Sunday, May 8, 2016

Can Donald Trump raise the money he needs for the general election?

While spending little, Donald Trump was able to use multi-candidate field dynamics, a pliable press and a well-targeted message to a certain kind of Republican to be successful. But the challenge in the general election is more difficult and will require more resources. In 2012, both sides spent about $1 billion. The race was close and Democrats probably did a better job of maximizing the efficiency of their dollars. But it was quite clear that a difference in money was not the deciding factor in the race.
The Clinton campaign and a supportive Democratic party should be able to replicate the effort in 2016. That Hillary Clinton is slightly more pro-corporate doesn’t hurt. The Clintons’ relationships with the donor class certainly go back further. Trump is probably more terrifying to certain people and that also will help. Clinton may do slightly less well with small donors, but there are other vehicles for money to flow into. Democratic fundraising should be watched but is not likely to fall short of goals.  
The question is how Trump will raise a comparable sum of money. First, let’s start with the fact that “I am really rich, I am funding my own campaign” Donald Trump so far has run an incredibly cheap race. He spent about $50 million and probably even less because some of that went to purchase merchandise that was then resold. So the net amount benefitted the campaign but it wasn’t all pure spending. And he doesn’t seem likely to spend more personal funds in the general election. Even if we take Trump at his word on how much he is worth, his own estimate of his cash on hand is $382 million -- a lot of money but only a third of what he needs and candidates rarely spend every dime they have. Trump could try and sell or mortgage an asset but that presents its own set of problems. The person buying the asset or loaning him the money might be seen as helping Trump. Some people won’t want the attention and some people who wouldn’t care might be the type of people Trump wouldn’t want to be associated with. So this avenue for obtaining the funds will not be easy.
Trump has had two opportunities during the campaign to demonstrate his wealth. In both cases, what he showed was underwhelming. Trump donated $1 million to the veteran fundraiser he put on in lieu of going to the final debate in Iowa. That may seem like a lot until you realize he claims to be worth $10 billion, meaning he gave one one-hundredth of one percent of his claimed wealth When he visited the New York 9/11 memorial museum he gave a relatively puny $100,000.  We therefore doubt Trump’s own wealth is enough to support a general election campaign.

If the Donald can’t come up with the money for his campaign, perhaps he’ll just rely on rich developer friends to finance his campaign via a Super Pac. There are grounds for skepticism here too. Let’s return to Trump’s pre-Iowa effort to raise money for the veterans. The effort took in $6 million. That may seem like a lot, until one realizes that this was the absolute easiest way for his friends to help Trump through a tax deductible donation to veterans. If you were ever inclined to help Trump even a little bit, why not take advantage of this opportunity? But so few did. Trump, it seems, has more business partners than actual friends, and they’re not likely to step up and fund his campaign.

      This leaves traditional Republican donors and small donors. For traditional Republican donors, giving is very much a transactional and relationship building exercise. Most of those donors were with someone else and already feel burned. More important, for every industry except extraction (fossil fuels, logging and the like), it is not even clear Trump would be better than Clinton. He wanders from issue to issue erratically; it is hard even to know where Trump will be tomorrow. So who would believe his presidency will help them enough to invest in him? Even for pure ideologues who are interested in advancing conservatism and not personal interests, how certain can they be that Trump will further their agenda? Trump’s suggestion just this week that he would renegotiate our debt posed a real risk to the pocketbooks of all these people. They may not like what they will get with Clinton, but they also lived through a Clinton and things did not work out terribly for them.  Trump also trails in the polls, which means that even if he persuaded big donors he was better for them, it would be hard for him to persuade them that he can win and thus be a good investment. 

       The smaller donor path seems more promising, but even here there’s a hitch. He has spent the better part of 11 months telling potential small donors over and over again that he does not need their money. To pivot now to say that he does, and desperately so, might turn them off. For every dollar he raises, he runs the risk of undermining his earlier message that he can’t be bought. Every time Trump asks small donors to help, he undermines his message even more. Plus, he’s going to have to ask a lot and it still likely won’t be enough. He could easily still be looking at a 2-1 or greater disparity between his campaign and that of Clinton.

     So what? It could be argued that Trump has done more with less than almost anyone could have imagined. That is certainly true but the challenge only gets steeper for him. Demographic changes are profoundly changing the electorate. In 2012 Barack Obama beat Mitt Romney by about 5 million votes. Among those voters still alive (Romney voters were older) Obama would have won by about 6 million. Trump does not have a new demographic trick or policy answer that will move people to his side. Sure he can hope for a drop off in voting in Democratic leaning groups, yet younger people entering the electorate who do not like Trump may offset that decline. It is hard to imagine Trump can win with the same voters from 2012. He needs to expand the electorate. Getting new voters to join the electorate is among the most expensive, intensive and difficult work imaginable. We have not yet seen voter registration spikes nearly large enough to give Trump a chance. Time is of the essence. It all costs money and we aren’t sure how Trump gets it.


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The Scorecard is a political strategy and analysis blog. Our hope is to provide information and insight that can be found nowhere else into how and why things are happening in American politics. Unlike many political pundits, we will tell you who we think is going to win as an election approaches; we will tell you why; and we will give you a sense of our level of confidence. Ours is a holistic approach, one that takes in as many numbers as possible but is also willing to look past the numbers if need be. When we turn out to have been wrong, we will let you know. When we are right, we’ll let you know that too.

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Author Jason Paul is a longtime political operative who got his start as an intern in 2002. He has been a political forecaster for almost as long. He won the 2006 Swing State Project election prediction contest and has won two other local contests. He had the pulse of Obama-Clinton race in 2008 and has been as good as anyone at delegate math in the 2016 race. He looks forwards to providing quality coverage for the remainder of the 2016 race.