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Massive Corporate Money to be Dumped in 2014 Races

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Photo Credit: AP

Operating with few rules and limited oversight, outside groups spent a record $1 billion to influence last year’s election.

Politicians of all persuasions griped about the meddling. But few are working to change laws that ushered in an unprecedented flood of money made possible by a 2010 Supreme Court ruling that erased years of campaign finance law.

Instead, political leaders and donors from both parties are preparing for the flow of outside money to intensify. New groups have formed and others are shaping plans to come back bigger and smarter ahead of the 2014 congressional elections and the 2016 presidential race.

What laws do remain could become even looser as the Supreme Court considers another high-profile decision.

“The unregulated system that we seem to be headed in will make Watergate look like a bad soap opera,” said Robert Zimmerman, a member of the Democratic National Committee’s national finance team who helped raise as much as $500,000 for President Barack Obama’s re-election effort.

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Investment Falls Off a Cliff

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U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.

Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.

At the same time, exports are slowing or falling to such critical markets as China and the euro zone as the global economy downshifts, creating another drag on firms’ expansion plans.

Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.

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