Does 'Soft Money' Really Matter?

W A S H I N G T O N, March 19 -- Money has been called the "mother's milk" of American politics. And even the most ardent advocates of campaign finance reform concede it is all but impossible to end the influence of big bucks on politicians.

Public interest groups say "soft money" — the unlimited, unregulated donations from corporations, labor unions and wealthy individuals to political parties — is corrupting the nation's political system, allowing special interest groups to buy access, influence and action from congressmen, senators, even presidents.

"It comes in huge amounts — from $10,000 to a $1 million or more," says Frank Clemente, director of Congress Watch, a division of Public Citizen. "It's money that is powerful."

Not 'Charitable Giving'

The Republican and Democratic national committees took in a combined total of nearly a half billion dollars in soft money donations last year, with more than three dozen corporations or unions giving in excess of $1 million each.

"Why do they give it unless they expect a political benefit or policy benefit in return?" asks Nick Nyhart, executive director of Public Campaign. "This is not charitable giving to your local museum. This is political giving to elected officials."

Critics cite a slew of key legislative victories as evidence that special interests are indeed getting something for their money.

Finance and credit card companies, for example, gave $3.6 million in soft money during the 2000 election cycle, according to the Center for Responsive Politics. Last week, the Senate passed a bill to overhaul the nation's bankruptcy laws. One company alone — MBNA, the nation's largest credit card company — stands to boost its profits by $75 million a year if the bill is enacted.

"It is clear that the industry wanted this bankruptcy legislation," says Larry Noble, executive director of CRP. "They bought and paid for it."

Public Citizen points to the pharmaceutical industry, which has filled GOP coffers with more than $14.3 million in soft money since 1995. The Republican-controlled Congress last year rejected legislation opposed by drug companies that would have provided a guaranteed prescription drug benefit for Medicare recipients.