Concerned Citizens

The CONCERNED CITIZENS GUIDE

to our

AMERICAN DEMOCRACY

CHAPTERS

NOTE: Links to the Prologue and Introduction Chapter are below; Manuscript readers can access the full text of other Chapters from the Preview Reader’s Page.

The Guide will be available in E-book and print form in early 2011.

PROLOGUE

The lack of real change shows the problems are deeper than people and process, they are structural, and thus the starting point must be to ask the really fundamental questions: What role can “The People” realistically play in a democracy; if “The People” don’t control, who does; how does misinformation affect the political process; and how can the interests of elites and special interests be better aligned with common, national interests?

Chapter 1: INTRODUCTION

The most important problem facing our American Democracy isn’t health care, or global warming, or the environment, or alternative energy, or crime, or innovation and job creation, or the deficit, or even terrorism, but rather that our American government in fundamental ways isn’t working – as well as in the past, and certainly not as well as will be needed in the future.

Why does the wealthiest nation in the world have to borrow money from China, Japan, Saudi Arabia and at least 25 other countries to finance its government? Why has our dependency on imported oil increased from 28% in 1970 to over 65% today? Why do U.S. schoolchildren spend less time each day and each year in the classroom than schoolchildren in other developed countries?

These and too many other troubling questions raise the really big questions why our American democracy isn’t working, and what can be done to fix it… and this requires going back to basics for a big picture view and analysis.

Chapter 2: FORMS OF GOVERNMENT

For those who have forgotten their civic class, or never had one, a brief review of the various forms of government and types of democracies provides an essential starting point.

Americans have assumed the universal superiority of democracy in general, and the superiority our unique American form of democracy in particular. However, both assumptions can be questioned.

Chapter 3: TEXTBOOK DEMOCRACY

The first branch of the analysis is the classic, textbook theory that “The People” control our American Democracy. Of course, if democracy depends on an electorate that is well informed about all candidates and issues, it expects too much and never has been or ever will be.

The role of “The People” has always been far less than the idealized model of an informed citizenry. However, at a minimum, democracy depends on an electorate that is informed enough to know when their representatives make decisions that do not represent their, and the nation’s, best interests. And the ultimate question is how many voters have to be how well informed to make democracy work.

Chapter 4: MISINFORMATION & DISINFORMATION

Democracy depends on a sufficient part of the electorate (a) having adequate and good information available so they can become well informed, and (b) willing to make the effort to be informed. But the crucial key to a successful democracy is not just the quantity but the quality of the information held by voters, i.e. how accurate is as important as how much.

While little attention has been directed to the role of misinformation, disinformation, and propaganda in a democracy, it is critical because while uninformed voters have a 50% chance of guessing correctly, misinformed voters have a zero percent chance. And worse, too many times the misinformation is the result of a deliberate disinformation campaign designed to mislead voters.

Chapter 5: ELITES & SPECIAL INTERESTS

The second branch of the analysis holds that elites and special interests control, and the realists look at the appalling lack of knowledge by citizens and the wide gap between the minimum information needed to make good choices, and the success in manipulating voters, and conclude the textbook version of democracy is impossible, that voters are too ignorant and too unengaged to be left with the important task of governing, and that elites and special interests control the political process not just by default, but by merit.

Of course this presents the real paradox of American Democracy: i.e. to the same extent elites and special interest control, they are responsible for the success or failure of our American Democracy. And in the last analysis that depends on the extent their goals are aligned with the national common interests.

Chapter 6: FOLLOW THE MONEY

One is rarely led astray by following the old adage to “follow the money.” And in our American Democracy, there is a staggering amount of money to follow.

Unfortunately, the picture that emerges is of a government for sale, not to the highest bidder, but to almost all bidders.

Chapter 7: WHAT HAS CHANGED

Another way to analyze what has gone wrong is to look at what has changed over the last five decades that may have contributed to our government becoming more partisan, less effective and efficient, and indeed less rational.

Chapter 8: WHAT HAS CHANGED: BUSINESS ETHOS & CEO COMPENSATION

Fifty years ago the leaders of America’s largest corporations believed in being a good corporate citizen, and believed it was bad form be ostentatious, take advantage of consumers, or exploit weaknesses in our government.

Part of the reason for these strong civic values was WWII was still fresh in everyone’s memory and the sacrifices made in that noble cause made purely financial gains insignificant by comparison. And the fact that Hitler rose to power in a democracy was also was fresh in memory, and it highlighted the importance of a strong middle class that would prevent the rise of a demagogue like Hitler in Germany, but also to muster the armed forces needed from the United States and other Allies to overthrow him.

The unprecedented recent executive compensation, combined with low marginal tax rates, provided the means and motivation to influence the political process. And since the corporate supply of money has dovetailed so well with the politicians’ skyrocketing need to raise campaign funds, the givers have gotten what they wanted in almost every instance: less oversight, more deregulation, and then preferential bailouts.

Chapter 9: WHAT HAS CHANGED: THE WAY VOTERS ARE INFORMED

A fundamental question is how many of “The People” need to be informed, and how well, to make democracy work, especially since numerous studies and surveys have consistently found that most voters have an appalling lack of information about our government, the candidates and issues, and indeed, what government and politicians actually can and can’t do.

Chapter 10: REAL WORLD Part I

The following five Chapters provide dramatic examples of how special interests work our political system to get what they want, and unfortunately shows that what they get too often varies from, or even conflicts with, our common, national interests.

A logical starting point for this disheartening tour is the series of financial calamities in the United States over the last two decades that led to the greatest global financial crises since the Great Depression: the 2008 Global Financial Meltdown.

Importantly, Canada, India, Germany and other countries escaped a similar crisis because: (1) they had independent Financial Consumer Agencies to prevent predatory lending practices, (2) restricted banks from engaging in non-banking ventures, and (3) prevented high leverage.

While part of the financial calamities over the last 2 decades might be attributed to normal business boom and bust cycles, a major financial calamity every three years means something is seriously and structurally wrong. As the saying goes: Fool me one shame on you, fool me twice shame on me; but fool us eight times in a row means the system is so broken The People don’t even know they are being fooled.

Chapter 11: REAL WORLD Part II

Except in war, never has so much money been made by so few people in such a short time – and then taxed so little. And even worse, too many of these activities are not just socially useless, but destructive of national wealth and security.

High Frequency Computerized Trading Programs act as a giant vacuum cleaner pulling profits out of the markets that would otherwise go to retail investors. Certainly it is hard to see how traders who place their orders one-thirtieth of a second faster than anyone else do anything to advance any national interest.

The big picture is that while businesses and jobs have been the key to America’s past success, and will be the key to any future success, special interests have substantially eroded capitalism and free markets in many areas. That is, in many areas we now have too few free markets and not enough capitalism.

Chapter 12: REAL WORLD Part III

Much of the irrationality in the present system can be explained by the weapon of choice for political campaign consultants: fear.

There is nothing patriotic about wasting our nation’s precious resources on weapon systems that don’t work and aren’t needed; or starting a very costly war based on false premises and faulty planning.

As Secretary of Defense Robert Gates notes: “What is required going forward is not more study. Nor do we need more legislation. . It is not a great mystery what needs to change. What it takes is the political will and willingness, as Eisenhower possessed, to make hard choices – choices that will displease powerful people both inside the Pentagon and out.”

Another U.S. public policy that is so irrational it can only be explained by the fear factor is prisons

And the U.S. has far more guns in private hands, and far more gun deaths than any other developed country in the world, and the reason is an organization whose reason d’être is fear: the National Rifle Association.

Chapter 13: REAL WORLD (Part IV) (soon)

Chapter 14: BARRIERS TO CHANGE (soon)

Chapter 15: SOLUTIONS (Part I) (soon)

Chapter 16: SOLUTIONS (Part II) (soon)

Chapter 17: CALL TO ACTION (soon)

End Notes: Sources & Suggested Reading