Money Flashcards
Why do incumbents usually secure more funding (+ stat)
Safe bets for donors
- Over 90% of incumbents win
Evidence that presidential elections get more funding than mid terms
2020 election: 14 billion
2022 mid terms: 4 billion
Which party gets more of its funding from small (individual) donors + why (US)
Republicans —> small donors are more wealthy
What does the trend of spending look like for US elections
Went from $0.5 billion -> $14 billion in 10 years
How much did energy sectors donate to each party 2022 (US)
Republicans: $61 million
Democrats: $28 million
Example of illegal campaign contributions
Watergate
What did watergate lead to
Federal Election Campaign Act (1974)
- to set limits on contributions by individuals, political parties and PACs
What does FEC do
Creates transparency
- sets limits on contributions by individuals, political parties and PACs
- limits individual donations to $1000
What is hard / soft money
Hard = Regulated money
Soft = don’t know who’s donating
significance of Buckley vs. Valeo (1976)
individuals could now contribute as much as they wanted to their own campaign
Which act creates 527 loopholes
Bipartisan Campaign Reform act (2002)
What are 527s
tax code unregulated by FEC
—> used to donate unlimited amounts to campaigns through PACs
Signififcance of Citizens United vs FEC (2010)
allowed corporations and unions to spend unlimited amounts of money on political campaigns
What can ‘Super PACs’ do
Raise funds without legal limits as long as they do not contribute to candidates or parties
Example of a super PAC
‘Restore our future’ (Romney)
