Hillary Loans Campaign $5 Million, Staffers Take No Pay

Senator Hillary Clinton fought Senator Barack Obama to a draw on Super Tuesday, but since the polls closed, the world has learned that she fought him with her own personal fortune. Expensive TV spots in places like New York and California required her to pony up $5 million from her personal coffers. In addition, some senior staffers have agreed to forego paychecks for the next month. Apparently, her campaign is in some serious trouble.

The problem the Clintonistas have stems from election financing laws and the premise upon which the entire campaign was based. They went after donors who could give the maximum amount ($2,300 for the primaries, $2,300 for the general election) under the theory that if they had a huge war chest before the primaries even began, they could “suck all the air out of the room,” preventing other candidates from being competitive. This went awry when states moved their polling days into January and when other campaigns discovered the value of the internet in raising cash.

There is no doubt that the Clinton checkbook can afford to loan the campaign the cash. The Senator has $20 million in cash that is locked up for the general election. If she wins the nomination or not, that money could be used to repay the loan. Moreover, the Clintons have amassed millions since they moved out of the White House. They aren’t quite as rich as the Romney familiy, but they can certainly pay the bills.

What is troubling for fans of the Clintons is that the Obama campaign relies on a much different source of funding. Rather than ask rich folks for $2,300, they ask for small donations on the internet. Few of their donors have hit the maximum amount. That means that they can go back and get more from the same people with each and every win. The Obama campaign was in e-mail in-trays yesterday trying to raise more than the Clinton loan. Odds are, they’ll do it.

Money isn’t everything in American politics, but it has been described as the mother’s milk thereof. Senator Clinton still has name recognition, a former president husband, and millions of dedicated supporters. Still, chief Clinton strategist Mark Penn confessed to MSNBC, “We will have funds to compete, but we’re likely to be outspent again.” And that is never good for a campaign.

© Copyright 2008 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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