1. Elections and Campaigns Money in Electoral Campaigns

2. Money in Campaigns Political campaigns cost a lotPolitical campaigns cost a lot Particularly true in recent yearsParticularly true in recent years Political machines don’t supply workers & expensive mediaPolitical machines don’t supply workers & expensive media

3. Can Money Buy Elections? In 29 presidential elections between 1860 & 1972, the winner outspent the loserIn 29 presidential elections between 1860 & 1972, the winner outspent the loser Doesn’t necessarily mean money=votes (popular candidates who look like winners can raise more money than others)Doesn’t necessarily mean money=votes (popular candidates who look like winners can raise more money than others)

4. Money in Campaigns Nixon outspent George McGovern in ’72 but almost certainly would have won even if spent lessNixon outspent George McGovern in ’72 but almost certainly would have won even if spent less Most studies on the effect of money on elections has been done on congressional racesMost studies on the effect of money on elections has been done on congressional races

5. Money in Campaigns How much an incumbent spends is of little importanceHow much an incumbent spends is of little importance However... higher spending by the challenger produces more votesHowever... higher spending by the challenger produces more votes Spending can overcome the natural advantages enjoyed by incumbentsSpending can overcome the natural advantages enjoyed by incumbents

6. Sources of Campaign Money Candidate themselvesCandidate themselves Other well-to-do peopleOther well-to-do people Organizations & interest groupsOrganizations & interest groups Small individual donorsSmall individual donors Federal governmentFederal government

7. Candidates The Supreme Ct. has held that spending one’s own money in campaign activity is a form of free speech protected by the First AmendmentThe Supreme Ct. has held that spending one’s own money in campaign activity is a form of free speech protected by the First Amendment However—this spending can be regulated if the candidate receives public fundsHowever—this spending can be regulated if the candidate receives public funds

8. Other Well-to-Do People Give for ideological reasons, ambition, prestige or powerGive for ideological reasons, ambition, prestige or power Traditionally, some high federal appointments, especially ambassadorships, went to campaign contributionsTraditionally, some high federal appointments, especially ambassadorships, went to campaign contributions

9. Other-Well-to-Do-People 1974 campaign finance reform law limited to $1,000 the amount any individual could contribute to any single candidate in any one federal election1974 campaign finance reform law limited to $1,000 the amount any individual could contribute to any single candidate in any one federal election

10. Organizations & Interest Groups Motivated by material interest in a policy area, such as milk producers, doctors, etc.) or by a liberal or conservative ideologyMotivated by material interest in a policy area, such as milk producers, doctors, etc.) or by a liberal or conservative ideology Political action committees (PACs) can be set up to solicit contributions from donors & contribute sums of $5,000 per candidate per electionPolitical action committees (PACs) can be set up to solicit contributions from donors & contribute sums of $5,000 per candidate per election

11. Organizations & Interest Groups PACs have produced a great increase in the total amount of business & labor spending on electionsPACs have produced a great increase in the total amount of business & labor spending on elections Business spends more than laborBusiness spends more than labor This doesn’t necessarily give Republicans an advantageThis doesn’t necessarily give Republicans an advantage

12. Federal Government In presidential primaries, federal government will match the money a candidate raises (in amounts of $250 or less, up to a limit of $5 million)In presidential primaries, federal government will match the money a candidate raises (in amounts of $250 or less, up to a limit of $5 million) In the presidential general election, candidates of “major parties” get full federal supportIn the presidential general election, candidates of “major parties” get full federal support

13. Federal Government A candidate who accepts federal funding cannot accept private donationsA candidate who accepts federal funding cannot accept private donations Minor parties, if they obtain at least 5% of the vote, also get federal fundingMinor parties, if they obtain at least 5% of the vote, also get federal funding

14. Effects of Campaign-Finance Laws (1) Candidates who are personally wealthy have an advantage, as do candidates who can appeal to many small donors(1) Candidates who are personally wealthy have an advantage, as do candidates who can appeal to many small donors (2) Candidates have to spend more time on fund raising to appeal to a large group of small donors(2) Candidates have to spend more time on fund raising to appeal to a large group of small donors

15. Effects of Campaign-Finance Laws (3) Incumbents will continue to enjoy a substantial advantage in fundraising(3) Incumbents will continue to enjoy a substantial advantage in fundraising (4) Late starters will be at a disadvantage(4) Late starters will be at a disadvantage (5) Political parties are weakened because funding goes to the presidential candidate & not to the party(5) Political parties are weakened because funding goes to the presidential candidate & not to the party

16. Effects of Campaign Finance Laws (6) Role of celebrities in politics will increase because they can stage benefit concerts to raise money for the candidates(6) Role of celebrities in politics will increase because they can stage benefit concerts to raise money for the candidates