Obama: Wrong Call on Public Financing

Barack Obama made the wrong call when he decided to opt out of the public financing system. Broder has it right. Aside from the immediate and short-lived hit he is taking in terms of “flip-flopping” or “breaking his promise” etc., he opted out of 85 million dollars, fundamentally, because he believes he can raise far more than that amount from his vast army of supporters, and from Hillary’s vast army of supporters. He also will need more than 85 million to match the money Republican 527s and the RNC will bring to bear on the election.

But the contrarian opinion here is that Obama will not get even close to the $300 to $500 million the CW estimates he is likely to raise. First and foremost, he cannot count on Hillaryites to open their checkbooks unless she is on the ticket. He will learn that in the coming weeks. Second, he underestimates two important factors when it comes to the supposed financing power of Obama Nation. Many will feel less motivated to debit their Visa accounts now that Hillary has been vanquished. The May fundraising total is evidence of this, having dropped to $21 million. But more importantly the $25 per month small donors might not have an extra dime left for Obama as the Summer of Inflation wears on, and their $25 goes towards bread and gasoline.

Warning signs are already here: An Obama for America email today is offering a free tee-shirt as an incentive to get the $25 donors up to $30. The June deadline nears…. Look for a disappointing number, and more pressure to grow to name Hillary as VP.