Rat Democracy

I am doubly depressed today.

First, I was reading an essay about rational self-interest, and its implications for democracy. I'm not talking about the greedy self-interest of Ayn Rand that (she hoped) leads to altruism and a nearly perfect society, instead I'm referring to the rational theory of Samuel Popkin that more clearly shows why the 'free-rider' problem persists, indeed, why it is often in our rational self-interest to be free-riders when we can.

In his well-written essay 'Rat Democracy', Paul Krugman follows rational (or 'rat') theory to some conclusions about what it means for democracy, and why our elected officials continually support various forms of 'pork' or 'ear-marks', even though we don't think we don't want them to. To paraphrase the essay, the free-rider problem appears any time a good or service is non-exclude able. Take, for instance, the desire to have a coast guard to rescue boaters in trouble. Once the service exists, it is actually in an individual boater's self-interest to not pay if possible; to free-ride on the others. Of course, we create an entity (the government) to collect fees from all boaters, and invest in the government the coercive power to collect them even from the recalcitrant.

But it isn't always possible to collect. We live in a democracy, and ideally, everyone becomes and remains informed about the potential issues facing society, the various candidates' proposed solutions, and votes accordingly to gain the best government they can. However, if enough people are doing so, I can instead inform myself about the best ways to invest my money or improve my business, and I gain the best of both: A better government and a stronger financial position. I've become a free-rider. And, worse, it is actually in my rational self-interest to do so.

Krugman writes: “As a result, the public at large is, entirely rationally, remarkably ill-informed about politics and policy. And that leaves the field open for special interests – which means people with a large stake in small issues – to buy policies to suit them.” And there are lots of little issues, perhaps $10-$20 million a year, that aren't worth tracking by individual voters except those who benefit. A politician can make those 'pork' without real fear of retribution, indeed, those who benefit will be more likely to vote for the particular politician who made their lives better.

And rat theory does appear to explain the real world much much better than Ayn Rand: Indeed, one of Ms Rand's arguments was that it was in a business' greedy self-interest to finance colleges to have a steady supply of educated workers; However, rat theory would postulate that if other businesses do so, mine can benefit even more by not! And its even better if we can get others (non-businesses) to pick up the tab!

Dr. Krugman's conclusion is that government by the people has an uphill, perhaps impossible, battle being government for the people.

Being an ardent believer in the promise of democracy, I find that a little depressing.