When Did We Transition From Governance by the Populace to Governance by Wealth, and How Can We Reclaim Democracy?

The evolution of governance from the hands of the many to the pockets of the few prompts a critical inquiry: Is the essence of democracy, governance by the people, quietly morphing into governance by wealth? This pivotal question beckons us to consider whether systemic overhaul or preservation is the path forward. Anchoring our exploration in the insights and proposals of “Saving Capitalism,” a film and book by Professor Robert Reich, we critically assess the solutions it puts forth.

Democracy is heralded as the rule by the people, a representative framework where each citizen’s voice contributes to shaping the political terrain. This system empowers citizens to elect representatives who then advocate on their behalf, grounded in the principle of equality among all citizens, ensuring every vote holds equal significance. The essence of democracy thrives on majority rule. Contrastingly, plutocracy paints a scenario where wealth commands governmental control, both overtly and covertly, fostering significant disparities and obstructing the fluidity of power dynamics. Often, plutocracy is not a deliberate target but a circumstance nations inadvertently encounter.

Transition from Democracy to Wealth Dominance

“Saving Capitalism” explores the escalating sway of capitalists over political agendas, a trend burgeoning over the past century. Reich, a luminary in economic policy and political activism and a former Labor Secretary under Clinton, delineates two primary mechanisms of this influence:

Donations and Lobbying: The U.S. sees an unparalleled surge in political campaign contributions, a realm where no caps exist on donation amounts. Additionally, corporations channel billions into lobbying efforts to sway governmental decisions in their favor, thus averting potential legislative or regulatory detriments. Although lobbying is ostensibly accessible to all, the financial heft of corporate America significantly overshadows other groups, funneling “dark money” into the political domain.

Legislation: Recent decades have witnessed a legislative shift toward deregulation, epitomized by the repeal of the Glass-Steagall Act in 1998, coupled with governmental subsidies to corporate giants in technology, agriculture, and energy sectors. This paradigm cultivates a corporate welfare ecosystem, disproportionately benefiting the conglomerates.

Revitalizing Democracy

The cornerstone of democracy, majority rule, compels us to scrutinize: Does democracy currently serve the majority’s interests? Evidently, democracy now appears to skew in favor of a powerful minority — the capitalists. Analysis by Princeton and Northwestern universities, reviewing legislation from 1982 to 2002, indicates a pronounced bias, with laws benefiting large corporations and the affluent enjoying a 60% passage rate, as opposed to a meager 30% for other laws, underscoring a stark disparity in policy influence.

To fortify democracy, proactive engagement is paramount. The prevailing state of affairs, particularly in the United States, reveals a government that falls short of genuinely representing its citizenry, with the capitalist elite dictating the primary political narrative.

Striving for Power

The gradual tilt of democracy towards plutocracy in the United States can be understood through power dynamics theories. Friedrich Nietzsche, over 150 years ago, posited that the drive for power fundamentally motivates human action. This quest for power is an endeavor to orchestrate and control one’s existence, rooted in a deep-seated psychological need to navigate beyond life’s unpredictability and assert significance against nature’s indifference. Nietzsche believed the pursuit of power elucidates all human impulses, earmarking power as the ultimate objective.

The morphing into plutocracy exemplifies this power aspiration within economic and political spheres. Given the direct impact on human lives through legislation and policy, both capitalists and politicians seek to amplify their influence. Politicians rely on the affluent for campaign funding in their quest to retain power, while capitalists seek favorable legislative and policy landscapes to expand their dominion. This symbiotic relationship perpetuates the status quo, diverging from the democratic ethos of comprehensive representation.

Who is at Fault?

Attributing the current state to capitalism alone is an oversimplification. The capitalist doctrine, which glorifies minimal intervention and idolizes the free market, coincides with an ever-widening economic divide. However, historical analysis reveals that alternate economic systems, like communism, have also culminated in power being monopolized by a few. The disintegration of the Soviet Union ushered in an oligarchy in Russia, fostering a form of plutocracy. Similarly, regimes like China and North Korea, despite their non-capitalist stances, fall short of embodying public interest, highlighting a vacuum of democratic governance under non-capitalist models.

Reich contends that the difficulty lies not within capitalism itself but in its misinterpretation and misapplication. Recognizing this nuance is pivotal for initiating substantive reform.

Saving Capitalism

Capitalism, anchored in liberal ideology, posits property rights as fundamental to individual liberty. This notion, which sanctifies freedom, typically merges with democratic governance, acknowledging human rights and ensuring equality among citizens. Contrary to the prevalent belief that capitalism necessitates governmental non-intervention, the U.S. narrative demonstrates significant economic engagement by the government. For instance, the deregulation contributing to the 2008 financial debacle led to governmental takeovers of banks and insurance entities, starkly contrasting the non-interventionist dogma.

Reich advocates shifting the debate from the necessity of government intervention to ensuring such intervention aligns with the majority’s benefit. He champions collective action as a means to pressure legislators into enacting policies reflective of the public will. This strategy is pivotal for steering capitalism back towards its democratic essence, where power is derived from collective action rather than wealth alone. Movements such as labor unions, Occupy Wall Street, and the 2011 social protests in Israel exemplify the potential of organized groups to influence legislative outcomes, providing a roadmap for reforming capitalism and redirecting the system toward democracy.

The Challenge Ahead

As democracy globally appears to drift towards plutocracy, the crux of the issue is not capitalism itself but the absence of viable alternatives that promote equality and sustain democratic principles. Reich calls for rejuvenating capitalism by establishing power centers based not on wealth but on social and political organization. However, such an organization demands a unified, informed foundation, traditionally facilitated by the media. In an era dominated by misinformation and information saturation, the role of independent media as a cohesive force remains uncertain.

Who will guard the guardians of democracy?