Government and Politics

Why Campaign Spending Is Increasing

A University of Chicago legal scholar has offered a simple explanation of why political campaigns are getting more and more expensive -- the government is getting bigger. In a recent paper, John R. Lott Jr. contends that the "more transfers the government has to offer, the more resources people will spend to get them."

  • Between 1976 and 1994, real per capita spending on federal congressional campaigns shot up by $1.52.

  • About $1.32 of that -- or 87 percent -- is explained by rising federal government spending.

  • A $1,000 per capita hike in state government spending boosts total spending on gubernatorial campaigns by about 60 percent.

  • Lott's data show that the recent surge in spending on state assembly races is almost totally due to bigger government at the state level.

Lott says reducing campaign contribution limits might actually result in greater total campaign spending. When the amount of money a person can give to a campaign is reduced, the candidate must increase the number of his donors.

Lott finds term limits would reduce the returns on most donors' investment -- since an elected official who would be in office for only six years, say, would be worth less than one who had 20-year prospects.

Lott argues that many proposed campaign-financing reforms jeopardize constitutional free-speech guarantees. Limiting the size of government is far preferable.

Source: Perspective, "Why Campaign Cash Rules," Investor's Business Daily, May 7, 1998.

Home | Support Us | All Issues | Social Security | Debate Central | Contact Us

Dallas Headquarters: 12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
Washington Office: 601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
© 2001 NCPA