In my blog back in December 2023, I briefly touched on political action committees (PAC). Differences in Governance Systems in Canada and the U.S. Do Matter | FROLITICKS In the United States, a PAC is a tax-exempt organization that pools campaign contributions from members and donates those funds to campaigns for or against candidates. I also noted at that time that there is no end to the hundreds of millions of dollars that candidates can gather from such sources as PACs and Super PACs. The term Super PAC has seen occasional use since the 1980s, but now has a well established specific meaning and widespread use derived from federal court decisions made in 2010, including the U.S. Supreme Court.
Now it has been reported that a new group, America PAC, is being funded by several wealthy tech entrepreneurs in Mr. Musk’s social circle and is said to likely draw financial support from the SpaceX and Tesla founder himself. Apparently, some of Elon Musk’s closest friends have helped start the new Super PAC aimed at helping former President Donald J. Trump in the 2024 presidential race. In the spring, the New York Times reported that one leader of America PAC had told a friend that the group expected to have a major donor who would make donations in four batches, adding up to as much as $160 million over the course of the Trump’s campaign.
I noted in the above blog that one major difference between Canada and the U.S. is how candidates in the election process are funded. In the U.S. there is no end to the hundreds of millions of dollars that candidates can gather from such sources as Super PACs. On the other hand, in Canada contributions to candidates are far less and are regulated by stricter controls enforced by an independent agency, namely Elections Canada.
Candidates in both dominant American parties have no choice but to depend on PACs to fund their campaigns. This includes whenever both parties have contested primaries. Candidates are now forced to compete for the allegiance of a small group of wealthy donors who can write six- and seven-figure checks. One has to question how much such increasing dependence will influence their positions on policies once elected? It is also well known that contributions from PACs can also play a major role in influencing sitting members when it comes to ballot initiatives and legislation. It’s also recognized that many elected politicians have to begin raising campaign funds during their last year in office, often turning again to the previous campaign contributors.
There are numerous issues before Congress concerning the high tech industry, most notably as to the dominance of several major industry players such as Elon Musk with his evident tilt to the right, especially in commentary on his social media site X. We know that companies such as Amazon, Google and Meta are facing investigations under the competition rules, while TikTok and X are facing probes intended to force internet companies to more aggressively police their platforms for illicit content. In addition, both Canada and the U.S. are closely watching the impact of a recent new European Union law meant to encourage competition in the tech industry. In addition, there are the issues surrounding the use of artificial intelligence (A.I.) within the high tech industry and possible future government legislation.
PACs exist for many other industries/sectors (as reported by the OpenSecrets.org website) and include such big contributors in agribusiness, tobacco, forestry and forest products, communications/electronics, telecom services, construction services, entertainment, defence and defence aerospace, commercial banks, real estate, insurance, health services, and pharmaceutical manufacturing to name but a few. Obviously, such lobbyists reflect a number of current and important sectors when it comes to government policy reviews and initiatives. OpenSecrets.org estimated that in the 2018 election the top ten PACs donated a total of over $29 Million (directly, and via their affiliates and subsidiaries) to federal candidates.
FROLITICKS 
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