Tuesday, July 14, 2009

Direct Democracy and the California Budget Crisis

As my 2301's begin to discuss elections, we will ponder the pros and cons of direct v. indirect democracy. We covered this already when we discussed Federalist #10 and Madison's preference for a republic over a pure democracy. A major theme this week will be the tighter connection between the population and the government forged over the last two centuries.

One of the key driving forces behind this process was the progressive movement and their support of initiatives, referenda, and recall elections. Though Texas did not adopt these elections statewide (they are used in local elections) many states did, California most notably. As it stands, much of California's tax policy and governmental programs were established not by legislators in a deliberative body, but by the mass public through ballot initiatives as informed by campaign advertisement. Critics argue that California's current budget shortfall (over $20 billion) can be blamed on the impact of these direct elections.

The electorate rallies behind a new proposed program, but also behind efforts to not only cut taxes, but make increasing the taxes necessary to pay for these programs difficult if not impossible.

This leads to an uncomfortable -- and probably elitist -- point. Was Madison (and the bulk of the rest of the founders) right to be worried about the "excesses of democracy"? It makes complete short sighted sense for people to want to increase spending programs (meaning education, health, etc...) and also to decrease taxes in order to carry around more pocket money. We all want something for nothing. But this creates problems down the road.

So was Madison right to be skeptical of direct (pure) democracy? Does the fiscal health of a country depend on limiting the ability of the general population to have an immediate impact on public policy? Or are we the people capable of making sound, fiscally prudent decisions?

Additional readings:

- The Claremont Institute - Direct Democracy in California
- California Direct Democracy
- State of Paralysis.
- FT.com Willem Buiter's Maverecon From direct democracy to ...