One day in Florida, the following in California. The two candidates for the United States’ presidency, Barack Obama and Mitt Romney, have been traveling up and down the country for several months.
The American presidential campaign is known for being the most expensive of the world. 'In the race for the White House, money is the war nerve'. However, do you really know where it comes from?
Follow the guide.
As in France, the American candidates are able to ask for public financing granted by the Federal Election Commission. However, the funds represent only about the quarter of whole spendings of the candidates. Thus, they prefer to renounce them, especially knowing that they are restricted and that once accepted, no more private financial aid are allowed.
The last solution for them is private financing. How is it exactly working? Explanations below.
There are two ways of private financing.
For the first time in the history of the United States, the presidential campaign is unlimitedly financed. This is why the controversy is currently sustained.
Since 21 January 2010, the Supreme Court of the United States has allowed endless donations, through the ruling ‘‘Citizens United versus Federal Election Commission’’.
This money is collected and given by powerful organizations called ‘‘Super PACs’’ : the Political Action Committees.
They represent political organizations, expressing themselves against or for a candidate, legislation or other initiatives. They raise funds from companies, unions, citizens, or pressure groups. However, a legal limit exists : the Super PACs can provide up to 7 300 dollars for one candidate, 15 000 for a political party and 10 000 dollars to a political association over one year.
Before passing this law, two conditions have been settled by the Court : to accept the release of the donors’ names, and not to have any direct relations with the candidates.
Nevertheless, these criteria do not work efficiently: the donors could be hidden behind a legal personality, and finally all these funds can directly be given to the candidates.
The 527 organizations are the second way for individuals, or even companies to collect funds in order to finance advertising against one or several candidates. The advantage of these organizations is that no limit of donations is not set.
The amounts of funds raised are outrageous. According to the journal La Tribune, they are estimated at 432 million dollars for the outgoing President Barack Obama compared to 274 million for Mitt Romney at the end of last August. It represents the incredible sum of 1.3 billion dollars if we gather the jackpots collected by the two candidates.
The previous French presidential campaign cost 228 million euros for ten candidates in lists, i.e. about 293 million dollars. It is true that the American population is five or even six times as big as the French one, and that our country is 17.5 times as smaller as theirs, however, is it not a little excessive?
Albane P.
Albane P.
Ouah, I am quite chocked by all the money spent for the presidential campaign! Of course they have to travel a large and big territory, going from a city to another, a state to another one ... but to spend more than 400 million dollars! especially considering that they could invest some of that money in health care or health insurance for example to make it more affordable for all the American population.
ReplyDeleteBut one question, if the candidates ask for public financing,why are they not allowed to receive private funding?
Chloe B.
Actually the public financing is a fair system. Indeed, the money gathered comes from the taxes levied on American citizen's salaries. So, it is logical that some rules have been set about the spendings. The candidates can not spend more than the amount given, and can not spend this money in another field than the campaign.
DeleteThe private financing is seen as the 'ugly ducking'. There are no rules which indicate what they have to do with the money, or how many funds they have the right to gather. So it is logical as well no to mix the two ways of financing. It would be like mixing illegal money with a legal one (roughly).
I think presidential campaign aren’t very democratic as small parties will have difficulties to find private funds. They are limited to public funds while the two major parties (Republicans and Democrats) are more likely to attract lobbyists and their money.
ReplyDeleteThe price of U.S. campaigns do not surprise me. When you see the shows that candidates do, the stars who come to sing and to bring their support… This is a real show, compared to what we have in France. I think it’s a bit too much but that’s maybe what Americans like.
Estelle
I totally agree with you, the American campaign does not stay only in the political environment. There are many famous people who take part in it, by doing some shows with the candidates to show their support. And in France, it will never happened, maybe first because the French do not have the same way of thinking and second because we do not have French celebrities who are enough influent to change the mind of communities.
DeleteHowever, I think that it is not a bad thing for having the support of some famous people in the United States. If we have a look on the significant support that Barack Obama had, from Jay-Z, Beyonce or even P. Diddy. It has been a key factor for him, especially concerning the black community. Maybe without them, the result would not be the same.