Campaign Finances
- Created by: DaisyR13
- Created on: 07-06-14 19:47
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- Campaign Finances
- How Much?
- Both Obama and Romney spent $1 billion each in 2012 race for the Presidency
- Begin raising or spending own money just to start the race in the invisible primary
- Spend a lot in the actual primary
- Spend even more on the actual election campaign which runs from August to November
- By August Obama had raised over $300 million and Romney $154 million
- Both Obama and Romney spent $1 billion each in 2012 race for the Presidency
- Why So Much?
- Rallies and meetings, venues, tours of the states, plane tickets, campaign staff and headquarters, billboards and posters, mail shots and most expensive of all TV and radio ads
- Raise as much as they can and then spend it order to get ahead, some argue that is buying victory
- How Is It Done?
- Their private wealth
- No limits on what they can spend from their private wealth and Mitt Romney spent a lot of his own money in 2012
- Contributions from individuals
- Wealthy individuals can make contributes to the campaign but in 1974 limits were put on this ($1000)
- Contributions from Corporations or other organisations like businesses or trade unions (generally Democrat)
- These places gain interest by funding but limited to $5000 in 1974
- Political Action Committees
- A way of getting round limitations but the law limits them as well to a maximum of $5000
- Public money
- If they rely on small donations from individuals the state will match this by giving $250 for each small donor
- Internet mail shots
- Individual donations via the internet used extensively by Obama
- The party
- Their private wealth
- Does The Law Limit What Can Be Spent?
- 1971: Federal Election Campaigns Act said that campaigns and PACs must reveal who made the contributions to make it public and open
- 1974: The main limits were set by the 1974 Federal Election Campaign Act which set limits on individual contributions and also business and union contributions
- Individuals: $1000 Corporate $5000 Overall limits on what campaigns could spend $10 million in primaries and $20 million in the election campaign (been reduced since then)
- The limits on spending were strengthened in 2002 by the Bipartisan Campaign Reform Act also known as the McCain-Feingold Act
- Banned businesses or trade unions from broadcasting ads which mentioned the candidates within 60 days of the election and from paying for issue based ads
- Banned contributions from foreigners abroad
- How Campaigns Can Exceed These Limits?
- 1976 Buckley V Valeo threw out the total limits on total campaign spending set up in 1974
- August 2010 Citizens United V the FEC the court ruled that it could not stop corporations or unions making contributions to independent groups (not giving to the official campaign)
- Need For Reform?
- Attempts at reform
- Does The Law Limit What Can Be Spent?
- 1971: Federal Election Campaigns Act said that campaigns and PACs must reveal who made the contributions to make it public and open
- 1974: The main limits were set by the 1974 Federal Election Campaign Act which set limits on individual contributions and also business and union contributions
- Individuals: $1000 Corporate $5000 Overall limits on what campaigns could spend $10 million in primaries and $20 million in the election campaign (been reduced since then)
- The limits on spending were strengthened in 2002 by the Bipartisan Campaign Reform Act also known as the McCain-Feingold Act
- Banned businesses or trade unions from broadcasting ads which mentioned the candidates within 60 days of the election and from paying for issue based ads
- Banned contributions from foreigners abroad
- Does The Law Limit What Can Be Spent?
- Only those with money or the ability to raise it stand a chance in elections.
- Ordinary grass roots candidates no chance because of large sums of money now needed to even participate
- The dangers of corruption
- One of Romney's biggest donors in 2012 was Sheldon Adelson and his wife and might expect some help in return for any legal issues he found himself in
- Undue influence on candidates from those who have paid for their election, rich donors and businesses might expect something in return
- Attempts at reform
- Arguments Against Limitations
- Limiting direct spending in political campaigns is against free speech and is unconstitutional
- Used by the Supreme Court to justify removing limits on the spending activities of super PACs
- Money alone cannot buy victory the candidate must have personal leadership, the right policies and the support of the people to get elected
- Money does not favour one party more than the other Obama and Romney spent roughly the same amount
- PACs are being being replaced by a more democratic form of fundraising internet mail shots
- Limiting direct spending in political campaigns is against free speech and is unconstitutional
- How Much?
- Attempts at reform
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