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Jay Mandle

Jay Mandle

Posted May 7, 2009 | 12:44 PM (EST)

It's the Process That Counts!


Advocates of publicly funded political campaigns are handicapped because changing the way electoral efforts are paid for is a "process" issue. Treating campaigns as a public good would reduce the relative influence of donors and increase that of non-donors. But such a system could not ensure any specific legislative outcome. The policies adopted will be those that emerge from debates in which -unlike today - political contributors are denied disproportionate influence. The outcomes of such deliberations are unknowable ahead of time.

It is this indeterminacy, I think, that is responsible for the fact that reform advocates in areas such as health care, workers rights, civil rights and the environment have not vigorously embraced "fair" elections. Many do formally support a change in the campaign financing system. But rarely is it a priority for them. Energies typically are directed to accomplishing specific legislative objectives rather than to transforming the political process itself to make it easier to achieve progressive reforms.

It is not as if reform advocates are unaware that they participate in a system that is stacked against them. Environmentalists know that they provide only a pittance compared to the political donations that come from the energy giants; the pharmaceutical sector donates far more than health care reform advocates; defenders of minority rights are only marginal sources of campaign funds. And of course no one comes close to the financial sector as a source of huge amounts of political funding. Nevertheless reformers persevere, trying to take advantage of those opportunities that are present in an admittedly unfair system.

No one epitomizes the effort to seek progressive change in an environment dominated by private wealth more than Barack Obama. As the first candidate to opt out of the presidential public funding system, Obama was a full participant in the private funding system and an extremely successful one at that. More than any previous candidate, he was able to enlist large numbers of small donors while simultaneously securing massive funding from large traditional contributors.

To date, President Obama has not endorsed the most recent attempt to achieve a public financing option for Congressional races - the Fair Elections Now Act. Despite this, Obama is a liberal reformer. This is nowhere more dramatic than in his ideas concerning the need to restructure the United States economy. Though Wall Street was the single largest source of funds to the Obama campaign, he nevertheless has emphasized the need to reduce the size and relative importance of the financial sector. In a major address on the economy delivered on April 14, Obama declared that "it is simply not sustainable to have a 21st century financial system that is governed by 20th century rules and regulations that allowed the recklessness of a few to threaten the entire economy." Very specifically, Obama seeks to reduce Wall Street's profitability, citing in this regard the fact that in a recent year 40 percent of corporate profits were received by Wall Street firms, a level that he disparagingly characterized as being "based on inflated home prices, maxed out credit cards, over-leveraged banks and overvalued assets."

Can he succeed? Perhaps, but the odds are very long against him. It is one thing to talk of the need for a new regulatory mechanism. Even Wall Street financers agree that stepped up regulations are necessary. But disagreement and opposition are likely to be severe if, as suggested, those regulations reduce the financial sector's profitability. When threatened in that way, the industry can be expected to fight back and the fight will be centered on the Congress. There, big contributors who oppose downsizing Wall Street will exercise the power that the Congressional "pay to play" system provides them. It is hard to envision that politicians dependent on financial sector donations will adopt legislation that is staunchly opposed by their most important source of campaign funding.

And so it may become clear -- both to reform advocates and to the President himself -- that the "process" issue of how campaigns are funded is too important to be disregarded. It is true that in a fully democratic system specific legislative outcomes cannot be assured. But it is also true that with the public funding of campaigns, specific interests will use the leverage they possess, by virtue of their paymaster role, to block threatening reformist legislative initiatives.

The President then may be faced with a moment of truth. With his reform legislative agenda blocked by the bias of our political process, he may out of necessity end his silence concerning the Fair Elections Now Act and support public funding of Congressional campaigns as the only way to succeed in moving the country in the direction he seeks.

 
 
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jhNY
Mercy.
02:58 PM on 05/07/2009
"More than any previous candidate, he was able to enlist large numbers of small donors while simultaneously securing massive funding from large traditional contributors. " The largest group of contributors to his presidential campaign came from the financial sector-- see the never-ending bailout of the billionaures for how well that's working out for the rest of us. In fact, Obama's ceaseless fealty to this donor group shoud uf anything, point up the intractibility of the problem. Even though many thousands of small donors gave to hum, he nonetheless has reached over the heads and hopes of this group to reward his largest donors.
02:20 PM on 05/07/2009
Supporting a candidate of one's choice is an issue of free political speech. The only problem is when the donor tries to link the donation to favorable policy outcomes so that the donee is "bought." Why can there not be a kind of 'escrow' institution through which all political donations must be funneled, earmarked by the donor for a particular candidate or party but made legally anonymous?
03:13 PM on 05/07/2009
Anonymous screen is an interesting idea, but I don't think it will work.

First of all, people would not contribute if the candidate wouldn't know they did.

So the contributor would tell them directly, perhaps use a coded dollar amount on a certain day.

Public financing is the only really fair democratic method.

If you get the signatures to get on the ballot, you get equal debate time, and position presentation for the duration of the election. Probably want to allocate political commercial time also.

The debates should follow some standard debating rule set,

Democracy or Plutocracy that's the battle of the day.

Outlaw bribery, regulate money and commerce, provide for the general welfare of the citizens

and you can have a democracy, a democratic republic, with a good social services, like the Swedish system.

De fund the governmnet, eliminate regulations,

And we get Plutocracy.

Robber Barons arrogantly dominating the miserable peasants: us.

You say "neither"

Then what?

Anarchy?
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seanparnell
08:58 AM on 05/12/2009
The problem is that candidates must ask for money if they are going to get it - with a very few high-profile exceptions (Obama, Dean), money simply doesn't roll in without being solicited. In order to run an even modestly efficient fundraising program, you need to know who your donors are, so you can ask people like them to also give.

Suppose you're running for office, and you target 2 groups to send a mailing to: trial lawyers and environmentalists. You mail each a letter specific to that group's interests. In direct mail, if one letter brings in lots of contributions while the other flops, you want to mail the successful group again, while probably not mailing again the unsuccessful group. But how would you know which letter succeeded? Only by knowing who gave.

Now, you possibly could track it through the escrowed system, but then - you know that the trial lawyers gave but the enviros didn't. Doesn't that, in part, defeat the purpose of the escrow? Plus it completely eliminates fundraising events which people must pay to attend, a major method of fundraising.

The escrow method eliminates pretty much all but mail and internet fundraising, which is great for established candidates and incumbents with high name recognition, but terrible for unknown challenger candidates who rely on one-on-one meetings for crucial early "seed money."

Sean Parnell
President
Center for Competitive Politics
http://www.campaignfreedom.org
sparnell@campaignfreedom.org
11:34 AM on 05/07/2009
Interesting post, Jay. You're dead on about the reform community's uphill battle, whether it's environmental legislation, healthcare reform, or changing our political process. For example, the energy industry donates twenty times more to Congress than environmental groups (http://youstreet.org/environment). It's no wonder we haven't passed the climate change legislation our planet needs.

Except I'm not sure I agree here:
"To date, President Obama has not endorsed the most recent attempt to achieve a public financing option for Congressional races - the Fair Elections Now Act."

Obama was an original co-sponsor of Durbin's Fair Elections legislation in the Senate, and has voiced his support (video here: http://youstreet.org/obama).

Most recently, Rep. Chellie Pingree told the Kennebec Journal last month that President Obama reported he would sign the Fair Elections Now Act: http://kennebecjournal.mainetoday.com/news/local/6248005.html.

Obama's relative silence on this issue may be a matter of reserving political capital for some of the more immediate crises we face. Given recent and past statements, I wouldn't interpret this as lack of support for public financing.

You're right that we face an uphill battle, but we mustn't forget one key player here: an outraged American citizenry. Over two-thirds of voters - across party lines - support providing qualified congressional candidates with public funding. Talk to anyone on the Hill that's been answering constituent phone calls the last few months and they'll tell you that Americans are still actively demanding change in Washington.
10:25 AM on 05/07/2009
There is no better example of what Professor Mandle says than the current health care debate in Congress. Congress should be addressing the question, "How can we reform the health care system so that everyone can get the health care they need without the patient or the country going broke.". Instead, the question seems to be, "What can we do to make things a little better for some people without upsetting the industries that pay for our campaign commercials?".

The universe of solutions acceptable to the health care industry campaign funders is very small. The "Fair Elections Now Act" will provide members of Congress an alternative source of campaign funds, and along with it, courage and freedom.