Money and ElectionsMoney and Elections

Chapter 10, Theme B

Pop Quiz 101. Name 1 of 2 groups banned from donating directly to

candidates since 1925?2. What scandal led to FECA?3. What constitutional amendment was used to

challenge the validity of FECA & BCRA?4. What is the maximum an individual can contribute to

a candidate per election today?5. What are political organizations that raise and spend

money for political causes called?6. For a bonus, give an example of retrospective voting.

What about money in politics bothers Americans??

• All men are not created equal in the voting booth

• Money buys votes• Money buys people influence

without being elected to office• It is the “un-American” American

way

Why does a campaign needneed money?• Travel/Transportation• People/staff• Office space• Advertising• Signage• Lodging• Meals

The higher level of office sought means the The higher level of office sought means the higher the expense!higher the expense!

How is money different in Presidential elections compared to Congressional elections?

Presidential• Public Financing• Most money comes from

private donors • Usually take very little PAC

money• Must raise $5000 in 20

states from small contributions of $250 or less

• Must abide by spending limits if fed. $ is used

Congressional• No Public Financing• Most money comes from

private donors• Usually take some PAC

money• Incumbents use franking

privilege (free mail)

Campaign Finance Rules• What were the causes of the 1974

election reforms?• What reforms were put into place

by the 1974 legislation?– Rules on who can give & disclosure– Limits on contribution amounts– Federal Financing– Federal enforcement

WARNING!WARNING!•Every time a law is written, a loophole is created to get around the law!

Results of the 1974 Reforms• The “legalizing” of PACs• Independent expenditures• Buckley v. Valeo• Soft money (LOOPHOLE!)(LOOPHOLE!)• “Bundled” contributions (LOOPHOLE!)(LOOPHOLE!)• The further weakening of parties• Longer campaigns• Wealthier candidates• Higher incumbency reelection

More Reform• What ideas for reform were incorporated

into the 2002 BCRA?• What were the 3 major changes in fed.

election laws?– Banned soft money, upped limits, no outside

restricted groups could mention a candidate

• What was the basis of McConnell v. FEC? What was SCOTUS decision?

• Do you agree or disagree? Explain.

WARNING!WARNING!•Every time a law is written, a loophole is created to get around the law!

More Challenges• Is a movie (Hillary: The Movie) considered a

political ad?• Is it free speech?• Does forbidding corporations & labor unions

from running position (not candidate ads) violate free speech?

• Can non-profit groups (527 organizations) give money to candidates?– Citizens United v. FEC– Decision -McCutcheon v. FEC (video)

Challenge Summaries

• All cases challenged existing election laws using a 1st Amendment argument:

• Buckley v. Valeo• McConnell v. FEC • FEC v. WI Right to Life, Inc.• Citizens United v. FEC• McCutcheon v. FEC

Federal Funds Rules as it stands today…stay tuned!

• Candidates must disclose all contributions over $100 to the FEC (name, address & occupation)

• No foreign contributions; No cash over $100• PACs must register 6 mos. Before election, have at

least 50 contributing members, and give to at least 5 candidates

• PACs can spend on money ads on a candidate up to their legal contribution ($5000)

• Other groups may fund electioneering ads, but may not coordinate with candidates or parties.

Sources of Money• For each discuss the rules and limits:

– Candidates themselves– Individuals– PACs– Federal Government

• Who cannot give directly to campaigns?– Unions– Corporations– Foreigners

Money and Winning• Does money make a difference in

the general election for President? Explain.

• What 3 factors determine the outcome of elections during peacetime? Discuss swing votes, pocketbook votes & character.– Exceptions? 2000 election

• What other factors make no difference?

Money and Congress• Why is it important for challengers to spend so

much money? Name, reputation, record• Why is money not as important for incumbents?

What other advantages do incumbents have?– Power --Name Recognition– Publicity --”Schmoozing”– Gerrymandering --Franking

• What other factors, besides money play in to the elections?

3 reasons party identity doesn’t determine election winners

• Cannot be just party identification because the Democrats would ALWAYS win because more people identify with them. Have lost 7 of 12 Presidential Elections since 1968!– Dems. Less “wedded” to their party– GOP does better w/ independents– Reps. Have higher voter turnout

Other factors that determine election winners

• Issues, especially the economy– V.O Key: Most voters who switch parties do

so in their own interests– Voters know what issues affect them– They have strong principles on issues

• What are the differences between retrospective and prospective voting?

• How does it affect elections? Examples?

Other factors that determine election winners

• Campaigns– How do campaigns make a difference in the

election outcome? • Energizes base, allows voters to see handling of

pressure, highlights candidates’ character

– Campaigns focus on themes not details. Is this a new phenomenon?

– How have primaries changed campaigning?

Other factors that determine election winners

• Building a winning coalition–Which is more important: Loyalty

or Numbers? Why?–Who is the Democratic Coalition?

• Most loyal? Leaving?–Who is the Republican Coalition?

• Most loyal? Leaving?

Why do elections have little impact on public policy?

• Many offices to be filled at three levels

• Coalitions are weak and easily broken or changed

• Do elections even really matter in the US? Defend or Refute!!

Assignments

• Read pp. 298-310. Take notes by headings.

• Complete Roles of the Media sheet with examples.

• Due Tuesday!