Wall Street investors are staying out of the GOP primaries, not supporting Trump or his challengers. The podcast explores the impact of major donors, their hesitancy in this election, and the search for a viable alternative. Wealthy donors are now targeting down ballot races instead. The chapter also discusses the strategies of big money donors and the role of money in the nomination.
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Quick takeaways
Major Republican donors are hesitant to support a specific candidate for the 2024 presidential election due to concerns over the unpredictability of former President Donald Trump and his policies.
Rather than investing in the presidential campaign, big donors are focusing on down-ballot races to advance their pro-business, anti-regulation agenda and have a more significant impact on policy.
Deep dives
Big Donors Hesitant to Back a Republican Candidate
Major Republican donors are hesitant to throw their support behind any specific candidate for the 2024 presidential election. While in previous election cycles, donors would be actively fundraising and supporting their preferred candidate, this time around, they are taking a cautious approach. This hesitancy stems partly from concerns over former President Donald Trump's unpredictability and his inconsistent policies. Donors, who prioritize stability and consistency, are uncertain about how Trump's candidacy might affect their businesses and the broader economic outlook. Furthermore, some donors are hesitant to be associated with a divisive figure like Trump. As a result, many major donors are waiting to see if a viable challenger to Trump emerges.
Big Donors Redirecting Focus to Down-Ballot Races
Instead of pouring their money into the presidential campaign, big donors are redirecting their focus to down-ballot races. By supporting house races, congressional races, and super PACs, donors aim to advance their pro-business, anti-regulation worldview and secure candidates aligned with their policy preferences. Donating to smaller races allows them to have a more substantial impact and a greater say in the policies that get advanced. These donors carefully select the races they invest in, conducting extensive research and interviews with candidates before making their decision. While presidential campaigns require massive funding, down-ballot races can be swayed significantly by the financial support of major donors.
Donors Seeking a Trump Alternative and ROI
Despite their hesitation to support Trump, major donors are still searching for a viable alternative candidate. They want to back someone who can champion traditional Republican party principles, such as fiscal conservatism, and offer stability crucial for their businesses and the markets. However, the search for an alternative candidate has been challenging, with donors scattering their money across various potential candidates. The lack of a unified front and clear frontrunner has contributed to donors holding off on making substantial contributions. Donors are reluctant to invest their money without a clear return on investment and want to avoid wasting funds on a candidate who might not gain momentum. In the absence of a prominent alternative, major donors are turning their attention to down-ballot races to influence policy and tip the scale in their favor.
Today, we’re sharing the newest episode from our collaborators over at the Big Take DC. They look at why Wall Street donors are waiting to weigh in on the GOP primary. Make sure you subscribe to the Big Take DC feed so you can get episodes like these every Thursday. Just look up Big Take DC, available wherever you listen to podcasts — And while you’re there, check out their reporting from the Iowa caucuses earlier this week.
The biggest individual donors have been notably absent in the GOP primaries: Wall Street investors.
So far, big investors haven’t opened their wallets for Republican frontrunner and former President Donald Trump. But they haven’t rallied around any of his challengers, either. In fact, they’re just as fatigued by the options as everyday American voters, many of whom grimace at the thought of a rematch between Trump and President Joe Biden.
Bloomberg’s Saleha Mohsin talks with Kyle Bass, who is plugged into the world of political money and is close with major donors, and Bloomberg politics editor Laura Davison about what investors want out of the 2024 election, the impact of their donations and what their hesitancy means for this consequential election.
Corrects to remove reference to billionaire in podcast and third paragraph.