Tag Archives: fundraising

What Fundraising Tells Us

Money, money, money…in politics, it matters greatly–but not necessarily in the way most Americans think about it.

One of my most politically-savvy friends points out that candidates need to raise enough money to get their message out, but need not out-raise or even match the fundraising of their opponents. Candidates definitely need sufficient funds to disseminate a persuasive message, but they need not blanket the airwaves. (For that matter, the airwaves are of declining utility, given the move to podcasts and streaming.)

That said, what can a candidate’s fundraising tell us?

I was initially excited to see the rise of the online fundraising that focused on generating many small-dollar donations, because I (naively) assumed that a candidate’s dependence on lots of folks giving less than $200 would reduce the influence of “big money” on candidates. However, I have come to realize that these appeals for small-dollar sums have had some very negative results.

The first is just annoying: those of us who are politically active–or simply unlucky enough to get on a list of partisan contributors–find our email inboxes inundated with appeals. (I have to believe that most people have come to respond as I do–by ignoring them all.)

Far more serious, however, is the way in which these appeals to small-dollar donors have incentivized extremism. The Marjorie Taylor Greenes of the political world have figured out that over-the-top accusations and ridiculous fabrications–what I’ve come to call “performative politics”–raise more money than serious communications of sound policy positions. Hysterical requests for  money to combat the “evil other” is more compelling and raises more money than requests to support thoughtful policymakers.

We need to remember, however, that while the fact that extremist A has raised more money online than sane candidate B tells us something about the passions and prejudices of candidate A’s supporters, it tells us very little about the number of voters committed to voting for candidate A.

If we are interested in assessing public opinion, it seems likely that the most relevant information communicated by these small-dollar donations isn’t the amounts raised, but the number of individual donors who are actually able to cast a ballot for the donee candidate. Given the fact that online solicitations aren’t simply going to people who live in that state and thus able to vote for a particular candidate, that information is tough to come by.

There is, however, one contest where the number and source of contributions rather than the amount raised can shed light on the strength of a candidacy: the Presidency. And that makes a recent report from Vox extremely interesting.

It’s very easy to overstate the degree to which Donald Trump is supported by America’s business establishment.

Why it matters: Just because corporate America has serious issues with Joe Biden doesn’t mean they are in Trump’s camp.

By the numbers: Data compiled by Yale’s Jeffrey Sonnenfeld show that zero Fortune 100 CEOs have donated to Trump this election cycle.

  • That’s the same amount of support he had when he opposed Hillary Clinton in 2016.
  • In 2020, when he was running as the incumbent, Trump managed to pick up the support of two Fortune 100 CEOs. The previous time a Republican incumbent was running for president, in 2004, George W. Bush picked up the support of 42 such CEOs.

Between the lines: Roughly two-thirds of CEOs are registered Republicans, but they’re not MAGA.

  • “The top corporate leaders working today, like many Americans, aren’t entirely comfortable with either Mr. Trump or President Biden,” writes Sonnenfeld in a NYT op-ed. “They largely like — or at least can tolerate — one of them. They truly fear the other.”

The other side: Big-name investors seem more likely to support Trump than big-name CEOs.

  • Steve Schwarzman of Blackstone is probably Trump’s most prominent investment world supporter. Susquehanna’s Jeff Yass was described recently by Bloomberg as “a former Never Trumper who’s recently softened to become an OK-Fine-Might-As-Well-Be Trumper.”

The bottom line: “Mr. Trump continues to suffer from the lowest level of corporate support in the history of the Republican Party,” writes Sonnenfeld.

Trump’s fundraising totals have been swelled by a couple of huge donations from “big-name investors.” Those donors each have one vote–just as we peons do.

We all need to cast them.

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And I Had High Hopes….

When Barack Obama raised zillions of dollars from millions of small-dollar donors, I was ecstatic. It seemed to me that his success in online fundraising–fulfilling the promise of earlier efforts by Howard Dean and John McCain–would counter the outsized influence of big money donors.

After all, no public official was going to feel indebted to someone who’d sent in $20 dollars-or even $200. Campaigns would be funded by small-dollar gifts sent by regular, mostly non-ideological voters who’d decided they liked Candidate A.

How naive I was….

A guest essay in the New York Times took a look at the current, ugly status of online fundraising. Not that it will come as a shock to anyone who sent $3 or $5 dollars to a candidate only to have their inbox subsequently buried in hysterical, overwrought and frequently inaccurate appeals for money–contributions that would be matched or doubled and would allow Candidate Y to meet the onslaught of scurrilous attacks from Opponent Z.

The overwhelmingly positive narrative about the power of small-dollar online fund-raising began to congeal: Grass-roots fund-raising is pure and good. Big-dollar donations from corporate cronies are suspect. This is what democracy looks like!!!

It hasn’t exactly worked out that way. It turns out that Americans don’t just vote for certifiable nutcases and nice but clearly unelectable candidates–they also send them money.

As it turned out, grass-roots fund-raising is also what ending democracy looks like. As with any other mass movement, people-powered campaigns followed the standard Hofferian trajectory: beginning as a cause, turning into a business and becoming a racket. Our online fund-raising system is not only enriching scam artists, clogging our inboxes and inflaming the electorate; it is also empowering our politics’ most nefarious actors.

It is how Donald Trump and his cast of clueless coupsters raised nine figures to “stop the steal” that they had fabricated to try to stay in power. It is one way our most extreme candidates dominate the conversation and gain power in our political system. It has redirected money from politicians who work to find compromises that might just help people, diverting it instead to those who either have no chance to win or, worse yet, can win and want to undermine that work for their own ends. And it’s hard to imagine how we can stop it.

The author pointed to an example “of the hellscape to come.”  Remember when South Carolina congressman Joe Wilson shouted “You lie!” at President Barack Obama during an  address to a joint session of Congress?  After the Democratic-controlled Congress censured him, Mr. Wilson’s campaign team used that incivility to fundraise. The campaign “uploaded fund-raising pleas to YouTube” and bought ad space on The Drudge Report.

In just 12 days he collected more money than he’d spent during his entire previous campaign.

The lesson wasn’t lost on those who raise money for campaigns.They could raise money and gain influence without bothering to build relationships and coalitions in Washington and back home. They could bypass all that by “being jerks on the internet and calling out their voters’ enemy du jour in the most ostentatious manner they could summon.” (Josh Hawley raised $3 million after he was pictured giving a salute to the rioters about to storm the Capitol.)

It’s created a perverse incentive structure, empowering the congressional shock jocks at the expense of actual legislators. Meanwhile, a series of court decisions supercharged political fund-raising generally. The new no-limits era allowed big donors to maximize huge contributions to political committees and blasted billions in dark money through the system, continually raising the stakes of each fund-raising deadline.

The elevation of the small-dollar donor has created other nightmarish unintended consequences, however. Democratic candidates with no hope of winning are raising ungodly sums from online liberals drawn to their flashy videos and clever slams. This is particularly the case when said candidates are running against notably loathed Republicans. In 2020, this meant Jaime Harrison, the current Democratic National Committee chairman, raised a record-breaking $131 million in his campaign against Senator Lindsey Graham, despite the fact that Mr. Harrison lost by double digits and never really had a prayer….hundreds of millions of dollars are being pumped into hopeless hype candidates.

As the essay notes, it has become a race to the bottom, inflaming a party’s base voters.

Can we ever know the full effect that years of emails, texts, Facebook ads and viral Twitter ads with doom-driven fund-raising appeals have had on the average voter’s conception of the country and politics? How those stimuli may have contributed to the radicalization of their recipients, especially those who aren’t in on the joke (a nihilistic campaign politics trope in which the strategists make arguments they know are phony)?

So much for my early optimism….

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True Colors

Can you stand one more post about Mike Pence?

Yesterday, a friend shared an email she received from our former Indiana Governor and current Trump toady/VP candidate.

The fundraising plea came as Pence spoke to ALEC, telling the corporate interest group that “I was for ALEC before it was cool!” (Ahem–breaking news, Mike: it still isn’t cool.) ALEC has been behind state-level voter ID measures, draconian immigration-enforcement laws and “Stand Your Ground” legislation–not to mention an anti-environmental agenda centered upon denial of climate change and support of fossil fuels. Those positions have prompted a number of  companies–including Google, AOL, Yahoo, Yelp, eBay, BP and Facebook–to leave the organization.

Pence has always had close ties to ALEC and the Koch Brothers. Other positions he has taken since joining the Trump ticket, however, represent a dramatic change from previous postures. For example, Mr. Conspicuous Piety seems positively eager to support a twice-divorced, foul-mouthed, belligerent buffoon who models behaviors inconsistent with both the culture-war positions for which the Governor was previously known and the civility he actually practiced.

(Speaking of civility: For sheer chutzpah, its hard to top Pence’s recent criticism of Democrats for “name calling.” Psychiatrists have a word for that: projection.)

What really sent me over the edge, however, was the text of the fundraising email shared by my friend.

Friend,

I can’t wait until we have an America we can both be proud of again.

When we have a President who looks out for Americans first.

A President who rips up trade deals that kill American jobs. A President that builds a wall and places our National Security first. A President who will Make America Great Again!

I can’t wait until we have a leader like Donald Trump as our next President.

If you can’t wait either, then I need you to donate today so we can make that happen.

In fact, Donald Trump told me that up until Sunday, he is going to personally match your donation dollar-for-dollar, up to $1 million.

So friend, if you are like me and you can’t wait until we have a President who puts America first, then let’s work together to take our country back today.

Since this plea was written in a foreign language–Lapdog–I hope you’ll permit me to translate.

Friend,

I know I used to be a proponent of free trade, but I’m carrying water for Donald Trump these days, so now I’m all for ripping up trade deals. I’m flexible.

I know I’ve spent years  preaching American exceptionalism, but Donald says America is weak and in terrible shape, so I am obediently parroting that line, too.

On the important issues, after all, Donald and I have long agreed.

Donald and I agree that we need to Make America Great Again because a President who is African-American could not possibly put America first. We need a President more like Putin. Strong.

Donald and I also totally agree that we need to take the country back from the minorities and immigrants and uppity women who are ruining it. We need to return to the good old days, when just being a straight white guy entitled you to run things, and those “others” knew their place.

And I hope you noticed my reference to Donald’s money. That’s the proof that he is qualified to be President. (And don’t go drawing negative conclusions from his refusal to make his tax returns public. If he says you don’t need to see those returns, then you don’t need to see them.) Being a rich white guy is how he knows he’s superior to everyone else, and entitled to be President, even though he is admittedly a monumental, delusional ignoramus.

One thing Hoosiers have learned since Donald Trump swooped in and saved Mike Pence from looming electoral defeat: these two truly deserve each other.

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