Question

Do corporations and the wealthy have the ability to influence election outcomes through campaign donations? Why or why not?

Answer 1

When the stock price of a corporation increased dramatically after the preferred candidate 's victory, it meant that shareholders felt the corporation would do well as a result of the election, and that they were able to throw their own capital into that assumption. This would be clear proof that shareholders actually wanted the corporation to gain advantages of some kind from the newly elected official, such as direct favours, high-level insider knowledge, or policies favourable to their business. Smaller, smaller firms are more likely to back losing candidates, whereas larger and more profitable firms prefer to gamble on winning candidates. The reasoning for this is not completely clear-it may be that more profitable firms are inherently better at forecasting potential developments, or that bosses at bigger businesses have more leeway to put company funds behind their own pet causes.

It is illegal for candidates to receive donations from those kinds of organisations and individuals. These outlets that are banned are:

Corporations, like non-profit corporations (although funds are allowed from a separate corporate segregated fund)Labor unions (although funds are allowed from a separate segregated fund)Federal government contractorsForeign nationals Contributions on behalf of another national

Campaigns can not receive donations from companies , trade unions or national banks' treasury funds. Any incorporated company, including a non-stock corporation, a trade union, an incorporated membership company and an incorporated cooperative, is subject to this ban.

However, donations from PACs formed by businesses, labour unions, integrated membership organisations, trade associations and national banks which be approved by a campaign. In addition , the Act requires corporations, labour unions, registered membership organisations, industrial associations and national banks to use their treasury funds to support candidates for such election-related events.