Campaign Finance: How do candidates get their money to run for office? Academic Civics

Washington on Campaign Spending: 28 gallons rum 50 gallons rum punch 34 gallons wine 46 gallons beer 2 gallons cider royal *There were only 391 eligible voters in his district!

Lincoln on Campaign Spending: “I did not need the money. I made my own entertainment, being at the houses of friends, cost me nothing and my only outlay was $0.75 for a barrel of cider.

How much did it cost to run for president? (2012) Barack Obama (D) Mitt Romney (R) $887 million (up $520 million from 2004) $777 million (up $410 million from 2004)

What do they spend the $$$ on?

Where does that $$$ come from? Individual contributions – To parties (per year) – To individual candidates (per election) Political Action Committees (PACs) Super PACs ** FEDERAL LAWS RESTRICT HOW MUCH MONEY CAN BE SPENT FOR EACH OF THE ABOVE**

Individual Contributions Federal Law limits individual people to spending: – $30,800 to a political party per year – $2,500 to a candidate per election Senators John McCain (left) and Russ Feingold (right), authors of the law that limited campaign spending.

Political Action Committees (PACs) Interest groups who contribute to candidates – Mostly centered around a certain issue (labor, business, environment, etc.) Donation Limits – Can give $5,000/election to a candidate – Can give up to $15,000/year to a political party Required by law to report spending

So how do these guys get to contribute so much?

Super PACs Federal law requires that and PACs spend no more than $20,000 per year on an election for a candidate Super PACs spend billions per year. How so? – Rather than donate it to a specific party or candidate, they spend unlimited amounts of money for “general purposes” Phone calls Pamphlets/billboards/signs Etc.

Americans for a Better Tomorrow, Tomorrow Super PAC created by Stephen Colbert as a parody of the ridiculous campaign spending Raised over $1.8 million in donations

Super PACs Liberal agenda – Priorities USA ($66m) – Majority PAC ($37m) – Women Vote! ($7.5m) Conservative Agenda – Restore our Future ($142m) – American Crossroads ($104m) – Freedom Works for America ($19m)

Super PACs

PACs vs. Super PACs PACs Can only donate: – $5,000 per candidate per election – $15,000 to a party per year Money given directly to candidates Must report their donations Super PACs Can donate unlimited amounts of money Money cannot be given directly to candidates Can be spent to publish information about a candidate Donations can be anonymous to

Questions to consider: 1.) Do you agree with the limits on individual and PAC contributions? Or should they be unlimited like Super PACs? 2.) Obama and Romney raised over $2 billion this election, a record in the history of US elections. Should there be an overall limit on the amount they raise? Explain.