Great Minds Predicted Our Plight Centuries Ago


"A democracy cannot exist as a permanent form of government.  It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury."

- Alexander Fraser Tytler, Lord Woodhouselee (1747–1813)

 

 

Democracy in America
by
Alexis deToqueville (1835)

Chapter 13:
GOVERNMENT OF THE DEMOCRACY IN AMERICA

[Excerpt]

CHARGES LEVIED BY THE STATE UNDER THE RULE OF THE AMERICAN DEMOCRACY. In all communities citizens are divisible into certain classes--Habits of each of these classes in the direction of public finances -- Why public expenditure must tend to increase when the people govern -- What renders the extravagance of a democracy less to be feared in America -- Public expenditure under a democracy.


BEFORE we can tell whether a democratic government is economical or not we must establish a standard of comparison.  The question would be of easy solution if we were to draw a parallel between a democratic republic and an absolute monarchy.  The public expenditure in the former would be found to be more considerable than in the latter; such is the case with all free states compared with those which are not so.  It is certain that despotism ruins individuals by preventing them from producing wealth much more than by depriving them of what they have already produced; it dries up the source of riches, while it usually respects acquired property.  Freedom, on the contrary, produces far more goods than it destroys; and the nations which are favored by free institutions invariably find that their resources increase even more rapidly than their taxes.

My present object is to compare free nations with one another and to point out the influence of democracy upon the finances of a state.

Communities as well as organic bodies are subject in their formation to certain fixed rules from which they cannot depart.  They are composed of certain elements that are common to them at all times and under all circumstances.  The people may always be mentally divided into three classes.  The first of these classes consists of the wealthy -- the second, of those who are in easy circumstances; and the third is composed of those who have little or no property and who subsist by the work that they perform for the two superior orders.  The proportion of the individuals in these several divisions may vary according to the condition of society, but the divisions themselves can never be obliterated.

It is evident that each of these classes will exercise an influence peculiar to its own instincts upon the administration of the finances of the state.  If the first of the three exclusively possesses the legislative power, it is probable that it will not be sparing of the public funds, because the taxes which are levied on a large fortune only diminish the sum of superfluities and are, in fact, but little felt.  If the second class has the power of making the laws, it will certainly not be lavish of taxes, because nothing is so onerous as a large impost levied upon a small income.  The government of the middle classes appears to me the most economical, I will not say the most enlightened, and certainly not the most generous, of free governments.

Let us now suppose that the legislative authority is vested in the lowest order: there are two striking reasons which show that the tendency of the expenditures will be to increase, not to diminish.

As the great majority of those who create the laws have no taxable property, all the money that is spent for the community appears to be spent to their advantage, at no cost of their own, and those who have some little property readily find means of so regulating the taxes that they weigh upon the wealthy and profit the poor, although the rich cannot take the same advantage when they are in possession of the government.

In countries in which the poor have the exclusive power of making the laws, no great economy of public expenditure ought to be expected; that expenditure will always be considerable either because the taxes cannot weigh upon those who levy them or because they are levied in such a manner as not to reach these poorer classes.  In other words, the government of the democracy is the only one under which the power that votes the taxes escapes the payment of them.

In vain will it be objected that the true interest of the people is to spare the fortunes of the rich, since they must suffer in the long run from the general impoverishment which will ensue.  Is it not the true interest of kings also, to render their subjects happy, and of nobles to admit recruits into their order on suitable grounds?  If remote advantages had power to prevail over the passions and the exigencies of the moment, no such thing as a tyrannical sovereign or an exclusive aristocracy could ever exist.

Again, it may be objected that the poor never have the sole power of making the laws; but I reply that wherever universal suffrage has been established, the majority unquestionably exercises the legislative authority; and if it be proved that the poor always constitute the majority, may it not be added with perfect truth that in the countries in which they possess the elective franchise they possess the sole power of making the laws?  It is certain that in all the nations of the world the greater number has always consisted of those persons who hold no property, or of those whose property is insufficient to exempt them from the necessity of working in order to procure a comfortable subsistence.  Universal suffrage, therefore, in point of fact does invest the poor with the government of society.

The disastrous influence that popular authority may sometimes exercise upon the finances of a state was clearly seen in some of the democratic republics of antiquity, in which the public treasure was exhausted in order to relieve indigent citizens or to supply games and theatrical amusements for the populace.  It is true that the representative system was then almost unknown, and that at the present time the influence of popular passions is less felt in the conduct of public affairs; but it may well be believed that in the end the delegate will conform to the principles of his constituents and favor their propensities as much as their interests.

The extravagance of democracy is less to be dreaded, however, in proportion as the people acquire a share of property, because, on the one hand, the contributions of the rich are then less needed, and, on the other, it is more difficult to impose taxes that will not reach the imposers.  On this account universal suffrage would be less dangerous in France than in England, where nearly all the taxable property is vested in the hands of a few. America, where the great majority of the citizens possess some fortune, is in a still more favorable position than France.

There are further causes that may increase the amount of public expenditure in democratic countries.  When an aristocracy governs, those who conduct the affairs of state are exempted, by their very station in society, from any want:  content with their lot, power and renown are the only objects for which they strive; placed far above the obscure crowd, they do not always clearly perceive how the well-being of the mass of the people will redound to their own grandeur.  They are not, indeed, callous to the sufferings of the poor; but they cannot feel those miseries as acutely as if they were themselves partakers of them.  Provided that the people appear to submit to their lot, the rulers are satisfied and demand nothing further from the government.  An aristocracy is more intent upon the means of maintaining than of improving its condition.

When, on the contrary, the people are invested with the supreme authority, they are perpetually seeking for something better, because they feel the hardship of their lot. The thirst for improvement extends to a thousand different objects; it descends to the most trivial details, and especially to those changes which are accompanied with considerable expense, since the object is to improve the condition of the poor, who cannot pay for the improvement. Moreover, all democratic communities are agitated by an ill-defined excitement and a kind of feverish impatience that creates a multitude of innovations, almost all of which are expensive.

In monarchies and aristocracies those who are ambitious flatter the natural taste which the rulers have for power and renown and thus often incite them to very costly undertakings.  In democracies, where the rulers are poor and in want, they can be courted only by such means as will improve their well-being, and these improvements cannot take place without money.  When a people begin to reflect on their situation, they discover a multitude of wants that they had not before been conscious of, and to satisfy these exigencies recourse must be had to the coffers of the state.  Hence it happens that the public charges increase in proportion to the civilization of the country, and taxes are augmented as knowledge becomes more diffused.

The last cause which renders a democratic government dearer than any other is that a democracy does not always lessen its expenditures even when it wishes to do so, because it does not understand the art of being economical. As it frequently changes its purposes, and still more frequently its agents, its undertakings are often ill-conducted or left unfinished; in the former case the state spends sums out of all proportion to the end that it proposes to accomplish; in the latter the expense brings no return.

For full text see:  http://xroads.virginia.edu/~HYPER/Detoc/1_ch13.htm


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