Thursday, December 8, 2011

The Rise of Political Action Committes (PACs)

Political Action Committees (PACs): organizations designed to collect money and provide financial support for a political candidate.
• Channel money from interest groups to candidates they support.
• Super PACs are going to be used for the 2012 election.
o Not like traditional PACs, there is not going to be a limit on how much money PACs can donate.
Origins and Rules of PACs
• Laws created to limit the amount that individuals could give to candidates.
• Wanted the PACs to grow. In 1974, there were only 600 PACs and now there are more than 4000.

Laws Governing PACs
1. The Federal Election Campaign Act (FECA) of 1971 govern PACs.
2. A PAC must register with the government 6 months before an election.
3. Must raise money from at least 50 contributors and share among at least 5 candidates.
4. Follow accounting rules.
5. Can give $5000 directly to each candidate per election
6. Interest groups can spend large amounts of money for or against candidates,

Federal Election Commission (FEC)
• Issues regulations and opinions that control the PACs activities.
o In 1975, corporations could use their own money to administer their PACs.
o PACs increased by more than 100% in labor union but Corporate PACs increased by more than 1000%.
Affiliated and Independent PACs
• PACs involved with corporations, labor unions, trade groups, or health organizations are affiliated PACs.
o They raise funds through contributions from corporate executives, union officials, workers, and stockholders. An example is the Sun Oil Corporation’s SunPAC
o Groups interested in a specific cause such as abortion set up PACs that do not link to a business. An example is Gun Owners of America.
• Independent PACs raise money through direct mail appeals to people throughout the nation.
o Independent PACs spend less on candidates and elections but raise more money than business or labor PACs.

Strategies for Influence
1. Use money to gain access to lawmakers
2. Directly influence election outcomes.

Gaining Access
• Contributions make it easier to gain access to members of Congress to voice their views.
• Incumbents: supported by PACs are those Gov’t officials already in office.
• All about whether money was given or not.

Influencing Elections
• Having a huge campaign fund very early in the election, it discourages potentially strong competitors from entering.
• No real competition in the election means the incumbent does not need to spend the money saved just on the campaign.

How Much Influence
 What do you think? Positive or negative influence on the government?

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