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US-Bahrain Business Council logo.US-Bahrain Business Council logo. [Source: US-Bahrain Business Council]The US Chamber of Commerce (USCC), in a methodology made legal by the Citizens United Supreme Court decision (see January 21, 2010), uses foreign-generated funds to disseminate “attack ads” against Democrats running for office in the November midterm elections. The USCC has targeted, among others, Jack Conway (D-KY), Senator Barbara Boxer (D-CA), Governor Jerry Brown (G-CA), and Representatives Joe Sestak (D-PA) and Tom Perriello (D-VA). The USCC, a private trade association organized as a 501(c)(6) that can raise and spend unlimited funds without disclosing any of its donors, has promised to spend $75 million to prevent Democrats from winning in the upcoming elections. The USCC has, as of September 15, aired over 8,000 television ads supporting Republican candidates and attacking Democrats, according to information from the Wesleyan Media Project. The USCC has far outspent any other public or private group, including political parties. The funds for the USCC’s efforts come from its general account, which solicits foreign funding. Legal experts say that the USCC is likely skirting campaign finance law that prohibits monies from foreign corporations being spent in American elections. The USCC has been very active in recent years in raising funds from overseas sources, with such funds either going directly to the USCC or being funneled to the USCC through its foreign chapters, known as Business Councils or “AmChams.” Some of the largest donations come from the oil-rich country of Bahrain, generated by the USCC’s internal fundraising department in that nation called the “US-Bahrain Business Council” (USBBC). The USBBC is an office of the USCC and not a separate entity. The USBBC raises well over $100,000 a year from foreign businesses, funds shuttled directly to the USCC. A similar operation exists in India through the auspices of the USCC’s US-India Business Council (USIBC). The USIBC raises well over $200,000 a year for the USCC. Other such organizations exist in Egypt, Russia, China, Saudi Arabia, Brazil, and other countries, with those nations’ laws making it difficult or impossible for the public to learn how much money is being raised and by which foreign entities. Multinational firms such as BP, Shell Oil, and Siemens are also active members of the USCC, and contribute heavily to the organization. If those firms’ monies are going to fund political activities, the Citizens United decision makes it legal to keep that fact, and the amount of money being used to fund those political activities, entirely secret. It is known that the health insurer Aetna secretly donated $20 million to the USCC to try to defeat the Affordable Care Act (ACA) last year, and News Corporation, the parent of Fox News, donated $1 million to the USCC to use in political activities (see September 30, 2010). The USCC is a strong opponent of Democrats’ efforts to persuade American businesses to hire locally rather than outsourcing jobs to countries such as China and India, and has fought Democrats who oppose free trade deals that would significantly benefit foreign entities. The USCC claims that it “has a system in place” to prevent foreign funding for its “political activities,” but refuses to give any details. [Think Progress, 10/5/2010]

Entity Tags: Joe Sestak, British Petroleum, Barbara Boxer, Aetna, Jack Conway, US-India Business Council, Wesleyan Media Project, US Chamber of Commerce, News Corporation, Royal Dutch/Shell, US-Bahrain Business Council, Siemens, Thomas Perriello, Edmund Gerald (“Jerry”) Brown, Jr

Timeline Tags: Civil Liberties

Impelled by polls showing that Democrats may not do as badly as predicted in the upcoming November midterm elections, Republican political organizations pour vast amounts of money into tight Senate and House races in the final days, according to a Reuters analysis of data provided by the Wesleyan Media Project and from Democratic organizers. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations (see September 13-16, 2010 and October 2010). Much of the money is targeting three Senate races in Colorado, Kentucky, and California. Republicans are confident that they will gain control of the House of Representatives, but must gain 10 seats to control the Senate, a prospect that is not as likely. Last-minute spending surges are common in elections, but experts say they have never seen so much spending in the last days of a race. Pollster Andrew Kohut of the Pew Research Center is not sure the last-minute surge of spending, almost all of which is going to advertising, will have a major effect. Most voters’ minds are made up by now, Kohut says. Data shows that organizations affiliated with Republicans have outspent their Democratic rivals by more than a 3-1 ratio. In Nevada, “independent” organizations are pouring money into attack ads against Senator Harry Reid (D-NV) and in support of challenger Sharron Angle (R-NV). Late campaign spending is fairly equal, according to the data, and the polls for that race are very tight. In Colorado, “tea party” favorite Ken Buck (R-CO) is losing ground to incumbent Michael Bennet (D-CO), and in response, Republican groups have funneled money into ads supporting Buck and attacking Bennet to create a 2-1 spending ratio in favor of Buck. A similar instance exists in Kentucky, where another tea party favorite, Rand Paul (R-KY), is losing ground to Jack Conway (D-KY), and Republican spending on Paul’s behalf has made for a 2-1 spending ratio in favor of Paul. In California, where popular Democrat Barbara Boxer (D-CA) once had a 2-1 spending advantage over her opponent Carly Fiorina (R-CA), pro-Fiorina groups have recently outspent pro-Boxer groups 5-1. In Pennsylvania, pro-Republican groups are heavily outspending Democrats, largely to support Republican favorite Pat Toomey (R-PA) over Joe Sestak (D-PA). In Delaware, Senate candidate Christine O’Donnell (R-DE), whose campaign has raised large amounts of money from out-of-state financiers, has not received the lavish funding that her Republican colleagues have gotten to defeat her opponent Chris Coons (D-DE). O’Donnell has received some $300,000 from right-wing and tea party groups. But Coons is receiving virtually no support from independent pro-Democratic groups, possibly because polls indicate he will win the election and does not need the last-minute funding support. The elections will be held on November 2. [Reuters, 10/27/2010] The results of the massive spending are mixed. The Republican winners include Paul and Toomey. The Republican losers include Angle, Buck, Fiorina and O’Donnell. [National Public Radio, 11/3/2010]

Entity Tags: Christine O’Donnell, Chris Coons, Wesleyan Media Project, Barbara Boxer, Andrew Kohut, Sharron Angle, Reuters, US House of Representatives, Carly Fiorina, Joe Sestak, Jack Conway, Harry Reid, Rand Paul, Pat Toomey, Ken Buck, Michael Bennet

Timeline Tags: Civil Liberties

A screenshot from an ad attacking Mitt Romney, sponsored by a super PAC on behalf of Newt Gingrich.A screenshot from an ad attacking Mitt Romney, sponsored by a super PAC on behalf of Newt Gingrich. [Source: Think Progress]The Wesleyan Media Project (WMP), a nonpartisan political analysis group working out of Connecticut’s Wesleyan University, finds that negative political advertising has become the mainstay of political broadcast advertising in the 2012 presidential campaign. Only about 8 percent of ads in the 2008 presidential campaign could be considered negative, the WMP writes, but in 2012, 70 percent of ads are negative. (The WMP defines negative as “mentioning an opponent.”) Erika Franklin Fowler, the WMP’s co-director, says: “One reason the campaign has been so negative is the skyrocketing involvement of interest groups, who have increased their activity by 1,100 percent over four years ago. But we cannot attribute the negativity solely to outside groups. Even the candidates’ own campaigns have taken a dramatic negative turn.” Interest-group advertising, i.e. ads financed by “independent” third-party organizations that support one candidate or another, were 75 percent positive in 2008, but only 14 percent positive in 2012. In 2008, ads financed directly by candidate campaigns were 9 percent negative, but this year are 53 percent negative.
Huge Spike in Third-Party Advertising from 2008 - Almost two-thirds of the ads aired in 2012 are paid for by “third party” organizations such as super PACs and “nonprofit” groups. Super PACs alone have financed 60 percent of the ads during this cycle; that figure for 2008 was 8 percent. The WMP writes: “An estimated $112M [million] has been spent to date on 207,000 ads compared to $190M spent on just under 300,000 ads in 2008. Much of this decline in spending and ad volume is due to the lack of a nomination contest on the Democratic side this year.” The project refers to the Republican presidential primary, which is featuring massive spending on behalf of candidates by third-party organizations. “Such levels of outside group involvement in a presidential primary campaign are unprecedented,” according to co-director Travis Ridout. “This is truly historic. To see 60 percent of all ads in the race to-date sponsored by non-candidates is eye-popping.” One of the most prominent organizations, the nonprofit Crossroads GPS (see April 13-20, 2012), has already aired some 17,000 ads, mostly attacking President Obama. Those ads are joined by commercials paid for by another conservative advocacy group, Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has aired some 7,000 ads. The Obama campaign and the Democratic National Committee (DNC) have combined to air some 20,342 ads. WMP data shows that 33,420 anti-Obama, pro-Republican spots have aired as opposed to 25,516 anti-Republican, pro-Obama ads.
Most Ads Paid for by Anonymous Donations - Unlike the majority of the ads that aired in the primary election, most of the ads airing for the general election have “come from groups that do not need to disclose their donors,” according to WMP co-founder Michael M. Franz. “That’s a lot of money and airtime backed by undisclosed sources.” Republican presidential candidates Newt Gingrich (R-GA), Jon Huntsman (R-UT), Mitt Romney (R-MA), and Rick Santorum (R-PA) were very reliant on super PAC advertising, with Ron Paul (R-TX) less so. About 20 percent of ads aired on Obama’s behalf have come from his super PAC, Priorities USA Action, though the DNC has aired a number of ads on behalf of Obama. Priorities USA Action is answering negative ads from Crossroads GPS with its own advertising, mainly in “battleground” states such as Iowa, North Carolina, Ohio, Colorado, Florida, Virginia, and Nevada. Ridout says: “Early general election spending reveals that both parties are focused on markets in the same key battleground states. The past couple of weeks, Obama and his super PAC have been on the air in a few more markets than Crossroads GPS, but both sides have focused their advertising in markets in Nevada, Colorado, Florida, Virginia, Iowa, and Ohio.” Groups such as the conservative Club for Growth, the American Action Network (AAN—see Mid-October 2010), and AFP are airing ads in Senate races in Florida, Indiana, and Nebraska. And some $6 million in advertising has flooded Wisconsin and its gubernatorial recall election involving Governor Scott Walker (R-WI). Walker and the super PAC supporting him, Right Direction Wisconsin PAC (an arm of the Republican Governors’ Association), have outspent their Democratic opponents; of the 17,000 ads aired in Wisconsin about the recall election, 10,000 have either been pro-Walker or negative ads attacking the recall and Walker’s challengers. Franz says: “Wisconsinites have been inundated with advertising surrounding the gubernatorial recall election. Walker and his allies hold a substantial advantage to date in the air war in all markets except Madison, and the incumbent governor’s ads have been more positive than his competitors’ ads.” The liberal news Web site Think Progress notes that the 2010 Citizens United decision is largely responsible for the increased spending by third-party groups (see January 21, 2010). [Wesleyan Media Project, 5/2/2012; Think Progress, 5/3/2012]

Entity Tags: Club for Growth, Americans for Prosperity, Travis Ridout, Wesleyan Media Project, Willard Mitt Romney, American Action Network, 2012 Obama presidential election campaign, Scott Kevin Walker, Ron Paul, Think Progress (.org), Rick Santorum, Jon Huntsman, Erika Franklin Fowler, Democratic National Committee, American Crossroads GPS, Right Direction Wisconsin PAC, Mitt Romney presidential campaign (2012), Michael M. Franz, Priorities USA Action, Newt Gingrich

Timeline Tags: Civil Liberties, 2012 Elections

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