Title: Campaign Finance: How do candidates get their money to run for office?
1Campaign FinanceHow do candidates get their
money to run for office?
2Washington 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!
3Lincoln 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.
4How much did it cost to run for president? (2012)
887 million (up 520 million from 2004)
777 million (up 410 million from 2004)
5What do they spend the on?
6Where 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
7Individual 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.
8Political 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
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10So how do these guys get to contribute so much?
11Super 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.
12Americans 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
13Super 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)
14Super PACs
15Super PACs
16Super PACs
17PACs 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
18Questions 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.