How Billionaires Control US Elections | Business Insider Explains | Business Insider

Summary

The script discusses the unprecedented influx of money into US elections, highlighting how big donors like Ken Griffin, George Soros, and Reid Hoffman influence outcomes. It reveals that in 2020, a staggering $14.4 billion was raised for congressional and presidential races. The narrative explores where this money goes, emphasizing advertising and campaign operations. It also points out that while fundraising is crucial, it doesn't always predict election results, as seen in Hillary Clinton's 2016 loss despite outraising Trump. The script further delves into the dynamics of donations, including individual contributions, PACs, and super PACs, and the impact of wealthy donors on politics. It concludes with the public's desire for campaign finance reform, reflecting the complexity of money's role in American politics.

Takeaways

• 💵 The amount of money flowing into US elections has reached unprecedented levels, with billions being raised in recent cycles.
• 📈 In the 2020 election cycle, a record $14.4 billion was raised for both congressional and presidential races.
• 💸 Candidates who spend more tend to win, with nearly 94% of House and 82% of Senate candidates with the most funding winning in 2022.
• 🏆 Despite high fundraising, there's no guaranteed win, as seen in 2016 when Hillary Clinton outraised Donald Trump but lost the presidency.
• 💼 Campaign funds are used for various expenses including rallies, offices, staff, consulting, and predominantly advertising.
• 🚀 Fundraising is pivotal, as seen when Biden's poor debate performance led to a significant drop in donations, impacting his campaign.
• 🌟 For the 2024 race, Democrats, including Vice President Kamala Harris with $310 million raised in July, are currently ahead in fundraising.
• 🤝 Money can be donated through individual contributions, PACs, or super PACs, with the latter accepting unlimited contributions.
• 💲 Wealthy donors like George Soros and Elon Musk play a significant role, with Soros contributing millions to Democratic causes.
• 🔍 The influence of money in politics is a concern for many Americans, with 72% favoring limits on campaign contributions.
• 🛑 The policies of elected officials can be swayed by donors, as seen with Trump's support from the oil and gas industry.

Q & A

What was the first year both US presidential campaigns raised over a billion dollars?

The first time both presidential campaigns raised over a billion dollars was in 2012, during the race between President Barack Obama and Republican Mitt Romney.

How much money was raised during the 2020 US election cycle?

In the 2020 election cycle, $14.4 billion was raised between congressional races and the presidential race.

What is the general trend between campaign spending and election outcomes in House and Senate races?

Candidates who spend more money tend to win their races. In 2022, nearly 94% of House candidates and roughly 82% of Senate candidates who raised the most money won their races.

How does campaign spending correlate with winning in presidential elections?

There isn't always a clear correlation between campaign spending and winning in presidential elections. For example, in 2016, Hillary Clinton raised more money than Donald Trump but lost the election.

What are the primary ways campaign money is spent?

Campaign money is spent on hosting rallies, opening offices and hiring staff in swing states, consulting fees, and primarily on advertising, including direct mail, television, radio, and social media ads.

How did fundraising challenges impact Joe Biden's campaign in the past?

After a poor debate performance, Joe Biden faced fundraising challenges with major Democratic donors like Abigail Disney withdrawing support, which influenced the campaign and contributed to Biden exiting the race.

How much money did Kamala Harris raise in July for her 2024 presidential campaign?

Vice President Kamala Harris raised $310 million in July alone for her 2024 presidential campaign.

What are the three ways money can be donated to political campaigns?

Money can be donated to political campaigns through individual contributions, PACs (Political Action Committees), and super PACs.

What is the limit for individual contributions to a candidate's committee under federal law?

Individuals can contribute up to $6,600 for an election cycle to a candidate's committee.

How much did Timothy Mellon contribute to a pro-Trump Super PAC after Trump's conviction?

Timothy Mellon contributed $50 million to a pro-Trump Super PAC the day after Trump was convicted in a Manhattan court.

What is the public sentiment towards money in politics according to the script?

Seventy-two percent of Americans indicated that they would like to see limits on how much individuals or organizations could contribute to political campaigns.