comparing party and campaign finance Flashcards
US party finance that is different to UK: CULTURAL THEORY
- citizens’ rights are enshrined in their constitution, so there’s a clear idea that political donation is a legitimate expression of individual rights
-the ‘spoils system’ allows presidents to reward generous donors - 30% of diplomatic offices are given to wealthy donors
UK party finance that is different to US: CULTURAL THEORY
-traditionally labour was funded by trade unions and the tories by private businesses and individuals, however this shifted around the time of new labour
-party finance is less of political issue e.g. there’s a greater consensus for the need of state regulation
US and UK party finance differences: RATIONAL THEORY
-in the US it’s easier to spend lots of money on electoral battlegrounds, as there’s no limit on how much can be spent in each state, whereas in the UL you can only spend £30,000 on each constituency
-interest groups donate a lot more using their PACs or associated 501/527 groups, however in the UK because Pressure Groups are charities they can’t be active donors by tax laws
US and UK party finance similarities: RATIONAL THEORY
-in both countries there’s the presence of individual wealthy donors e.g. (UK) the banker Chernukhin paid £160,000 to play tennis with Johnson and Cameron, likely in return for influence. US example - for the 2022 midterms the hedge fund tycoon Ken Griffin gave the Congressional Leadership Fund of the Republicans $18.5 million
-in both countries people donate to gain political influence
-in both conutries high spending doesn’t always equal a win e.g. in 2016 Trump spent less than Clinton
-in both countries spending is focused on electoral battlegrounds
US party finance that is different to the UK: STRUCTURAL THEORY
-there are rules that limit direct donations (hard money) but few, if any effective ones, to limit indirect donations (soft money)
-overall there’s fewer restrictions on funding
-there’s no limit on how much an individual candidate can spend of their own money, which increases the elitist nature of politics
-airtime can be bought for political ads, e.g. for 2020 election overall $10.8 billion was spent on ads
UK party finance that is different to the US: STRUCTURAL THEORY
-names of all donors giving over £7.5k must be made public
-the electoral commission issues fines for rule breaks e.g. in 2020 Plaid Cymru was fined £29,000 for rule breaks
-it’s mainly the government that assists with election costs on a neutral basis, whereas in the US lots of a party’s cash is used in registration drives
-there are strict laws on Pressure Groups, with them not being allowed to have a ‘political purpose’
-airtime can’t be bought for political ads
