April 16, 2014
We noted last year:
American democracy – once a glorious thing – has devolved into an oligarchy, according to two leading IMF officials, the former Vice President of the Dallas Federal Reserve, thehead of the Federal Reserve Bank of Kansas City, Moody’s chief economist and many others.
But don’t take their word for it …
A new quantitative study by Princeton’s Martin Gilens and Northwestern’s Benjamin Page finds that America is not a democracy … but is an oligarchy.
Here’s a quick visual overview from the study:
Highlights from the study:
A great deal of empirical research speaks to the policy influence of one or another set of actors, but until recently it has not been possible to test these contrasting theoretical predictions against each other within a single statistical model. This paper reports on an effort to do so, using a unique data set that includes measures of the key variables for 1,779 policy issues.
Economic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy, while mass-based interest groups and average citizens have little or no independent influence. Our results provide substantial support for theories of Economic Elite Domination and for theories of Biased Pluralism, but not for theories of Majoritarian Electoral Democracy or Majoritarian Pluralism.
Very few studies have offered quantitative evidence concerning the impact of interest groups based on a number of different public policies.
Prior to the availability of the data set that we analyze here, no one we are aware of has succeeded at assessing interest group influence over a comprehensive set of issues, while taking into account the impact of either the public at large or economic elites – let alone analyzing all three types of potential influences simultaneously.
The chief predictions of pure theories of Majoritarian Electoral Democracy can be decisively rejected. Not only do ordinary citizens not have uniquely substantial power over policy decisions; they have little or no independent influence on policy at all.
By contrast, economic elites are estimated to have a quite substantial,highly significant, independent impact on policy.
These results suggest that reality is best captured by mixed theories in which both individual economic elites and organized interest groups (including corporations, largely owned and controlled by wealthy elites) play a substantial part in affecting public policy, but the general public has little or no independent influence.
When a majority – even a very large majority – of the public favors change, it is not likely to get what it wants. In our 1,779 policy cases, narrow pro-change majorities of the public got the policy changes they wanted only about 30% of the time. More strikingly, even overwhelmingly large pro-change majorities, with 80% of the public favoring a policy change, got that change only about 43% of the time.
Our findings probably understate the political influence of elites.
What do our findings say about democracy in America? They certainly constitute troubling news for advocates of “populistic” democracy, who want governments to respond primarily or exclusively to the policy preferences of their citizens. In the United States, our findings indicate, the majority does not rule — at least not in the causal sense of actually determining policy outcomes. When a majority of citizens disagrees with economic elites and/or with organized interests, they generally lose. Moreover, because of the strong status quo bias built into the U.S. political system, even when fairly large majorities of Americans favor policy change, they generally do not get it.
If policymaking is dominated by powerful business organizations and a small number of affluent Americans, then America’s claims to being a democratic society are seriously threatened.
And not only do we not have democracy, but we also no longer have a free market economy. Instead, we have fascism, communist style socialism, kleptocracy, banana republic style corruption, or – yes – “oligarchy“.