Money in U.S. Elections

Introduction

• Unprecedented amount of money in U.S. elections.
• Big donors like Ken Griffin, George Soros, and Reid Hoffman influencing outcomes.
• Recent phenomenon: first billion-dollar campaigns in 2012 (Obama vs. Romney).
• 2020 cycle saw $14.4 billion raised.

Influence of Money

• Candidates who spend more generally win:
  • In 2022, 94% of House candidates and 82% of Senate candidates with most fundraising won.
• Presidential campaigns don't always follow this pattern (e.g., Clinton vs. Trump in 2016).

Use of Funds

• Funds go to rallies, office operations, staffing, consulting, and advertising (TV, radio, social media).
• Advertising is a major expense.

Impact of Fundraising on Campaigns

• Fundraising is crucial, illustrated by Biden's 2020 campaign struggles.
• Lack of donor support can be detrimental (e.g., George Clooney and Abigail Disney's influence on Biden's campaign).

Current Fundraising Landscape (2024 Presidential Race)

• Democrats currently leading in fundraising:
  • Kamala Harris: $377 million cash on hand.
  • Donald Trump: $327 million cash on hand.
• Act Blue raised $20 million on Tim Walz announcement as Harris’s running mate.

Donation Methods

• Three channels:
  1. Individual contributions (capped at $6,600).
  2. PACs (capped at $5,000 for individual candidate committees).
  3. Super PACs (unlimited contributions).

Role of Wealthy Donors

• Billionaires heavily influence elections ($880 million in 2022 midterms).
• Important figures:
  • George Soros: $60 million to Democracy PAC in 2024.
  • Elon Musk: Alleged but denied $45 million monthly donation.
  • Reed Hastings: $7 million to Harris's super PAC.
  • Timothy Mellon: $50 million to pro-Trump super PAC.
  • Linda McMahon: $10 million to pro-Trump super PAC.

Influence of Donations on Policies

• Donor interests may be prioritized by politicians.
• Example: Trump's alignment with fossil fuel industry donors.

Public Opinion

• 72% of Americans favor limiting campaign contributions.
• Money plays a significant role in the political system.