The billion-dollar election
04 November 2008 à 13h17
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The US election campaign is breaking all records for fundraising and spending.
In 2004, John Kerry and George W. Bush raised 880.5 million dollars. It was already a record. Four years later, one day before November 4th, 1.5 billion dollars have been collected.
$603 million for Barack Obama, $358 million for John McCain. We don’t know yet what will be the result of the vote, but it’s sure that the US election, version 2008, is the longest and the most expensive in American history. And concerning money, the Democrat has the advantage.
(September’s figures from The Guardian, Thursday October 23)
Since the end of September, both candidates have even raised more money. According to The Guardian (Thursday October 23), Barack Obama alone could have raised almost one billion dollars byNovember 4th.
Obama has so much money that he can spend it in advertising (the biggest expenditure) or he can purchase a thirty minutes infomercial on three big TV channels last week. This airtime cost 5 million dollars.
Since September, the Democrat has bought 330,000 ads against 100,000 for McCain, according to Evan Tracey, president of the Campaign Media Analysis Group, quoted by The Guardian.
But his staff likes to say that the fundraising is a “populist movement” and that Obama raised money thanks to small donors, contributing $200 or less. That’s true. Half of Obama’s money ($259.2 million) comes from small donors, according to The Guardian. The English newspaper quotes other figures : according to The Washington Post, only a quarter of the 600 million raised by the Democrat comes from small donors.
And what did the Republicans spend their money on? Almost the same, advertising and broadcast media, but in less important proportions. And in dressing the Palins… The Republican National Committee (RNC) has spent more than 150,000 dollars to give Sarah Palin, the governor of Alaska, a makeover.
Where does the money come from?
There are two kinds of funds: public and private. Concerning public funds, there has been a federal grant financed by taxes since 1976. The candidates can’t spend more money than the State gives them. In 2008, each candidate received 84.1 million dollars after their own Convention, for the end of the campaign.
But Barack Obama refused this public financing and changed the rules a little bit. He is the first candidate to do it. He estimated that he could raise more with his partisans’ gifts. The Republicans condemn this attitude, because Obama could accept more money from his supporters.
But public financing is just a little part of the funds raised by the candidates. More than three quarters of the money comes from private funds.
In 2002, the American Congress voted a new law reforming campaign budgets. This law is called McCain-Feingold (McCain standing for John McCain). Since 2002, individual contributions have been limited to 2,000 dollars (against 1,000 dollars before) and companies, lobbies and trade unions can’t give money directly to candidates. To support a candidate, they now have to give money through a PAC, a “Political action committee”.
This year, individual contributions have been limited to 4,600 dollars (2,300 dollars for primaries and 2,300 for the general election). The list of donations is public.
The campaign committee has record every dollar donated and all spending to the Federal Election Commission (FEC), an independent agency that enforces the new law.
If a person gives more than 200 dollars, the campaign committee also has to disclose the name of the contributor.
Links :
http://edition.cnn.com/ELECTION/2008/map/fundraising/
http://fundrace.huffingtonpost.com/
http://www.fec.gov/DisclosureSearch/MapAppRefreshCandList.do?
In 2004, John Kerry and George W. Bush raised 880.5 million dollars. It was already a record. Four years later, one day before November 4th, 1.5 billion dollars have been collected.
$603 million for Barack Obama, $358 million for John McCain. We don’t know yet what will be the result of the vote, but it’s sure that the US election, version 2008, is the longest and the most expensive in American history. And concerning money, the Democrat has the advantage.
| Fundraising | Total spending | |
| Barack Obama | $603 million | $470 million |
| John McCain | $358 million | $262 million |
Since the end of September, both candidates have even raised more money. According to The Guardian (Thursday October 23), Barack Obama alone could have raised almost one billion dollars byNovember 4th.
Obama has so much money that he can spend it in advertising (the biggest expenditure) or he can purchase a thirty minutes infomercial on three big TV channels last week. This airtime cost 5 million dollars.
Since September, the Democrat has bought 330,000 ads against 100,000 for McCain, according to Evan Tracey, president of the Campaign Media Analysis Group, quoted by The Guardian.
But his staff likes to say that the fundraising is a “populist movement” and that Obama raised money thanks to small donors, contributing $200 or less. That’s true. Half of Obama’s money ($259.2 million) comes from small donors, according to The Guardian. The English newspaper quotes other figures : according to The Washington Post, only a quarter of the 600 million raised by the Democrat comes from small donors.
And what did the Republicans spend their money on? Almost the same, advertising and broadcast media, but in less important proportions. And in dressing the Palins… The Republican National Committee (RNC) has spent more than 150,000 dollars to give Sarah Palin, the governor of Alaska, a makeover.
Where does the money come from?
| Donors (individuals) | PAC | Political Party | Personal finances | Other | |
| B. Obama | 94% | 0% | 0% | 0% | 6% |
| J. McCain | 80% | 1% | 0% | 0% | 19% |
The financing rules
A US election has become a dollar race but this race has rules.There are two kinds of funds: public and private. Concerning public funds, there has been a federal grant financed by taxes since 1976. The candidates can’t spend more money than the State gives them. In 2008, each candidate received 84.1 million dollars after their own Convention, for the end of the campaign.
But Barack Obama refused this public financing and changed the rules a little bit. He is the first candidate to do it. He estimated that he could raise more with his partisans’ gifts. The Republicans condemn this attitude, because Obama could accept more money from his supporters.
But public financing is just a little part of the funds raised by the candidates. More than three quarters of the money comes from private funds.
In 2002, the American Congress voted a new law reforming campaign budgets. This law is called McCain-Feingold (McCain standing for John McCain). Since 2002, individual contributions have been limited to 2,000 dollars (against 1,000 dollars before) and companies, lobbies and trade unions can’t give money directly to candidates. To support a candidate, they now have to give money through a PAC, a “Political action committee”.
This year, individual contributions have been limited to 4,600 dollars (2,300 dollars for primaries and 2,300 for the general election). The list of donations is public.
The campaign committee has record every dollar donated and all spending to the Federal Election Commission (FEC), an independent agency that enforces the new law.
If a person gives more than 200 dollars, the campaign committee also has to disclose the name of the contributor.
Links :
http://edition.cnn.com/ELECTION/2008/map/fundraising/
http://fundrace.huffingtonpost.com/
http://www.fec.gov/DisclosureSearch/MapAppRefreshCandList.do?
