Public Debt within Systems of Monopolistic Democracy
50 Pages Posted: 31 Oct 2016 Last revised: 1 Nov 2016
Date Written: October 30, 2016
This paper is the penultimate draft of the fifth of six chapters of a book titled Public Debt: An Illusion of Democratic Political Economy. This paper modifies the benchmark condition of a cooperative democracy to incorporate a realistic treatment of democracy where there exist islands of political power within a relatively passive sea of generally modest democratic participation. This essay explains that descriptions of democracy as entailing self-governance are typically mythical or ideological formulations that promote the purposes of those who work with such notions. Public debt becomes a form of shell game, the success of which depends on most people looking somewhere other than where the real action occurs, and which entails a shifting of cost from dominant to subordinate groups as covered by an ideology of self-governance.
Keywords: public debt as shell game; monopolistic democracy; public debt as systemic lying; public debt and social trust; James Buchanan and cost transfer
JEL Classification: D72, E30, E62, H62
Suggested Citation: Suggested Citation