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| Version 0 | Version 1 |
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| Who has cash advantage in US race? | Who has cash advantage in US race? |
| (about 9 hours later) | |
| By Richard Lister BBC News, Washington | By Richard Lister BBC News, Washington |
| "A disgusting, degrading, demeaning experience." | "A disgusting, degrading, demeaning experience." |
| Both candidates had their fundraising month in August | Both candidates had their fundraising month in August |
| That was how former Vice President Hubert Humphrey described the task of political fundraising. | That was how former Vice President Hubert Humphrey described the task of political fundraising. |
| But the price of admission to the far reaches of the campaign trail is now extraordinarily high. | But the price of admission to the far reaches of the campaign trail is now extraordinarily high. |
| The Chairman of the Federal Election Commission, Michael Toner, said that to be taken seriously in 2008, a presidential candidate would need to raise at least $100 million by the end of 2007. | The Chairman of the Federal Election Commission, Michael Toner, said that to be taken seriously in 2008, a presidential candidate would need to raise at least $100 million by the end of 2007. |
| But that is just the gilded tip of the iceberg. | But that is just the gilded tip of the iceberg. |
| Not cheap | Not cheap |
| By the end of August, Barack Obama's campaign had raised $440 million. | By the end of August, Barack Obama's campaign had raised $440 million. |
| That includes a total for August alone of $66 million - a monthly record for any candidate, ever. | That includes a total for August alone of $66 million - a monthly record for any candidate, ever. |
| John McCain also had his best ever fundraising month in August, raising $47 million. | John McCain also had his best ever fundraising month in August, raising $47 million. |
| The total cost of this year's presidential race is on track to exceed $1bn. | The total cost of this year's presidential race is on track to exceed $1bn. |
| Put it another way, the bill for the contest is bigger than the GDP of almost 30 countries. | Put it another way, the bill for the contest is bigger than the GDP of almost 30 countries. |
| THE MONEY RACE Barack Obama Raised $66m in AugustIncluding party money, had $94.5m available as of August 31 John McCain Raised $47m in AugustIncluding party and federal money, had $196m available as of August 31 Q&A: Campaign finance rules | |
| Why? Well the quick and indignant response from campaign activists is that getting your message across to 300 million people spread across the third largest country on earth is not cheap. | Why? Well the quick and indignant response from campaign activists is that getting your message across to 300 million people spread across the third largest country on earth is not cheap. |
| TV and radio ads cost money. | TV and radio ads cost money. |
| All 50 states expect visits from the candidates too and that is not cheap either. | All 50 states expect visits from the candidates too and that is not cheap either. |
| Neither are the mailings, the polling, or the thousands of campaign staff and the spending starts almost two years before election day. | Neither are the mailings, the polling, or the thousands of campaign staff and the spending starts almost two years before election day. |
| The other reason why the campaigns spend so much is - because they can. | The other reason why the campaigns spend so much is - because they can. |
| That was decided in a Supreme Court case in 1976 (Buckley vs Valeo) which concluded that limiting the amount a campaign could spend would breach the constitutional guarantee of free speech. | That was decided in a Supreme Court case in 1976 (Buckley vs Valeo) which concluded that limiting the amount a campaign could spend would breach the constitutional guarantee of free speech. |
| But the Supreme Court has also ruled that to avoid corruption, people should not be allowed to give unlimited amounts to particular candidates. | But the Supreme Court has also ruled that to avoid corruption, people should not be allowed to give unlimited amounts to particular candidates. |
| So while spending it is fine, there are limits on how much money can be raised. | So while spending it is fine, there are limits on how much money can be raised. |
| Loopholes | Loopholes |
| Most campaign money comes from individual Americans who can give no more than $2,300 to each candidate. | Most campaign money comes from individual Americans who can give no more than $2,300 to each candidate. |
| Foreigners are not allowed to contribute. | Foreigners are not allowed to contribute. |
| The US Government also offers presidential candidates federal funds for their campaigns provided they do not accept other private donations. | The US Government also offers presidential candidates federal funds for their campaigns provided they do not accept other private donations. |
| John McCain accepted this arrangement (and the $84 million that came with it) as has every other major presidential candidate since the system began - except Barack Obama. | John McCain accepted this arrangement (and the $84 million that came with it) as has every other major presidential candidate since the system began - except Barack Obama. |
| He initially said he would accept federal funds, but later rejected them, hoping that he would be able to raise more from private donors. | He initially said he would accept federal funds, but later rejected them, hoping that he would be able to raise more from private donors. |
| On the face of it, then, he should have far more money available to him than John McCain. | On the face of it, then, he should have far more money available to him than John McCain. |
| Barbara Streisand's Obama fundraiser raked in $6m | Barbara Streisand's Obama fundraiser raked in $6m |
| But he hasn't. | But he hasn't. |
| There are huge loopholes in the campaign finance legislation which allow the parties themselves to raise and spend money on getting their candidates elected. | There are huge loopholes in the campaign finance legislation which allow the parties themselves to raise and spend money on getting their candidates elected. |
| If you take into account party funds and the federal money that he has accepted, Senator Obama had $94.5 million at his disposal and Senator McCain had $196 million at the end of August. | |
| Of course, $84 million of Mr McCain's money is from the government, and will have to last him until election day, while Mr Obama can keep asking his donors for more cash. | Of course, $84 million of Mr McCain's money is from the government, and will have to last him until election day, while Mr Obama can keep asking his donors for more cash. |
| Push-polls | Push-polls |
| The McCain team cannot solicit donations in the same way because of its decision to accept federal funds, but if you go to the McCain website you find almost exactly the same "click to donate" button as on the Obama site, which goes to the same kind of page where you fill in your name and credit card number. | The McCain team cannot solicit donations in the same way because of its decision to accept federal funds, but if you go to the McCain website you find almost exactly the same "click to donate" button as on the Obama site, which goes to the same kind of page where you fill in your name and credit card number. |
| You might be fooled into thinking you are giving to the campaign, but the small print makes clear that most of it goes to the Republican party to be allocated to various campaigns and issues, and a small proportion goes to the McCain-Palin "Compliance Fund" which covers the campaign's legal and accounting expenses. | You might be fooled into thinking you are giving to the campaign, but the small print makes clear that most of it goes to the Republican party to be allocated to various campaigns and issues, and a small proportion goes to the McCain-Palin "Compliance Fund" which covers the campaign's legal and accounting expenses. |
| And all of this of course is quite apart from the various political action committees and pressure groups known as "527" groups (after the section of the US tax code which sanctions them) which are not officially affiliated with the campaigns. | And all of this of course is quite apart from the various political action committees and pressure groups known as "527" groups (after the section of the US tax code which sanctions them) which are not officially affiliated with the campaigns. |
| Some are entirely above-board and, without asking for a particular vote, pay for advertisements which identify a candidate with a particular issue. | Some are entirely above-board and, without asking for a particular vote, pay for advertisements which identify a candidate with a particular issue. |
| Others work below the radar operating so-called "push polls" for example, where a "pollster" calls key voting blocs, like Jewish voters, to ask such questions as "Would it change your mind about Obama if you knew that he was Muslim?" (he is not). | Others work below the radar operating so-called "push polls" for example, where a "pollster" calls key voting blocs, like Jewish voters, to ask such questions as "Would it change your mind about Obama if you knew that he was Muslim?" (he is not). |
| There is evidence that such questions have been asked of Jewish voters in several states in recent weeks, the point being not to gather data, but to spread misinformation. | There is evidence that such questions have been asked of Jewish voters in several states in recent weeks, the point being not to gather data, but to spread misinformation. |
| In 2004, 527 groups spent an estimated $400 million trying to influence the election and they can be pivotal. | In 2004, 527 groups spent an estimated $400 million trying to influence the election and they can be pivotal. |
| A push-poll in South Carolina during the 2000 primary campaign asked voters "Would you be more likely or less likely to vote for John McCain for president if you knew he had fathered an illegitimate black child?". | A push-poll in South Carolina during the 2000 primary campaign asked voters "Would you be more likely or less likely to vote for John McCain for president if you knew he had fathered an illegitimate black child?". |
| He has not, but he does have an adopted daughter from Bangladesh, and it is widely believed that the underground campaign ensured he lost the state, and the nomination. | He has not, but he does have an adopted daughter from Bangladesh, and it is widely believed that the underground campaign ensured he lost the state, and the nomination. |
| Money talks in America and while both candidates say they want to reform the system, for the moment they are content to play by the rules as they are. | Money talks in America and while both candidates say they want to reform the system, for the moment they are content to play by the rules as they are. |
| So Barack Obama - who initially championed federal funding - recently held a dinner in Los Angeles, with tickets at $28,500 a head (earning him around $6 million), while John McCain schmoozed worthies at an upscale Miami hotel to raise around $5 million, even though, technically, the taxpayer is paying for his campaign. | So Barack Obama - who initially championed federal funding - recently held a dinner in Los Angeles, with tickets at $28,500 a head (earning him around $6 million), while John McCain schmoozed worthies at an upscale Miami hotel to raise around $5 million, even though, technically, the taxpayer is paying for his campaign. |