First, social media wanted to tell us what we could and couldn’t post. Then, Amazon decided that it wanted to ban a site that it didn’t like. Now, the financial institutions want to step into the political ring. Their gloves are off and they’re already swinging, too.
Pro-Trump politicians and various political action committees are in for a rude awakening. Donations are halted. Why? Because the banks said so.
Major financial institutions, starting with J.P. Morgan Chase, have decided to halt donations through its PAC fox six months. Citigroup has chosen to do the same for at least the first quarter.
If the banks aren’t going to make political donations as they have done in the past, politicians could see a significant drop in their ability to raise the necessary funds to promote themselves throughout the various election cycles.
Essentially, the banks don’t want to give money to anyone who tried to overturn the elections. Goldman Sachs wants to review “how people acted” before they send out another penny. What does this mean? It is possible that Republican politicians will be excluded from receiving donations if they challenged the 2020 election results.
Morgan Stanley has announced that they, too, will stop making political contributions – and may also withdraw support from any politician who voted against certifying Biden’s win in the Electoral College. Such a move could put a number of members of the GOP in serious trouble.
Other banks, including Wells Fargo and Bank of America, are still reviewing their policies. However, it is anticipated that they’ll follow suit with the rest of the financial institutions.
Now, is it a good thing that the banks aren’t donating? Some would say yes. Many Americans believe that banks contributing to politicians and political action committees are a horrible way for money and politics to meet. Now, though, banks get to look like saints by ensuring that they’re not backing any politicians that are seen in a negative light.
The banks are setting a dangerous precedent that could impact politics for decades to come. Plenty of members of Corporate American have closed off donations, too. This includes Blue Cross Blue Shield, Boston Scientific, and Marriott.
No one wants to give to a political party right now because of how politically charged the country is. If they give to a Democrat, Republicans get mad and if they give to the GOP, the Democrats get mad.
Sales are already down because of the pandemic. Risking a donation to the wrong side is suicide. No one in Corporate America is going to take the chance of being boycotted because they supported someone. So, until the politics cool down a bit across America, no one is going to get any money.
What does that mean for the political action committees? It means that there won’t be enough money to campaign for various candidates, legislation, or ballot initiatives. Certain ideas may never make it to the floor in Capitol Hill because of not having enough funding.
While the elections are over, insufficient funding for candidates could be dangerous, too. Congress will have another round of elections in 2022 – and many will start their fundraising and campaigning efforts this year.
Any politician who is serious about running for office will raise $10 million or more throughout their campaign. For the 2019-2020 year, Nancy Pelosi raised over $25 million. AOC raised $18.9 million. Dan Crenshaw raised $19 million.
Without the help of banks, political action committees, and Corporate America, those numbers are going to decrease dramatically for the 2021-2022 year. Politicians will have to look for donations from the general public as well as for companies that have already drawn a clear line in the sand for which side of the political arena they stand on – like Nike for the Dems and Coca-Cola for the GOP.
If anything, the banks’ move to halt donations is giving everyone time to think about whether they want to pick sides now or in the future, forever changing the amount of money that can be raised.