The Voting News Daily: Bad News for Nation’s Nonprofits, Big Money in Politics Makes U.S. Economy “Fundamentally Unsound”
In an election that until lately has been dominated by super PACs, politically active nonprofits are the new bad guys, drawing ethics complaints, letters to the IRS and legislative action. That is bad news for the nation’s 1.6 million nonprofits, which have much to lose as their sector gets dragged into political money controversies. For reform advocates, the problem with big-spending, secretive nonprofits is that they answer to no one and keep voters in the dark. But the worst damage inflicted by unrestricted, undisclosed campaign money could be on nonprofits themselves. “Charitable organizations depend on the confidence and trust of the public for support,” said Diana Aviv, president and CEO of Independent Sector, which represents the nonprofit and philanthropic community. Campaign spending by nonprofits, she added, could pose “a serious reputational risk” to the sector. Read More
The International Monetary Fund’s former chief economist recently described one of the world’s leading economies as fundamentally unsound because the political process is captured by financial firms. But he wasn’t talking about just any banana republic. He was talking about the U.S.A. In the article “Why Some Countries Go Bust”, Adam Davidson discusses a new book in which economist Daron Acemoglu argues that “the wealth of a country is most closely correlated with the degree to which the average person shares in the overall growth of its economy”. In other words, economic inequality is itself predictive of economic decline. The book includes historical studies showing how “fairly open and prosperous societies can revert to closed and impoverished autocracies.” Read More

