How inequality makes our government corrupt and our democracy … – Washington Post
By Matt Stoller By Matt Stoller June 28 at 6:00 AM
Matt Stoller is fellow with the Open Markets Program of New America.
On his way to an early retirement from Congress later this week, Rep. Jason Chaffetz (R-Utah) has asked for a housing subsidy for members of Congress. I flat-out cannot afford a mortgage in Utah, kids in college and a second place here in Washington, D.C., he said. Chaffetz showed no indication that he cared about affordable housing when he chaired the committee that oversees the District of Columbia, and he recently mused that if families cant afford health insurance, maybe they shouldnt buy new iPhones; he deserves no sympathy.
But he did point, however unwittingly, to a deep problem with the way we understand political corruption. President Barack Obama also noted it accidentally when he discussed his departing press secretary, Robert Gibbs, noted Gibbss relatively modest pay of $172,000 in the White House in relation to what he would earn elsewhere.
The problem is this:We undervalue our public-sector leaders relative to private sector leaders, and that gap helps entrench and deepen corruption.The issue goes beyond the fact that government work is increasingly a means of much higher pay later on from the private sector. Radically disparate pay for public servants isnt punishing public servants, it is simply setting up a different system of power.
In 1975, you could hire six senators for the price of one CEO of a large corporation. In 1992, you could hire twenty-three senators for the price of a single CEO. By 2000, you could buy the whole Senate, plus five additional senators, for one CEO. Since 2000, that ratio has bounced around, mostly in tandem with the stock market, but the number of senators you could get for just one CEO compensation package has never dropped below 50.
In absolute terms, lawmakers have had their pay cut by 10 percent since 2009. And like most Americans (but not CEOs), they received less compensation in 2015 than they did in 1975. It seems odd to say that members of Congress have more in common with the average American than they do with corporate CEOs, but in this case, it is true. Of course, $174,000 is pretty great compared to most people in a country where the median household income is about a third of that. And it is. But its peanuts relative to CEO pay; the average CEO made$12.2 million in 2015. And the salary for members of Congress is actually less than an average 26-year-old first-year lawyer gets at a top corporate law firm.The differential is often starker with state level legislators. In fact, politicians have actually seen relative pay stagnation along with teachers, social workers, journalists, and most American workers.
This differential shows how much we value our public sector leadership versus our private sector leadership. We are say that CEOs are the essential actors in our culture, while public leadership is a sinecure for the already wealthy.
[We compared growth in CEO pay versus growth in worker pay. Its not pretty.]
We are also contributing to conditions that encourage politicians to view rich business leaders as different than other constituents. In 1975, CEOs were wealthier, but still lived in the same economic world as politicians and regulators. A world of public schools, reasonably priced health care and college, and shared public services meant that money could buy a slightly fancier but not fundamentally different life. Today, however, the wealthy and everyone else inhabit vastly different cultures. Politicians cant help but treat powerful economic actors differently when those people make so much more than they do, a situation complicated by the fact that many politicians real compensation is likely to occur through unofficial channels, like lobbying contracts after they leave office.
This disparity also suggests that were misunderstanding the source of political corruption.Since the 1970s, advocacy groups have argued we must place restrictions on lobbyists and the public sector to root out corruption. In the early 1990s, Ralph Nader encouraged this with a campaign against hiking congressional pay. In 1995, Newt Gingrich continued it by gutting congressional committees and destroying the Office of Technology Assessment, which Nancy Pelosi did not restore in 2007. In his 2008 campaign, Barack Obama often noted his work on an anti-corruption measure to reign in lobbyists. This theory misses half the problem. Private lobbyists are too powerful precisely because public servants are too weak.
In political science parlance, lobbying is known as a legislative subsidy. The work of lobbyists is largely not bribery. Lobbyists write statutes, track process, enact legislative strategy, and work with administrative agencies to make sure the laws are carried out. Its just government work, on a private payroll. And corporate interests are a lot more effective if most Hill staffers are 23-year-olds with second jobs bartending to make the rent. Current anti-corruption models, like underpaying congressman, staff, state legislators and regulators, will simply lead to more power for corporate interests that are only too happy to pay for governing work that favors them.The combined attack on the public sector and its ability to govern, and the dramatic concentration in the control of corporate resources, has led to a dangerously weak and unbalanced political culture.
[A radical idea: Just give CEOs a fixed salary]
But this can be reversed. After all, the trend isnt that old: While Ronald Reagan increased CEO pay relative to government leaders, the real quantum change happened in the 1990s under Bill Clinton, likely because of a legal changes during his administration that linked CEO pay with the stock market. And the 1970s vision of corruption that misconstrues the real problem with diminishing politicians pay and budgets ignores a much older tradition in American society, which is an understanding that inequality leads to an enormous loss of freedom, and de-concentration of power is the solution. As Revolution-era weaver-turned-politician William Findley put it, Wealth in many hands operates as many checks.
If we want to restore a democratic culture, were going to have to not just raise the pay of public servants, but reduce inequality dramatically. We must attack the problem of a two-tiered society. We must go after the concentration of corporate assets through strong competition and anti-monopoly policy so that we dont have a society split between billionaires with rights and powerless peasants living with varying degrees of comfort. Basic public goods quality education, health care, transportation, nutrition must be available to all without the need to incur huge debts. Private sector CEOs perhaps should be able to have more lavish lifestyles than the rest of us, but it should be a matter of living a fancier version of the same life. No one should go broke if they have a medical problem, not just because thats a problem in and of itself, but because that is a route to social corruption.
There is no free lunch. If we want a functioning democracy, we need to pay for a functioning public sector. If public servants are treated poorly relative to corporate CEOs, then we will get bribed and subservient public servants and government via the board room. Public servants, and citizens themselves, will become dependent upon private concentrations of power. If we want to stabilize our society, we must strengthen the public institutions designed to protect our democracy. If we dont, we may not have a democracy for much longer.
See the article here:
How inequality makes our government corrupt and our democracy ... - Washington Post
- The Next Phase in Destroying Israeli Democracy Begins: Ousting the Attorney General - Haaretz - July 20th, 2025 [July 20th, 2025]
- The Pollster Who Sensed Democracy Was Faltering - The Atlantic - July 20th, 2025 [July 20th, 2025]
- Whatever Evers decides, Wisconsin is heading into a high-stakes battle for democracy - Wisconsin Examiner - July 20th, 2025 [July 20th, 2025]
- Automatic voter registration: a huge step forward for democracy and a chance to bring missing millions into elections - The Conversation - July 20th, 2025 [July 20th, 2025]
- Opinion | We Need Human Connection to Heal Democracy and Build Shared Prosperity - Common Dreams - July 20th, 2025 [July 20th, 2025]
- All the States Where DOJ is Demanding Voting Data - Democracy Docket - July 20th, 2025 [July 20th, 2025]
- News - Updating the Arsenal of Democracy: Allies Embrace Co-Production Model - DVIDS - July 20th, 2025 [July 20th, 2025]
- A half year of devastation: Trumps first six months shakes American democracy - New York Daily News - July 20th, 2025 [July 20th, 2025]
- Emerging right-wing politics a threat to democracy - New Age BD - July 20th, 2025 [July 20th, 2025]
- This Week in Democracy Week 26: Soft on Child Abuse, Tough on Public Broadcasting - Zeteo - July 20th, 2025 [July 20th, 2025]
- Opinion | Defunding Public Media Makes Perfect Sense If Destroying Democracy Is the Goal - Common Dreams - July 20th, 2025 [July 20th, 2025]
- From military coups to elections: where is African democracy heading? - africanews.com - July 20th, 2025 [July 20th, 2025]
- Democracy Is Dying But Hey Nice Fireworks Funny 4th Of July T Shirt - roarmag.org - July 20th, 2025 [July 20th, 2025]
- Noto Democracy and the slow work of civic change - The Japan Times - July 20th, 2025 [July 20th, 2025]
- "Good Trouble Lives On" in Whittier California! Honoring the late US Representative John Lewis, the Community Rallied for Democracy and... - July 20th, 2025 [July 20th, 2025]
- Britain will lower its voting age to 16 in a bid to strengthen democracy - ABC News - Breaking News, Latest News and Videos - July 18th, 2025 [July 18th, 2025]
- Lowering the voting age: a boost for UK democracy or a shot in the dark? - The Guardian - July 18th, 2025 [July 18th, 2025]
- From Voices to Visions: Reflections on Climate Democracy in Practice - International IDEA - July 18th, 2025 [July 18th, 2025]
- Imagining The Path Forward for The Healthy Democracy Ecosystem - The Fulcrum - July 18th, 2025 [July 18th, 2025]
- Republicans Advance Trump Judicial Nominee Said to Have Urged Court Defiance - Democracy Docket - July 18th, 2025 [July 18th, 2025]
- An Urgent Warning from Texas: A Conversation on Defending Democracy and Fighting Authoritarianism in the States - Center for American Progress - July 18th, 2025 [July 18th, 2025]
- How we Treat [Immigrants] will Shape the Future of Our Democracy and Our Moral Character - The Birmingham Times - July 18th, 2025 [July 18th, 2025]
- Britain will lower its voting age to 16 in a bid to strengthen democracy - AP News - July 18th, 2025 [July 18th, 2025]
- Democracy is not theirs to dismantle. More than 120 people turn out for 'Good Trouble' protest - GazetteXtra - July 18th, 2025 [July 18th, 2025]
- Dems to Fight Texas Illegal, Unconstitutional and Egregious Effort to Rig the Elections - Democracy Docket - July 18th, 2025 [July 18th, 2025]
- Senate Advances Bill to Claw Back $9 Billion in Funds for Foreign Aid and Public Broadcasting - Democracy Now! - July 18th, 2025 [July 18th, 2025]
- Video Britain to lower voting age to 16 in a bid to strengthen democracy - ABC News - Breaking News, Latest News and Videos - July 18th, 2025 [July 18th, 2025]
- Protecting democracy from big money: Why the UK's new elections strategy doesn't go far enough - Transparency International UK - July 18th, 2025 [July 18th, 2025]
- Election Officials Have Been Under Attack For Years. Now The DOJ Wants to Criminally Charge Them - Democracy Docket - July 18th, 2025 [July 18th, 2025]
- Pentagon to Withdraw Half of 4,000 National Guard Troops Deployed to Los Angeles - Democracy Now! - July 18th, 2025 [July 18th, 2025]
- Antithesis of democracy: Protesters gather for Good Trouble rally in Raleigh - Raleigh News & Observer - July 18th, 2025 [July 18th, 2025]
- U.N. Rapporteur Urges Nations to Cut Ties to Israel to Stop Genocide in Gaza - Democracy Now! - July 18th, 2025 [July 18th, 2025]
- Texas Used DOJs Concerns to Justify Redistricting. Now It Says Theyre Off Base. - Democracy Docket - July 18th, 2025 [July 18th, 2025]
- Sudan, Remember Us Trailer: Watermelon Pictures Sets August Release For Doc Paying Tribute To Youthful Pro-Democracy Activism - Deadline - July 18th, 2025 [July 18th, 2025]
- Public Space Is the Infrastructure of Democracy. Its Time to Protect Our Right to Gather. - Next City - July 18th, 2025 [July 18th, 2025]
- The U.S. Government Just Slapped The World's Largest Democracy With A Travel Advisory - TheTravel - July 18th, 2025 [July 18th, 2025]
- History, Historians, and Democracy in the Age of Trump - Civil War Memory - July 18th, 2025 [July 18th, 2025]
- UK to lower voting age to 16 a once-in a-generation opportunity to secure the future health of British democracy - The Conversation - July 18th, 2025 [July 18th, 2025]
- Britain will lower its voting age to 16 in a bid to strengthen democracy - MSN - July 18th, 2025 [July 18th, 2025]
- Equatorial Guinea: FAJ applauds journalists role in advancing democracy and justice at the Citizens Forum - International Federation of Journalists -... - July 18th, 2025 [July 18th, 2025]
- Britain will lower its voting age to 16 in a bid to strengthen democracy - Aurora Sentinel - July 18th, 2025 [July 18th, 2025]
- Book review: Christianity and Democracy Today: International perspectives, edited by David P. Gushee and Paul Silas Peterson - The Church Times - July 18th, 2025 [July 18th, 2025]
- This Is the Most Inspiring Thing Ive Heard About Democracy at the Supreme Court in Ages - Slate Magazine - July 16th, 2025 [July 16th, 2025]
- Opinion | Trump Is Winning the Battle to Undermine Democracy - The New York Times - July 16th, 2025 [July 16th, 2025]
- Liberals claimed Trump would end democracy. They were wrong again. | Opinion - USA Today - July 16th, 2025 [July 16th, 2025]
- Daily Briefing July 15: Day 648 Dramatic day at Knesset leaves democracy intact for now - The Times of Israel - July 16th, 2025 [July 16th, 2025]
- Who is leading and lagging on democracy and reforms in the EUs Eastern Partnership? - New Eastern Europe - July 16th, 2025 [July 16th, 2025]
- Understanding the evolution and state of democracy in Zimbabwe: When a coup is not called a coup - Brookings - July 16th, 2025 [July 16th, 2025]
- 'Misogyny Is a System': Julie Suk Wants to Reimagine U.S. Institutionsand Build a Democracy of Equality - Ms. Magazine - July 16th, 2025 [July 16th, 2025]
- State Departments Restructuring and Proposed Budget Cuts Roll Back U.S. Role in Democracy and Human Rights Globally; Congress Has a Chance to Fix This... - July 16th, 2025 [July 16th, 2025]
- Court Delays Termination of TPS for 12,000 Afghans as Both Sides Asked to Submit Arguments - Democracy Now! - July 16th, 2025 [July 16th, 2025]
- Get Maine on the train for democracy before its too late | Opinion - The Portland Press Herald - July 16th, 2025 [July 16th, 2025]
- We are ready to lead our country toward democracy and a European path - - July 16th, 2025 [July 16th, 2025]
- Mandelblit believes Israel heading toward end of democracy - The Times of Israel - July 14th, 2025 [July 14th, 2025]
- Jurists refer to the obstacle in front of peace, democracy in Turkey - - July 14th, 2025 [July 14th, 2025]
- Hundreds attend pro-democracy rally in Oceanside - Times of San Diego - July 14th, 2025 [July 14th, 2025]
- The GOP Is Working Overtime to Take the People Out of Democracy - WhoWhatWhy - July 14th, 2025 [July 14th, 2025]
- Freedom to Choose?: Peter Beinart Slams Trump-Netanyahu Plan for Ethnic Cleansing of Gaza - Democracy Now! - July 14th, 2025 [July 14th, 2025]
- Evers refusal to fight and the fate of democracy - Wisconsin Examiner - July 12th, 2025 [July 12th, 2025]
- What Exactly Is Required to Preserve Our Democracy? - The Atlantic - July 12th, 2025 [July 12th, 2025]
- Timeline: Tracking the Trump Justice Departments Anti-Voting Shift - Democracy Docket - July 12th, 2025 [July 12th, 2025]
- Apocalypse in the Tropics is the democracy documentary Trump doesnt want you to see - San Francisco Chronicle - July 12th, 2025 [July 12th, 2025]
- Depression due to politics? The quiet danger to democracy - University of California - July 12th, 2025 [July 12th, 2025]
- Theme Panel: Author Meets Critics: Depolarizing Politics and Saving Democracy by Jennifer McCoy and Murat Somer - Political Science Now - July 12th, 2025 [July 12th, 2025]
- Democracy report card: Experts weigh in on where the US stands - KPBS - July 12th, 2025 [July 12th, 2025]
- This Week in Democracy Week 25: Epstein Cover-Ups, Crypto Corruption, and Trump's Tariff Tyranny - Zeteo - July 12th, 2025 [July 12th, 2025]
- U.N. Special Rapporteur Francesca Albanese on Israel: From Economy of Occupation to Economy of Genocide - Democracy Now! - July 12th, 2025 [July 12th, 2025]
- Knesset's new law on religious courts and what it means for democracy - opinion - The Jerusalem Post - July 12th, 2025 [July 12th, 2025]
- Inequality has risen from 1970 to Trump that has 3 hidden costs that undermine democracy - The Conversation - July 12th, 2025 [July 12th, 2025]
- How to Stand Up for Democracy: Pedro Silva on Laughter and Liberation - WORT-FM 89.9 - July 12th, 2025 [July 12th, 2025]
- In defense of a human right to democracy: Reflections on the pending Advisory Opinion before the Inter-American Court of Human Rights - EJIL: Talk! - July 12th, 2025 [July 12th, 2025]
- What Is the Trump Doctrine? John Bellamy Foster on U.S. Foreign Policy & the New MAGA Imperialism - Democracy Now! - July 12th, 2025 [July 12th, 2025]
- Letters: Erosion of our democracy was the work of decades of right-wing plotting - NOLA.com - July 12th, 2025 [July 12th, 2025]
- Peter Beinart on Zohran Mamdani & Why Democratic Voters Are Increasingly Skeptical of Israel - Democracy Now! - July 12th, 2025 [July 12th, 2025]
- NAACP president says fight for democracy and justice will continue - WFAE - July 12th, 2025 [July 12th, 2025]
- Harbingers: What January 6 and Charlottesville Reveal About Rising Threats to American Democracy - Ideastream - July 12th, 2025 [July 12th, 2025]
- Perspective: Only one branch of government? Keep fighting to preserve our democracy - Northern Public Radio - July 12th, 2025 [July 12th, 2025]
- Capitol Briefs: Weed taxes, algorithm collusion and the fate of Democracy - Capitol Weekly - July 12th, 2025 [July 12th, 2025]
- Expand Democracy: Musks Third Party, RCV in NYC, and Miami Backlash - The Fulcrum - July 12th, 2025 [July 12th, 2025]
- This Is Our Shot: A Democracy Roadshow for the American Imagination - The Fulcrum - July 12th, 2025 [July 12th, 2025]