Money talks but victory resounds

We couldn’t possibly write a post today without acknowledging the monumentous occasion which has befallen the U.S. within the past 24 hours. Barack Obama has won the 44^th presidential election. Its effects are resonating on British shores as the election wave is felt in seismic proportions; both Gordon Brown and David Cameron are already both attempting to piggyback the juggernaut that has been the Obama campaign by associating their respective values with the President elect.

However, wishing not to dwell too much on political matters, we’d like to focus on an area which gave the former senator a crucial upper-hand: namely his record fund-raising capability. With the most expensive White House race in history, the costs of the campaigns total in excess of $5 billion since January 2007.

Despite the financial crisis, Wall Street banks were responsible for a collective donation of $370 million, where Goldman & Sachs were the largest of the contributors – the investment bank’s employees and political action committee donated more than $5 million to this year’s campaigns.

Obama himself was able to establish a significant advantage by being the first presidential nominee to opt out of the public funding system that dates back to the aftermath of the Watergate scandal. Whilst McCain chose to receive public funds, Obama had no limit to the money he could raise thus enabling him to raise a total of $650 million to date.

Without bringing the integrity of these alternate funding processes into question, due praise is worthy for such a mammoth sum generated by Obama. His money-raising was so successful that he was able to afford to buy an unprecedented 30 minute slot on three television networks six days prior to the election. He was able to outspend his rival on T.V. advertising by a multiple of four.

The significance of this element must not be undervalued in terms of the pivotal victory fought and won by the first African-American presidential candidate. Whilst Obama the politician was able to mobilise an entire generation of young idealists and has earned the faith of his country for his progressive views and measured judgement, it seems that we should also pay our respects to Obama the businessman as well.

CMFL