Hedging Political Contributions

I was under the impression that individual donors are highly partisan, as this page on “soft money” shows, but corporations would want to hedge their bets to make sure they carry some weight in Washington regardless of which party comes to power. Indeed, a look at the top 100 contributors over the past 16 years confirms that a fair share of corporations seem to be following this strategy: those on the fence include AT&T, FedEx, Citigroup, Microsoft, GE, Boeing, and a bunch of Wall Street firms. The exceptions seem to be drug companies (staunchly Republican) and workers unions (largely Democrat). Even firms that lean slightly to one side, such as Goldman Sachs (Democrat) still contribute a nominal amount to the other side (see graph). Though in Goldman’s case, the majority of these donations were not through political action committees but individuals associated with the organization - and again, they are highly partisan.

