Money in American Politics

An interesting feature story in the Los Angeles Times this week looks at the influence of money in politics. Ten years ago this month, the Supreme Court ruled that corporations had the same rights as people in the eyes of the 1st Amendment, and therefore were exempt from restrictions on political spending. (It was the ruling in Citizens United vs. Federal Election Commission.)

That ruling unleashed a torrent of money into politics. Wealthy donors like the Koch brothers, Bloomberg, Steyer, Soros and others were able to use super PACs as vehicles for unlimited infusions of money into politics. The ruling also made it easier for nonprofit groups to keep sources of campaign funding secret, allowing so-called dark money to influence elections.

The biggest effect of the ruling has been to empower the very wealthiest Americans, across the political spectrum. The top 100 individual donors contributed $339 million in the 2012 presidential campaign year. That figure jumped to $768 million in the 2016 presidential campaign year.

Overall, money from individual donors to super PACs grew in just two years from $299 million in 2014 to $1.1 billion. That money came from a relatively small number of individuals who make seven- or eight-figure contributions.

For example, the top funders in the last midterm congressional elections included Sheldon Adelson, founder of Las Vegas Sands Corp. (he gave $122 million); Bloomberg, former New York mayor (he gave $95 million); and Steyer, hedge fund manager (he gave $73 million). The 100 top individual donors gave nearly three-quarters of all money raised by super PACs.

This influence of money in politics has been unprecedented. Spending on presidential elections, for example, grew 66% from the 2000 to the 2016 presidential campaigns. During that same period, spending on congressional campaigns grew 143%.

Ironically, the expectation that the Citizens United decision would open the donation floodgates to corporations did not happen. Not one major American corporation spent money independently in support of a candidate in 2014 or 2016. Only two smaller companies in 2014 and 10 two years later made independent expenditures, amounting to a total of $753,282.

It’s not just money from the rich though. Internet-based, small-dollar individual contributions have soared as well. In the 2018 midterms, ActBlue, the main Democratic internet platform for small-dollar donations, raised $1.6 billion for Democratic candidates, with an average donation of $34. That's twice what all super PACs collectively spent.

Nevertheless, it seems to me that the wealthiest individuals are having a perverse level of influence in American politics. It is becoming increasingly apparent that if you aren’t rich or aren’t supported by the rich – you don’t have a chance at winning presidential or congressional elections. I cannot believe this is what our founding fathers had in mind.

What are YOUR thoughts? Is all this money in American politics a blessing - or a curse?