Tuesday, December 04, 2007

Is there too little money in politics?

The Monkey Cage explores the question:
Candidates, parties and organizations may have raised and spent $3 billion; however, total federal government spending in 2000 equaled $2 trillion (yes, with a “t”); consumption and gross investment was $590 billion; and the cost of compliance with regulations probably ran into the hundreds of billions of dollars.

As Ansolabehere, de Figueiredo, and Snyder note, “If extraordinary rates of return can be earned through political investments, then we would expect firms, individuals, and associations to flock to campaign finance. But most firms and people do not give.” So is there too little or too much money in campaigns?