Listener Mailbag

From listener Brian Cipolla:
I have a question about campaign spending: where does all that money actually go, and who really benefits? Millions are poured into these races — mostly for ads, I assume — but does any of that cash actually make a positive impact on the local community? 

Where does the money go? A dedicated and well-regulated bank account (or multiple). After campaigns, any leftover money can go several different places (but never to the candidate). The money can be donated to charity or transferred to the national political party. Or if you’re confident, you could always hold the money for a future run.

Now, who benefits from campaign spending? There’s no clear answer. But there was a study finding that after the Citizens United ruling, affected states saw their GDP rise 2% and labor income go up to 3%. Another study found that each $1 that a business donates to a campaign is worth $6.65 in lower state corporate taxes. Thanks for the question Brian!

Do you have a burning economics question? Email us at indicator@npr.org.