People For the American Way Foundation

New Report Highlights the Racial Inequities of Big Money in Politics

The infusion of big money into our democracy is helping to perpetuate racial inequalities, according to a report released yesterday by Demos. As we have seen in recent election cycles, the most aggressive and influential political donors are overwhelmingly white and affluent, paving the way for elected officials to be beholden to a donor class and far less concerned about the needs of most Americans.

While the economic biases of money in politics are clear, the report, called “Stacked Deck: How the Racial Bias in Our Big Money Political System Undermines Our Democracy and Our Economy,” also highlights some unsettling information on how elections dominated by wealthy special interests impede efforts for a more racially diverse and responsive political system:

Elections funded primarily by wealthy, white donors mean that candidates as a whole are less likely to prioritize the needs of people of color; and that candidates of color are less likely to run for elected office, raise less money when they do, and are less likely to win. Ultimately, people of color are not adequately represented by elected officials.

• A recent study of black candidate success concluded that “the underrepresentation of blacks is driven by constraints on their entry onto the ballot” and that the level of resources in the black community is “an important factor for shaping the size of the black  candidate pool.”

• Candidates of color raised 47 percent less money than white candidates in 2006 state legislative races, and 64 percent less in the South.

• Latino candidates for state House raised less money than non-Latinos in 67 percent of the states where Latinos ran in the 2004 election cycle.

• In a typical election cycle, 90 percent or more of the candidates who raise the most money win their races.

• Ninety percent of our elected leaders are white, despite the fact that people of color are 37 percent of the U.S. population.

• In a 2011 study, researchers found that white state legislators of both major political parties were less likely to reply to letters received from assumed constituents with apparently African American names (like “DeShawn Jackson”).

Tellingly, a governing body that skews heavily white also creates policies that can have detrimental impacts on racial minorities. The report also compiled case studies that demonstrate how big money disrupts progress on racial equality on a variety of issues, including:

• Private Prisons and Incarceration. Incarceration in the U.S. has increased by 500 percent over the past three decades, with people of color vastly over-represented in our nation’s prisons and jails. This is the result of policies that have put more people in jail for longer sentences despite dropping crime rates, policies boosting the bottom line of the growing private prison industry.

• The Subprime Lending Crisis. Because of rampant discriminatory lending practices, the subprime-lending crisis hit people of color especially hard. Banks and other mortgage lenders used millions of dollars of political contributions and lobbying to weaken and circumvent consumer-friendly regulations, resulting in the largest loss of wealth in communities of color in American history.

• The Minimum Wage. The federal minimum wage has remained stagnant, losing real value over the past several decades. Raising the wage to $10.10 an hour would lift more than 3.5 million workers of color out of poverty, but Congress has instead prioritized policies favored by the wealthy.

As money continues to dominate the process by which we elected public officials, our government moves further away from the true definition of a democracy and continue to serve only a very narrow segment of Americans.