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Economics

The Economics of Campaign Finance Reform

Quick fact

In the U.S., the 2010 Citizens United ruling allowed unlimited independent political spending, yet total campaign spending as a share of GDP remains tiny—less than 0.1%—while public trust in government has dropped, suggesting the economic impact is more about incentives than raw money.

Why this is interesting

You might think campaign finance reform is just about limiting money. But economically, loosening limits could backfire, and banning donations might not reduce influence—why?