Money in Politics

May 26, 2015

For decades before the Supreme Court decided Citizens United, political scientists concluded that more money helped our democracy by increasing competition. They had also concluded that it did not disadvantage Democrats, who would hold their own in fundraising. Even after Citizens United, those conclusions still seem true. But those scholars did not address other ways that money changes politics.

I’m still angry with Ralph Nader for his part in the 2000 election. His claim that there was no difference between the parties seems way off the mark. It’s hard to imagine Al Gore would have made the same mistakes George Bush did. But Nader was onto something else. Every candidate, from Gore to Hilary and Bush to Romney, has sought support from the financial industry and other tycoons and multinationals. Some regulatory proposals looked different when first made but all were whittled down. Obama supported Elizabeth Warren for a new agency but relented to the opposition. Money matters.

That’s fiendishly difficult to measure. Most scientific work is based on comparisons. When everybody’s doing it, there are no satisfactory comparisons.

But the consequences are huge. The cost of campaigns is increasing fast, doubling since 2000. More than a fifth of the expense of Senate races, and more than a third of the cost of House races came from PACs in 2014. Outside organizations now spend more than 20% of campaign expenses, increasingly from undisclosed sources. Of the rest, less than a third of 1% of the adult population of the U.S. provides two thirds of all individual contributions to federal candidates, PACs and Parties.[i]

What do they get for that? From 2007 to 2012, according to the Sunlight Foundation, “America’s most politically active corporations spent a combined $5.8 billion on federal lobbying and campaign contributions.” The Foundation concluded that, in return, those same corporations got “$4.4 trillion in federal business and support,” more than the government paid all Social Security recipients, and two-thirds of all the money that all of us together as “individual taxpayers paid into the federal treasury.” Kevin Phillips had described the power of such political investment as many thousands to one?[ii] Sunlight Foundation calculated that “for every dollar spent on influencing politics, the nation’s most politically active corporations received $760 from the government,” a seventy-six thousand percent return.[iii] Contributions coupled with lobbying work exceedingly well at those levels.

Bruce Bueno de Mesquita and his colleagues elaborated the impact of what they call the “selectorate,” the people who dominate the choice of political leadership.[iv] As the selectorate shrinks, politicians direct ever increasing public benefits toward that shrinking group and fund them on the backs of everyone else, paving a path to the collapse of democratic government. Here, that one tenth of one percent of Americans, who bring home the great majority of America’s wealth, dominate our politics as they do our wallets.

Political scientists urge public funding as the best available solution. Just take money out of the equation. The public doesn’t like funding politicians they may not agree with, and we don’t much like paying their salaries either. But to get a politics which takes account of the welfare of the entire American population, it appears to be the most likely path. And a very good investment.

Next week, the risks.

— This commentary was broadcast on WAMC Northeast Report, May 26, 2015.

[i] The Center for Responsive Politics keeps track of the data at See, and [visited May 12, 2015] for the information presented.

[ii] Kevin Phillips, Wealth and Democracy (Random House 2002).


[iv] Bruce Bueno de Mesquita and Alastair Smith, The Dictator’s Handbook: Why Bad Behavior Is Almost Always Good Politics (New York: Public Affairs, 2011); Bruce Bueno de Mesquita, Alastair Smith, Randolph M. Siverson and James D. Morrow, The Logic of Political Survival (Cambridge, MA: MIT Press, 2003).

Casinos and the Board of Elections

November 5, 2013

When this is aired, I will be in Washington, D. C., where my students and I went to the U.S. Supreme Court to hear cases argued that we have been studying. Since it is also election day, I had to fill out an absentee ballot. On the ballot, the casino proposition leads the group of ballot propositions. Governor Cuomo had “submitted a concurrent resolution to the State Legislature to amend article I, § 9 of the State Constitution to allow for ‘casino gambling regulated by the state.’”[1]

Having been twice approved by the legislature, the proposed amendment is being submitted to New York voters. But the State Board of Elections added the following language to the proposal for the obvious purpose of encouraging voters to support it:

“for the legislated purposes of promoting job growth, increasing aid to schools, and permitting local governments to lower property taxes through revenues generated.”[2]   Read the rest of this entry »


Get every new post delivered to your Inbox.

Join 261 other followers