Effects of a Pluralistic Democracy

The function our pluralistic democracy is the cause of America’s recurring economic problems and contributes to growing income inequality. Inflation/stagflation (inflation with slow economic growth) perpetual trade deficits and perpetual federal budget deficits which contribute to the U.S. national debt are the major recurring economic problems that threaten the prosperity of the nation. These recurring problems are largely the unintended consequences of pluralism, the interaction of many groups in the American political process. (Michael G. Roskin, 2010).

A closer look at the recurring economic problems

Inflation and stagflation are often part of the “business cycle”, the tendency of economy to alternate between periods of growth and recession (economic decline) over the course of several years (Michael G. Roskin, 2010). Although these two economic issues are not mutually exclusive, in recent history, when inflation goes up, the economy slows down. It should not be surprising that inflation and slow economic growth have an inverse relationship in a monetary system that relies heavily on consumer and business credit. Inflationary conditions of any significance would naturally and logically lead to a slowdown in consumer activity thus leading to stagnation in economic growth.

While the U.S. trade deficit might not be viewed as a problem, since a trade imbalance means cheaper consumer goods for the U.S. population and increased foreign investment means greater prosperity (Michael G. Roskin, 2010), it does have a deleterious effect on the prosperity of the American working class as the demand for cheap goods makes outsourcing an attractive and profitable option for American business.

The U.S. penchant for keeping taxes low while ...

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...ilitary-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist”. (Gill, 2011)

In conclusion, our pluralistic democracy contributes to largesse on many levels. Government spending continues to rise to record levels as a result of middle and upper class influence on politicians. Most government programs benefit the politically engaged in our society leading to the perpetuation of programs that contribute to spending that grows exponentially every year. Because government largesse is only truly benefitting those who are politically active via interest group interaction, a growing gulf exists between the top 1% of income earners and the bottom 90%. Corporate welfare are perpetual war not only add to the deficit and debt but has other negative effects on the overall economy while enriching the few at the top, the oligarchs.