Saturday, November 7, 2015

Is Capitalist Democracy an Oxymoron?

When democracy is discussed by social scientists, there are a variety of different definitions used, ranging from very broad to extremely specific. Many of these social scientists establish a set of criteria, such as free and fair elections, protection of civil liberties, and the possibility of participation in government by all citizens. However, if you asked someone on the street to tell you what “democracy” is, you would probably get an answer like “government by the people.” Although it seems overly simplistic, this definition is crucial to truly evaluating a society and government. All the elections in the world won’t matter unless the government’s actions are truly reflective of the public’s wishes.
            Evaluating democracy with this broad conceptual definition, it is immediately apparent to most people that the United States as it exists today cannot be called a true democracy. There have been numerous studies by political scientists analyzing the correlation between policy preferences of the majority and actual policy outcomes that have revealed a sharp disconnect between public opinion and public policy in crucial areas such as taxes, health care, war and peace, and a multitude of other issues. With this knowledge, the crucial sociological question is, “How does this happen?” The United States clearly has many democratic functions such as elections and general protections of civil liberties, yet the policies that emerge from government do not seem to reflect the wishes of the people.
            At this point it is important to ask the right question. Instead of asking “why are people not getting what they want from government?”, it is more useful to ask “who IS getting what they want?” The answer is, quite simply, the rich and the very rich. In a broad study of the relationship of public opinion to public policy, political scientists Benjamin Page of Northwestern University and Martin Gilens of Princeton University found that ordinary citizens “have little or no independent influence on policy at all.” But they also found that “economic elites are estimated to have a quite substantial, highly significant, independent impact on policy.” The graphs from their study shown below display this sharp divide in political influence.

The source of this discrepancy in influence between average citizens and the very wealthy is generally identified as campaign finance laws, which allow extremely wealthy individuals and corporations to spend massive amounts of money on behalf of political candidates. In Categorically Unequal, Massey briefly discusses campaign financing and political polarization as two of the potential sources of increasing social stratification. However, although campaign financing clearly increases the degree to which politicians are beholden to elite interests, the inequality that is inherent in capitalist economic systems is at least as important as specific contributions to candidates.
An economic system premised on the private ownership of capital and continuously increasing profits will inevitably produce inequality between the owners of capital and the working class who must sell their labor to those owners. In order to stay competitive in a capitalist market, businesses must seek to minimize costs. Because one of the most significant costs to production is labor, the workers are at the mercy of wealthy elites who will try to pay them as little as possible while still keeping productive output high. In addition, monopolies and oligopolies, which are encouraged by the capitalist market, produce even more inequality between wealthy elites and everyone else. This is the source of such extremely unequal distributions of wealth as seen in the United States.

With such extreme inequality, true democracy is a somewhat unrealistic dream. In a capitalist society, power accompanies wealth and, although financing political candidates is one part of this, it is not the only source. Because the wealthy elites own the major corporations in society, politicians can never make any threatening moves towards them without risking the collapse of the entire economy. This is clearly evident in the existence of “too big to fail banks” and other large companies. Regardless of whether or not these corporations donate money to politicians’ campaigns, they have a massive amount of power over their decisions simply by their size and economic power. The rise of globalization and the global economy have furthered this process by allowing transnational corporations to move their labor-intensive operations abroad in order to escape the regulations that the United States’ government places on them. Because of this, there is always the implicit threat of offshoring by corporations owned by wealthy elites and their demands are not taken lightly by the political class.
In examining the relationship of capitalism to democracy, it appears clear that the famous public intellectual Noam Chomsky is correct when he says, “until major institutions of society are under the popular control of participants and communities, it’s pointless to talk about democracy.” And it appears that the public agrees. A survey by the Pew Research Center found that 77% of respondents believe that “a few rich people and corporations have too much power” in the United States. Political power is not simply limited to “politics” as it is commonly discussed and the structures of capitalist economic systems are severe deterrents to the possibility of a democracy which reflects the wishes of all citizens rather than those of a small economic elite.

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