Democrats Lead Money Race

The Democrats’ lead in fundraising offers powerful evidence the party is ready to repeat its 2006 election triumph, this time by holding congress and electing a president. As noted here earlier, Democrats are becoming the party of the wealthy. True, Republicans are the party of tax cuts, and tax cuts appeal to rich people. But so too does access to power—an asset Democrats look likely to have at their disposal after November 2008.

In the Wall Street Journal, Mary Jacoby and Brody Mullins lay out facts about the Democrats’ fundraising advantage:

 Through June 30, Democratic candidates for the White House and congress, along with the Democratic National Committee (DNC) and other party committees, raised $388.8 million, compared with $287.3 million for Republicans—a $100 million advantage. The disparity is particularly sharp in the presidential race, where eight Democratic presidential candidates raised $179.3 million, compared with just $118 million for nine Republicans.

 So Democrats will have more resources for advertising, organization building and voter outreach next November to buttress their edge in the polls. Moreover, the Democrats' focus on small donors leaves them room to raise cash from the many contributors have yet to hit the legal limit of $2,300 per candidate. Democrats led by Terry McAuliffe, former DNC chairman, have invested heavily in databases and Internet fund-raising tools to reach out to smaller donors. McAuliffe touts his "Demzilla" database, with detailed profiles of over 150 million potential voters

 Money pours in because the political environment strongly favors Democrats. Bush's low popularity not only energizes the Democratic base, it also dumps morale among Republican voters and donors. Like compounding interest, the Democrats' chances for success next year encourages special interests to give even more money, in hopes of winning influence with those expected to be in power.

 That’s why Democrats are gaining among large donors with business and regulatory interests who need to be on the winning side. Blackstone Group, Carlyle Group and other members of the Private Equity Council trade group gave 69% of their $3.4 million in campaign donations to Democrats last year, up from 51% of $2.7 million in 2000 (Center for Responsive Politics data). Large hedge funds show a similar pattern of giving. And ex-American Express CEO James D. Robinson III, a lifelong Republican, says he is backing Clinton.