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Forum Post: Non-Governmental Organizations: Why the Government can, and should provide funding

Posted 12 years ago on Dec. 10, 2011, 2:08 a.m. EST by cbarrero (0)
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I would like to give some perspective on how our antiquated modes of thought have continued to shock our efforts to improve society. By shock, I mean the ability of non-for-profit programs to lose their essential funding life-line on the whim because of constrained budgets. The communities that are typically served by these organizations do not have the same quality of tools available to them as suburban community in comparison to the urban population. These programs and funding, which are the first on the chopping block when "funds get tight," are generally agreed as necessary. Therein, the problem lies on how we determine what is, or is not necessary for receipt of funds.

Because of this, many communities find themselves at the mercy of local and national mega corps for their "generosity" to share the wealth of the profits they collect. Why is it that we see the same mega corps as benefactors when they are also a source of the problem? It is because they are the legal dark force that brings pain and suffering in their monopolies or, in many cases, oligopolistic duopolies that control prices and overall productive capacities. This control is then exercised in a way that makes it near impossible for anyone lacking huge capital resources to make a real competitive entry to the market. One only needs to visit a local supermarket and see the varying brands for similar goods that happen to fall under the same ownership. This ownership gives an illusion that we ultimately have a breadth of choice when it comes to our daily purchase of commodities. Through this illusion we are taught to believe in an "American Dream" that has transformed into an ideological concept of the past. Just as strongly, we hold on to religious beliefs; we hold onto this notion that one day we may stand the chance of becoming part of the financial elite. These mega corps are therefore dark because they would rather limit their productive capacities, than use their position to create more employment along with better prices.

It is therefore, only when tax law is arranged to the benefit of the giving mega corps, that in reality the same tax dollars they save are paid back by the government that is installed for the better welfare of the public. This is where I take issue with the broken government system. A multi-million dollar entity receives a tax credit, which is greater than the net amount they would have kept without participating in the "welfare" of the community. This of course can only be accomplished through the heavy financial influence mega corps use to fund campaigns. The laws are written to favor the privileged, and the same entities or people will always be at a greater advantage. Because of this it is only by chance one will be able to have the stories of success that are linked to the fabled "American Dream." This dream is the driving motivation that gets taught through NGO's (non-governmental organizations), who use the "benevolent resources" the mega corps provide with the expectation of results. These results typically include some form of programming that is also beneficial to the think tank process that maintains the status quo.

From the above, we can conclude that facilitating the same process will only lead to another cycle of great hope that will only be eclipsed by despair of the booms and busts of the economy. I therefore call that NGO’s work has to fall under a second "New Deal" such as the Works Progress Administration (WPA) at the government level. One will call to question the viability given the financial constraints a government budget will have. My argument relies on the following few facts:

• Money is just a medium of exchange

• Our monetary system is that of a FIAT currency which we hold sovereign

• Our only government constraint on money supply for budgets is its will to create the funds through deficit fiscal policy

• Profits of the private sector have greater surplus so long the government has a deficit budget

• That full employment will lead to better price stability and overall better welfare of its populace

• And inflation can only occur when the global economy finds itself in a state of full employment at which point government deficit spending is no longer necessary.

Given the above, there is absolutely no reason why government policy should favor paying the private sector in the form of a tax break in order to fulfill its role being that they are elected by "the people, for the people." Hence this is where the fallacy of the NGO’s work lies because it is forced to accept what they can get. There should not be an issue of filling the gap where government gaps fail to provide. We owe it to ourselves to take action, to push for the right processes, and to use our democratic rights to return a government of "the people, for the people." It is only when we use the powerful tool, especially in regards to fiscal policy that we can in turn improve the welfare for the business sector along with the public.

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[-] 1 points by ubercaput (175) from New York City, NY 12 years ago

I would argue that a NGO should get n Dollar from the government for a Dollar donated depending on the number of donations and a its gini coefficent.

Meaning: when an association gets from 1000 members 50$ of membership fees (50 000$ in total) it would get with n=0.5 25000$ from the government. It's like a negative tax based on donations.

[-] 1 points by ubercaput (175) from New York City, NY 12 years ago

How does the gini coefficent get into that? When 99 members donate 1 Dollar and one member 49 901$ it would result in a different gini coefficient.

The government would donate additionally n(1-Gini)sum(donations) n multiplicator Gini: gini index over the donations