Saturday, June 15, 2013

Conservatives: Only The Rich Can Benefit From Nonprofits

Conservatives believe Justin Trudeau was wrong to take money from nonprofit organizations because to this government that's the job for rich investors on Bay Street.

According to the Conservatives in power in Ottawa and their recent proposal for social impact bonds the only people who should be making money from nonprofit organizations are financiers, speculators, and venture capitalists.

And now with Justin Trudeau having earned speaker fees from charities the Conservatives have hastily and hypocritically attacked him.

Hypocritical not just because they have attacked Trudeau for doing something which by its very nature is economically conservative (Trudeau merely applied free market principles to properly allocate the scarce resource of his much demanded presence); but doubly hypocritical because this Conservative government wants investors to make large profits on Canada's nonprofits.

For the past few months Human Resource Minister Diane Finley has touted the benefits of social impact bonds, a funding mechanism in which social agencies can raise money from investors to achieve a set objective, like reducing the recidivism rate of former criminals. If that goal is reached social-bondholders receive a sizable and generous profit.

There is of course opposition to this Conservative proposal because the profit for investors is money those social services would have otherwise received. In effect this government is proposing that money that would have ordinarily gone to nonprofit organizations should instead profit the poor, hungry, and destitute stockbrokers and bankers.

Conservatives can continue their faux outrage at Justin Trudeau for earning money from nonprofit organizations, but it is this government who should be ashamed. Trudeau at least had to work for his money from nonprofits, under the Conservative plan for social impact bonds, rich investors won't.

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