10 3 Civics


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10 3 Civics

  1. 1. Section 3 Financing a Campaign Chapter 10 Paying For Election Campaigns
  2. 2. OUTLINE <ul><li>Financing a Campaign </li></ul><ul><ul><ul><li>Raising Money </li></ul></ul></ul><ul><ul><li>Federal Election Campaign Act </li></ul></ul><ul><ul><ul><li>Federal Election Committee </li></ul></ul></ul><ul><ul><ul><li>Limiting Contributions </li></ul></ul></ul><ul><ul><ul><li>Public Funding </li></ul></ul></ul><ul><ul><li>PACs and Soft Money </li></ul></ul><ul><ul><ul><li>Spending on Media </li></ul></ul></ul><ul><ul><ul><li>A Reluctance to Reform </li></ul></ul></ul><ul><ul><li>Campaign Reform </li></ul></ul><ul><ul><ul><li>New Law Upheld and The Future </li></ul></ul></ul>
  3. 3. Raising Money <ul><li>It has been so shady in the past, that now there is federal legislation enacted to regulate how and where candidates get money </li></ul><ul><li>We have seen many changes in these laws over the past few years in an effort to reform the system </li></ul><ul><li>Namely the FEC and Buckley v. Valeo </li></ul>
  4. 4. Federal Election Campaign Act (FECA) <ul><li>An effort to control/regulate campaign financing (est. 1971; amend. 1974, 1976, 1979) </li></ul><ul><li>What did it do? </li></ul><ul><ul><li>Required public disclosure of each candidate’s spending </li></ul></ul><ul><ul><li>Limited the amount of money that individuals or groups could donate directly to a candidate or political party (HARD MONEY) </li></ul></ul><ul><ul><li>Set up the FEC </li></ul></ul>
  5. 5. The FEC <ul><li>Their job is to administer all federal election laws and to monitor campaign spending </li></ul><ul><li>All contributions to a candidate or political party over 200 dollars needs to be reported to the FEC </li></ul><ul><li>“ political watchdog” </li></ul>
  6. 6. Buckley v. Valeo <ul><li>“ Set the precedent” </li></ul><ul><li>The Supreme Court decided that it IS constitutional to set limits on campaign contributions bc of its need to keep corruption out of elections. </li></ul><ul><li>HOWEVER……. </li></ul>
  7. 7. C.R.E.A.M!!!! <ul><li>You are allowed to spend as much as you want on the entire campaign (no “cap”) and you can spend as much of your own money as you want!!!!! </li></ul>
  8. 9. Public Funding <ul><li>FECA – wanted to give us an opportunity to help these candidates get elected. How? </li></ul><ul><li>The Presidential Election Campaign Fund </li></ul><ul><li>Check a box on your Tax Returns…and you can donate three of your dollars to this fund that, if they qualify, can benefit candidates. </li></ul>
  9. 10. Public vs. Private <ul><li>Most money comes from Private Sources and not Public (Pres. Camp. Elec. Fund) </li></ul><ul><ul><li>Examples of Private Sources </li></ul></ul><ul><ul><ul><li>Individual citizens </li></ul></ul></ul><ul><ul><ul><li>Corporations </li></ul></ul></ul><ul><ul><ul><li>Labor unions </li></ul></ul></ul><ul><ul><ul><li>Interest groups </li></ul></ul></ul><ul><ul><ul><li>Political Action Committes (PACs) </li></ul></ul></ul>
  10. 11. Political Action Committees (PACs) <ul><li>Organizations set up by interest groups specifically to collect money to support favored candidates. </li></ul><ul><li>Amounts limited by FECA </li></ul>
  11. 12. Soft money <ul><li>Political Parties can also raise “soft money” – which is unlimited amounts of money used for general purposes. </li></ul><ul><ul><li>VOTER REGISTRATION CAMPAIGNS </li></ul></ul><ul><ul><li>DIRECT MAILINGS </li></ul></ul><ul><li>According to FECA - This money could come from anyone and anywhere – and there was no limit </li></ul>
  12. 13. Spending on Media <ul><li>FECA put no limits on any media spending, TV, print, radio, etc </li></ul><ul><li>http://www.youtube.com/watch?v=Svbcwx6FZPA </li></ul><ul><li>http://www.youtube.com/watch?v=p4_ypTOwo_U </li></ul>
  13. 14. A Reluctance to Reform <ul><li>Because it was getting sloppy and shady – there was talks of “reform” in Congress…. </li></ul><ul><li>However, incumbents were reluctant to give up their advantage </li></ul>
  14. 15. Campaign Reform <ul><li>In 2002 – Change came…. </li></ul><ul><li>Congress passed the The Bipartisan Campaign Reform Act (aka the McCain-Feingold Act) </li></ul><ul><li>A prohibition of national political parties, federal officeholders, and federal candidates from raising soft money </li></ul>
  15. 16. The Bipartisan Campaign Reform Act <ul><li>It also put restrictions on Corporations, interest group, and unions running ads for (or against) candidates. </li></ul><ul><li>Limited Hard Money contributions </li></ul><ul><ul><li>individual candidate – 2,000 </li></ul></ul><ul><ul><li>Political Party – 25,000 </li></ul></ul>
  16. 17. New Law Upheld <ul><li>McConnell v. Federal Elections Committee </li></ul><ul><li>“ these limits are a violation of my free speech” </li></ul><ul><li>McCain-Feingold Act - UPHELD </li></ul><ul><li>Why?Without limits big donors could influence the policy makers – unfair and undemocratic </li></ul>
  17. 18. The Future? <ul><li>Candidates need to now focus on a larger amount of smaller donations </li></ul><ul><li>How do we do that? THE INTERNET </li></ul><ul><li>Cheap, reaches millions </li></ul>