The explosion of small-donor political contributions is often celebrated and extolled as one of the few positive developments amid all the problems facing the democracy reform movement.
Not so fast, argues New York University law school professor Richard Pildes. In a new essay published in the Yale Law Journal Forum, he argues the proliferation of modest contributions to candidates may be contributing to more political polarization and, at least, requires more careful examination.
Pildes also says the proposals to promote more small-donor giving that are part of the House Democrats' comprehensive political process overhaul, known as HR 1, could have unintended negative consequences.
"Small donors are seen as purifying forces who will reduce political corruption and the influence of large donors, make politics more responsive to the 'average' citizen and encourage more widespread political participation," he writes in describing the surge in online giving to presidential and congressional candidates in amounts below $200, the cutoff for full disclosure of a donor's identity.
"While we now worry about whether democracy writ large can survive the internet, many think the internet can guide us toward salvation when it comes to the role of money in elections," he wrote. "The question posed here is whether the concerns that have emerged about the internet and democracy should suddenly disappear when it comes to fundraising, or whether we need to reflect more on how those same concerns might also apply to the internet's empowerment of small donors.
The increase in the number of people giving small amounts is a fairly recent phenomenon, beginning in 2004 with Democratic presidential candidate Howard Dean and then growing dramatically in Barack Obama's two campaigns.
In time for last year's midterm elections, the small-donor phenomenon expanded to congressional races, with Democratic candidates benefitting more than Republicans. Democratic Senate candidates raised more than a quarter of their funds from small givers and the party's House candidates raised 16 percent of their cash that way.
Much of the credit goes ActBlue, a Democratic-backing online giving platform, which Republicans have now replicated with WinRed.
Pildes points out that the number of small donors has now become a criteria that Democratic presidential candidates must meet in order to qualify for televised debates. But, he says, it actually costs some of these candidates more to attract these small donors than the amount they raise.
Of greater concern, he said, is whether the growth in small donors contributes to political polarization. One major study, he said, found that small donors contribute more to ideologically extreme candidates than did other individual donors.
For the professor, one worrying aspect of the House-passed but Senate-stymied HR 1 — and similar proposals made by some Democratic presidential candidates — is the idea of providing federal matching funds to candidates based on their success with small-dollar contributions. Doing that, he argued, could exacerbate the negative impact of small giving.
He concludes that proponents of small donations are so focused on one dimension of a problem that they "can develop tunnel vision that obscures the costs of their reforms along other dimensions of democracy."
Eric Trump, the newly appointed ALT5 board director of World Liberty Financial, walks outside of the NASDAQ in Times Square as they mark the $1.5- billion partnership between World Liberty Financial and ALT5 Sigma with the ringing of the NASDAQ opening bell, on Aug. 13, 2025, in New York City.
Why does the Trump family always get a pass?
Deputy Attorney General Todd Blanche joined ABC’s “This Week” on Sunday to defend or explain a lot of controversies for the Trump administration: the Epstein files release, the events in Minneapolis, etc. He was also asked about possible conflicts of interest between President Trump’s family business and his job. Specifically, Blanche was asked about a very sketchy deal Trump’s son Eric signed with the UAE’s national security adviser, Sheikh Tahnoon.
Shortly before Trump was inaugurated in early 2025, Tahnoon invested $500 million in the Trump-owned World Liberty, a then newly launched cryptocurrency outfit. A few months later, UAE was granted permission to purchase sensitive American AI chips. According to the Wall Street Journal, which broke the story, “the deal marks something unprecedented in American politics: a foreign government official taking a major ownership stake in an incoming U.S. president’s company.”
“How do you respond to those who say this is a serious conflict of interest?” ABC host George Stephanopoulos asked.
“I love it when these papers talk about something being unprecedented or never happening before,” Blanche replied, “as if the Biden family and the Biden administration didn’t do exactly the same thing, and they were just in office.”
Blanche went on to boast about how the president is utterly transparent regarding his questionable business practices: “I don’t have a comment on it beyond Trump has been completely transparent when his family travels for business reasons. They don’t do so in secret. We don’t learn about it when we find a laptop a few years later. We learn about it when it’s happening.”
Sadly, Stephanopoulos didn’t offer the obvious response, which may have gone something like this: “OK, but the president and countless leading Republicans insisted that President Biden was the head of what they dubbed ‘the Biden Crime family’ and insisted his business dealings were corrupt, and indeed that his corruption merited impeachment. So how is being ‘transparent’ about similar corruption a defense?”
Now, I should be clear that I do think the Biden family’s business dealings were corrupt, whether or not laws were broken. Others disagree. I also think Trump’s business dealings appear to be worse in many ways than even what Biden was alleged to have done. But none of that is relevant. The standard set by Trump and Republicans is the relevant political standard, and by the deputy attorney general’s own account, the Trump administration is doing “exactly the same thing,” just more openly.
Since when is being more transparent about wrongdoing a defense? Try telling a cop or judge, “Yes, I robbed that bank. I’ve been completely transparent about that. So, what’s the big deal?”
This is just a small example of the broader dysfunction in the way we talk about politics.
Americans have a special hatred for hypocrisy. I think it goes back to the founding era. As Alexis de Tocqueville observed in “Democracy In America,” the old world had a different way of dealing with the moral shortcomings of leaders. Rank had its privileges. Nobles, never mind kings, were entitled to behave in ways that were forbidden to the little people.
In America, titles of nobility were banned in the Constitution and in our democratic culture. In a society built on notions of equality (the obvious exceptions of Black people, women, Native Americans notwithstanding) no one has access to special carve-outs or exemptions as to what is right and wrong. Claiming them, particularly in secret, feels like a betrayal against the whole idea of equality.
The problem in the modern era is that elites — of all ideological stripes — have violated that bargain. The result isn’t that we’ve abandoned any notion of right and wrong. Instead, by elevating hypocrisy to the greatest of sins, we end up weaponizing the principles, using them as a cudgel against the other side but not against our own.
Pick an issue: violent rhetoric by politicians, sexual misconduct, corruption and so on. With every revelation, almost immediately the debate becomes a riot of whataboutism. Team A says that Team B has no right to criticize because they did the same thing. Team B points out that Team A has switched positions. Everyone has a point. And everyone is missing the point.
Sure, hypocrisy is a moral failing, and partisan inconsistency is an intellectual one. But neither changes the objective facts. This is something you’re supposed to learn as a child: It doesn’t matter what everyone else is doing or saying, wrong is wrong. It’s also something lawyers like Mr. Blanche are supposed to know. Telling a judge that the hypocrisy of the prosecutor — or your client’s transparency — means your client did nothing wrong would earn you nothing but a laugh.
Jonah Goldberg is editor-in-chief of The Dispatch and the host of The Remnant podcast. His Twitter handle is @JonahDispatch.