MIG#12 Mo’

Money, Mo’ Money

Can you….??Answer Yes/No

1.To help Obama with his campaign, you buy him a jet. This way he can fly from place to place at little expense to his campaign.

2. Secretly donate $25,000 to a president’s campaign.

3. Donate season tickets to the Lakers to your favorite candidate.

Legal Gifts • Campaign Contributions: money to

campaign, can buy access and influence NOT favors and cannot bribe!

Show Overhead!!!

Sen. Ted Stevens, the longest-serving Republican senator and a figure in Alaska politics since before statehood, was indicted Tuesday on seven counts of failing to disclose thousands of dollars in services he received from a company that helped renovate his home.

Stevens, the first sitting U.S. senator to face federal indictment since 1993, has been dogged by a federal investigation into his home renovation project and whether he pushed for fishing legislation that also benefited his son, an Alaska lobbyist.

The indictment unsealed Tuesday says the items included: home improvements to his vacation home in Alaska, including a new first floor, garage, wraparound deck, plumbing, electrical wiring; as well as a Viking gas grill, furniture and tools. He also was accused of failing to report swapping an old Ford for a new Land Rover to be driven by one of his children.

Prosecutors said Stevens received more than $250,000 in gifts and services from VECO Corp., a powerful oil services contractor, and its executives.

You be the judge! If what this says is true, is this bribery?Bribery = gifts for favors and is illegal

Federal Election Campaign ActFederal Election Campaign Act (1971)

• Contribution limits: –Hard money:

• money to a candidate• Limited at $1,100

• Created a loophole: –Soft money

• Money given to political party• Unlimited

FECA –Disclosure: must show who

contributes –NO Expenditure (spending) limit–NO contributions from unions or

corporations

Candidate Contributor Employer Date Amount

Obama, Barack

WINFREY, OPRAHCHICAGO,IL 60611

SELF EMPLOYED/HARPO STUDIOS

9/12/07 $2,300

Obama, Barack

WINFREY-HOLCOMB, CAROLYNMATTESON,IL 60443

GENERAL MOTORS NORTH AMER. OPERATIO

9/28/07 $300

PACs• Political Action Committees: fundraising

arm of groups that can donate directly to a campaign – Most are corporations

• Contribution limit: $5000/year

• Incumbents: person currently in office gets most of their $

MIG #16: How does $$$ influence

politics?Which of the following would be the best way

to handle money and politics? Explain.1. Allow people to donate as much as they want

but all donations must be disclosed (shown) to the public.

2. Instead of people donating to campaigns, let the government pay for them.

3. Put tight restrictions on the amount any one person or group can donate, but, also disclose who is giving the money.

Bipartisan Campaign Reform Act Bipartisan Campaign Reform Act 20012001

• Increases individual contributions:

–Hard $: $2300• Eliminates soft money (unlimited

funds)

–$28,500 to parties

New (and growing) Loophole

• Independent Independent ExpendituresExpenditures (527s) (527s)

–Issue Advocacy Groups:

•Support issues, but not a particular candidate

–No limit!!

Public Financing • Gov (public) pays for campaign

costs–Currently up to $84 million in

presidential general election

–Most candidates accept it & are restricted in their spending

–ADV:–DIS:

Too much? • Obama's campaign purchased the same half-

hour of prime time — from 8-8:30 p.m. ET on CBS and NBC (a deal with ABC is still in negotiations). FOX, which has broadcast rights to Game 6, planned to air a pre-game show, and the first pitch is usually thrown at 8:22 p.m.

• Fox sold the half-hour to Obama's campaign for just under $1 million after MLB agreed to the network's request

Do campaign contributions give the wealthy an unfair

amount of power in government?