The opportunity to watch a president of the United States speak would be an honor for Americans. But why do former presidents get paid for speeches? The answer is simple.
When news broke of Former President Barack Obama’s paycheck for giving speeches, both sides of the isle expressed their opinion. President Obama is said to be making upwards of $400,000 per speech. Democrats feel that this makes them look bad since they are pushing for stricter regulations on Wall Street. While Republicans say the former president is cashing in while receiving a pension.
Why do presidents receive pensions? It began with President Harry Truman, who refused to cash in on his job title. But he was close to being broke, so Congress created the pension to avoid embarrassment of a homeless leader.
So, how did presidents end up getting paid for speeches? It’s simple, supply and demand. People only get to be president at least twice, so this increases the value of their time. Slate.com writes, “The more in-demand you are, the more someone values your presence, the more tickets a producer might be able to sell, the more clients that might be impressed, the greater the entertainment value, the higher the price your agent commands in the market.” Just like we would pay more money to see the most popular bands and pop stars, politicians can increase their worth by making it to the White House.
Mr. Obama is not the first president to engage in speaking events. It was President Gerald Ford that made post-presidency speeches a normal career move. President George W. Bush makes between $100,000 and $175,000 for his speeches. President Bill Clinton made around $225,000 for a speech in 2014. Even candidates that didn’t make it to the Oval Office are raking in cash. Vice Presidential candidate Sarah Palin took home $155,000 for a 2011 speech.
Why President Obama is making more money than previous presidents could have a lot to do with his popularity. When he left office in January 2017, he had a 59% approval rating. While there are citizens out there that do not like him, and would never want to attend his speech, more than half the country would be willing to.
The Obamas have yet to make a comment about the uproar surrounding their post-presidential life. But the couple has already made appearances at colleges and events around the country, and both have books deals under their belt. What will they do with the money? That’s up for them to choose as private citizens.
More from the Ethos3 Blog:
How to Secure a Paid Public Speaking Gig
How to Get Paid for Public Speaking
President Obama’s Commencement Speech at Barnard College
