Money and Campaigns

Money and Campaigns

Two competing interests . . .

1. We don’t want elections to be purchased by the highest bidder

2. We want to be able to financially support candidates we agree with

Money and Campaigns

Watergate – 1972

President Nixon uses money from large contributors to cover-up involvement in the break in.

Money and CampaignsI. Federal Election Campaign Act – 1974

A. Two goals:1. Tighten reporting of contributions2. Limit spending

B. Created the FECC. Created the Presidential Election Fund

Money and Campaigns

Money and Campaigns

Money and CampaignsI. Federal Election Campaign Act – 1974

A. Two goals:1. Tighten reporting of contributions2. Limit spending

B. Created the FECC. Created the Presidential Election FundD. Provided public funding for presidential

primary campaigns

Money and Campaigns

Money and CampaignsI. Federal Election Campaign Act – 1974

D. Provided public funding for presidential primary campaigns

1. To qualify for primary matching funds, candidate must have to have raised at least $5,000 in 20 states

2. The federal government will match contributions of up to $250

3. Candidates then agree to limit their spending

Money and CampaignsI. Federal Election Campaign Act – 1974

D. Provided public funding for presidential primary campaigns

4. Most candidates now forgo (since George W. Bush in 2000)

a. Can raise more money on their ownb. Don’t want to limit expenditures

E. Provided public funding for the general election

Money and Campaigns

Senator Barack ObamaDemocrat

$750,000,000

Senator John McCainRepublican

$84,100,000

Money and Campaigns

President Barack ObamaDemocrat

$1,230,000,000

Governor Mitt RomneyRepublican

$1,019,000,000

Money and Campaigns

2012 Campaign Spendinghttp://elections.nytimes.com/2012/campaign-finance

http://demonocracy.info/infographics/usa/political_spending/2012_elections.html

Money and CampaignsI. Federal Election Campaign Act – 1974

D. Provided public funding for presidential primary campaigns

4. Most candidates now forgo (since George W. Bush in 2000)

a. Can raise more money on their ownb. Don’t want to limit expenditures

E. Provided public funding for the general election

F. Required full disclosureG. Limited contributions

Money and CampaignsI. Federal Election Campaign Act – 1974

H. Buckley v. Valeo – cannot limit the amount a candidate contributes to his own campaign

I. Soft money – money raised general party activities

1. Not subject to contribution limitations

Money and Campaigns

II. McCain-Feingold – 2002 (BCRA)A. Banned soft moneyB. “hydraulic theory of money and

politics”C. 527s

Money and Campaigns

III. Political Actions Committees (PACs)A. May channel up to $5,000 per

candidateB. Must report all contributions and

expenditures to the FEC

Money and Campaigns

Doctrine of Sufficiency

Candidate “A” Candidate “B”

$$

Money and Campaigns

Doctrine of Sufficiency

Candidate “A” Candidate “B”

$$

Sufficient to get message across and compete