SHORT TAKES #10: ELECTIONS AND MONEY
Here are short takes on two important stories that have gotten little attention in the mainstream media. Each provides a quick summary of the story, a hint as to why it’s important, and a link to more information. They highlight the role of money in our elections and how the often overwhelming power and influence of the wealthy is only increasing.
STORY #1: U.S. federal elections are already awash in money that gives wealthy individuals and corporations inordinate influence in our elections and therefore in policy making. Very unfortunately, the Federal Elections Commission (FEC) is now making this even worse. For over ten years the FEC has been dysfunctional as hyper-partisanship among its three Democratic and three Republican members has caused gridlock. However, since her appointment in 2022, Democratic appointee Dara Lindenbaum has repeatedly voted with the three Republicans to further deregulate campaign spending. They are rolling back constraints on the spending and raising of money by candidates, political parties, and political action committees (PACs). [1]
For example, their decisions have:
· Allowed candidates’ campaigns and PACs to coordinate door-to-door canvassing efforts. Previously, all coordination between them was banned because of the unlimited amounts of money PACs can receive and the potential for such large sums of money to corrupt elected officials. Although, the FEC has done a poor job of enforcing the prohibition on coordination, to officially allow it is a huge step in the wrong direction.
· Permitted federal candidates to raise unlimited amounts of money for state-level ballot initiatives. Huge spending by corporations (hundreds of millions of dollars) in state ballot initiatives has skewed results of this supposedly ultimate democratic policy making avenue. Allowing federal candidates to raise unlimited amounts of money for these campaigns not only further undermines the supposed public interest democracy of ballot initiatives, it also presents serious opportunities for corruption of federal candidates.
· Allowed wealthy campaign donors to put money into a trust which would then donate to campaigns, while keeping the original donor anonymous. More transparency not less is needed about the sources of campaign spending. Voters should know who is trying to influence their voting.
· Ruled that mass text messages are not “public communications” thereby subjecting them to less regulation.
· Allowed members of Congress to use money from their PACs for their personal benefit. This means that donors to these PACs can, in effect, put money into the pockets of members of Congress. If this isn’t ripe for corruption, nothing is.
STORY #2: As hyper-partisanship, influence by corporations and the wealthy, and other factors are blocking enactment of policies in state legislatures that have broad public support, voters are using ballot initiatives to attempt to enact such policies. These ballot initiatives, especially when they address hot-button issues like abortion, Medicaid expansion, marijuana legalization, and workers’ rights, are becoming very expensive. In 2022, across the country, spending on ballot initiatives exceeded $1 billion. In 2023, with fewer state elections and ballot initiatives in only eight states, spending exceeded $200 million. [2]
Much of the spending on ballot initiatives is in California because it is a huge state and it’s relatively easy to put a question on the ballot there. For example, in 2022, over $450 million was spent on two CA ballot initiatives on sports betting. In 2020, Uber, Lyft, DoorDash, InstaCart and others spent over $200 million on a successful CA ballot initiative to define their workers as independent contractors and not employees under labor laws and regulations. Those opposing the ballot initiative spent almost $20 million, a significant sum but less than one-tenth of what the proponents spent. [3]
The 2024 elections are almost certainly going to set records for ballot initiative spending with many issues in many states on the ballot in November. For example, at least 14 states have efforts underway to put an abortion rights question on the ballot. Spending on these ballot questions alone will certainly exceed $100 million.
[1] Goldmacher, S., 6/11/24, “On elections, from deadlock to deregulation,” The Boston Globe from The New York Times
[2] Serna, Jr., A., & Cloutier, J., 3/12/24, “Ballot measures shape debates on hot-button issues, drawing millions in outside spending,” Open Secrets (https://www.opensecrets.org/news/2024/03/ballot-measures-shape-debate-on-hot-button-issues-drawing-millions/)
[3] Ballotpedia, retrieved from the Internet 6/12/24, “California Proposition 22, app-based drivers as contractors and labor policies initiative (2020),” (https://ballotpedia.org/California_Proposition_22,_App-Based_Drivers_as_Contractors_and_Labor_Policies_Initiative_(2020))