Dec 9, 2013
The .0000063% Election
Posted on Feb 18, 2012
By Ari Berman, TomDispatch
Otherwise the super PACs on both sides of the aisle are financed by the 1% of the 1%. Romney’s Restore Our Future Super PAC, founded by the general counsel of his 2008 campaign, has led the herd, raising $30 million, 98% from donors who gave $25,000 or more. Ten million dollars came from just 10 donors who gave $1 million each. These included three hedge-fund managers and Houston Republican Bob Perry, the main funder behind the Swift Boat Veterans for Truth in 2004, whose scurrilous ads did such an effective job of destroying John Kerry’s electoral prospects. Sixty-five percent of the funds that poured into Romney’s super PAC in the second half of 2011 came from the finance, insurance and real estate sector, otherwise known as the people who brought you the economic meltdown of 2007-2008.
Romney’s campaign has raised twice as much as his super PAC, which is more than you can say for Rick Santorum, whose super PAC—Red, White & Blue—has raised and spent more than the candidate himself. Forty percent of the $2 million that has so far gone into Red, White & Blue came from just one man, Foster Friess, a conservative hedge-fund billionaire and Christian evangelical from Wyoming.
In the wake of Santorum’s upset victories in Colorado, Minnesota, and Missouri on February 7th, Friess told the New York Times that he’d recruited $1 million for Santorum’s super PAC from another (unnamed) donor and upped his own giving, though he wouldn’t say by how much. We won’t find out until the next campaign disclosure filing in three months, by which time the GOP primary will almost certainly be decided.
For now, Gingrich’s sugar daddy Adelson has pledged to stay with his flagging campaign, but he’s also signaled that if the former Speaker of the House goes down, he’ll be ready to donate even more super PAC money to a Romney presidential bid. And keep in mind that there’s nothing in the post-Citizens United law to stop a donor like Adelson, hell-bent on preventing the Obama administration from standing in the way of an Israeli attack on Iran’s nuclear facilities, from giving $100 million, or for that matter, however much he likes.
A recent analysis by the Washington Post found that, at a cost of $24 million, 40% of the TV ads in the presidential race so far came from these tax-exempt “social welfare” groups. The Karl Rove-founded American Crossroads, a leading conservative super PAC attacking Democratic candidates and the Obama administration, also runs a 501c4 called Crossroads GPS. It’s raised twice as much money as its sister group, all from donations whose sources will remain hidden from American voters. Serving as a secret slush fund for billionaires evidently now qualifies as social welfare.
The Income Defense Industry
In his book Oligarchy, political scientist Jeffrey Winters refers to the disproportionately wealthy and influential actors in the political system as the “Income Defense Industry.” If you want to know how the moneyed class, who prospered during the Bush and Clinton years, found a way to kill or water down nearly everything it objected to in the Obama years, look no further than the grip of the 1% of the 1% on our political system.
This simple fact explains why hedge-fund managers pay a lower tax rate than their secretaries, or why the U.S. is the only industrialized nation without a single-payer universal healthcare system, or why the planet continues to warm at an unprecedented pace while we do nothing to combat global warming. Money usually buys elections and, whoever is elected, it almost always buys influence.
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