Kill the subsidy, but kill them all

Andrew Coyne on how political parties should be funded

by Andrew Coyne on Friday, June 3, 2011 9:40am - 247 Comments
Kill the subsidy, but kill them all

Sean Kilpatrick/CP

With the impending heat death of the Liberal party—er, rather, with the approaching end of the $2-per-vote party subsidy—the commentariat is consumed with what this will mean for the various political parties, and what Stephen Harper’s motives might be for introducing it.

Well, that last bit’s obvious, isn’t it? He wants to destroy the Liberal party. Everybody knows that. But wait: maybe by obliging the opposition parties to rely more heavily on their own supporters for funds, rather than the taxpayer, he will only create a more motivated cadre of foes, while his own troops grow fat and complacent in office. Or maybe by starving the opposition of funds, he will force them to realize there is only room for one left-wing party, hastening the very unite-the-left movement that could one day be his undoing. But how could such a master strategist not see that? Maybe he wants a united left, the better to…

People. Isn’t it possible, just possible, that he’s doing this because…it’s the right thing to do?

Nah. I was just messing with you. Still, even if it’s supremely self-interested—the Conservatives raise more each year than all the other parties combined—that doesn’t mean it isn’t sound in principle. The Tories’ success isn’t a matter of a few monocled millionaires passing the top hat: their average donor gives less than $200. A system based on thousands of small contributors, inspired by a belief in a party’s principles rather than the expectation of some reward: that’s supposed to be what we all want, isn’t it? So how does it become wrong, just because the Tories are good at it and the other parties aren’t?

Abolishing the subsidy isn’t, as critics on the left object, a betrayal of Jean Chrétien’s reforms to party funding, which effectively banned corporations and unions from contributing and capped individual donations at $5,000 (reduced to $1,000 under Harper, or $1,100 after inflation). Neither, as the right suggests, should the corollary of abolishing the subsidy be a loosening of the other constraints. Certainly that would give substance to the left’s fears, that without the subsidy there will be pressure for a return to “big money” politics. But there’s no logical necessity for the one to follow the other.

Both groups share the same basic assumption: that if the parties are denied one source of largesse, private or public, the other must be opened to them. The possibility that the parties could simply make do with less does not seem to occur to either. But there is no fixed amount of money the parties “need” to carry out their activities. Much of what the parties spend their money on today—push-polls, attack ads, meaningless leaders’ tours—we might all be better off without, especially in these days of email and social media, which cost nothing.

Logic would rather suggest the natural corollary to a ban on corporate and union donations is a ban on government donations. Indeed, if the Prime Minister were motivated by principle—remember, I said if—he’d not only close off the per-vote subsidy, but those other spigots through which public funds flow to private parties: the tax credits on private donations, as much as 75 per cent, and the partial reimbursement of campaign expenses.

The principle I refer to is that people who want to give to political parties should do so with their own money. Corporate CEOs should not be giving their shareholders’ money, union presidents should not be giving their members’ money, and individual party supporters should not be giving the taxpayers’ money, whether in the form of subsidies or tax credits.

If only individuals contribute, do we still need contribution limits? Yes: money may not buy elections, but it can certainly buy a party or two. If everyone had the same level of income, we wouldn’t worry about the rich having disproportionate influence over political decisions. The closest real-world approximation to that is to cap, not each contribution—for these can be multiplied and channelled through any number of like-minded recipients: parties, candidates, ostensibly non-partisan “advocacy” groups like the Liberal-friendly Working Families Coalition in Ontario—but rather the total amount an individual can contribute to political causes in a year: a global annual contribution limit of, say, $5,000.

The beauty of this scheme is that, within the cap, it’s self-limiting: the more you give to one party, candidate or cause of your choice, the less you have left to give to all the others. Having stipulated that parties (and advocacy groups, so far as they campaigned for or against a party or candidate) could spend only what they raised from individuals constrained in this way, moreover, there would be no reason to impose any further limits on spending. Indeed, spending caps discriminate against contributors to parties with larger numbers of supporters. Each, as an individual, is permitted less “voice” than the supporters of less popular parties.

The fairness that should concern us, that is, is not between parties, but individuals: parties are simply the lens through which individuals project their views onto the political arena, and not even necessarily the best one at that. By putting every individual donor under the same global ceiling, and letting each decide how to divide up his allotment in his own way, it puts not only donors on a (roughly) level footing, but also their potential recipients. In a system based on “one person, one vote,” that seems altogether fitting.

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  • Anonymous

    Absolutely. Government of, by and for those who can afford it. Peasants have no business expecting to have any say in how a country is run.

    • modster99

      Well, to be fair, they are expected to have a say – they just don’t seem to educate themselves enough to make it an intelligent say.

    • modster99

      Well, to be fair, they are expected to have a say – they just don’t seem to educate themselves enough to make it an intelligent say.

    • modster99

      Well, to be fair, they are expected to have a say – they just don’t seem to educate themselves enough to make it an intelligent say.

    • Anonymous

      You are taking this whole need for a vote subsidy a bit far siamdave.  Exactly who are these “peasants” in Canada who are currently voting and who will lose their say when the vote subsidy ends?

      • Anonymous

        You’re really going for the “Give me actual names” argument?  You completely discount the possibility that there might be such people?

        • Anonymous

          Oh no I am not asking for names.  I would be happy with a description of the people who are currently voting who will be harmed by the loss of the per-vote subsidy.

      • Anonymous

        You’re really going for the “Give me actual names” argument?  You completely discount the possibility that there might be such people?

      • Anonymous

        You’re really going for the “Give me actual names” argument?  You completely discount the possibility that there might be such people?

    • Anonymous

      You are taking this whole need for a vote subsidy a bit far siamdave.  Exactly who are these “peasants” in Canada who are currently voting and who will lose their say when the vote subsidy ends?

    • Anonymous

      You are taking this whole need for a vote subsidy a bit far siamdave.  Exactly who are these “peasants” in Canada who are currently voting and who will lose their say when the vote subsidy ends?

  • Anonymous

    Coyne, you’re perturbed by spending limits on parties constraining per-supporter voice. You’re essentially arguing that parties should be allowed to use money as a competitive advantage in elections. Sorry–does not compute with me.

    And a cap of $5000 still gives the wealthy a much greater say in the political process than relatively less well-off. $5000 for a rich person earning millions a year is one less suit they can have tailored (but likely no reduction in consumption at all). $5000 for someone on minimum wage is the difference between eating and not eating. Nevermind students, the homeless. Of course, these people don’t matter in our empirical method of evaluating the humanity of people: their pocketbook.

    So, the fairness argument here is not so clear cut. If you want to reduce the clout money brings to the political process, you absolutely need to reduce spending caps, and hard. I mean, if every Canadian eligible to vote were to give $5000 per year, would we be well served by the >$100 billion per year that our political parties (etc.) would have at their disposal?

    • Anonymous

      I don’t think they would even have to raise the cap if they got rid of the other subsidies.  You guys seem to have a problem accepting the fact that the average Con supporter donates less than $200.00.  Also, the Libs and the NDP have plenty of supporters with enough money to donate as does the green party.  Even students in this country have $50.00 to $100.00 to donate if the incidence of alcohol poisoning and the numbers of young adults living with their parents is any indication.  What the real issue in all of this is the sense of “entitlement”.  You think the taxpayer should fund your party for you and at the same time, create a level playing field.  You feel that social programs such as medicare and old age pension should extend to politics.  When others disagree, you point out that 60% of Canadians didn’t vote for the Conservatives.  Well I have news for you, the last time the Liberals got more that 50% of the popular vote was 1967, yet Chretien and Trudeau had no problems leading their majority govts. like they did.

      • Anonymous

        All of this is irrelevant to the point that parties should not be wagged by the tail of highly motivated zealots/true believers who donate to political parties, regardless of whether they are social conservative fundamentalists or union members who want to keep their government jobs paying uneconomic wages and benefits. I can assure you that the people who donate to each party are not representative of the people who vote for that party. Thus the party is torn between representing people and representing dollars. 

        • Anonymous

          My mother, an 84 year old retired teacher, donated $100.00 toward her party. She hardly fits your criteria as a zeolot. You have no idea of who donates to the parties or whether or not they fit the criteria of who votes for the parties. This is purely speculation on your part.

          • Anonymous

            “ What the real issue in all of this is the sense of “entitlement”.  You think the taxpayer should fund your party for you and at the same time, create a level playing field”

            At the risk of repeating myself[ i've pointed this out now on at least a dozen occasions to cons like you who choose to bring out this old chestnut] Meanwhile you seem to have no problem lining up at the public through when you donate to your party using tax payer dollars that are not your own. Sorry, but it leads me to conclude you aren’t serious about public subsidy at all; merely wishing to have your partisan idealogical pov override other pov.

          • Anonymous

            I will repeat myself as well, I have no problem with getting rid of the tax benefit.  I am all for Andrew Coyne’s suggestion to get rid of all the subsidies and make the parties raise all their funds.  I do not think the parties should line up at the “public trough”.

          • Anonymous

            Well that’s not what’s on the table, so I suggest you go talk to your party about amending their budget to make it so.

          • Anonymous

            Well that’s not what’s on the table, so I suggest you go talk to your party about amending their budget to make it so.

          • Anonymous

            Yes, I will write a letter to the PMO.

          • Anonymous

            Yes, I will write a letter to the PMO.

          • Anonymous

            Is her party the NDP?

            I didn’t say that every person who donates to a party is a zealot (but maybe your grandmother is), but that zealots make up a much larger percentage of the body of political donors than they do the electorate at large. This is almost by definition. Zealots are highly motivated to give up time and treasure to see their agenda implemented. 40% of electors can’t be bothered to vote, much less donate to their party.

            Give me $100k or a research grant and I’ll do a public opinion survey to provide evidence to support my preposition. I’ll bet dollars to donuts that political donors are much more politically motivated than the broad electorate. Would you make a similar wager to the contrary?

          • Anonymous

            Is her party the NDP?

            I didn’t say that every person who donates to a party is a zealot (but maybe your grandmother is), but that zealots make up a much larger percentage of the body of political donors than they do the electorate at large. This is almost by definition. Zealots are highly motivated to give up time and treasure to see their agenda implemented. 40% of electors can’t be bothered to vote, much less donate to their party.

            Give me $100k or a research grant and I’ll do a public opinion survey to provide evidence to support my preposition. I’ll bet dollars to donuts that political donors are much more politically motivated than the broad electorate. Would you make a similar wager to the contrary?

          • Anonymous

            You assume my old mother is an dipper because she is a retired teacher….I’ll give you another hint…she is an Albertan.  As for giving you a $100K for a research grant… Andrew, are you hitting me up for a donation?

      • Anonymous

        Personally, I don’t believe anybody should fund my party for me.  On the other hand, that IS what you seem believe.  I am a taxpayer, and I believe that $2 of MY taxes should go to the party I support.  You, on the other hand, seem to believe that we should get rid of that and keep the system where my taxes reimburse YOUR party’s supporters for the donations they made to your party.  If your party is truly worthy of so much more money than mine, let them prove it the old fashioned way:  by earning that many more VOTES.

    • Anonymous

      I don’t think they would even have to raise the cap if they got rid of the other subsidies.  You guys seem to have a problem accepting the fact that the average Con supporter donates less than $200.00.  Also, the Libs and the NDP have plenty of supporters with enough money to donate as does the green party.  Even students in this country have $50.00 to $100.00 to donate if the incidence of alcohol poisoning and the numbers of young adults living with their parents is any indication.  What the real issue in all of this is the sense of “entitlement”.  You think the taxpayer should fund your party for you and at the same time, create a level playing field.  You feel that social programs such as medicare and old age pension should extend to politics.  When others disagree, you point out that 60% of Canadians didn’t vote for the Conservatives.  Well I have news for you, the last time the Liberals got more that 50% of the popular vote was 1967, yet Chretien and Trudeau had no problems leading their majority govts. like they did.

    • Anonymous

      I don’t think they would even have to raise the cap if they got rid of the other subsidies.  You guys seem to have a problem accepting the fact that the average Con supporter donates less than $200.00.  Also, the Libs and the NDP have plenty of supporters with enough money to donate as does the green party.  Even students in this country have $50.00 to $100.00 to donate if the incidence of alcohol poisoning and the numbers of young adults living with their parents is any indication.  What the real issue in all of this is the sense of “entitlement”.  You think the taxpayer should fund your party for you and at the same time, create a level playing field.  You feel that social programs such as medicare and old age pension should extend to politics.  When others disagree, you point out that 60% of Canadians didn’t vote for the Conservatives.  Well I have news for you, the last time the Liberals got more that 50% of the popular vote was 1967, yet Chretien and Trudeau had no problems leading their majority govts. like they did.

    • Anonymous

      I don’t think they would even have to raise the cap if they got rid of the other subsidies.  You guys seem to have a problem accepting the fact that the average Con supporter donates less than $200.00.  Also, the Libs and the NDP have plenty of supporters with enough money to donate as does the green party.  Even students in this country have $50.00 to $100.00 to donate if the incidence of alcohol poisoning and the numbers of young adults living with their parents is any indication.  What the real issue in all of this is the sense of “entitlement”.  You think the taxpayer should fund your party for you and at the same time, create a level playing field.  You feel that social programs such as medicare and old age pension should extend to politics.  When others disagree, you point out that 60% of Canadians didn’t vote for the Conservatives.  Well I have news for you, the last time the Liberals got more that 50% of the popular vote was 1967, yet Chretien and Trudeau had no problems leading their majority govts. like they did.

  • Anonymous

    The remaining problem here is that those who donate to political parties are not representative of the broader public. If we allow money to move elections, then parties will be slaves to their sources of funds. So highly motivated ‘zealots’ will have vastly disproportionate influence in our political process. Rather than moderating our politics, it will lead to more dog-whistle politics and highly dogmatic policy-making rather than sober decision-making based on the available facts in a way most Canadians would find reasonable.

    • Anonymous

      Oh poppycock!  These people are donating less than $200.00!  They aren’t zeolots.  They are the same people who donate to the Canadian Cancer Society, the Heart and Stroke Fund and other charities.  They feel moved to donate to their political party.  They aren’t buying influence with their $100.00 to $200.00 for goodness sake.  They want to feel they are contributing to something they believe in.  They can lower the caps to $200.00 and you will still be complaining  because these people will still be donating.  You do not want to donate to your party, that is your business, but don’t make this people out to have nefarious adgendas because they do.

      • Anonymous

        Poppycock back at ya! :)

        All those fundraising drives by good ole uncle Finley. Hitting up every body with a pulse who might vote conservative. Nothing wrong with motivated voters, but what i object to is the fear mongering and demagoguery this version of the CPC has raised to an art form.  

        • Anonymous

          I am happy to share my “poppycock” with you!  I just have an issue with being labelled a zeolot just because I throw a few dollars at my political party.  I will also be throwing a few dollars at the Wildrose party in Alberta just to help them get rid of “Special Ed Stelmack and the Conservatives”.

          • Anonymous

            I’m not labelling you a zealot for donating to a party. I’m guessing you have much stronger views on issues than the typical voter. Would you deny that?

            Making parties dependent on donations makes them dependent on the highly motivated–ie, those who have strong views on issues, so strong that they take food out of the mouths of starving African children to give money from their charity budget to a political party instead.

            Let’s be clear, I’d call myself a zealot too. I have much stronger political opinions than the mushy middle class independents who are swayed by arguments during elections. I’m usually a decided voter long before the election begins. McGuinty v Hudak is the first election where I haven’t had a solid decision six months before the vote. I’d venture that everyone who posts on the Macleans politics blogs are highly motivated, highly political people. People who are not representative of Canadians.

          • Anonymous

            I would not say that I have stronger views that the average voter.  I might say that I am more likely to donate to causes than your typical person.  I donate to a lot of causes.  I am one of those kind of people who feels impelled to help those who are impoverished in my community.  I have two foster plan foster children; I have taken in my husband’s niece & raised her.  I  give of my time and financial support to my extended family &  friends.  I have worked & been financially generous with the mentally ill.  I don’t know how you or I can be sure that we are not representative of the typical Canadian.

          • Anonymous

            I would not say that I have stronger views that the average voter.  I might say that I am more likely to donate to causes than your typical person.  I donate to a lot of causes.  I am one of those kind of people who feels impelled to help those who are impoverished in my community.  I have two foster plan foster children; I have taken in my husband’s niece & raised her.  I  give of my time and financial support to my extended family &  friends.  I have worked & been financially generous with the mentally ill.  I don’t know how you or I can be sure that we are not representative of the typical Canadian.

      • Anonymous

        “They want to feel they are contributing something they beleive in”

        Note the words “something they believe in”, consider the definition of zealot.

        The amount of the donation isn’t the issue at all, and you’re the only one who’s brought it up in this thread. The motivation behind it, and the type of party it encourages is.

        Private donations drive parties to the politics that serve the people who are willing to donate, ie, those who want to drive the political agenda in this country to some degree. This is a much smaller set of people than “voting citizens”, as the latter includes the vast majority of people who only get involved in politics during elections. During the between times, they expect their involvement during the election to have been enough to represent them.

        However, in a democratic system, we should have parties that represent all walks of people, not just those who want to drive the political agenda between elections.

        In fact, I’d go so far as to argue that that’s the idea which was behind the development of our periodic system of elections — that the populace will not be involved in politics most of the time. Now, I’d be willing to consider private donations if those to were restricted to only being advertised and collected during the political campaign. They still disadvantage the desperately poor, but they at least it doesn’t give advantage to the loonies like me who think that politics matter all the time.

      • Anonymous

        “They want to feel they are contributing something they beleive in”

        Note the words “something they believe in”, consider the definition of zealot.

        The amount of the donation isn’t the issue at all, and you’re the only one who’s brought it up in this thread. The motivation behind it, and the type of party it encourages is.

        Private donations drive parties to the politics that serve the people who are willing to donate, ie, those who want to drive the political agenda in this country to some degree. This is a much smaller set of people than “voting citizens”, as the latter includes the vast majority of people who only get involved in politics during elections. During the between times, they expect their involvement during the election to have been enough to represent them.

        However, in a democratic system, we should have parties that represent all walks of people, not just those who want to drive the political agenda between elections.

        In fact, I’d go so far as to argue that that’s the idea which was behind the development of our periodic system of elections — that the populace will not be involved in politics most of the time. Now, I’d be willing to consider private donations if those to were restricted to only being advertised and collected during the political campaign. They still disadvantage the desperately poor, but they at least it doesn’t give advantage to the loonies like me who think that politics matter all the time.

      • Anonymous

        “They want to feel they are contributing something they beleive in”

        Note the words “something they believe in”, consider the definition of zealot.

        The amount of the donation isn’t the issue at all, and you’re the only one who’s brought it up in this thread. The motivation behind it, and the type of party it encourages is.

        Private donations drive parties to the politics that serve the people who are willing to donate, ie, those who want to drive the political agenda in this country to some degree. This is a much smaller set of people than “voting citizens”, as the latter includes the vast majority of people who only get involved in politics during elections. During the between times, they expect their involvement during the election to have been enough to represent them.

        However, in a democratic system, we should have parties that represent all walks of people, not just those who want to drive the political agenda between elections.

        In fact, I’d go so far as to argue that that’s the idea which was behind the development of our periodic system of elections — that the populace will not be involved in politics most of the time. Now, I’d be willing to consider private donations if those to were restricted to only being advertised and collected during the political campaign. They still disadvantage the desperately poor, but they at least it doesn’t give advantage to the loonies like me who think that politics matter all the time.

        • Anonymous

          The only reason I brought up the amount of money is that Andrew Coyne brought it up in his article.  It is important because it dispels the myth that the people donating to the Cons are rich and that a few of them are giving a lot of money instead of  a lot of them a giving a small amount of money.
          So, tell me, are the people who want to contribute to something they believe in….a search for a cure for disease perhaps… and in doing so give money to the causes also “zealots”?  A zeolot by definition is someone who is “fanatical and uncompromising in their religious, political…ideals/beliefs”.  I am neither fanatical nor uncompromising.

        • Anonymous

          The only reason I brought up the amount of money is that Andrew Coyne brought it up in his article.  It is important because it dispels the myth that the people donating to the Cons are rich and that a few of them are giving a lot of money instead of  a lot of them a giving a small amount of money.
          So, tell me, are the people who want to contribute to something they believe in….a search for a cure for disease perhaps… and in doing so give money to the causes also “zealots”?  A zeolot by definition is someone who is “fanatical and uncompromising in their religious, political…ideals/beliefs”.  I am neither fanatical nor uncompromising.

  • Anonymous

    The remaining problem here is that those who donate to political parties are not representative of the broader public. If we allow money to move elections, then parties will be slaves to their sources of funds. So highly motivated ‘zealots’ will have vastly disproportionate influence in our political process. Rather than moderating our politics, it will lead to more dog-whistle politics and highly dogmatic policy-making rather than sober decision-making based on the available facts in a way most Canadians would find reasonable.

  • Anonymous

    The remaining problem here is that those who donate to political parties are not representative of the broader public. If we allow money to move elections, then parties will be slaves to their sources of funds. So highly motivated ‘zealots’ will have vastly disproportionate influence in our political process. Rather than moderating our politics, it will lead to more dog-whistle politics and highly dogmatic policy-making rather than sober decision-making based on the available facts in a way most Canadians would find reasonable.

  • Anonymous

    We’ve got two programs that provide a lot of cash to political parties, parties that play a significant role in how our democracy functions.

    In one program about 13 million people allocate about $26 million on behalf of about 26 million people.

    With the other program about 0.25 million people allocate about $20 million dollars on behalf of the same 26 million people.

    The first program strikes me as being about 40 times more democratic than the second program.

    • Anonymous

      Rewarding parties because people voted for them is democratic how?

      • Anonymous

        A pure democracy makes all decisions (eg how to allocate $20 million) by giving equal effect to the input of each citizen;  there is no weighting of input on any basis – financial or education or eloquence or other – beyond one citizen, one say.

        Here we have two programs that allocate similar amounts of taxpayer money to federal political parties.  One program involves input from a bit over 50% of the adult citizens, while the other program involves input from only 1% of the adult citizens.

        Clearly the first program is much more democratic than the second, since it takes the input of many more citizens into account.

      • Anonymous

        A pure democracy makes all decisions (eg how to allocate $20 million) by giving equal effect to the input of each citizen;  there is no weighting of input on any basis – financial or education or eloquence or other – beyond one citizen, one say.

        Here we have two programs that allocate similar amounts of taxpayer money to federal political parties.  One program involves input from a bit over 50% of the adult citizens, while the other program involves input from only 1% of the adult citizens.

        Clearly the first program is much more democratic than the second, since it takes the input of many more citizens into account.

    • Anonymous

      Rewarding parties because people voted for them is democratic how?

  • http://www.facebook.com/people/Peter-Sim/1051312331 Peter Sim

    I think the Mr. Coyne misses an important point. The goal of the per vote subsidy is not simply to eliminate disparities in funding but to promote diversity of political choice as a public good.

    There are more than two sides to any issue and Canadians as a whole benefit from having more than one or two viable national political parties. Canada is more united today because Quebec voters were able to choose a federalist option. That option would not have been available if subsidy had not permitted the NDP to run a full campaign in Quebec. Canada would be a weaker country if the distinctive voice of the Liberal party were lost. That may happen if the subsidy is eliminated.

    The problem with public goods is that it is difficult to fund them adequately through private donations alone. Economists have identified a number of obstacles.

    First, there is the “free rider” problem. A majority of Canadians may agree that maintaining a range of  political choice is in the public interest but so long as the system depends on private contributions alone, too many people will hope that their neighbours pay the cost. This is basically the same problem that arises with financing police protection, roads or any other service that benefits the public at large.

    The second obstacle is the transaction costs involved in political fund raising, A subsidy of $2.00 per voter is a minuscule amount for each individual to pay. The problem is that there is no cost effective way for parties to identify individual voters and collecting 2.00 from each of them.

    Parties address the problem of transaction costs by collecting larger amounts from a narrow base of voters. A fund raising campaign will generally try to turn political discourse from a public good to a private good by focusing on a few issues on which the base feels strongly, even if these positions do not have broad support in the electorate. A party which tries to be a “big tent” party and promote compromise positions will lose out.

    The per vote subsidy gives a party some breathing room to take a principled stand even if it offends some of its core supporters. We saw this in the current election when the NDP took a stand asbestos mining in the face of opposition from some major Quebec unions.

    Of course, these problems have always existed but they were less serious at a time when election campaigns depended much more on local candidates and volunteer work. Today there is no substitute for a national leader’s tour and a television ad campaign if a party wants to remain viable at the national level.

  • http://www.facebook.com/people/Peter-Sim/1051312331 Peter Sim

    I think the Mr. Coyne misses an important point. The goal of the per vote subsidy is not simply to eliminate disparities in funding but to promote diversity of political choice as a public good.

    There are more than two sides to any issue and Canadians as a whole benefit from having more than one or two viable national political parties. Canada is more united today because Quebec voters were able to choose a federalist option. That option would not have been available if subsidy had not permitted the NDP to run a full campaign in Quebec. Canada would be a weaker country if the distinctive voice of the Liberal party were lost. That may happen if the subsidy is eliminated.

    The problem with public goods is that it is difficult to fund them adequately through private donations alone. Economists have identified a number of obstacles.

    First, there is the “free rider” problem. A majority of Canadians may agree that maintaining a range of  political choice is in the public interest but so long as the system depends on private contributions alone, too many people will hope that their neighbours pay the cost. This is basically the same problem that arises with financing police protection, roads or any other service that benefits the public at large.

    The second obstacle is the transaction costs involved in political fund raising, A subsidy of $2.00 per voter is a minuscule amount for each individual to pay. The problem is that there is no cost effective way for parties to identify individual voters and collecting 2.00 from each of them.

    Parties address the problem of transaction costs by collecting larger amounts from a narrow base of voters. A fund raising campaign will generally try to turn political discourse from a public good to a private good by focusing on a few issues on which the base feels strongly, even if these positions do not have broad support in the electorate. A party which tries to be a “big tent” party and promote compromise positions will lose out.

    The per vote subsidy gives a party some breathing room to take a principled stand even if it offends some of its core supporters. We saw this in the current election when the NDP took a stand asbestos mining in the face of opposition from some major Quebec unions.

    Of course, these problems have always existed but they were less serious at a time when election campaigns depended much more on local candidates and volunteer work. Today there is no substitute for a national leader’s tour and a television ad campaign if a party wants to remain viable at the national level.

    • Anonymous

      The problem with the subsidy is that it never extended the the really small parties that are just starting out.  Further, I don’t think you have to worry about the dippers, they have 246,000 registered nurses across the country, making between 60K and 80K per year, not to mention the teachers, the autoworkers, the postal employees.  Even if they do alienate a few unions, they have plenty of support with others.  The question is whether they can get these people who can clearly afford to donate, to donate.

    • Anonymous

      The problem with the subsidy is that it never extended the the really small parties that are just starting out.  Further, I don’t think you have to worry about the dippers, they have 246,000 registered nurses across the country, making between 60K and 80K per year, not to mention the teachers, the autoworkers, the postal employees.  Even if they do alienate a few unions, they have plenty of support with others.  The question is whether they can get these people who can clearly afford to donate, to donate.

  • marc hewitt

    In a free and democratic society, isn’t it best if the people are fully informed? Won’t they make the best decisions only if they know a wide range of possibilities? Doesn’t this mean that parties should have an equal ability (within reason) to speak out on the issues of the day and present their views to citizens?

    One of the constraints on the equal ability of parties to present their views is the monetary resources that are available to them. To have truly free democratic discourse, the parties have to have an equal voice. The way to to do this is to give them all the same amount of money. In other words, have the government give each of the major parties a certain, equal amount of money. Then have another bracket for funding smaller parties, or regionally based parties.

    Only in this way can Canadians be appraised of all the options open to them

    • Anonymous

      And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

      Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

    • Anonymous

      And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

      Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

    • Anonymous

      And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

      Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

    • Anonymous

      And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

      Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

    • Anonymous

      With the current per-vote subsidy, small parties without at least 2 percent of the popular vote aren’t getting any money anyway. 

  • Anonymous

    And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

    Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

  • Anonymous

    And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

    Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

  • Anonymous

    And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

    Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

  • Anonymous

    And just to refine this idea a bit, I could easily support a system that funds every national party, no matter how many candidates they run and almost no matter  what they stand for, by giving them a certain amount per vote, up to a national maximum.

    Not exactly sure what the national maximum should be set at, but somewhere around $2 million sounds about right.

  • Anonymous

    Not too sure if it’s been pointed out, but if you want the party you voted for to receive $2.00, then send them $2.00.
     
    Pretty simple, I bet even a Liberal could figure it out.
     
    But then again, something should be said about being entitled to entitlements.
     

  • Anonymous

    Not too sure if it’s been pointed out, but if you want the party you voted for to receive $2.00, then send them $2.00.
     
    Pretty simple, I bet even a Liberal could figure it out.
     
    But then again, something should be said about being entitled to entitlements.
     

    • Anonymous

      Absolutely.

      And when you send that $2.00 to a political party of your choice, you are not entitled to have the taxpayer provide you with a $1.50 refund via your tax return.

  • Anonymous

    Not too sure if it’s been pointed out, but if you want the party you voted for to receive $2.00, then send them $2.00.
     
    Pretty simple, I bet even a Liberal could figure it out.
     
    But then again, something should be said about being entitled to entitlements.
     

  • Anonymous

    Not too sure if it’s been pointed out, but if you want the party you voted for to receive $2.00, then send them $2.00.
     
    Pretty simple, I bet even a Liberal could figure it out.
     
    But then again, something should be said about being entitled to entitlements.
     

  • Phil King

    I certainly agree that the donation subsidy should go. Allowing personal donations is in my opinion a neccesary concession to the equality principle, so at the very least we shouldn’t be amplifying its disproportionate influence with subsidies.

    However, if the equality principle mattered in our system, we’d keep the per vote subsidy. It’s ultimately the most equitable form of funding. It promotes attention to the population as a whole rather than special interest groups that are politically active. If you don’t have broad appeal, then you don’t have as much funding from this source. It is ultimately very democratic in this way.

    So here we are. The affluent and the politically active have made huge gains, while the influence of joe or jane-public has been marginalized.

    Denials are pointless. This is the result of the change. My $1K donation is far more powerful after this move than ever before, representing more influence on the parties than 200+ voters could deliver under the per vote subsidy, now magnified by the removal of said funding.

  • Phil King

    I certainly agree that the donation subsidy should go. Allowing personal donations is in my opinion a neccesary concession to the equality principle, so at the very least we shouldn’t be amplifying its disproportionate influence with subsidies.

    However, if the equality principle mattered in our system, we’d keep the per vote subsidy. It’s ultimately the most equitable form of funding. It promotes attention to the population as a whole rather than special interest groups that are politically active. If you don’t have broad appeal, then you don’t have as much funding from this source. It is ultimately very democratic in this way.

    So here we are. The affluent and the politically active have made huge gains, while the influence of joe or jane-public has been marginalized.

    Denials are pointless. This is the result of the change. My $1K donation is far more powerful after this move than ever before, representing more influence on the parties than 200+ voters could deliver under the per vote subsidy, now magnified by the removal of said funding.

  • Phil King

    I certainly agree that the donation subsidy should go. Allowing personal donations is in my opinion a neccesary concession to the equality principle, so at the very least we shouldn’t be amplifying its disproportionate influence with subsidies.

    However, if the equality principle mattered in our system, we’d keep the per vote subsidy. It’s ultimately the most equitable form of funding. It promotes attention to the population as a whole rather than special interest groups that are politically active. If you don’t have broad appeal, then you don’t have as much funding from this source. It is ultimately very democratic in this way.

    So here we are. The affluent and the politically active have made huge gains, while the influence of joe or jane-public has been marginalized.

    Denials are pointless. This is the result of the change. My $1K donation is far more powerful after this move than ever before, representing more influence on the parties than 200+ voters could deliver under the per vote subsidy, now magnified by the removal of said funding.

  • Phil King

    I certainly agree that the donation subsidy should go. Allowing personal donations is in my opinion a neccesary concession to the equality principle, so at the very least we shouldn’t be amplifying its disproportionate influence with subsidies.

    However, if the equality principle mattered in our system, we’d keep the per vote subsidy. It’s ultimately the most equitable form of funding. It promotes attention to the population as a whole rather than special interest groups that are politically active. If you don’t have broad appeal, then you don’t have as much funding from this source. It is ultimately very democratic in this way.

    So here we are. The affluent and the politically active have made huge gains, while the influence of joe or jane-public has been marginalized.

    Denials are pointless. This is the result of the change. My $1K donation is far more powerful after this move than ever before, representing more influence on the parties than 200+ voters could deliver under the per vote subsidy, now magnified by the removal of said funding.

  • Anonymous

    It is not that it is a toonie for each vote.  It is the principle for me.  Paved roads, universal healthcare, old age pension, social assistance/welfare are necessary for the health and wellbeing of the entire population in very tangible ways.  You have yet to convince me that the doom and gloom scenario of removing the vote subsidy will come to pass when the subsidy was only brought in 7 years ago.  Look at Ms. Brousseau, the new NDP MP from Quebec who did no fundraising and no campaigning.  She actually spent much of the election in Las Vegas but her party should receive money for everyone who voted for her?

    • http://www.facebook.com/people/Peter-Sim/1051312331 Peter Sim

      What Ruth Ellen Brosseau did was to give the voters in her riding a chance to reject a moribund Bloc and endorse a party and a leader that they admired.

    • http://www.facebook.com/people/Peter-Sim/1051312331 Peter Sim

      What Ruth Ellen Brosseau did was to give the voters in her riding a chance to reject a moribund Bloc and endorse a party and a leader that they admired.

      • Anonymous

        Yes, she is a veritable Mother Theresa.  Far be it for people like me to criticize her in anyway but you feel free to say as many derogatory things as you can think of about people like me that donate $100.00 to our political party during an election.

      • Anonymous

        Yes, she is a veritable Mother Theresa.  Far be it for people like me to criticize her in anyway but you feel free to say as many derogatory things as you can think of about people like me that donate $100.00 to our political party during an election.

  • Anonymous

    I do not see how it is a viable principle that all political parties should be funded only by people with their own money.  There are many voters who do not have the resources to financially support a political party but have the right to register their support with some of their tax money.  Some may not have the income to even pay taxes at a stage in their life, but still have the right to register their support.   In my opinion, the direct subsidy was a means to that end.  

    Those who have limited resources and thus pay very little in taxes may expand their power financially by having a tax credit.  This helps to level the playing field by permitting the poor to have a greater financial clout than would be the case with no tax credit.  I think that adjustments to the system should take this into account.  To do otherwise is to go back to a system that gives the wealthy segment of the population all the power.  We all know who benefits most from that!

  • http://pulse.yahoo.com/_5QPXNNHM3YM2MZI6IOB3HLZAZE David

    Andrew’s logic and Harper’s argument is flawed from the very outset.  Taxpayers are NOT subsidizing parties they don’t vote for!  Parties only get $2 for every vote they get.  If you don’t vote for Liberals, then the liberals don’t get your money.  If you vote for a Conservative, then the Conservatives get your money….

From Macleans