Thursday, May 16, 2013

Billionaires Unchained

The Supreme Court's 2010 Citizens United decision is often blamed -- or hailed -- for creating super PACs. In fact, it was a lesser-known case, SpeechNow.org vs. Federal Election Commission, decided by the D.C. Circuit Court of Appeals two months later, that did the trick. At the heart of SpeechNow was the central tension in all campaign money fights: the balance between stopping corruption or the appearance of corruption, and protecting the right to free speech. In this instance, the D.C. appeals court, influenced by the Citizens United decision, landed on the side of free speech, ruling that limits to giving and spending when it came to any group -- and here's the kicker -- acting independently of candidates and campaigns violated the First Amendment.

Wonky as that may sound, SpeechNow reconfigured the political landscape and unchained big donors after decades of restrictions. The lawyers who argued the case, the academics and legal eagles whose expertise is campaign finance, and the beat reporters like Carney Newlin soon grasped what SpeechNow had wrought: a new, turbocharged political outfit that had no precedent in American politics.

Super PACs can raise unlimited amounts of money from pretty much anyone -- individuals, corporations, labor unions -- and there is no limit on how much they can spend. Every so often, they must reveal their donors and show how they spent their money. And they can't directly coordinate with candidates or their campaigns. For instance, Restore Our Future, the super PAC that spent $142 million to elect Mitt Romney, couldn't tell his campaign when or where it was running TV ads, couldn't share scripts, couldn't trade messaging ideas. Nor could Restore Our Future -- yes, even its founders wince at the name -- sit down with Romney and tape an interview for a TV ad.

It's far easier, in other words, for a super PAC to attack the other guy, which helps explain all the hostility on the airwaves in 2012. Sixty-four percent of all ads aired during the presidential race were negative, up from 51% in 2008, 44% in 2004, and 29% in 2000. Much of that negativity can be blamed on super PACs and their arsenal of attack ads, according to a recent analysis by Wesleyan University's Erika Franklin Fowler and Washington State University's Travis Ridout. They found that a staggering 85% of all ads aired by “outside groups” were negative, while only 5% were positive.

And it will only get worse. "It's going to be the case that the more super PACs invest in elections, the more negative those elections will be," Michael Franz, a co-director of the Wesleyan Media Project, told me. "They're the ones doing the dirty work." Think of them as the attack dogs of a candidate's campaign -- and the growling packs of super PACs are growing fast.

The savviest political operatives quickly realized how potentially powerful such outfits could be when it came to setting agendas and influencing the political system. In March 2010, Karl Rove, George W. Bush's erstwhile political guru, launched American Crossroads, a super PAC aimed at influencing the 2010 midterms. As consultants like Rove and the wealthy donors they courted saw the advantages of having their own super PACs -- no legal headaches, no giving or spending limits -- the groups grew in popularity.

By November 2010, 83 of them had spent $63 million on the midterm elections. Nearly $6 of every $10 they put out supported conservative candidates, and it showed: buoyed by the Tea Party, Republicans ran roughshod over the Democrats, retaking control of the House and winnowing their majority in the Senate. It was a "shellacking," as President Obama put it, powered by rich donors and the new organizations that went with them.

In 2012, no one, it seemed, could afford to sit on the sidelines. Having decried super PACs as "a threat to democracy," Obama and his advisers flip-flopped and blessed the creation of one devoted specifically to reelecting the president. Soon, they were everywhere, at the local, state, and federal levels. A mom started one to back her daughter's congressional campaign in Washington State. Aunts and uncles bankrolled their nephew's super PAC in North Carolina. Super PACs spent big on abortion, same-sex marriage, and other major issues.

In all, the number of super PACs shot up to 1,310 during the 2012 campaign, a 15-fold increase from two years earlier. Fundraising and spending similarly exploded: these outfits raised $828 million and spent $609 million.

But what's most striking about these groups is who funds them. An analysis by the liberal think tank Demos found that out of every $10 raised by super PACs in 2012, $9 came from just 3,318 people giving $10,000 or more. That small club of donors is equivalent to 0.0011% of the U.S. population.

by Andy Kroll, Tomdispatch.com |  Read more:
Image: Reinhard Hunger for The New York Times. Model by Katrin Rodegast