Because I believe Americans Elect is made up of a few wealthy Republicans, I’m not really surprised that they may be having trouble attracting small donors:
One of the most salient criticisms of Americans Elect —a group that bills itself as seeking to “open up the political process” and “change politics as usual” — is its dogged refusal, using the legal shield of its status as a 501c4 corporation, to disclose the names of its financial backers.
Americans Elect got off the ground with $20 million of seed money given by only 50-some anonymous donors. That’s 50 nameless investors ponying up an average of $400,000 apiece, although, in one rare case in which the name is known, Americans Elect founder and CEO Peter Ackerman has given at least $1.55 million and, according to Bloomberg — the news organization, not the draft Americans Elect presidential candidate — more than $5 million.
Americans Elect has sought to rationalize its financial secrecy, by assuring the public that all of its early high-dollar contributions are structured as loans that will be repaid, and that, when all is said and done, no single donor will have contributed more than $10,000.
Americans Elect says it “is funded by individual contributions, and intends to pay back the bulk of our initial financing as more delegates join, so that no single individual will have contributed more than $10K.”
Underscoring the point, Americans Elect last October published an open letter, signed by Americans Elect CEO Kahlil Byrd, saying that “every donation above $10,000 is structured as a loan. We aspire for these loans to be paid back by the time this organization completes its core mission in 2012. If the American people embrace the Americans Elect mission as their own, then no one will have given more than $10,000. Growing evidence suggests that this will happen.”
And, just last week (video above), Americans Elect COO Eliot Ackerman, appearing with Americans Elect Advisory Board member Mark McKinnon on MSNBC, told Chuck Todd — who had asked Ackerman (starting at 6:14) when and if Americans Elect was going to disclose its funders — that “all of [the funders’] donations have been given as loans.”Ultimately, in other words, “the people” will be the ones to reimburse the hedge funders and private-equity types who seeded the initial $20 million. Thus will the role of Americans Elect as a catalyst of democratic renewal be authenticated in financial terms.
That’s been the story — and Americans Elect has been sticking to it.SO IT WAS jarring to read the following new ruling of the Americans Elect Board of Directors, posted this morning to the Americans Elect Web site:
The Americans Elect Board unanimously voted to ensure that no supporter would cover more than 20% of AE’s budget. In the event that any one supporter exceeds that percentage, there are provisions created to expedite repayments to that supporter.
What this Board decision basically says is that as few as five people can fund the whole damned thing.It also strongly suggests that Americans Elect is not getting — and does not expect to get — significant financial support at the grassroots level of delegates, Web site registrants and Facebook “like”-ers. At least, not significant enough — and not quick enough — to make good on all of the promises that it may have made to all of the seed investors from whom Americans Elect has taken high-dollar loans.
Indeed, the counter-scenario that this new ruling opens up is that it will not be the grassroots, “the people,” who repay these seed investors in Americans Elect — but, rather, that wealthy donors who have not yet topped out the new 20% maximum (or maybe even some who have) are being asked to increase their donations by way of reimbursing investors who are having second thoughts.
Is Americans Elect like the Tea Party? Just a new label and new branding for a certain group of Republicans who no longer want to call themselves Republicans? A very select group, sure, but just Republicans by (yet) another name?
dr. bloor
More to the point, the number of people outside the DC weenie circuit who have actually heard of this scam is probably fewer than the number of people funding it.
This is going nowhere.
Froley
Sound like a pyramid scheme.
Mark S.
How much money does it take to run a crappy website? Sure, you need some money to get on the ballot in all fifty states, but rinky-dink third parties that operate on a fraction of $20 million manage to do that.
Narcissus
Is there anything these people can’t turn into an obscure financial instrument
Comrade Javamanphil
So it is somehow virtuous and centrist that the wealthy people get to “loan” their donations while the rubes get only the satisfaction of supporting this fustercluck? What a country! I hope one day I have enough wealth that I get even my charitable donations returned to me…with interest.
Mnemosyne
Yes. SATSQ.
Belafon (formerly anonevent)
So now they’re trying to figure out how to skim off the .01% to give to the .001%. That ought to be fun.
kay
@Mnemosyne:
This is how this could end, Mnemosyne. We could have a smaller Republican Party, but it won’t matter, because we’ll have several wholly owned subsidiaries.
Think about that horror :)
Sly
Forget the branding angle. Americans Elect is nothing more than Amway for failed political consultants. They have to pay the mortgage somehow, and they sure as shit aren’t able to do it by getting actual candidates elected to actual office.
Left Coast Tom
So, basically, they started off thinking they could convince small donors to give money that would go not towards funding their…operation…but rather, directly to the pockets of some of the wealthiest people in the country.
But then reality set in, and they decided to structure themselves pretty much like the Koch, I mean Cato “Institute”.
Then the drugs started wearing off.
TBogg
They should rename it Freedom Ponzi
The Republic of Stupidity
So……… am I reading this right?
They intend to take the money small time fools willingly contribute to this monstrosity and PAY THEMSELVES BACK, until they each only have $10K ‘invested’?
The invisible hand of the marketplace… shaking down the suckers one at a time, once again…
Frankensteinbeck
Of course. Look who supports it, and why. Look at what they actually want, which is to talk in calm and reasonable tones while gutting the social safety net. By claiming to be the middle they get to tell themselves they’re not like those crazy people in the Tea Party, and convince themselves that they’ll suck huge numbers of voters away from that crazy leftist Obama. In the end they might chop a few percent off of Romney’s voters, or more likely they’ll disappear and have no visible impact on the election at all.
The only possible negative they could have for us is encouraging a few squeamish ‘moderate’ Republicans to show up to vote AE for president and Republican downticket. Doesn’t seem likely. This really has ‘Village vanity project’ written all over it.
Birthmarker
I’ve always assumed the purpose is to skim off just enough votes from Obama in key states to guarantee the Republican nominee wins. Whether or not it works depends on the AE nominee.
El Cid
Can we bundle together differently sized contributions and sell Americans Elect-backed collateralized contribution obligations, so that the Free Market can then base derivatives bets on their likely future prices?
I’m sure there are no risks, and that the value can only grow.
Jay C
OK, am I reading this right? The deep-pocketed moneybags who are initially funding AE are having their “contributions” structured so that they are first in line to get paid back (down to that “modest” $10,000 level) by subsequent donors?
Who’s their chief strategist? Bernie Madoff?
El Cid
@Birthmarker: Yeah, it was obvious from the very beginning, but the other layers of the scheme may turn out to be more important in driving the operation than the basic one.
The Republic of Stupidity
@Jay C:
Yes…
I believe we got that right…
I wish I had that much gall…
I probably couldn’t stand myself…
But I’d be a hella lot better off, financially…
Jay C
@Frankensteinbeck:
BTW, IS there an Americans Elect “downticket”?
Or is this circus focused exclusively on the Presidential race?
danimal
In the real world, when an individual or organization says “invest millions in my product and you’ll get paid back once we are up and running,” do the smart thing and run like hell with you hand covering your wallet.
Failure to follow this advice can be quite draining. If you really want to donate to Americans Select, perhaps I can interest you in another lucrative financial product: Nigerian bank notes.
Joel
Speaking as someone who is no fan of Americans Elect or their ridiculous Perot-esque underpinnings, I should note that Peter Ackerman is no Republican…
General Stuck (Bravo Nope Zero)
To the best of my knowledge, no. They seem to be a consortium of moderate republicans, though not on econ issues, and has been DLC type democrats. They are less concerned with social issues, and most are moderate on those. They want, basically, the 90’s to be the model of how we should run things, I’m guessing. Which is to say, keep the Cas ino open, just don’t advertise much about it, and maybe curb some of the worst abuses, so we don’t have any more TARP’s and the like. I may be all wrong about this, having not followed them that closely.
And I think they support things like comp immigration reform, and other business friendly policies without the xenophobia that marks the Tea Party. So GOP light, or RINO Hell. pick yer poison.
geg6
So, this is the Bernie Madoff of political parties, then?
Good luck with that.
Oliver's Neck
@Joel:
Agreed on all points. I do work in Peace and Justice studies and Ackerman’s work supporting the strategic use of non-violence has been very important. That’s not to say that Americans Elect isn’t, to put it mildly, problematic. But it isn’t _simply_ a bunch of rich white guy rockefeller republicans who can’t stand the current GOP. It may largely be that, but it isn’t simply that.
BethanyAnne
@General Stuck (Bravo Nope Zero): Yeah, that’s probably why they are attracting Buddy Roemer – moderate Republican. I like him, and I *really* like his focus on money in politics, but neither him nor this group are going anywhere. Still, fighting money in politics is good work, and there are going to be lots of failures if we are ever gonna get the beast under any control.
Jeffro
The simple fact that Americans Elect even EXISTS tells you it’s an anti-Obama group – otherwise, why bother? – yet doesn’t want to be labeled as Republican, conservative, or libertarian.
You can look at it as a way to siphon off independents and uninformed Dems this fall, you can look at it as a protest movement by the oh-so-slightly-enlightened rich Rs against the encroaching Tea Party horde in their own party, you can see it however you want. But it deserves its own special magnifying glass, again and again, like an ant observed by 10-year-old boys over summer vacation (and hopefully with the same result).
General Stuck (Bravo Nope Zero)
@BethanyAnne:
Yea, I like Buddy as well, a southern character for sure. And a fairly open mind as well. Not exactly presidential material, imo. But interesting and not deeply ideological.
BethanyAnne
@General Stuck (Bravo Nope Zero): I lived in New Orleans while he was governor – seemed like a decent guy, but I was 19 and … distracted (college – whee! girls – whee!!). I’d so rather have him than any of the mouthbreathers in the Texas R delegation. Damning with faint praise, I guess :)
Marcellus Shale, Public Dick
this is awesome, rich people have decided they shouldn’t have to pay for their access to the politicians that keep them rich and getting richer.
this is easy, accomplish some stuff, then we the middlebrows will decide if you should be paid for your efforts. taxes are the menu price, an y’all are working for tips.
stickler
How is this organization supposed to work against Obama, though? In this environment, you’re going to have a moderate, business friendly Democrat; a wackadoodle Republican; and … Americans Elect nimrod? Who is actually going to vote for the nimrod? I don’t see how this doesn’t end up hurting the Republican ticket worse than Team O.
Am I missing something?
FuriousPhil
Well, I skimmed it. Seems like Amway or something, but I’m tired and don’t have my finance hat on right now.
My gut tells me this is a lot of money for something that’s going to be forgotten about in a few years.
I’d forgotten all about Perot until the Clinton documentary aired a couple weeks ago.
Scamp Dog
Actually, I think the point of this is to provide an avenue for high-net-worth individuals who want Democratic policies without have to vote for those horrible, soshulistic Democrats. They’re starting to get a bit wigged out by Republican social attitudes, but can’t abide voting for Dems, because one just doesn’t do that, doncha know.
Nylund
I think you’re missing the funniest point. They’re saying that all the rich people will get their money back. Only the poor people actually have to pay for real.
Punchy
This is screeeeeeaming “Ponzi”. Everyone gets their scratch back but the last suckers. The fleece strong it is…..
Frankensteinbeck
@stickler:
Never assume the other side is doing the smart thing, only what they think is the smart thing.
mardam
@Froley:
Exactly how I felt when I read it.
kindness
Americans Elect is simply a device to take votes away from Democrats. They think if they appear like Ross Perot or Ralph Nader did they can siphon off enough votes to toss the election to Mittens.
Diabolical lying bastards those Republicans.
les
Not really; after all, most of the TP’ers are, well, you know–poor. They’re not really centrist and civil, ya know, and..well…they’re poor. Kinda partisan and screechy, which is all right sometimes, but honestly, they’re poor. Can’t really be trusted with gov’t, ya know.
waddayaknow
Hmmm… Sounds an awful lot like a Ponzi scheme that has to fail because there is no second, third, or fourth tier of ‘investors’. Please, please let these super wealthy dump a few more billion $$ back into the economy.
Ben Lehman
Holy crap it’s a money farming scam.
Ben Franklin
@Frankensteinbeck:
The Problema is that many in the Electorate might see it as smart.
Opacity, notwithstanding.