The Cost of Campaigns | Retro Report | The New York Times

Summary

The script recounts the Watergate scandal, beginning with the 1972 break-in at the Democratic National Headquarters, leading to the exposure of illegal campaign contributions to President Nixon. The scandal revealed a deep web of secret money in politics, corporate contributions, and political favors. Though reforms like the 1974 Federal Campaign Act aimed to limit money in politics, loopholes allowed the resurgence of 'soft money' and untraceable 'dark money.' Today, large sums of money continue to influence elections, echoing pre-Watergate corruption, raising concerns about the integrity of the U.S. political system.

Takeaways

• 🏢 The Watergate scandal in 1972 involved five men who were caught attempting to bug the Democratic National Headquarters, which led to the discovery of a secret money trail funding Nixon's re-election campaign.
• 💸 A secret $200,000 contribution was linked to the scandal, symbolizing the US government being 'on the block' and highlighting the need for campaign finance reform.
• 🚫 The scandal resulted in the conviction of major corporations and led to the Federal Campaign Act of 1974, which aimed to limit the influence of money in politics by capping individual donations and banning corporate contributions.
• 🔄 Despite reforms, 'soft money' and secret donations found their way back into the political system, undermining the intended effects of the new laws.
• 💵 The 1988 presidential campaign exposed a major loophole, allowing individuals and corporations to donate unlimited amounts to political parties, termed 'soft money'.
• 🤝 The Lincoln Bedroom scandal involved President Clinton inviting big donors for sleepovers at the White House, contributing to his re-election campaign and raising ethical questions about the influence of money in politics.
• 🚫 Senator John McCain introduced legislation to close the soft money loophole, which was finally outlawed in 2002, but this was short-lived due to Supreme Court decisions.
• 🏛️ The Supreme Court's Citizens United decision equated corporations to people in terms of free speech, allowing unlimited contributions to outside political groups, thus increasing the influence of big money in politics.
• 💭 The rise of Super PACs and 501(c) organizations has led to a surge in outside spending, with some groups accepting 'dark money' from undisclosed donors.
• 🌐 The influence of big money is not limited to national elections but also extends to state and local contests, including judicial races, potentially impacting the impartiality of the judiciary.
• 🔄 The script concludes by drawing a parallel between the current political finance landscape and the pre-Watergate era, suggesting a full circle back to a system rife with corporate and secret money influencing politics.

Q & A

What event triggered the Watergate scandal?

The Watergate scandal was triggered when five men were caught breaking into the Democratic National Headquarters at the Watergate Hotel in Washington, D.C., seemingly preparing to tap or bug the place.

What was the broader impact of the Watergate scandal on political contributions?

The Watergate scandal revealed a secret money trail involving illegal contributions to President Nixon's re-election campaign, leading to major reforms in campaign finance laws aimed at limiting the influence of money in politics.

How did President Nixon's re-election campaign raise funds illegally?

President Nixon's re-election campaign received tens of millions in confidential donations, including illegal corporate contributions, which were used to influence government policy in exchange for financial support.

What was the significance of the secret $200,000 contribution during Nixon's re-election campaign?

The secret $200,000 contribution symbolized the corruption in the political system, where the U.S. government was seemingly for sale, and corporations were buying influence in exchange for favorable policies.

How did the milk industry influence Nixon's policies?

After the dairy industry pledged $2 million to Nixon's re-election campaign, Nixon approved an increase in the price of milk, showing how campaign contributions influenced government policy.

What was the purpose of the Federal Campaign Act of 1974?

The Federal Campaign Act of 1974 aimed to reform campaign finance by limiting how much individuals could donate to candidates and how much could be spent in elections, with corporate contributions remaining illegal.

What is 'soft money' in the context of U.S. elections?

Soft money refers to contributions made to political parties rather than directly to candidates, allowing individuals and corporations to give unlimited amounts, which was legal until campaign finance reforms in 2002.

How did the Supreme Court's Citizens United ruling impact campaign finance?

The Citizens United ruling allowed corporations and other groups to spend unlimited money on elections as a form of free speech, significantly increasing the influence of big money in politics.

What are Super PACs and how do they differ from traditional political action committees (PACs)?

Super PACs are independent political groups that can raise unlimited amounts of money from individuals, corporations, and unions to influence elections. Unlike traditional PACs, they cannot contribute directly to candidates but can spend money on behalf of candidates through media campaigns.

What is 'dark money' in political campaigns?

'Dark money' refers to political spending by nonprofit organizations (such as 501(c) groups) that are not required to disclose their donors. This allows individuals and corporations to contribute large amounts of money anonymously to influence elections.