Power & Control: How Major Donors Influence Elections

   Published July 28, 2024

By: Theorem News Group

Mega donors, commonly referred to as 'billionaires,' have a significant impact on political elections. Their financial contributions often dictate the course of elections and policy debates. Their support can either lead a candidate to victory or diminish their prospects, shaping campaign approaches and determining the key issues that receive attention.

When billionaires support a candidate, they provide the necessary funds for extensive ad campaigns, local outreach efforts, and a strong campaign foundation. Every economic support helps candidates reach more voters and effectively communicate their messages. However, it's not just about money; the interests of these mega donors can also influence the candidate’s policy positions and campaign focus. If a candidate is supported by donors who are deeply concerned about certain issues, you can expect those issues to take center stage in their campaign.

In a 2021 Forbes article, it was reported that over 130 billionaires contributed to Trump's 2020 Presidential campaign. On average, each donor contributed around $285,000, totaling more than $37 million. One notable donor was Linda McMahon, the wife of WWE founder Vince McMahon, who became head of the Small Business Administration during Trump's first term but stepped down in 2019 to take on other responsibilities.

Donated $7.2 million dollars during Trump's initial race in 2016.

Several billionaire donors who supported Trump during his first term had their own particular policy interests. For example, those from the energy sector were advocating for reduced regulation and increased support for fossil fuels. This advocacy impacted Trump’s decisions on environmental regulations and energy production. In contrast, donors from the finance world were focused on tax reform and deregulation, which became major in Trump’s legislative agenda.

One of the major accomplishments of Trump’s presidency was the Tax Cuts and Jobs Act of 2017, which slashed corporate tax rates. This move was directly in line with the interests of many of his billionaire backers, who benefited from the lower tax bills. The administration’s focus on deregulation also reflected the preferences of donors who wanted less government interference in business.

Needless to say, this happens more often than not and it affects all political candidates. Economic inequality surged during the Covid era, and the trend shows no sign of stopping. As we approach the next election, it’s almost certain we’ll see new legislative efforts that cater to the interests of influential donors.

P.S. Vote for whom you believe is the right candidate.

Trump or Harris