Obama's Lame Claim About McCain's Money

If we don't stand together, the broken system we have now, a system where special interests drown out the voices of the American people will continue to erode our politics and prevent the possibility of real change. That's why we must act. The stakes are higher than ever, and people are counting on us.

Every American who is desperate for a fair economy and affordable health care, who wants to bring our troops back from Iraq. Who hopes for a better education and future for his or her child, these people are relying on us. You and me. This is our moment and our country is depending on us. So join me, and declare your independence from this broken system and let's build the first general election campaign that's truly funded by the American people. With this decision this campaign is in your hands in a way that no campaign has ever been before. Now is the time to act. Thank you so much.

A Lame Excuse
However, the first of the two reasons he gave for his decision doesn't square very well with the facts. In a video recording sent to supporters, Obama said:

Obama: We face opponents who've become masters at gaming this broken system. John McCain's campaign and the Republican National Committee are fueled by contributions from Washington lobbyists and special interest PACs.

To say that either the McCain campaign or the RNC are "fueled" by money from lobbyists and PACs is an overstatement, to say the least. Such funds make up less than 1.7 percent of McCain's presidential campaign receipts and 1.1 percent of the RNC's income.

McCain – As of the end of April, the McCain campaign had reported receiving $655,576 from lobbyists, according to the Center for Responsive Politics. That is less than seven-tenths of 1 percent of his total receipts of $96,654,783. His campaign also took in $960,990 from PACs, amounting to just under 1 percent of total receipts. The two sources combined make up less than 1.7 percent of his total.

RNC – The Republican National Committee has raised $143,298,225, of which only $135,000 has been come from lobbyists, according to the CRP. That's less than one-tenth of 1 percent. It also took in about 1 percent of its receipts from PACs, CRP said. Taken together, that's about 1.1 percent from PACs and lobbyists.

Obama's Advantage
It's not our place to comment on the wisdom or propriety of Obama's financial strategy, except to note that it is perfectly legal and also that McCain and Obama both refused to accept public funds or spending limits during the primary campaign.

We also note that Obama's decision –  whatever may have motivated it – is likely to give him a big financial advantage over McCain in the weeks just before the November election. This is a reversal of the historic pattern, in which Republican candidates have nearly always been able to out-raise their Democratic rivals. Had Obama accepted public funds, as McCain is expected to do, both candidates would have been limited to spending $84.1 million, all of it from taxpayers. But Obama has shown the potential for raising and spending much more.

The Obama campaign already has raised $265 million through the end of April, more than two-and-a-half times as much as McCain has taken in. Figures for May are due out soon. The Obama campaign said on May 6 that it had surpassed 1.5 million individual donors, and it probably has many more than that by now. All of those primary donors are legally free to make new contributions to finance Obama's general election campaign, which officially commences after he becomes certified as the Democratic party's nominee at the convention at the end of August.