.png)
Civic Innovation
Center
American Society
A Political and Economic Perspective
The cost of political participation in America is uniquely high. Campaigns rely heavily on:
-
wealthy donors
-
corporate lobbying
-
political action committees
-
strategic messaging through rapid digital media cycles
As a result, economic power often becomes political power, shaping public policy in ways that do not always reflect the majority’s preferences (e.g., healthcare, taxation, regulation).​​​
As the saying goes, “money corrupts”, tempting individuals to engage in unethical or illegal activities. Some people pursue a political career to gain influence and financial benefits, knowing that politics can be very lucrative, especially after the U.S. Supreme Court ruled in Citizens:
United v. Federal Election Commission (2010), which allowed corporations and unions to spend unlimited amounts to support or oppose candidates. Being aware of this fact, political insiders are leveraging the new digital economy to detect voters' biases and spread misinformation, thereby strengthening their existing beliefs to support their puppet political candidates.
The Constitution established the United States as a democratic republic. It is democratic because the people
govern themselves, and it is a republic because the government’s power is derived from the people. This
means that our government, at the federal, state, and local levels, is elected by the citizens.
Citizens vote for their government officials,
who then represent their concerns and ideas in
government.
For example, in today’s interconnected digital world, securing a traditional job or finding employment has become more uncertain than ever. This is mainly due to the rise of a two-tier economic system, which has significantly altered the functioning of democratic processes and employment in the United States.
An analysis of democratic capitalism tells us:
If you work hard, you succeed.
If you innovate, you're rewarded.
If you contribute, you rise.
Yes! That promise built the American Dream. However, that promise only benefited a small number of Americans.
The majority of the hardworking American workforce, which comprises most of the population, claims that not only have we gained the benefits of this system, but that income inequality is getting worse year after year.
They adamantly believe that corporate, political, andfinancial power have corrupted American democracy because the political apparatus has failed to respond to the workforce's needs.
Ironically, a 2024 study by the U.S. Chamber of Commerce found that more than 70% of Americans failed a fundamental civic literacy quiz.
They interpreted that “this is primarily due to decades of diminished focus on civics instruction, resulting in a significant lack of understanding among many Americans about how their government and economy function. This is primarily due to decades of diminished focus on civics instruction, resulting in a significant lack of understanding among many Americans about how their government and economy function”.
This report overlooks a significant number of hardworking Americans who have chosen not to
participate in the voting process, even though they know voting is a constitutional responsibility.
Anecdotal evidence suggests that income disparity has contributed to many Americans' skepticism about democratic processes, leading them to disengage from democratic participation.
POLARIZATION
Polarization as a Product of Economic Anxiety and Identity Conflicts.
Political polarization is not simply ideological; it reflects:
-
regional economic divides (urban vs. rural)
-
cultural and demographic shifts
-
fears of declining economic security
-
narrativesï‚· media ecosystems that reinforce identity-based
Economic dislocation fuels political anger, and this in turn makes economic compromise more difficult.
Polarized Society in a Democratic Country
In a democratic country, when society becomes too polarized, political divisions can grow so deep that opposing groups start to see each other not just as rivals but as outright enemies. This strict divide makes it harder to keep the spirit of democracy alive, where people with different views can debate and work together rather than turn against one another.
As voters, we must understand how the relationship between political and economic organizations can significantly impact us all. In today’s knowledge and digital
economy:
​
-
Political actions impact the economic outcomes,
-
Economic conditions influence political discourse, and then
-
Influential operators of capitalism control the politics and the economy. The influential private individuals and business entities in the United States (the "influential operators") have exerted dominant influence over both the economic system and the political system for a long time.
​
Therefore, to address the dynamics of income inequality, it is essential to identify and understand the factors within the system that allow a small fraction of Americans, just 1%, to wield significantly more power than the remaining 99%.