Money and Political Participation. Political Contributions, Campaign Financing, and Politics
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1 Money and Political Participation Political Contributions, Campaign Financing, and Politics
2 Today s Outline l Are current campaign finance laws sufficient? l The Lay of the Campaign Finance Land l How much is donated, by whom l History of the laws l Should we have more severe restrictions? l Maybe not. l What are alternatives.
3 Campaign Process Elements l Finance: raise money l Publicity l Unpaid coverage (media) Campaign events Press conferences Debates
4 Recurring reform themes l Limit the disproportionate influence of wealthy individuals and special interest groups on the outcome of federal elections; l Regulate spending in campaigns for federal office; and l Deter abuses by mandating public disclosure of campaign finances ( transparency ).
5 Terms / concepts l Soft money: contributions to national parties not subject to contribution limits. l PAC: Political Action Committee ( multicandidate committee) l Independent expenditures: made without coordination with candidate / campaign l Issue ads: political advertising not directly affiliated with specific candidate, but oriented toward specific issue or cause.
6 Modern campaign finance laws l 1883 Pendleton Act (Civil Service) l 1907 ban on direct contributions by corporations l 1947 ban on direct contributions by labor unions l 1971 / 1974 Federal Election and Campaign Act (established limits & FEC) l 1976: Supreme Court decision in Buckley v. Valeo l 2002: Bipartisan Campaign Reform Act
7 1974 FECA l 1. Created Federal Elections Commission. l 2. Allowed for federal funding for presidential candidates (matching funds with voluntary limits). l 3. Required public disclosure of contributions & spending. l 4. Placed limits on campaign spending if a candidate accepted federal matching
8 1974 FECA l 5. Set contribution limits: $1,000 limit any individual can give to federal candidate in the primary, & $1,000 in per candidate in general election. $5,000 limit per individual per campaign by a "multi-candidate organization" (Political Action Committee.) l Limited amounts of their own money candidates could spend on their own campaigns. (Struck down in Buckley v Valeo) l Limited amounts of other people s money candidates could spend (i.e. tried to establish expenditure ceilings in US congressional races.) (Struck down in Buckley v Valeo)
9 Campaign Finance Reform: Is it Necessary? l We often hear politicians rail against the system of financing political campaigns. l But is it really broken? l Or, more to the point, are stiffer laws restricting contributions the answer?
10 The Lay of Campaign Finance Land l Bipartisan Campaign Reform Act (BCRA) -- a.k.a. McCain-Feingold
11
12 2004 House Candidate Averages (All) OpenSecrets.org (FEC Data)
13 2004 House Incumbents Average OpenSecrets.org (FEC Data)
14 2004 Senate Candidates Averages (All) OpenSecrets.org (FEC Data)
15 2004 Senate Incumbents Averages OpenSecrets.org (FEC Data)
16 Jacobson 2005
17 Campaign Spending in Competitive Races Races which an incumbent received less than 60 % of the major party vote in the previous election.
18 Largest Sources of Campaign Funds: l Individual contributions (by far) l PACs l Political Parties (less so the case) l Personal Contributions
19 Sources of House Campaign Contributions
20 Sources of Senate Campaign Contributions
21 Hard and Soft Money Spent by House Campaign Committees
22
23 Soft Money and Issue Advocacy Advertisements l Soft Money The virtually unregulated money funneled by individuals and political committees through state and local parties Now prohibited under BCRA Result: Hard money fundraising increased and the emergence of 527s
24 Are PACs Good or Bad for the Process? l The Bad PACs are the embodiment of corrupt special interests that use their contributions to buy votes of legislators. l Evidence is mixed Moreover, the less affluent and minority members of our society do not enjoy equal access to these political organizations.
25 Future Campaign Finance Reform l Did soft money disappear? Much has shown up in new 527 political committees l Media Fund l Americans Coming Together Visible in both parties Require disclosure and sunshine
26 Arguments for more severe restrictions l Money buys disproportionate access l Benefits accrue to the organized l Lawmakers spend too much time fund-raising l $ = votes!
27 Maybe the problem is not so bad l Are campaign contributions political speech? l Do laws really hinder challengers and outsiders? l Is it really money that is the problem or what needs to be purchased (advertising) l Does $ really buy votes?
28 Changes? l What changes need to be made to the system, if any? l What should be the objective?
29 Radical Alternatives (?) l Total government financing l Ban all but small individual contributions l Free television time l Complete deregulation with full information l Anonymous contributions
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