MacArthur proposes private investment in public programs
Your tax dollars support government programs, regardless of their efficiency. How about a privately-funded beta test, to minimize the waste potential of every dollar?
That's the essence of the Social Investment Taskforce proposed in Congress by shore Representative Tom MacArthur (R-3) and Democrat House colleague John Delaney of Maryland.
Social investing applies private capital to public problems, and incorporates the financial sector, philanthropic groups, nonprofts, and think tanks in a quest to create social change.
MacArthur and Delaney single out the Pay for Success model for effectiveness. Once a social malady has been identified by the government, private-sector dollars create the capital to develop a remedy. Investors are repaid only on the condition that the program meets its goals.
They also highlight Impact Investing, in which money is directed to undertakings that achieve some level of positive impact while also generating a financial return.
"Social investment is an important tool with endless possibilities to solve social problems and save taxpayer dollars at the same time," MacArthur said in prepared remarks. "When the power of market forces and private capital are harnessed, problems are solved more efficiently, American taxpayers benefit, and local communities are uplifted."
Delaney concurred, saying, "Americans on both sides of the aisle are hungry for new solutions to old problems and expect us to deliver policies based on results, not ideology. Investors are also looking for ways to have their money directed towards helping society."