
$150 million are gone with the wind! Despite the fact that Meg Whitman spent that much of her own fortune, the former eBay CEO and Republican candidate for governor of California lost her bid against Democratic veteran Jerry Brown.
There couldn’t have been more contrasts between their two campaigns. One was cold, professional, massive, and run like a big corporation. The other was more of a crafting work, low-profile and aimed at connecting with voters who, for the most part, had already forgotten who Jerry Brown was and that he had already been their governor 30 years earlier.
There’s a harsh debate in the U.S. over money in politics. Democrats fear that a decision rendered last year by the Supreme Court could pave the way for many special interests, including from abroad, to influence election outcomes. But does money matter so much? Doesn’t Meg Whitman’s campaign prove that money is not synonymous with success in politics? The key may be that raising money is not so much a means to finance a campaign as a pretext to fire up popular support.
First, asking for money is a very good reason to reach out to voters. It forces the candidate and their team to know their constituents, to try to connect with them, and to engage a conversation. Money may be the goal, but building relationships is a collateral effect of far greater importance. A successful fundraising effort means that a leader somehow managed to connect with the people.
Second, lots of money from outside is a sign that a campaign is becoming a movement, that voters care about the campaign and even think of it as their own. When they reach this point, big or small donors tend to come to the rescue. Whether rich or poor, people like to be on the winning side. So there’s no better way to raise money than to create a movement, which is the very recipe for success. When there’s a movement, money happens to flow in, but only to reinforce the pre-existing momentum.
Deciding to spend her own money was a trap for Meg Whitman. It exonerated her from any critical effort to reach out to her constituents. It deprived her of the most relevant indicator of success in creating a movement. If raising money was not the point, she couldn’t monitor the amount to confirm that popular support was there. Nancy Pelosi was recently quoted as saying ‘‘I’m one of the most effective fundraisers that the Congress has had... because I believe in something’’. When Meg Whitman chose to spend her own money, did she mean that she couldn’t raise it on the market because she didn’t believe in anything?
True, many candidates won elections in the past thanks to their own money, and many will in the future. Former Goldman Sachs executive Jon Corzine winning a Senate seat in New Jersey in 2000 is a famous example. Yet many failed, including the same Corzine when he lost his reelection bid for governor last year and more famously Steve Forbes, several times a presidential candidate in the Republican primary, and now Meg Whitman (and Carly Fiorina).
Those failed because it has somehow become useless to overwhelm the airwaves and to spread your message from the top down, which is precisely what you use big money for. This is not what a campaign is about. The idea is not to knock off the voters with your own money. It is to create relationships, to drum up mobilization, to tell great stories, and to build a movement. Cash inflows are the right indicator to know whether or not you managed to do just that. When Meg Whitman kind of shut down this indicator, she became incapable of monitoring the support she had to gain in order to win the election.

