$$ in Politics…Interest Groups
FEC Contribution Facts:

14. What do Interest Groups Do?
Lobbying Client
Total
US Chamber of Commerce
$1,387,220,680
National Assn of Realtors
$448,341,271
American Medical Assn
$368,687,500
General Electric
$351,042,000
American Hospital Assn
$342,757,732
Pharmaceutical Research & Manufacturers of America
$330,389,050
Blue Cross/Blue Shield
$313,526,924
AARP
$271,311,064
Boeing Co
$255,473,310
Northrop Grumman
$252,642,213
Exxon Mobil
$240,902,742
Business Roundtable
$239,599,000
Lockheed Martin
$238,056,393
Verizon Communications
$230,047,043
AT&T Inc
$226,435,644
Edison Electric Institute
$214,656,789
National Assn of Broadcasters
$211,008,000
Southern Co
$207,920,694
National Cable & Telecommunications Assn
$193,830,000
Altria Group
$184,555,200
What do Interest Groups Do?
Here’s a list of some of the things interest groups do. Activity Percent engaging in activity 1. Testifying at hearings Contacting governmental officials directly to present point of view Engaging in informal contacts with officials – conventions, lunch presenting research or technical information sending letters to members of the group to inform them about activities Entering into coalitions with other groups Attempting to shape the implementation of policies talking with people from the media consulting with government officials to plan legislative strategy helping to draft legislation inspiring letter-writing or telegram campaigns shaping the government’s agenda by raising new and ignored issues mounting grassroots lobbying efforts Having influential constituents contact their member of Congress Helping to draft regulations, rules, or guidelines serving on advisory commissions and boards 76
Data for the most recent year was downloaded on October 21, 2017.
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15. Election Reform Background
Why don’t we regulate money in politics?
We do. In 1971 Congress passed the Federal Election Campaign Act which:
1) Created Federal Election Commission (FEC)
Bipartisan administers and enforcers of campaign laws
 2) Provided public financing for presidential elections Matching funds from tax $ - you can check a $3 box on your taxes
 3) Limited presidential campaign spending
If you get federal $ you must spend less than $35 million on primaries and $80 million on general election
4) Required disclosure
who contributed and how was money spent

16. 5)Limited contributions
In 2002 Congress passed the Bipartisan Campaign Reform Act which:
Limits PACS to $10,000 per election cycle
Limits individuals to $2300 per candidate, per election cycle.
Limits individuals to $25,000 per national party per year
Limits individuals to $10,000 per year to state party per year
Limit aggregate contributions to $108,200 per 2 year cycle

19. The Story of Citizens United v. FEC https://www. youtube. com/watch