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The Billion Dollar Presidential Race

Posted June. 01, 2007 03:21,   

한국어

“We will elect a billion-dollar president for the first time in our history,” said Michael Toner, a former Federal Election Commission Chairman, about the 2008 presidential race, meaning it will be the most expensive election in U.S. history.

The American presidential election fund has been on the rise -$198 million in 1992, $351.7 million in 2000 and $701 million in 2004. Few doubt that it will exceed the record next year.

On Thursday, the Financial Times focused on the phenomenon and the causes, saying, “As early as now, the U.S. presidential race shows signs of fund inflation.”

“We Need Money”-

Those who declared they would jump into the 2008 race have drawn 150 million dollars in funding in the first quarter of this year. The figure is six times higher than during the same period in 2003 and eight times higher than in 1999. Why?

One of the major reasons is that ’08 election will be more open” than ever before. As there is no apparent dark horse like a former president re-running for election or a vice president, the competition in the primary is intense. Already, 18 candidates have announced their will to run for presidency, and former vice president Al Gore and former House speaker Newt Gingrich are mentioned as potential candidates as well.

A Democratic lobbyist said, “When you look at the number of election experts recruited by each candidate and their plans to build campaign structures, you will realize how much money you need.”

The coincidence of primaries in about 20 states falling on Tuesday, February 5, 2008 highlights the importance of money. Since candidates cannot plan their campaigns based on different primary dates and link a victory in one state to another, they cannot help but advertise intensely at the same time by using expensive advertisement media such as TV ads. “Tsunami Tuesday” is triggering tension among camps.

There are still 18 months to go before the U.S. next presidential election, but the war of advertisements has begun. Democratic presidential candidate John Edwards aired a commercial ad appealing for support to withdraw troops from Iraq, and Mitt Romney, a former Massachusetts governor, took out an TV ad in Iowa.

No Money, No Democracy? -

More voters are participating in Internet “grassroots fundraising” than before.

Democratic candidate Barack Obama raised 25 million dollars, half of his campaign fund in the first quarter of this year through Internet grassroots fundraising from 100,000 voters, double the number of his supporters. The amount is about the same as his rival, Hillary Clinton, raised.

The grassroots are not the only contributors. Hedge funds, whose numbers have increased thanks to the boom on Wall Street, are joining, too. To influence congressional policies curbing giant hedge funds, big investors and fund managers are pouring money into the race as “insurance.”

The inflation in funding is likely to cause overheated fundraising competitions and lower interest in policies of candidates. Critics point out that the obsession with contacts with the rich and the participation of people in tight fundraising events could make candidates care less about ordinary voters.

A member of a camp said, “If lucky, yon can hear about policies, which is rare, amid the endless meetings with financial experts.”



lightee@donga.com