Both Democrats Face Financial Woes

This is yet another unkind side effect to the drawn and grueling primary season; economic fatigue.

The March numbers could have looked better for the two Democratic hopefuls battling it out to see who will represent the party in the fall.

For Obama, the news isn’t terrible, but it isn’t great either; his campaign pulled in only $41 million for the month of March, a roughly ten million dollar drop compared to his campaign’s haul from back in February. There are a number of factors that could have resulted in such a significant drop, but the most obvious would have to be a series of campaign setbacks in the form of controversy that may have depressed either enthusiasm or confidence in the Obama campaign.

But with about $50 million still at the campaign’s disposal (Only nine of which is earmarked for the General Election only), there’s no danger that the Obama campaign is going to have to cede the race on a lack of funds.

News for the Clinton campaign is far from being that generous.

For the month of March, Hillary Clinton managed to pull in under half of what Obama was able to raise, her campaign pulling in only $20 million. Without going any further, these numbers alone paint a particularly grim picture for the Senator from New York.

In a race that is still about total delegate count, the Obama campaign can effectively outspend the Clinton campaign by a factor of 2-1. This means that he could outbuy her in every state from here on in, a fact that would allow him to narrow delegate gaps where Clinton is favored to win, while at the same time widen delegate gaps in those states he is favored to win.

In other words, the monetary situation serves as yet another steep obstacle for the Clinton campaign to overcome if she wants to narrow the overall delegate and popular vote gaps down to where she could make a valid appeal to Super Delegates.

But there comes even worse news for the Clinton campaign; it also reported over ten million dollars in debt at the beginning of April.

There has been talk of vendors going unpaid on the campaign trail, and personal loans made out to the Clinton campaign already, but if her financial troubles continue down this path it’s pretty clear she’s simply not going to be able to afford to run much longer.

The financial problems are likely to compound as well as campaign donors often view political campaigns as an investment. With the Clinton campaign not looking to be able to win the Democratic primary, and worse, not appearing to effectively manage its money, campaign donors are going to continue to see Mrs. Clinton as a riskier investment.

She should win Pennsylvania on Tuesday, and despite the fact that she needs well over sixty five percent of the vote in order to be even remotely mathematically viable, any win over five to eight percent is likely to generate positive media that should temporarily increase campaign contributions.

But then May sixth is not far around the bend, where she is expected to lose in North Carolina by a devastating margin. At that point I would expect a large chunk of her financial support to pull up stakes and get out of town.

In either case, the fundraising numbers could easily be much better than they are, and fortunes for either candidate may not improve much until after a presumptive nominee is named and the intraparty bickering finally has an opportunity to die down.

2 Responses to “Both Democrats Face Financial Woes”

  1. lee-florida says:

    So where is all this money really coming from for Obama…..?????
    Maybe overseas and then just run thru the Nation of Islama here in the States…..
    I know the Muslim world loves him and wants him office……

  2. Dynamic says:

    ^^^ 😆 Those people overseas must have a lot of money to spend on our Democratic primaries. *rolleyes*

    What I think is important to note is that $41 million in ONE month is still remarkable – sure it’s a drop from the previous month, but it’s once again more than McCain has raised total. This remains impressive.

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