Improving Our Standard of Living (Wattpad Edition)

Chapter 38: Democracy Isn't Tyranny

Democracy is the extent of influence that working and middle class people have over the creation of political and economic policies. The less control they wield over legislation, the less democratic society is; therefore, the more oligarchic it is.

Democracy is aided by a more equitable distribution of national income. If a tiny minority of billionaires has most of the money, they will be able to give more to campaign contributions and lobbying than everyone else. They will seek policies that allow them to acquire even larger shares of national income. They will lower tax rates on themselves and raise taxes on the poor by encouraging consumption taxes. They will create loopholes that only they can exploit. They will get politicians to give them billions in subsidies. They will get laws passed that make it more difficult for smaller businesses to compete with them. They will lobby for tariffs that make foreign goods more expensive. This will force consumers to buy from the domestic corporations, allowing them to corner the market and raise prices.

Democracy works better when there is a strong social safety net (welfare system). This is important because it allows even poor people to find ample opportunities and resources to pursue their goals. Greater equality makes it easier for the average person to acquire an education, climb the economic ladder, and start a business. If a handful of megacorporations and their stockholders don't have most of the national income, then they won't be able to control the government as easily. They won't be able to gain unfair advantages over everyone else.

Equality—within reason—levels the playing field, making capitalism more effective, not less. And equality is democratic because money buys influence. The more concentrated income is, the more influence the wealthy elite have over the government. The less concentrated income is, the more influence working class families have in political and economic matters.

Equality is just as good for capitalism as it is for democracy.

A Gini coefficient of about 0.25 is ideal. This level gives everyone a fair opportunity to pursue goals without making it difficult to acquire enough income for large investments.

Democracy is often confused with "majority rule" or "tyranny of the majority." On the surface, this seems obvious. If 51% of people are in favor of a law, but 49% are against it, the majority will get its way.

But that's a specious argument. The point of confusion is in assuming that a majority favoring one thing will always be the majority and that a minority favoring another thing will always be the minority.

Democracy isn't a tyranny against the minority because it's the most participatory form of government that can exist. The views held by the minority often become those held by the majority and vice versa. Democracy includes everyone in the debate, unlike any other form of government. Everyone gets an equal vote in a democratic system and has the opportunity to be heard.

The fact that minorities can become majorities and vice versa is not tyrannical chaos. It's human beings working their problems out through constant deliberation. That's a strength of democracy, not a weakness. Minorities have a better chance of being heard under a democratic system than any other.

This explains why democratic nations have stronger human rights than non-democratic ones, not to mention better living standards. Though imperfect, countries that are representative democracies score better in economic freedom, human rights, and corruption indices than those that are less democratic.

Show me a group of nations that score higher on the Economist Intelligence Unit's Democracy Index, and I'll show you a group of countries in which minorities have more freedoms and opportunities.

One can argue that democracy is nothing more than a tyranny of the majority, but a more democratic country will always have less tyranny in it overall than a less democratic one.

In the words of Winston Churchill: "Democracy is the worst form of government, except for all other forms that have been tried."

Democracy is the best chance that minorities and disadvantaged people have of being heard. And that's why it's the least tyrannical form of government.