1. Campaigns and Campaign Finance

2. Clearly Stated Learning Objectives Examine the 2008 Election in the broader context of American electoral history Discuss the strengths and weaknesses of how presidential and congressional elections are financed. There is an L in Public, but no L in FECA

3. Citizens United vs. Federal Election Commission Not an issue in 2008, but may be in 2012 Corporations and labor unions can spend unlimited amounts of money to call for the election or defeat of candidates all the way to election day.

4. Going for the Presidential Nomination It will still cost you

5. The Need for Early Money in the Nomination It buys recognition and legitimacy It converts itself Provides Maximum flexibility The Lessons from 1990’s

6. The Lessons of Money in the Primary 1992 1996 2000 2004

7. The Consequences of Early Money A measure of success in the invisible primary The vicious cycle The candidates with the most money have won in recent years.

8. HOW TO PAY FOR IT: CAMPAIGN FINANCE IN 2008 From Uncle Sugar or on your own?

9. Campaign Finance in 2008 The First Billion Dollar Presidential Election – The Demise of Public Funding in the General Election – The Rise of the Internet as a fundraising tool These produced a president who would spend ¾ of a billion for a job that pays 400,000.

10. Overall Spending in 2008 Estimates are at $2.4 billion for the presidency $5.3 billion overall on 2008 Elections

11. Government Money in the Primary Federal Money is available in primary and general election There are Eligibility Requirements, caps on spending, and caps on raising 25 million from the G, and 50 million cap on spending

12. Federal Money in the 2008 Primaries Others have declined it in the past John Edward’s is the only serious candidate who goes for it The BCRA helped end this Candidate strategy helped end this

13. The Democratic Nomination

14. Democrats in the Invisible Primary Clinton Obama Each had raised 100 million

15. The race begins Public Finance Plays a Minimal Role Edwards gets buried, Richardson gets crumbs The Rest drop out of the race

16. OBAMA VS CLINTON

17. The Clinton Strategy Knock out Blow on Feb 5 th Reload for the Fall campaign Watch the Republicans fight it out all spring

18. Clinton What went wrong Maxed out donors Spent like a drunken sailor on shore leaveshore Some real examplesexamples By the end she has to borrow 11 million from herself

19. The Obama Fundraising strategy Run the Long Campaign Rocky III- http://www.tubechop.com/watch/57772 http://www.tubechop.com/watch/57772 Build a lead, and continue to spend and raise

20. The Democrats in the Primary CandidateAmount Raised Compared to Spending Limit Obama$414 Million8x Clinton$224 Million4x Edwards$53 Million1x Richardson$23 Million.3x

21. The Republicans

22. The Republican Invisible Primary Romney and Rudy McCain has problems

23. The Republicans in the Primary CandidateAmount RaisedCompared to Spending Limit McCain$221 Million4x Romney$110 Million2x Giuliani$60 Million1x Paul$35 Million.7x Thompson$24 Million.5x Huckabee$16 Million.3x

24. The General Election Money Rules the Day

25. Public Funding for General Election Each candidate could receive 84 million in public money No major party candidate had ever refused this money This money served to reduce campaign costs and remove any potential for corruption

26. Mc Cain and Public Financing Runs as a reformer, with BCRA as his primary reform achievement McCain’s Decision to accept $84 million hindered his campaign

27. Obama and Public Funding Breaks his campaign promise to take public financing The 2008 DNC Platform says – “We support campaign finance reform to reduce the influence of moneyed special interests, including public financing of campaigns combined with free television and radio time.” The DNC Stays mum on the issue during the campaign

28. Two simple statistics about the Obama campaign Obama raised more money than all other candidates combined Obama raised more than the RNC and DNC combined.

29. Other Sources of Money National Party Money – The RNC out raises the DNC – Limits on where they could spend it Third Party Groups

30. Obama has a huge Financial Advantage McCainObama Individuals$195,927,301$656,610,810 PACS$1,412,559$1,280 Federal Funds$84,103,800$0 Other$78,724,163$83,450,000 Total$360,167,823$764,843,332

31. The Role of the Internet Publicity Instant Access Low Opportunity Costs Currently favors the Democrats

32. How Obama Raised the Money Increased use of internet Many donors (out of necessity) Early Announcement The Myth of the Small donor

33. Money Converts itself Obama used existing money to raise more money and establish an unprecedented campaign force In September, Obama raised 150 million and Obama raised an additional $104 Million in the last month of the Campaign.

34. What Obama did with the Money He spent it, of course

35. Spending in the Battleground States Obama took the fight into McCain Territory Obama Outspent McCain – 4-1 in Indiana and Virginia – 3-1 in Florida – 2.5-1 in Ohio and Missouri Obama and the Democrats spent close to $100,000,000 on ads in October alone Outspent McCain by $100 million in the last week

36. Money Bought Infrastructure 2x as many campaign offices 5x-10x as many staff More Paid Workers During the last week, McCain’s people are working for free

37. Money Provided the Ground Game Too Money enabled Obama’s campaign to contact 26% of voters. McCain’s campaign only contacted 18% 3.8 million on polling Resources enabled Obama to run a near- perfect campaign

38. Spending on Advertising 100 million more than McCain 5 million on an infomercial 4-1 in the battleground states

39. The Trickle Down Effect Helped other Democratic Candidates The DNC could focus on the Congressional Campaigns

40. What this means

41. The Future of Public Financing The party that championed it, served to kill it They have no strategic reason to favor it

42. Why Else Public Financing is dead The Internet The low federal limit The Taboo is broken

43. Money is not the most important thing in politics… but it is a close second to whatever is