The Folly of Campaign Finance Reform, Part I

If you ever tried to read anything about campaign finance reform (CFR), you probably gave up because you couldn’t figure it out. If you ever tried to sit down and actually study the reasons behind campaign finance reform, you definitely gave up because you couldn’t figure it out. The vast majority of Americans are against CFR, although very, very few can cogently explain their position beyond the clichés “There’s too much money in politics!” and “Special interests decide elections!” arguments. But there is one thing everyone on both sides agree on – CFR laws are not working. The slew of CFR laws has not stemmed one dime from entering a candidate’s coffer.

Yours truly HAS actually spent long hours studying CFR, and part of my day job is working with my company’s Political Action Committee (PAC) that donates funds to some members of Congress. I have learned many things about CFR and can tell you the primary reason why CFR does not work is an error in the very idea of “taking the money out of politics.” What that noble fact overlooks is that we live in a capitalist society, and anyone who has tried to start a business or works at a nonprofit knows that fundraising is absolutely essential to survival. You cannot take the money out of politics the same way you cannot take the money, or the necessity of money, out of Wall Street, non-profits or any business from a small startup to a Fortune 100. And that is why CFR laws do not work and never will work.

But since many Americans have a negative view of Washington, dislike negative political ads and often hear about financial waste and excess in the government, the idea of campaign finance reform is a concept that elicits a positive reaction with people who only follow politics and elections casually. I believe that because CFR is constructed under an unrealistic notion that money will be mitigated from politics, it has led to a series of unintended consequences that have not only failed to stem the money tide, but also led to serious issues that lie at the heart of how politicians are elected and how they communicate with the public.

CFR is an emotional topic, and you hear groups like Common Cause, PIRGs and even some politicians say claims like “Elections are for sale” and “Big money in politics undermines the public interest!” Like many emotional claims, these are made without understanding the situation and I have never seen any of these backed up by hard proof, a single footnote or simple empirical evidence. In the postings to come, I will explain how all of these claims are untrue, and how the unintended consequences of CFR have actually helped millionaires, incumbents, and undermined the First Amendment.