ChAPTER EighT • CAmPAigns AnD ElECTions 179
politics and economics
Political action committees (PACs) have been around for
a long time, but only recently have we seen the super
PACs. These groups became popular after court rul-
ings that the First Amendment prohibited the federal
government from restricting independent political
expenditures. Such expenditures are supposedly not
coordinated with candidate campaigns. The result of
these court rulings was the super PAC, a committee
that is allowed to raise and spend unlimited sums from
corporations, unions and other associations, and indi-
viduals. Indeed, due to the rise of 501(c)4 organizations
(described in the text), some nonprofit groups can con-
tribute to super PACs without disclosing their donors.
AND THE MONEY CAME ROLLING IN
During the 2011–2012 presidential election cycle,
more money was available for campaigning than ever
before. Some scholars estimate that various commit-
tees spent more than $6 billion on all races—for pres-
ident, for Congress, and for state offices. Of that, an
estimated $1.3 billion was spent by outside groups.
Most of these funds were used for negative advertising
in the “battleground states.” Of the $1.3 billion, about
65 percent was spent to boost Republican candidates.
Does money buy elections? Did all of those bil-
lions of dollars make a significant difference in elec-
tion outcomes? When it comes to super PACs, at least,
the evidence is in—super PAC dollars do not seem to
have made much difference, particularly in the presi-
dential contests.
DONORS GOT A POOR
RETURN ON THEIR INVESTMENT
Consider some spectacular super PAC failures. Casino
owner Sheldon Adelson and his wife spent more than
$53 million in donations to super PACs. Of that, $15 mil-
lion was spent in the hope of winning the Republican
presidential nomination for Newt Gingrich (he lost),
and $20 million was spent in the general election to
make Mitt Romney president (he lost, too).
Consider another super PAC with poor results—
American Crossroads, managed by conservative strat-
egist Karl Rove. According to a study by the Sunlight
Foundation, only 1.3 percent of the $104 million that
American Crossroads spent in the general election
helped produce a winner. The group spent $85 million
in ads attacking Barack Obama. It used $6.5 million
to support Mitt Romney. That was $91.5 million spent
with a zero rate of return. Almost all of the Senate can-
didates supported by American Crossroads lost.
LOOKING TO THE FUTURE
Republicans had an advantage in super PAC spend-
ing in 2012, but they lost seats in both the House
and the Senate and, of course, they failed to win the
presidency. Some conservative strategists concluded
that super PACs had made a mistake by concentrat-
ing on television ads. These experts advised that in
the future, super PACs should focus more on financing
get-out-the-vote drives. Despite a poor performance in
2012, most observers believe that super PACs will be
back in force in 2014 and 2016.
FOR CRITICAL ANALYSIS
Why might huge sums spent on television advertisements have a
limited effect on swaying voters, especially in presidential elections?
ThE CuRious inEFFECTiVEnEss oF ThE suPER PACs
The 501(c)4 organization. In the 2007–2008 election cycle, campaign-finance law-
yers began recommending a new type of independent group—the 501(c)4 organization,
which, like the 527 organization, is named after the relevant provision of the tax code. A
501(c)4 is ostensibly a “social welfare” group and, unlike a 527, is not required to disclose
the identity of its donors or to report spending to the Federal Election Commission (FEC).
Lawyers then began suggesting that 501(c)4 organizations claim a special exemption
that would allow the organization to ask people to vote for or against specific candi-
dates as long as a majority of the group’s effort was devoted to issues. Only those funds
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