Mar 31, 2015
Nature of Modern Campaigns
Most electoral contests are similar in a number of
ways.
Nomination campaign aimed at winning primary.
General election campaign aimed at winning final
race.
Cost of CampaignsIn 2008, Obama and McCain raised and spent
more than $1 billion in their race for the White House
The average winning candidate in the House of Representative now spends 1.4 million; the average winning candidate in the Senate over 9 million (exceptions Hillary Clinton of New York: 41 million; Rick Santorum of Pennsylvania: 28 million)
Its costs money to raise funds; Bush spent $1 for every $4.5 raised in 2004
Money and CampaigningThe Maze of Campaign Finance Reforms
Federal Election Campaign Act (1974) Created the Federal Election Commission (FEC) to
administer campaign finance laws for federal elections Provided public financing for presidential primaries and
general elections (sufficient contributions in at least 20 states)
Limited Presidential Campaign spending Limited Contributions (Individuals $1000; PACs $5,000) Required disclosure
Filing of periodic reports with the FECMoney—from whom? How much was spent? For what?
Loopholes in 1974 FECASoft moneyIndependent expendituresbundling
Money and CampaigningThe Maze of Campaign Finance Reforms
Soft Money: political contributions (not subject to contribution limits) earmarked for party-building expenses or generic party advertising
Hard Money: funds that are raised subject to federal campaign contributions and expenditure limitations
The McCain-Feingold Act (2002) banned soft money, increased amount of individual contributions, and introduced restrictions on political advertising close to an election
Bipartisan Campaign Reform Act Passed in 2002 to update FECA of 1974.
Does not regulate use of personal money.
Outlaws use of soft money.
New limits on individual and political action committee funds.
Independent expenditures: Individuals, PACs, and Parties may spend unlimited amount of money directly advocating the election or defeat of a candidate as long as expenditures are not coordinated with campaign.
Money and CampaigningThe Proliferation of PACs
Political Action Committees (PACs): created by law in 1974 to allow corporations, labor unions and other interest groups to donate money to campaigns; PACs are registered with and monitored by the FEC.
As of 2006 there were 4,217 PACs.PACs contributed over $372.1 million to
congressional candidates in 2006.PACs donate to candidates who support their
issue.PACs do not “buy” candidates, but give to
candidates who support them in the first place.
The 527 Loophole: Result of BCRA
527s: independent groups that seek to influence
political process but are not subject to
contribution restricts because they do not directly
seek election of particular candidates
Advocacy may only be paid for with hard money.
Soft money is banned under BCRA.
Cannot advocate for candidates, only causes and
policy.
Back
PACs and Their Conributions
Money and CampaigningAre Campaigns Too Expensive?
Fundraising takes a lot of time.Incumbents do worse when they spend more
money because they need to spend to defeat quality challengers.
The doctrine of sufficiency suggests that candidates need just “enough” money to win, not necessarily “more.”