Money in Elections Belief & Behaviors

How do people use their money to express preferences? Beliefs & Behaviors Money How do people use their money to express preferences?

Money Beliefs & behaviors

Money in Elections Fundraising Money in Elections Positive Negative Today’s candidates can reach people more than ever because of TV and air travel Today’s campaigns cost millions of dollars. Billions for POTUS People can make their preference known through donations if they choose to Only people who are extremely wealthy or connected can realistically run for office People feel a higher level of political efficacy when they donate to a campaign The best people for the job may not have enough money to compete

Money in Elections Campaign Finance Why So Expensive? Campaigns are very expensive & a very important part of running for office is being able to pay to keep your campaign running. Candidates have to pay for travel, advertising, hosting events, and pay a staff. Depending on size of the electorate, so much travel is involved

Voter polling / Data analysis Money in Elections Campaign Finance Biggest Expenses Renting office space in the constituency Cheaper for local elections or House Very expensive for president – you need space all around the country Paying staffs Advertisements Voter polling / Data analysis Day to day operations

Presidential election years are more expensive Money in Elections Campaign Finance Total money spent Presidential election years are more expensive Presidential elections cost almost as much as 468 congressional elections

Congressional Elections Money in Elections Campaign Finance Congressional Elections It costs less for incumbents to win in Congress, especially in the House

This is what was raised by the two major campaigns Money in Elections Campaign Finance 2016 Campaign This is what was raised by the two major campaigns

Money in Elections Campaign Finance Presidential Campaigns Adjusted for inflation: Still increasing over time Tends to be more expensive in non-incumbent years

Fund Raising Beliefs & behaviors

Money in Elections Fundraising Sources of Campaign Funding Big donations from wealthy donors Small donations from average donors Candidates’ own personal money Money from PACs Independent expenditures from unconnected others

Organizations for raising money Money in Elections Fundraising Organizations for raising money P.A.C. SuperPAC A business or interest group must create a PAC to give money directly to a candidate. Anonymous donors donate money for a SuperPAC to use to help a candidate. They have to register, and so people can tell which companies & groups donate to which candidate. They don’t work with a candidate, but they do things that help them. There is a limit to the amount of money they can give. They can donate unlimited amounts of money.

Money in Elections Fundraising Citizens United V. Federal Election Commission A 2010 SCOTUS decision overturning many campaign finance laws Ruled that donating money was a form of freedom of speech Corporations and interest groups have freedom of speech As a result, the wealthy and businesses can give UNLIMITED amounts of money for independent expenditures

Independent Expenditures Money in Elections Fundraising Independent Expenditures Communication that advocates for one side in an election that isn’t made in cooperation with or at the request of a candidate or their political party As long as they aren’t coordinating with campaign officials, it is considered independent It can even expressly advocate for the election or defeat of a candidate in the race, it just can’t work with them

Citizens United made these way less useful Money in Elections Fundraising 527 Groups They are the result of a loophole in an early 2000s law that tried to ban soft money. These groups cant specifically endorse candidates. They cant say “vote for” or “vote against” These groups make issues about issues in the election so they can get around having to endorse candidates Citizens United made these way less useful

Cannot directly coordinate with a candidate Money in Elections Fundraising 501(c) Groups Because of Citizens United nonprofit groups could now turn in to SuperPACs Donations don’t have to be reported and cannot be limited - so political donations can now be anonymous Only half the money can be spent on “political activities” – political donations are not tax free, but these are Cannot directly coordinate with a candidate

Money in Elections Fundraising SuperPACs

Money in Elections Fundraising SuperPACs

The FEC Beliefs & behaviors

Money in Elections Regulation Federal Election Campaign Act of 1974 Candidates must disclose who contributed to their campaign Campaigns must disclose how the money was spent Limits were placed on all political contributions The Federal Election Commission was established to regulate elections

Money in Elections Regulation Contribution Limits Individual contributions to a candidate were capped at $2500 Businesses and interest groups must create PACs in order to donate Political Action Committee donations were capped at $5000

Money in Elections Regulation Federal Election Commission They monitor and enforce election laws for all federal election They also track all political donations and expenditures They allow the public to see all political contributions They expose corruption in political campaign spending

Money in Elections Regulation Federal Election Commission Comprised of 3 Republicans and 3 Democrats Four votes are required in order to take any action This means all actions require some level of bipartisanship It’s an independent agency – not controlled by Congress or President

Money in Elections Regulation Federal Election Commission Created the infrastructure for publicly funded elections, in order to reign in the costs of campaigns This is funded by voluntary contributions from people’s income taxes Both candidates can use the money IF they agree to the spending limits for their campaigns This has been ignored by candidates because they can raise more than the fund would allow & don’t want to be restricted by the limits

Money in Elections Fundraising Regulating Donations Hard Money Soft Money Has a LIMIT on how much you can donate Has NO LIMIT on how much you can donate Goes directly to the candidate’s campaign Goes to the political party, not the candidate $2700 per election – primaries are separate elections Donor no longer has total control over the money – it can be used where the party sees fit

Bigly Ideas Beliefs & Behaviors

Federal Election Commission History Wrap Up Rising Costs PACs & Super PACs Federal Election Commission Focus on these things: