ABSTRACT
Enacting effective campaign finance reform into law would cause two major changes: First, the Democratic Party would become much stronger, following a decades-long decline in its voter base. Second, the economy of the United States would become much stronger. Effective campaign finance reform would put an end to the misallocation of national resources. Whether campaign reform would lead to major policy changes is subject to one additional doubt. A large reallocation of wasted federal resources would support a variety of public investments that would increase productivity. If new public investments fueled faster growth in US productivity, the incomes of most Americans would increase dramatically over a relatively short period of time. The main economic effect of campaign reform would be to trigger a reallocation of resources that would increase productivity and reduce inequality, and thus transform the American economy while helping it avoid the British Disease.
