Concerns about campaign financing led to the passage of the Bipartisan Campaign Reform Act of 2002 (popularly called the “McCain-Feingold law” for its two chief sponsors in the Senate, Republican John McCain and Democrat Russell Feingold), which banned national political parties from raising soft money. The law also increased the amount individuals could contribute to candidates (indexing the amount for inflation) and prevented interest groups from broadcasting advertisements that specifically referred to a candidate within 30 days of a primary election and 60 days of a general election.
In 2010 the contribution limits imposed by the Bipartisan Campaign Reform Act were partly invalidated by the Supreme Court in Citizens United v. Federal Election Commission, which ruled that contributions made for independent electioneering communications were a form of constitutionally protected free speech that could not be limited by law. The controversial decision was hailed by some as a resounding victory for freedom of speech, whereas others criticized it as an overreaching attempt to rewrite campaign finance law. The judgment led to the growth of so-called Super PACs, organizations allowed to raise unlimited amounts of money to support or defeat a candidate or an issue so long as those expenditures were made independently from the official campaign.
There are no federal limits on how much an individual may spend on his or her own candidacy. In 1992, for example, Ross Perot spent more than $60 million of his fortune on his unsuccessful bid to become president of the United States, and Michael Bloomberg was elected mayor of New York City in 2001 after spending nearly $70 million of his own funds.
Perot, Ross: campaign buttonButton from Ross Perot's 1996 presidential campaign.Encyclopædia Britannica, Inc.
Political parties
The United States has two major national political parties, the Democratic Party and the Republican Party. Although the parties contest presidential elections every four years and have national party organizations, between elections they are often little more than loose alliances of state and local party organizations. Other parties have occasionally challenged the Democrats and Republicans. Since the Republican Party’s rise to major party status in the 1850s, however, minor parties have had only limited electoral success, generally restricted either to influencing the platforms of the major parties or to siphoning off enough votes from a major party to deprive that party of victory in a presidential election. In the 1912 election, for example, former Republican president Theodore Roosevelt challenged Republican President William Howard Taft, splitting the votes of Republicans and allowing Democrat Woodrow Wilson to win the presidency with only 42 percent of the vote, and the 2.7 percent of the vote won by Green Party nominee Ralph Nader in 2000 may have tipped the presidency toward Republican George W. Bush by attracting votes that otherwise would have been cast for Democrat Al Gore.
Nixon, Richard M.Richard M. Nixon during a campaign stop in 1968, saluting the crowd with his iconic “V-is-for-Victory” gesture. Oliver F. Atkins—White House Photo/Nixon Presidential Library and Museum/NARA
There are several reasons for the failure of minor parties and the resilience of America’s two-party system. In order to win a national election, a party must appeal to a broad base of voters and a wide spectrum of interests. The two major parties have tended to adopt centrist political programs, and sometimes there are only minor differences between them on major issues, especially those related to foreign affairs. Each party has both conservative and liberal wings, and on some issues (e.g., affirmative action) conservative Democrats have more in common with conservative Republicans than with liberal Democrats. The country’s “winner-take-all” plurality system, in contrast to the proportional representation used in many other countries (whereby a party, for example, that won 5 percent of the vote would be entitled to roughly 5 percent of the seats in the legislature), has penalized minor parties by requiring them to win a plurality of the vote in individual districts in order to gain representation. The Democratic and Republican Party candidates are automatically placed on the general election ballot, while minor parties often have to expend considerable resources collecting enough signatures from registered voters to secure a position on the ballot. Finally, the cost of campaigns, particularly presidential campaigns, often discourages minor parties. Since the 1970s, presidential campaigns (primaries and caucuses, national conventions, and general elections) have been publicly funded through a tax checkoff system, whereby taxpayers can designate whether a portion of their federal taxes (in the early 21st century, $3 for an individual and $6 for a married couple) should be allocated to the presidential campaign fund. Whereas the Democratic and Republican presidential candidates receive full federal financing (nearly $75 million in 2004) for the general election, a minor party is eligible for a portion of the federal funds only if its candidate surpassed 5 percent in the prior presidential election (all parties with at least 25 percent of the national vote in the prior presidential election are entitled to equal funds). A new party contesting the presidential election is entitled to federal funds after the election if it received at least 5 percent of the national vote.
Both the Democratic and Republican parties have undergone significant ideological transformations throughout their histories. The modern Democratic Party traditionally supports organized labour, minorities, and progressive reforms. Nationally, it generally espouses a liberal political philosophy, supporting greater governmental intervention in the economy and less governmental regulation of the private lives of citizens. It also generally supports higher taxes (particularly on the wealthy) to finance social welfare benefits that provide assistance to the elderly, the poor, the unemployed, and children. By contrast, the national Republican Party supports limited government regulation of the economy, lower taxes, and more conservative (traditional) social policies. In 2009 the Tea Party movement, a conservative populist social and political movement, emerged and attracted mostly disaffected Republicans.
A Tea Party rally in Sacramento, California, September 12, 2010.Steve Yeater/AP
American presidential election, 1960Results of the American presidential election, 1960Sources: Electoral and popular vote totals based on data from the Office of the Clerk of the U.S. House of Representatives and Congressional Quarterly's Guide to U.S. Elections, 4th ed. (2001).Encyclopædia Britannica, Inc.
American presidential election, 2000Results of the American presidential election, 2000Source: Federal Election Commission.Encyclopædia Britannica, Inc.At the state level, political parties reflect the diversity of the population. Democrats in the Southern states are generally more conservative than Democrats in New England or the Pacific Coast states; likewise, Republicans in New England or the mid-Atlantic states also generally adopt more liberal positions than Republicans in the South or the mountain states of the West. Large urban centres are more likely to support the Democratic Party, whereas rural areas, small cities, and suburban areas tend more often to vote Republican. Some states have traditionally given majorities to one particular party. For example, because of the legacy of the Civil War and its aftermath, the Democratic Party dominated the 11 Southern states of the former Confederacy until the mid-20th century. Since the 1960s, however, the South and the mountain states of the West have heavily favoured the Republican Party; in other areas, such as New England, the mid-Atlantic, and the Pacific Coast, support for the Democratic Party is strong. Compare, for example, the 1960 and 2000 presidential elections.