1. Money and Politics
Reference Ch 7.3

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

3. 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?

4. 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

5. 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)

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

7. 2000 House: Highest: $1.5-2m, avg. 840,000
Senate: highest $7.3m percandidate
Soft money= +$470m

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

9. 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

10. 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

11. 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?

12. 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.

13. 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.

14. 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?

15. 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

16. 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.

17. 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

18. 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

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

20.
U.S. Congress Campaign Contributions and Voting Database | MAPLight.org - Money and Politics