P. 1
Mitt Romney: Is $247 Million Enough to Buy the Presidency?

Mitt Romney: Is $247 Million Enough to Buy the Presidency?

|Views: 552|Likes:
Published by Hyperink
ABOUT THE BOOK

Thanks to Citizens United, campaign finance is drastically different in the the current electoral climate. 2012 will mark the first election since 1972 in which presidential candidates do not accept matching government funds. Both parties' candidates will be able to raise and spend as much money as they possibly can. Candidate Mitt Romney's staggering wealth and the record campaign expenditures predicted for this election makes him an influential player in this new era.
ABOUT THE BOOK

Thanks to Citizens United, campaign finance is drastically different in the the current electoral climate. 2012 will mark the first election since 1972 in which presidential candidates do not accept matching government funds. Both parties' candidates will be able to raise and spend as much money as they possibly can. Candidate Mitt Romney's staggering wealth and the record campaign expenditures predicted for this election makes him an influential player in this new era.

More info:

Published by: Hyperink on Nov 14, 2012
Copyright:Traditional Copyright: All rights reserved
List Price: $3.95

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
This book can be read on up to 6 mobile devices.
Full version available to members
See more
See less

10/31/2014

I.

Mitt Romney: Is $247 Million
Enough to Buy the Presidency?
Introduction
Mo’ Money Mo’ Problems: How Much Money Does Mitt Have And Where Is It All Hiding?
How Did Mitt Get So Rich?
Campaign Financing After Citizens United
Who Is Funding Romney’s Campaign?
How Much Has The Campaign Cost So Far?
Best “I’m Really Rich” Mitt Moments
Conclusion
Sources and Additional Reading
Table of Contents
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Presiden...
Presiden...
Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker Table of Contents
Table of Contents
Table of Contents
Hyperink
Hyperink
Hyperink
11
I.
Mitt Romney: Is $247
Million Enough to Buy
the Presidency?
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
22
Image via NY Alt News
In the beginning of the current primary elections, the accepted wisdom was that Mitt
Romney would be the eventual Republican nominee for President. The other candidates,
Newt Gingrich, Michele Bachmann, Rick Santorum, Rick Perry, Ron Paul, and Herman
Cain, were all originally seen as short term distractions from the inevitability of Romney.
Each had his or her upswing in the polls, but closer inspection always revealed too many
cracks for the American public’s comfort. (Herman Cain was alleged to be a repeat
sexual harasser, questions about Rick Perry’s intelligence kept surfacing, and Michele
Bachmann continued making unsupported statements about the HPV vaccine causing
mental retardation.)
But the primary season didn’t unfold exactly as expected. Although the first count of the
votes in the Iowa caucuses showed Romney winning by a slim eight votes, Santorum
turned out later turned out to be the surprise winner. Suddenly Romney’s “inevitability”
was looking a little shaky. And as Santorum continued to gain on Romney, the Romney
campaign began to spend more to beat him. Though Santorum left the race on April 10,
the Romney campaign had to spend significant amounts of money to beat the
conservative.
For a campaign to spend vast sums of money is nothing new. President Obama raised
and spent approximately $750 million in the 2008 election. The amount of money spent
collectively by the candidates in that election is staggering: more than $5 billion, making it
Introduction
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
33
the costliest election cycle in U.S. history.
Yet as enormous as those numbers sound, the current election is likely to cost even
more. In January 2010, the Supreme Court of the United States changed the rules of
campaign financing. Under Citizens United v. Federal Election Commission, the federal
government cannot regulate the amount of money donated to a campaign by a
corporation. The decision pitted corporations First Amendment rights to free speech
against the dangers of allowing corporations to pour endless amounts of money into
candidates or causes of their choosing. The corporations won.
Thank to Citizens United, campaign finance is drastically different in the the current
elections. This will be the first election since 1972 in which presidential candidates do not
accept matching government funds. Both parties’ candidates will be able to raise and
spend as much money as they possibly can. The lack of regulation has created what one
policy analyst dubbed “the Wild West,” saying, “For a generation, we've had either one or
both candidates participating in a system of limited spending. The [current] candidates
aren't in the system, so they have no limits. And the outside groups have no limits.”
Single donors and corporate entities will be able to funnel huge sums into candidates who
they believe support their economic positions. And they’ll be able to do it through a
system likened to money laundering, that will allow them to do it anonymously.
What does all of this mean for a candidate like Mitt Romney, a candidate whose own
personal wealth is more than fifty times that of President George W. Bush and about a
hundred times more than our current President and his future rival, Barack Obama?
Our country is in the midst of a slow recovery from a deep economic recession. Will the
public be able to embrace a multi-multi-multi-millionaire with plans to include a car
elevator in his California beachfront property renovation? (The Romney campaign has
since put those plans on hold.)
And who will Romney’s major donors be? Will Romney call on his own friends from Bain?
How many SuperPACs are going to be contributing to his campaign and what interests will
be behind that money?
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
44
Estimates of the Romney fortune range from $200 million on the low side to about $264
million on the higher end of the spectrum. According to The Atlantic, if elected Romney
would become the wealthiest President in the last half century, with a net worth
equivalent to double the amount of the last eight Presidents, beginning with Nixon and
ending with Obama, combined.
Romney’s Annual Income
After heavy political pressure from rivals, Romney released his 2010 tax return in late
January, several months earlier than his campaign had originally planned. It showed his
income for the year to be $21.6 million, or approximately $57,000 per day.
Most of the controversy surrounding Romney’s tax return release was not in the high
dollar amount of his earnings, but in the relatively low amount he paid in taxes, which
came out to approximately $3 million. Because of the way Romney earns his income —
profits from investments made through hedge funds when he was at Bain Capital — his
net tax rate was shown to be 13.9%. In contrast, the highest earners in this country
getting regular paychecks pay about 35% of their income to the government.
This lower tax rate is levied on money made through “carried interest.” This term refers
to the profit-stake that managers of private equity funds make from successful
investments, even though they haven’t invested their own money. It is taxed at the same
rate as “capital gains,” which are given preferential tax treatment based on the theory of
encouraging investors to take the risk of putting their money into the market. Expect this
to become a major issue in the national race.
Romney’s Investment Portfolio
Mo’ Money Mo’ Problems: How
Much Money Does Mitt Have And
Where Is It All Hiding?
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
55
His liquid assets are invested in over 160 funds managed by several investment firms,
including Goldman Sachs, BNP Paribas, and his alma mater, Bain Capital. This kind of
investing usually involves giving control to the firm managing the account. Brokers at
these firms then diversify their client’s portfolio by buying stock in a variety of industries
and countries.
It would be highly unusual for an individual investor to be familiar with every company his
dollars had backed, and essentially impossible for Romney, whose money is handled
through a blind trust. But in the 2007 election critics came after Romney for financing
companies with interests in China, Iran, and stem cell research. Romney responded by
saying he would get rid of all investments that didn’t “conform with his positions,” but
sure enough, journalists continue to find more companies with questionable ties, like
Baidu, a Chinese search engine alleged to be censoring content. Most recently, in late
January, Newt Gingrich pointed out that Romney had also invested in Fannie Mae and
Freddie Mac, the troubled government mortgage giants, whose failure was a large factor
in the economic crisis. (This was an exceptional case of the pot calling the kettle black, as
the New York Times has documented.)
Romney has also failed to disclose every company where he has money invested. Though
Romney released his tax returns in January, rivals are accusing him of using legal
loopholes to avoid full disclosure of his assets and investments. For example, he chose
not to disclose the details of 48 accounts managed by Bain Capital because of a
confidentiality agreement he holds with the company. Though his disclosure reports fulfill
his legal obligations, Obama spokesperson Jim Messina charges that Romney “put his
personal financial assets in a black box and hid the key.” A Romney mouthpiece
countered: “President Obama will do anything to try and distract Americans from his
failed record of chronic unemployment, lower incomes and higher gas prices.”
To expect someone with this kind of wealth to have personal knowledge of every
company his money has bankrolled is somewhat outrageous and unprecedented. But
Romney is the first Presidential candidate to face these kinds of problems, and it is a
legitimate voter concern, so he will have to find a better way to convince Americans that
his money is not funding an interest that conflicts with his belief.
Romney’s Cayman Island Accounts
If you’ve ever watched a James Bond movie or read a spy novel, you know that really
really rich people don’t just keep their money in a regular old bank. Sure they may have
cash and jewels stashed in a hidden safe, family secrets written in letters held in safety
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
66
deposit boxes, and enough real estate to start a small country, but there’s always
another place where the wealthiest put away money they don’t want the government to
touch (or know about): offshore accounts.
Mitt Romney is no different. In addition to the kind of investments discussed above,
Romney also millions of dollars in offshore accounts, which enable American investors to
defer paying taxes on some assets. It’s unclear exactly how much money Romney has
offshore, but his tax documents indicate that he has invested between $7 and $32 million
in six funds through these Cayman Island accounts. A spokesperson for the Romneys has
said that the decision to use the accounts was made by the funds’ sponsors, and not
Romney himself. The sponsors in this case, partners at Mitt’s former firm, Bain Capital,
had no comment.
Though using accounts like these is generally portrayed as an illicit measure used to hide
the proceeds of questionable activity, as long as the investor files the appropriate tax
papers, it is a completely legal practice. Tax experts and lawyers say it’s fairly common
for wealthy American investors looking to diversify their portfolios or foreign investors
trying to avoid certain U.S. tax disclosure requirements to put their money in offshore
accounts.
However, some criticize the practice as just another example of the rich exploiting a
loophole in the tax code. A liberal group, Americans United For Change, made a video
mocking Romney over the discovered bank accounts.
Romney’s Real Estate
Like most very wealthy people (and many politicians), the Romneys own multiple homes.
But unlike John McCain, who in the 2008 race couldn’t remember how many homes he
owned (it turned out to be eight), Romney’s holdings can be counted on one hand.
In one political attack video, “When Mitt Romney Came To Town,” an unidentified woman
who claims to have lost her job because of Bain bought the company she worked for said
the Romneys owned 15 homes. But further investigation by the fact checker, PolitiFact,
discovered that this was a bit of an exaggeration. In fact, the Romneys currently own only
three homes.
The Romneys’ beachfront home in La Jolla, California has been the most reported on as
the site of the aforementioned car elevators. News reports recently revealed that the
family’s big remodeling plans for the property, purchased for $12 million in 2008, include
an elevator for four cars, an outdoor shower, and an “enormous” basement. What irked
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
77
many liberal critics more than anything, though, was that the Romneys had hired a
personal lobbyist to secure the necessary permits for the project.
Their sprawling property in Wolfeboro, New Hampshire on Lake Winnipesaukee, sounds
like an idyllic New England estate: on a total 8.6 acres, the Romneys can enjoy their living
quarters, a boat house, horse stables, and tennis courts. The property is valued at just
under $8 million.
After selling their seven bedroom, six-and-a-half bathroom Belmont home for $3.5 million
in 2009, they purchased a condominium in the same area for a paltry $773,000. The
Romney family had also owned a $5 million Utah ski house, but they sold that in 2010.
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
88
After graduating from Harvard Business School, Romney began his career in business as
a management consultant. Though recruited from a number of top investment firms,
Romney chose the smaller, less well known Boston Consulting Group. (Entirely by
coincidence, Romney worked alongside and developed a friendship with current Israeli
Prime Minister, Benjamin Netanyahu.)
In 1977, Romney made the move to Bain & Company. Romney made a name for himself
working with clients like Monsanto Company and Burlington Industries. By 1978, he had
become a vice president of the company. In 1983, he was given the opportunity to head
a new Bain company: Bain Capital. Unlike Bain & Co., Bain Capital would invest its own
money into clients businesses, to reap even larger rewards than through consulting fees
alone. One of Bain Capital’s early successes was a little office supply store chain, known
as Staples. Maybe you’ve heard of it?
But Bain Capital’s focus shifted from venture capitalism to leveraged buyouts. This
involves buying struggling companies using money borrowed against their own assets,
applying Bain methods to their operations, and then selling the companies at large
profits.
Because Romney relies so heavily on his business experience to support his argument
that he will be able to “fix” the economy, his tenure at Bain has come under attack this
election cycle. Gingrich has pointed to a Bain deal that led to the closing a Kansas City
steel mill and cost 1700 jobs. This is what Rick Perry had to say on the matter: “There is
something inherently wrong when getting rich off failure and sticking it to someone else is
how you do your business, and I happen to think that is indefensible.”
There is a fair amount of support for Perry’s analysis. The New York Times analyzed
several deals done under Romney’s leadership at Bain. It described one involving an
Illinois Medical Company, Dade International: “Bain and a small group of investors bought
Dade in 1994 with mostly borrowed money, limiting their risk. They extracted cash from
How Did Mitt Get So Rich?
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
99
the company at almost every turn — paying themselves nearly $100 million in fees, first
for buying the company and then for helping to run it. Later, just after Mr. Romney
stepped down from his role, Bain took $242 million out of the business in a transaction
that, according to bankruptcy documents and several former Dade officials, weakened
the company.”
When Romney left Bain Capital in 1999 to run the Salt Lake City Olympic Games,
he “negotiated a severance package that entitled him to a portion of the firm's future
profits, including profits from equity funds that had not yet been created.” He continues
to pull in between five and thirteen million dollars per year from Bain.
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
10 10
As mentioned above, the Citizens United decision from the U.S. Supreme Court has
drastically changed the way campaigns can raise money.
What Happened In Citizens United
In January 2010, the Supreme Court dramatically altered the legal landscape of campaign
finance. Until this point, corporations had been limited in the amount of money they could
give to a political campaign, but considering the question on the basis of free speech, five
of the justices found that corporations should have the right to donate freely. The
decision directly overturned two earlier holdings, one from 1990 affirming restrictions on
corporate spending in political campaigns and one from 2002 upholding similar
restrictions for corporations and unions under the Bipartisan Campaign Reform Act of
2002 (aka McCain-Feingold).
Under McCain-Feingold, corporations and unions were prohibited from financing any
campaign messaging, including television and radio commercials, within 30 days of a
presidential primary or 60 days of a general election. This ruling struck down that law,
finding that corporations and unions, like individuals, have rights to free speech, and that
no organization can be limited in the amount of money they donate to a campaign.
The opinion does, however, require disclosure of the body sponsoring any
advertisements. Justice Kennedy, often a swing vote on the bench, rationalized that
“disclosure permits citizens and shareholders to react to the speech of corporate entities
in a proper way.”
Super PACs: The New Way Campaigns Are Financed
If you have been following the election this cycle, you probably noticed a new word being
thrown around: Super PAC. Senators John McCain and Russ Feingold staunchly opposed
the change in the law, and believe that the Supreme Court justices were naive about how
Campaign Financing After
Citizens United
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
11 11
corporations would spend their money and the effects it would have on campaigning.
They blame the decision for the birth of the entities now known as “Super PACs.” But
others have defended the Court’s ruling, saying that it decided back in 1976 that
individual citizens could give unlimited sums to campaigns, that individuals have been
doing so in the form of “527 corporations,” and Super PACs are really not so bad.
A “PAC” is a Political Action Committee, or any group that receives more than $1,000 to
advocate to citizens in an election. While citizens or other groups may only donate up to
$2,500 to a candidate, they can give unlimited amounts of money to PACs.
Unlike a regular PAC, though, a Super PAC is not allowed to coordinate directly with the
candidate it is supporting.
However, many question the true separation between Super PACs and the candidates
they are funding. In several cases, the people running the Super PAC operations are
former members of the candidates’ official campaigns, and candidates sometimes make
appearances at Super PAC events.
More criticism for Super PACs has to do with the voice it gives to a small group of wealthy
donors. Even though anyone can donate to a Super PAC, in reality they attract a specific
set of donors: really, really rich ones. One hundred and ninety six people supplied 80% of
Super PAC contributions in 2011. One headline-grabbing donation came in the form of
$10 million from Casino mogul Sheldon Adelson to Newt Gingrich’s Super PAC, Winning
Our Future. (Romney’s Super PACs are discussed in detail below.) Most of the money is
then spent on advertising, about half of which is negative.
A major pro-Gingrich Super PAC donor, and the eighth richest man in the U.S., Sheldon
Adelson, has said, "I'm against very wealthy people … influencing elections . . . But as
long as it's doable, I'm going to do it."
In 2008, before Citizens United and the creation of Super PACs, a total of about $38
million was spent on political campaigning. In contrast, as of March 9, 2012, more than
$88 million has spent on this campaign so far. How much will be spent by the end of the
election? Thanks to Citizens United, the sky’s the limit.
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
12 12
Image via Public Domain Images
As of April 8, 2012, Mitt Romney has raised over $75 million to fund his campaign. (In
comparison, Barack Obama has raised over $172 million.)
Romney’s Campaign Largely Supported By Banks, Not People
Of the $75 million the Romney campaign has raised, almost two-thirds of it have come
Who Is Funding Romney’s
Campaign?
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
13 13
from donors who have given the maximum amount, $2,500. (In contrast, only 20% of
Barack Obama’s contributors have donated that much.) According to Bloomberg
BusinessWeek, “the emphasis on top-tier donations indicates an active network of
fundraisers who are targeting high-end contributors.”
Folks at the Romney campaign have been suspiciously secretive about who the major
contributors and fundraisers, aka “bundlers,” are. But journalists are continuously
uncovering sources of Romney's campaign contributions. For example, the Associated
Press reported that Stephen Ross, the billionaire owner of the NFL’s Florida Dolphins,
hosted a large Romney fundraiser shortly before the Florida primary. That month, people
living in Ross’s zip code donated a total of $317,000 to the Romney campaign. (Compare
that to the previous year in the same area: it took nine months to raise $270,000.)
Also recently, the Street reported that Romney’s six top organizational contributors are,
unsurprisingly, Wall Street banks: Goldman Sachs, J.P. Morgan Chase, Morgan Stanley,
Credit Suisse, Citigroup and Bank of America have donated an approximate total of $2.1
million to the Romney Presidential campaign. (In contrast, Obama’s top six include tech
giants like Microsoft and universities like Harvard.) Other financial institutions giving large
sums to Romney include Barclays, Wells Fargo, EMC, UBS, Blackstone Group, and his alma
mater Bain Capital.
Why is Romney’s campaign so heavily reliant on large individual donors and corporations
instead of widespread public support? Michael Malbin, the director of the nonpartisan
Campaign Finance Institute explains it as part of a “larger problem:” Romney “has not yet
excited the passions of the kind of people who give small contributions or volunteer their
time.”
The Pro-Romney Super PACs
In addition to the Romney campaign’s $75 million, the presidential aspirant can also rely
on Super PAC support, and if wins the Republican nomination, on the entire Republican
Super PAC army.
One of the Romney Super PAC’s, Restore Our Future, biggest supporters is Bob Perry, a
Houston home builder who just happens to also be the financier of the anti-John Kerry
swift boat attack ads from 2004. When he gave $3 million to a pro-Romney Super PAC,
Kerry sent a fundraising email on behalf of the President, warning that Perry was planning
to “swift boat” Obama.
(For those of you who may not remember the Swift Boat ads, the term refers to the
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
14 14
negative attacks launched against Kerry that falsely questioned his military service in
Vietnam. Kerry’s heroism in service to his country was a central piece of his campaign,
but these ads and later a book, Unfit For Command, discredited the stories of his valor
and leadership. They were found to be unsubstantiated, but the term “swiftboating”
stuck.)
Another pro-Romney Super PAC, American Crossroads, is said to be planning its first
major anti-Obama campaign attack yet. As a major instrument of the Republican party,
this well-funded Super Duper PAC is going to be spending a lot. According to the L.A.
Times, “If money truly buys power, the super PAC may end up being more persuasive
over voter opinion than Romney himself.”
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
15 15
On Tuesday, April 10, 2012, Rick Santorum stepped out of the race due to his daughter’s
illness. Though Romney now has one less opponent in the field, he paid handsomely for it.
Before bowing out, Santorum regularly pointed out how much more money the Romney
campaign was spending. “People have said, you know, you’re being outspent, and
everybody’s talking about all the math and all the things – that this race is inevitable,”
Santorum said to supporters. “Well for somebody who thinks this race is inevitable,
[Romney’s] spent a whole lot of money against me for being inevitable.”
Rick Santorum
Image via NY Alt News
As of Monday, April 9, 2012, Mitt Romney had spent about $70 million on the 2012
campaign, including $53 million in television advertisements. (In January, the Romney
campaign spent three times as much as it earned.) Restore Our Future, the pro-Romney
Super PAC, spent about $40 million. In comparison, Santorum spent a total of $9 million
and his Super PAC, the Red, White, and Blue Fund, spent an additional $7.5 million. But
although Romney and his Super PACs outspent Santorum on a margin of 10-1, according
Buzzfeed, he got his money’s worth:
“Measured by spending-per-delegate, the measure that matters, he's running a more
How Much Has The Campaign
Cost So Far?
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
16 16
efficient campaign than one of his Republican rivals, Ron Paul, and a campaign that's
roughly equivalent to Newt Gingrich's. Santorum, meanwhile, is running a more efficient
campaign, but not by the order of magnitude the raw numbers suggest. Romney's
campaign has only spent about twice as much, per delegate, than Santorum; that figure
increases to about three times as much if you include the SuperPACS — but nothing like
the ten-to-one margin that emerges from the overall spending comparison. The upshot:
Romney may be spending lavishly, but at least he's not throwing away his donors'
money.”
Yet Romney advisors admit that the intense and unexpected primary fight put his
campaign two months behind its original plan for building political and field operations in
swing states like Colorado, Florida, and Ohio.
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
17 17
From the L.A. Times: “Mitt Romney, the millionaire who has tried again and again to
try to show voters that he’s just another everyday Joe, may have given his GOP rivals
and President Obama a gold-plated gift in Saturday’s debate in Iowa. While sparring
with Rick Perry over healthcare at the debate in Des Moines, Romney challenged Perry
to a wager. The stakes? A cool 10 grand.”
Back in his original home state of Michigan, Romney accidentally drew attention right
back to his deep pockets: ““This feels good, being back in Michigan," Romney said.
"You know, the trees are the right height. The streets are just right. I like the fact that
most of the cars I see are Detroit-made automobiles. I drive a Mustangand a Chevy
pickup truck. Ann drives a couple of Cadillacs, actually. And I used to have a Dodge
truck, so I used to have all three [Detroit carmakers] covered.”
Asked at a NASCAR race if he follows the races, Romney responded: “Not as closely as
some of the most ardent fans, but I have some friends who are NASCAR team
owners.”
At a campaign stop in Wisconsin, Romney told a story about his father’s decision to
close an auto factory in Michigan and move production to Wisconsin. When his dad
decided to run for Governor of Michigan, this was a sore subject. At a rally, the
marching band didn’t know the Michigan fight song. “They only knew how to play the
Wisconsin fight song, so every time they would start playing ‘On, Wisconsin,’ ‘On,
Wisconsin,’ my dad’s political people would jump up and down and try to get them to
stop because they didn’t want people in MI to be reminded that my dad had moved
production to Wisconsin. Nonetheless, I appreciate the chance to be with you this
morning.”
In a CNN interview: “I'm not concerned about the very poor.”
Best “I’m Really Rich” Mitt
Moments
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
18 18
Whether or not Romney can buy his way into the American Presidency is still a legitimate
and open question. With the changed financing field thanks to the Citizens United case, it
is hard to predict how much money will be spent, which donors will impact the race, and
how voters will respond.
It is also important to remember that at the time of publication, President Obama was still
way ahead of Romney on the fundraising front. While Romney is certainly wealthier in his
private life, Obama is currently a better financed politician. So although Romney,
arguably, is buying his way into the Republican nomination, he may not be able to out
fundraise the President, and therefore may not be able to rely on cash to make up for his
lack of charisma.
Yet, between April (the month of publication) and the November election, a lot can
happen. Campaigns are known to be full of unexpected surprises, and we are incapable
of guessing everything that may happen, whether in terms of revelations about
candidates personal lives, surprise donors looking to support their candidate of choice, or
anything else.
Ultimately, it will be up to the voters to determine what issues are most important to
them, and which candidate best addresses those concerns. Unfortunately, though, the
answers to those questions may be supplied by unknown corporate interests, and they
may not be truthful. Whether voters will be able to see through those distortions remains
to be seen.
Conclusion
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
19 19
I’m Just Sayin,’ Herman Cain Would Be A Terrible President But That’s Besides The
Point
Politico.com, Is Rick Perry Dumb?
Washington Post, Bachmann claims HPV vaccine might cause ‘mental retardation’
Washington Post, Iowa caucus results: Romney edges Santorum; Paul finishes third
The New York Times, How Much Does It Cost To Run For President?
Politico.com, 2008 Campaign Costliest In History
The Atlantic, Would Mitt Romney Be The Richest U.S. President Ever?
Yahoo! News, Mitt Romney’s cars will have their own elevator in California home
La Jolla Light, Romney’s home rebuild with car elevator on hold
Business Insider, Just How Much Money Does Mitt Romney Have?
The New York Times, Gingrich’s Deep Ties To Fannie Mae and Freddie Mac
Huffington Post, Mitt Romney’s Offshore Accounts Contain Up To $32 Million
The Hill, Liberal group parodies Romney’s Cayman accounts
When Mitt Romney Came To Town
PolitiFact, Does Mitt Romney have 15 homes? Woman in Winning Our Future video
says he does
Politico.com, McCain family owns 8 homes
Washington Monthly, The ‘how many homes’ question
ABC News, Mitt Romney Plans Even More Luxurious Southern California Retreat
Slate, Mitt Romney Shouldn’t Need A Personal Lobbyist To Build His Tacky
Megamansion
Zillow Blog, Mitt Romney’s Six Homes
Slate, Mitt’s Income v. Your Income
Bloomberg, Romney’s 13.9% Tax Rate Shows Power of Investment Tax Preference
The New York Times, Mitt Romney and Benjamin Netanyahu Are Old Friends
CNN Money, What Mitt Romney did at Bain
The New York Times, After A Romney Deal, Profits Then Layoffs
The Atlantic Wire, Mitt Romney Still Makes Millions of Dollars a Year from Bain Capital
Sources and Additional Reading
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
20 20
The New York Times, Justices, 5-4, Reject Corporate Spending Limit
This American Life, Take the Money and Run for Office
Yahoo! News, What Is a Super PAC?
International Business Times, What is a Super PAC? Everything you need to know
Slate, The Numbers Don’t Lie
Washington Post, John Kerry: GOP wants to ‘swiftboat’ Obama
Bloomberg BusinessWeek, Romney’s fundraisers are quietly amassing millions
The Street, Campaign Contributors: Obama’s Are Mixed, Romney’s Are Banks
CBS News, Wealth, Transparency Issues Dog Romney Campaign
L.A. Times, ‘Super PACs’: Can American Crossroads Unseat President Obama?
L.A. Times, Mitt Romney’s $10,000 bet could come back to haunt him
Christian Science Monitor, Another Mitt Romney clunker?: ‘Ann drives a couple of
cadillacs actually’
Huffington Post, Mitt Romney: ‘I Have Some Friends Who Are NASCAR Team Owners’
Business Insider, Mitt Romney’s Latest ‘I’m Rich Moment’
Huffington Post, Mitt Romney: I’m Not Concerned About The Very Poor
Chicago Tribune, Rick Santorum: “Race Over For Me”
The Hill, Romney campaign spent three times what it raised in January
Commentary, How Much Has Romney Outspent Santorum?
BuzzFeed, Mitt Romney Is Getting His Money’s Worth
Minyanville, How Much Money Has Rick Santorum Cost Mitt Romney?
Huffington Post, Presidential Election To Play Out On New Campaign Finance Field
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
21 21
Like then Share!




Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
Mitt Romney: Is $247 Million Enough to Buy
the Presiden...
the Presiden...
the Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Mitt Romney: Is $247 Million Enough to
Buy the Presiden...
Buy the Presiden...
Buy the Presiden...
Hyperink
Hyperink
Hyperink
22 22
Deena Shanker
Deena Shanker is a writer living in San Francisco. After moving to the west
coast from New York City in the fall, she is loving San Fran's beautiful
weather, colorful architecture, and never-ending vegetarian food options.
She loves visiting the beach with her dog, Barley, and eating cheese (also sometimes with
Barley). She is a graduate of the University of Pennsylvania Law School and Barnard
College.
About The Author
Get in touch:

Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Presiden...
Presiden...
Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker About The Author
About The Author
About The Author
Hyperink
Hyperink
Hyperink
23 23
About the Publisher
Hyperink is the easiest way for anyone to publish a beautiful, high-quality
book.
We work closely with subject matter experts to create each book. We cover topics
ranging from higher education to job recruiting, from Android apps marketing to barefoot
running.
If you have interesting knowledge that people are willing to pay for, especially if you've
already produced content on the topic, please reach out to us! There's no writing
required and it's a unique opportunity to build your own brand and earn royalties.
Hyperink is based in SF and actively hiring people who want to shape publishing's future.
Email us if you'd like to meet our team!
Note: If you're reading this book in print or on a device that's not web-enabled, please
email books@hyperinkpress.com with the title of this book in the subject line. We'll send
you a PDF copy, so you can access all of the great content we've included as clickable
links.
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Presiden...
Presiden...
Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker About The Author
About The Author
About The Author
Hyperink
Hyperink
Hyperink
24 24
Other Awesome Books
Guide To Your Congressman Newt
Gingrich
Biography of Eli Manning
Biography of Robert Pattinson
Biography On J. R. R. Tolkien Biography of Eleanor Roosevelt
Einstein in His Own Words: 100+ Quotes Wikipedia+: Jane Austen
Biography of Diane von Furstenberg The 100 Most Controversial Tweets of
2011
Biography of Beatrix Potter
Hyperink Benefits
Interesting Insights The Best Commentary Shocking Trivia

Books Books

Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Presiden...
Presiden...
Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker Other Awesome Books
Other Awesome Books
Other Awesome Books
Hyperink
Hyperink
Hyperink
25 25
Copyright © 2012-Present. Hyperink Inc.
The standard legal stuff:
All rights reserved. No part of this book may be reproduced in any form or by any
electronic or mechanical means, including information storage and retrieval systems,
without permission in writing from Hyperink Inc., except for brief excerpts in reviews or
analysis.
Our note:
Please don't make copies of this book. We work hard to provide the highest quality
content possible - and we share a lot of it for free on our sites - but these books are how
we support our authors and the whole enterprise. You're welcome to borrow (reasonable)
pieces of it as needed, as long as you give us credit.
Thanks!
The Hyperink Team
Disclaimer
This ebook provides information that you read and use at your own risk.
We do not take responsibility for any misfortune that may happen, either directly or
indirectly, from reading and applying the information contained and/or referenced in this
ebook.
This Quicklet, Best Book, and Hyperink are not affiliated with or sponsored by the original
work or its author or publisher(s). This Quicklet and Best Book are intended to provide
educational commentary and analysis about the original work, but this Quicklet and Best
Book are not endorsed by the author or publisher(s) of the original work.
Thanks for understanding. Good luck!
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Mitt Romney: Is $247 Million Enough to Buy the
Presiden...
Presiden...
Presiden...
By Deena Shanker
By Deena Shanker
By Deena Shanker Other Awesome Books
Other Awesome Books
Other Awesome Books
Hyperink
Hyperink
Hyperink
26 26

You're Reading a Free Preview

Download
scribd