congress and fundraising. opportunities to discuss course content thursday 10-2 friday 10-12
TRANSCRIPT
Congress and Fundraising
Opportunities to discuss course content
• Thursday 10-2
• Friday 10-12
Learning Objectives• Analyze the theories of why people vote and
apply them to the 2012 Election.
• Evaluate the strengths and weaknesses of how presidential and congressional elections are financed.
PUBLIC FINANCING IN 2012
Government Money in the Primary
• Federal Money is available in primary and general election
• There are Eligibility Requirements, caps on spending, and caps on raising.
• 22 million from the G, and 55 million cap on spending
Federal Money in the 2012 Primaries
• In 2012, no one accepts it
• Candidate strategy helped end this
Public Funding for General Election
• Each candidate could receive 91 million in public money
• It doesn’t kick in until you are officially nominated
• This money served to reduce campaign costs and remove any potential for corruption
At the Presidential Level
This is Hard Money
WHY DO I NEED IT AND WHERE DO I GET IT?
Money
Why I Need Money to Run for office
• It buys advertising and mobilizes voters
• It converts itself
• In Scares away challengers
I Will Lose Without it
• There is no public money available or it is foolish to take it
• The Cost of Winning a seat
– 1.3 Million in the House– 7 Million in the Senate
WHERE WE GET OUR MONEY
Sources
• Individuals
• Parties
• Pacs
• Third Party Groups
How Much Can People Give?
Political Parties
The Role of the Internet
• Publicity
• Instant Access
• Low Opportunity Costs
• Currently favors the Democrats
Political Action Committees
• The Money Giving Arm of an Interest Group
• Can Give $5,000 per candidate per election
Different PACs have different Goals
• Issue PACS
• Labor PACS
• Ideological PACS
• Leadership PACS
PACS Give to Safe Seats
• Money flows to safe seats
• Giving money to losers has no return on investment
• If I wanted to buy seats, I would give to underdogs and closer races
Why do I give to Incumbents of any party?
• I care about the issues, not the label
• I want to keep my supporters in office
• Keep my enemies out
PACS Give to People Who Already Support them
• “Corporations Love Everyone”
• You want them to get reelected
• You want them to continue to support your ideas
Donors Do not Try and “Switch” People
• My money is not going to change their votes
• They won’t take my money anyway
If Money Buys votes, why don’t I give to undecided members
• Money could convince them to vote my way
• But what if it doesn’t
• Its safer to hang on to it
If I wanted to Buy Votes? Than why do I give to my friends?
• I give my money to my strongest supporters
• You want them to get elected and reelected
• You want them to continue to support your ideas
In Texas
Ted Cruz Paul Sadler
The Goal Of My Money
• Access
• A chance to meet with legislators
• Ensure my views are represented
NEW MONEY IN ELECTIONS
Citizens United vs. Federal Election Commission
• Corporations and labor unions can spend unlimited amounts of undisclosed money to call for the election or defeat of candidates all the way to election day.
• Can include the magic words
• Cannot be in conjunction with a candidate or party
Independent Expenditures in 2010
From The Right From The Left
Super PACS• Created by Speechnow
Decision
• Can collect unlimited amounts of disclosed money
• Can collect from “non-profits” who don’t
• Must be independent and can use magic words
501(C) “nonprofits”
• Can Spend Unlimited Amounts of Money
• Do not have to disclose their donors
• Can’t use the magic words
• Can’t be primarily engaged in politics
Top 501(c)’s
Karl Rove: Best of Both Worlds
American Crossroads Crossroads GPS• Super Pac
• Must Disclose Donors
• 501 (c)
• Doesn’t have to disclose donors
• Can give to other 501(c) groups as part of social welfare goal
Sheldon Adelson
• 92 Million total
• 20.5 Million went to Newt Gingrich
• The biggest donor of 2012
The Super Donors
OUTSIDE SPENDING IN 2012
Top Outside Spenders: 2012
Outside Spending in 2012
Advantages of Super Pacs
• They Can Spend the Unlimited Amounts
• Level the Playing Field
• Say things that a candidate would never say
Disadvantages of Super Pacs
• Message problems
• Cost-effectiveness
Impact of the Super-pacs
• GOP outspends 2-1, but Hard Money is still better
• Tend to give to ideologically pure and long-shot candidates
• Will have to re-evaluate themselves
THE ELECTIONThe Republicans
The Republicans
• Romney
• Perry
• Gingrich
• Santorum
Obama’s Super Pac Strategy
• Previously
• If You cant beat them, join them
• Creates a super pac
Obama in the Summer
• Preemptive Attack
• Battleground States
• Cost-Effective
Overall Spending