Who Do You Want in Charge of Your Money?

It appears the profligate spending habit the GOP developed while in power isn't limited to the federal budget. They can't manage their own money, either.

In 2008, the Democrats have dramatically reversed the long-time Republican fundraising advantage. Not only are the two leading Democratic presidential campaigns shattering records in 2007 (Obama's Q2 $32 million dwarfs the $17 million Giuliani, the leading Republican), the Republicans are burning through their money much faster than the Democrats, providing the Dems a huge early advantage.

The news that the McCain campaign has a meager $2 million Cash On Hand as of July 1 and the resulting massive layoffs means the Republicans are in deeper trouble than anyone could've predicted at the start of the year. The financial mismanagement isn't limited to McCain. Romney, the GOP first quarter fundraising champ, lent himself over $6 million to boost his fundraising total in the second quarter.

Disappointing fundraising in one quarter can become a downward spiral, as donors tend to want to back a winner, and will flock to the frontrunner. The GOP chaos means the Democrats are amassing a huge lead in the money race - one the Republicans are unlikely to close in this cycle.

The cash story isn't limited to the presidential campaign. The money is also pouring in to the national committees, too. Overall the Dems' national committees (pdf) (DNC, DSCC, and DCCC) have closed the gap - raising 73.6 million - with the GOP (RNC, NRSC, and NRCC), who raised $75.8 million. The real difference comes in the cash on hand category, where the Dems actually have $10 million MORE in the bank - $31.1 million vs. 21.1 million, as of June 1, 2007.

This is a huge change, one that bodes well for the Democrats. Exacerbating the situation for the GOP is the loss of the Congressional majority which further hinders the GOP's ability to attract donations from lobbyists and special interests trying to influence committee agendas. Additionally, the GOP donor base appears demoralized and seems to have made the decision that donating to their party isn't a smart investment in 2008. If you were a GOP donor, would you trust these guys with your money?