Commentary Magazine


Topic: super PACs

It Takes More Than a Mega-Donor to Win the White House

Those hoping that the seemingly endless 2012 presidential campaign would lead to a shorter run-up to the 2016 contest are out of luck. As Politico reports, not only is there no shortage of aspirants for what will be two open nominations but the hopefuls are already making a beeline to major donors hoping to line up support for a race that may be four years away but seems to have already started. According to their story, a gaggle of ambitious Republican governors who attended the Republican Governors Association meeting in Las Vegas last month managed to take time from their busy schedules to meet with casino mogul Sheldon Adelson in hope of winning his heart and the sort of financial support that could make them viable presidential candidates.

Among those lining up to see the philanthropist/mega donor were Bobby Jindal of Louisiana, Bob McDonnell of Virginia and John Kasich of Ohio. All three appear to be testing the presidential waters. The story also noted that Rick Perry and Rick Santorum, who both fell short in their 2012 runs, are also keeping close to their big donors in hopes of keeping their options open for another try.

It is true that a viable candidacy requires funding, and the ability to raise money — either from a host of small donors or a few big ones — is an essential skill for any would-be president. But anyone thinking that a nod from Adelson or Santorum’s backer Foster Friess or any of the Texas businessmen that backed Perry is tantamount to a key to the presidency wasn’t paying attention last year. Money gives a candidate a chance, and large donations like those that Newt Gingrich received from Adelson a year ago kept him in the race longer than he might otherwise have lasted. But the lesson of 2012 is that no single donor or even group of large donors or their super PACs can win elections by themselves. Which is why the attention given large contributors may be somewhat misleading.

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Incumbent Protection Plan in the Works

Out on the campaign trail, members of the House and Senate are currently getting a belly full of free speech as they fight to keep their seats. But many of those who survive would like to do something to make their next elections a bit easier and cheaper. That’s the conceit of a New York Times story about the discomfort many incumbents are experiencing as their records are being examined and often publicized. Their reaction to all this democracy is characteristic of the political class and appears to cut across party lines: suppress as much of the criticism as possible.

The problem for these politicians is that the Supreme Court’s Citizen’s United decision unleashed the power of the public to promote political speech about elections. The fact that much of that speech is unhelpful to incumbents is a prime motivation for them to act in the next Congress to ensure that new obstacles are placed in the way of political action groups and contributors buying ads highlighting their alleged shortcomings. In this way, the Times, whose editorial agenda has been a relentless attack on free political speech, hopes that the largely defunct cause of supposed campaign finance reform will be revived. But the focus of the story on the new willingness of even some Republicans to go along with another round of “reform” reveals exactly why the court was right to invalidate large portions of the McCain-Feingold bill: the main beneficiary of the legislation isn’t free speech or the rights of the public but the protection of incumbents.

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Romney’s Fundraising Advantage Widens

The New York Times reports that Romney now has a $62 million cash-on-hand advantage over Obama, which isn’t as significant as it sounds considering Obama has outraised and outspent his opponent since the beginning of his campaign.

But check out the cash-on-hand advantage the Romney-supporting American Crossroads has over the Obama-supporting Priorities USA:

Priorities USA Action, a super PAC backing Mr. Obama, raised $4.8 million and ended July with $4.2 million in cash on hand.

American Crossroads, the major super PAC backing Mr. Romney and the Senate Republicans, raised $7.7 million in July and spent $9.1 million, ending the month with $29.5 million in cash.

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Money, Speech and Morgan Freeman

Politico reported this morning that Morgan Freeman donated $1 million to the pro-Obama super PAC Priorities USA last month. The organization has reportedly been struggling to drum up donors, which isn’t surprising as Democrats have spent the past two years demonizing super PACs. Clearly, they hope Freeman’s donation will signal to wealthy liberals that it’s okay to support these groups.

But note Freeman’s statement out this morning:

“Pres. Obama has done a remarkable job in historically difficult circumstances. … I am proud to lend my voice … to those who defend him. Priorities USA Action is doing a great job of protecting the values I believe in. I am happy to help them and I hope others will join me.”

He wasn’t defending his donation as a necessary evil. Instead, he said he was “proud to lend [his] voice.” That’s an interesting choice in wording, considering Democrats have been mocking the idea that political spending is protected speech for the last two years.

But Freeman is right, and the Supreme Court has affirmed it. Political spending is a form of free expression. As Justice Antonin Scalia explained eloquently to CNN’s Piers Morgan last night, “You can’t separate speech from the money that facilitates the speech.”

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Pro-Obama Super PACs Outspending GOP

The common assumption is that conservatives will have an outside money advantage in the presidential election, thanks to massive spending by pro-Romney super PACs. This wisdom is on display in the New York Times today, which wonders whether Democrats will be able to “catch up in the super PAC game”:

“They’re spending ridiculous amounts of money on the other side,” [potential donor] Amber Mostyn said. “All the crazy commercials they’re going to put up — how do you combat that?”

Burton was ready for this question. “You don’t do it dollar for dollar,” he said. He whipped out his iPad and showed the Mostyns a few slides from his PowerPoint presentation. The slides included polling data indicating voters’ lack of familiarity with Romney’s business record at the private-equity firm Bain Capital, as well as financial figures from the 2010 midterm election showing how well-spent donations could help a Democrat prevail over a better-financed Republican opponent.

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Obama Campaign’s Fundraising Troubles

April was not a good fundraising month for the Obama campaign or the pro-Obama super PAC. BuzzFeed reports that many of the campaign’s big-dollar donors have already maxed out their contributions, and new donors aren’t lined up to replace them:

Donations to President Barack Obama’s reelection campaign declined sharply in April, as many big-dollar contributors hit the legal maximum, a BuzzFeed analysis of Federal Election Commission data shows. …

Most of Obama’s drop is attributable to a decline in contributions of more than $500, which fell by more than $9 million. Many of Obama’s top donors have already hit the legal $2500 maximum to the campaign, which — along with an apparent failure to recruit a new cadre of wealthy supporters — may account for the decline.

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The Resurfacing of Jeremiah Wright

As Alana noted, this morning the New York Times reported a super PAC was weighing a “hard-line attack” against President Obama by “linking him to incendiary comments by his former spiritual adviser, the Rev. Jeremiah A. Wright Jr., whose race-related sermons made him a highly charged figure in the 2008 campaign.” The Romney campaign, and then Governor Romney himself, immediately repudiated the effort.

I should say that I’ve never felt raising the issue of Obama’s relationship with Jeremiah Wright was somehow illegitimate. The relationship was obviously a long and important one to Obama. The Reverend Wright married Barack and Michelle Obama, baptized their children, and was the inspirational force behind Obama’s first autobiography. That relationship was unquestionably a significant one and was probably quite useful in terms of understanding Obama. If a conservative had a similarly close relationship with a comparable figure on the right, especially a comparable hate-figure on the right, journalists would have focused on it far more than the press focused on Obama and Wright in 2008. There was an obvious double standard being applied.

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Desperation in Obama’s Super PAC Attack

Contrary to what some credulous news reports have indicated, the Obama campaign does not seem tremendously confident about beating Mitt Romney next fall. Case in point: a relaxed and confident campaign doesn’t attack its opponent for an ad proposal – one that never even went beyond the consideration phase – cooked up by an unrelated outside group. Or at least if it does, it uses surrogates and outsiders to make the point.

But the Obama campaign has been scraping bottom to find angles to attack Mitt Romney on. So it’s not a surprise that campaign manager Jim Messina blasted Romney today for responding too “tepidly” to reports that a conservative super PAC was considering an ad blitz targeting Jeremiah Wright:

Obama campaign manager Jim Messina doesn’t seem to think the Romney’s camp’s reaction is strong enough.

“The blueprint for a hate-filled, divisive campaign of character assassination speaks for itself. It also reflects how far the party has drifted in four short years since John McCain rejected these very tactics,” Messina responded. “Once again, Governor Romney has fallen short of the standard that John McCain set, reacting tepidly in a moment that required moral leadership in standing up to the very extreme wing of his own party.”

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Soros Won’t Play Ball with Democrats

In yet another sign the bloom is off the Democratic rose this year, the New York Times reports a split between party officials and leading donors may cause liberals to squander their opportunity to answer pro-Republican advertising campaigns this year. This may mean that while supporters of the GOP will pour their money into super PACs that will buy ads aimed at supporting their candidates and opposing President Obama and other Democrats, their counterparts on the left, including billionaire financier George Soros, will instead spend their money on voter turnout efforts that would duplicate those being undertaken by the party.

This decision stems in no small part from liberal objections to the Supreme Court’s Citizens United decision that protected the right of groups as well as individuals to express their views on the issues and elections via campaign spending. Because liberals like Soros think freedom of speech when it comes to campaign expenditures should be limited, they prefer not to compete in the marketplace of ideas with conservative funders and instead concentrate their efforts on other aspects of the campaign. This is a critical mistake on their part and reflects a curious though perhaps prescient pessimism.

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Obama’s Super PAC Problems

President Obama has a huge lead on Mitt Romney when it comes to campaign fundraising, but that margin shrinks significantly when Super PACs are added into the pictures. Pro-Romney Super PACs have been raising cash steadily, but the pro-Obama Priorities USA group has had trouble bringing in donors, Bloomberg reports:

Through March, only 12 of Obama’s 532 top fundraisers had donated to Priorities USA Action, a super political action committee created to support his re-election. Priorities has only raised about $9 million compared to a combined $80 million brought in by the two main super-PACs dedicated to defeating Obama: American Crossroads, formed by Karl Rove, and Restore Our Future, a group backing presumptive Republican presidential nominee Mitt Romney.

The leaders of Priorities have asked former President Bill Clinton to tap the pool of donors who helped fund his campaign and Hillary Clinton’s White House run. Yet Priorities lacks on its donor list most of the core group of Chicagoans who backed Obama’s presidential ambitions four years ago.

One government professor quoted in the story speculated that Democrats are wary about giving money to Priorities USA because they feel that negative advertising is unseemly. That’s absurd. Democrats are just as ruthless when it comes to negative ads as Republicans are. But there are other political reasons these Democrats might be hesitant about donating to Super PACs. Liberals almost universally condemn the Citizens United ruling. People give to politicians in part because it makes them feel good, like they’re behind a worthy cause. But many liberals would probably feel like hypocrites – like they’re betraying their ideals – if they give through a fundraising channel they’ve claimed is corrupting politics.

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Unions Seek Monopoly on Political Money

The Hill reports on a new campaign by liberal groups and labor unions, which seeks to expose companies that donate to super PACs and nonprofits in the lead-up to the presidential election:

Gathered Monday at the Washington headquarters of the Service Employees International Union (SEIU), the groups issued a call to arms for the 2012 campaign, vowing to aggressively challenge companies that contribute to super-PACs and 501(c) nonprofit groups. …

Representatives of the coalition, which includes Common Cause, Health Care for America Now, Public Citizen and Occupy, among others, said they’d push for legislation and regulations that would require companies to disclose all of their political spending. …

Americans United for Change, a liberal group that has received labor backing, plans to offer a $25,000 cash reward to the first whistleblower who can prove a company has donated to a nonprofit without disclosing it.

“We’re going to challenge those donations. We’re going to challenge efforts to hide donations through (c)4s and (c)6s,” de Blasio said, referring to nonprofit groups.

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Citizens United Decision’s Real Victim: Incumbent Protection Plans

The primary defeat of an incumbent Republican member of Congress on Tuesday in Ohio has provoked some cries of dismay from the media and other sectors of the chattering classes. No one really cares about Rep. Jean Schmidt, who lost her race in her Cincinnati-area district to a relatively unknown podiatrist. But the reason for concern we are told is the fact that Schmidt was, in part, taken down by a GOP insurgency in which a super PAC played a significant role. That’s the conceit of a New York Times feature this morning about the Supreme Court’s Citizens United decision that limited the federal government’s ability to restrict political speech in the form of election advertisements. A Houston-based political action committee called the Campaign for Primary Accountability spent about $200,000 to help defeat Schmidt and is taking an active role in other races where incumbents are being challenged.

The Times story attempts to paint such super PACs as tools of corporate interests, which fits in with the liberal critique of Citizens United as undermining democracy. But the real moral of this story is very different. By making it easier for groups to spend money promoting their ideas and/or opposing candidates, the court has destroyed the dynamic of most congressional races in which it was virtually impossible for challengers to raise enough money to take on entrenched incumbents. The victim of Citizens United isn’t democracy; it’s the laws and traditions of congressional politics that amounted to a near-foolproof incumbent protection plan.

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