Capitalism at work

22 Feb

It had to happen – democracy is being replaced by capitalism.

An unmistakable dynamic is playing out in the money game among Republican presidential candidates.

The new “super” political action committees are growing more powerful than the campaigns they support.

For two of the GOP front-runners, their supportive super PACs raised more money and have more cash left in the bank than the candidates’ own campaigns.

Helping their efforts are major financial gifts from wealthy business executives, whose contributions can be essential to the groups’ continued operations.

People or groups with money could end up controlling who gets in office because they control the majority of the political advertising.

The Mitt Romney leaning Restore Our Future and Newt Gingrich supportive Winning Our Future raised a combined $17 million last month and spent nearly $24 million during that same period.

That money allowed the groups to splash the airwaves in key primary states with millions of dollars in TV ads.

The number of new super PACs continues to underscore how the groups, which can raise and spend unlimited sums, are influencing the race.

The groups’ fundraising last month offers a quick behind-the-scenes look into the identities of the rich supporters who will help elect the next president, along with details on how the millions of dollars they donated have been spent.

Restore Our Future, which had $16 million cash on hand, has been helped by more than two dozen repeat donors.

Winning Our Future, which had $2.4 million in the bank, is largely supported by casino mogul Sheldon Adelson and his wife.
The word is Adelson may throw another $10 million into the pot to help Gingrich more.

Meanwhile, Romney raised $6.5 million last month and had $7.7 million left over for his presidential try, while Gingrich’s presidential campaign raised $5.5 million during the same period and had about $1.8 million in cash remaining.

The super PACs, as well as other groups supporting other candidates and the individual campaigns, were required to disclose how much they raised and the identities of their donors in reports filed with the Federal Election Commission by midnight Monday.

Those reports provided a snapshot of fundraising for President Barack Obama’s early campaign and for Republican candidates as they battled during important primary elections in January.

During the month, GOP candidates Gingrich and Rick Santorum had briefly surged ahead of Romney but trailed the former Massachusetts governor in fundraising.
Since then, Santorum has climbed remarkably in polls while Gingrich’s support has eroded just as stunningly following the former House speaker’s disappointing showing in Florida’s primary.

Restore Our Future has been a boon for Romney, who has benefited a lot from the group’s TV ads attacking Gingrich in particular.

Such ads were bought thanks to the financial help of repeat donors, including Marriott International Chairman J.W. Marriott Jr. who has given the super PAC $750,000 to date.

The super PAC also reported new donors, including Hewlett-Packard CEO Meg Whitman.

Is there a connection?
We think so.

Romney mentored Whitman, during her unsuccessful run for California governor.

Whitman’s $100,000 check to Restore Our Future came days after she joined Romney at a celebration of his victory in the New Hampshire primary.

Restore Our Future counted on continued support from at least 30 repeat donors who, along with new contributors, gave a combined $6.6 million in January, according to a review of the reports by The Associated Press.

Meanwhile, Winning Our Future’s $11 million in contributions during the same period came almost exclusively from Adelson, a friend of Gingrich’s and a staunch supporter of Israel.

Adelson and his wife, Miriam, each gave $5 million to the super PAC in January – a move that helped keep Gingrich’s struggling campaign alive.

President Obama’s campaign reported raising a combined $29.1 million in January between the campaign, the Democratic National Committee and other joint fundraising committees.

The major super PAC backing Obama, Priorities USA Action, raised only $58,000 last month – mostly from a $50,000 contribution by Chicago businessman John Rogers – explaining why Obama is encouraging his supporters recently to give to the super PAC.

All of this was made possible under a 2010 Supreme Court ruling.

The super PACs must legally remain independent from the candidates they support, but many are staffed with former campaign aides who have intimate knowledge of the campaigns’ strategies.

Both sides are not supposed to coordinate with each other.

You think they do?

Of course.

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