The OLD Philosopher – John M. Miller
Issues Arising from Representation in Governments and on Corporate Boards
1. The Problem of Too Many Plutocrats
That nature of the backgrounds of those who serve in the legislative and executive branches of all levels of government has a powerful effect on the nature of decisions those legislators or executives make. Most people elected to office tend to be successful in whatever is their occupation or profession, and in addition, many of them tend to be wealthy.
The dictionary defines a plutocracy as “government by the wealthy.” In America, most elected officials are considerably more wealthy than the voters who elect them.
Here is an admittedly debatable generalization: Most people in most legislatures at most levels of government tend to be somewhere between moderately to very wealthy, at least compared to the constituents who elected them. You, dear reader, may disagree with that generalization, but I shall be writing four related short essays based on the assumption that it is generally accurate.
The highest executive positions in government (mayors, governors, or presidents) are often filled by very wealthy people, sometimes unimaginably wealthy people. Consciously or subconsciously, their political decisions may influence them to promote regulations or laws which benefit the wealthy more than other people in society.
In local, county, or state elected offices, most people would definitely earn more income by not serving in those offices than by being elected to them. Therefore many such individuals seek these offices precisely because they want to serve, and they have enough income to be shielded from the loss of income the office represents for them. In other words, they would theoretically be far better off financially not to serve than to serve.
The problem of having too many plutocrats (this is NOT a pejorative word!) in local, state, or national legislatures is that too frequently they pass laws and regulations to the advantage of their own class. This is likely not a behind-the-scenes movement or a conspiracy. Rather it happens because wealthy people usually believe that whatever benefits the wealthy benefits everyone. It is a political, as opposed to a fiscal, trickle-down theory. And it may be as dubious as the fiscal trickle-down theory.
People in office with lots of assets may use some of those assets to attain office, to stay in office, or to enhance their assets while in office. In itself, this is not inherently evil, although it obviously could become evil.
The issue being addressed here is greatly magnified on the boards of directors of large corporations. There nearly everyone on the board is unusually wealthy compared to the population at large. Thus those board members naturally want to see the corporation prosper, and in that process, they too will prosper, assuming they hold a sizeable amount of personal assets in the corporation’s stock via stock options. And of course the bottom line of every corporation of whatever size is to make a profit, and that is reflected in the dividends to the shareholders. It is fairly likely therefore that the primary concern of the board members will not be what benefits the population at large, but what benefits the company and its stockholders. That is the nature of capitalism, and capitalism is the best system of economics the world has ever produced.
So, you may be asking yourself, what’s the problem, either for government or for corporate boards? It is this: decisions made by wealthy executives or representatives in the various kinds of legislatures may enhance the wealthy more than everyone else in the body politic. A much higher percentage of those folks are affluent than is represented in the population at large. Thus, for example, they may be more determined to keep graduated tax rates lower rather than higher for the wealthy. Because they have the political power, they may try to extract as much in taxes from lower-income people if they can. This is not to say that they will do this, but they might do it.
Furthermore, people born to considerable wealth or people who acquire great wealth during their lifetimes do not perceive either reality or life in the same way people of more modest means perceive it. Those who never struggle to pay bills or put food on the table may not and perhaps cannot truly grasp the difficulty millions of people have in their daily lives, trying to make ends meet. The wealthy cannot be faulted for that, noris it possible for them to avoid the uniquely sheltered existence which their wealth inevitably creates for them. They always observe life through green-colored glasses, green being the color of money.
By no means are these thoughts intended to suggest that no very affluent people should ever serve in elected positions in government. In fact, wealth often equates to extraordinary ability, and very able people should be the type of citizens who serve in government.
However, too many wealthy citizens at all levels of elected positions, whether in government or on corporate boards, can unintentionally skew legislation and regulations toward those very citizens. It would be undemocratic, unwise, and disastrous to pass laws stating that only a fixed small percentage of wealthy people could serve in the different kinds of elected legislatures. Therefore voters need to make the wealth of candidates to office a high priority when they cast their votes. And wealthy citizens especially need to consider whether they think there are already too many wealthy peers serving in office, and thus, for the good of the whole, they might decide it is best that they not seek to insert another wealthy member into their legislative body.
In the last century, only in communist countries have the representatives in national or regional governments deliberately not been wealthy people. We all know how that turned out. Everywhere else, a heavy preponderance of the very affluent have held the positions through which decisions have been made for those governments.
Might that be a factor in how it is, as the song says, that the rich get richer and the poor get poorer? Too many rich elected representatives may be inimical to the widespread health of any society. Educated voters are the only group who can determine the basis on which anyone is elected or disqualified from running for office. – October 8, 2021
John Miller is Pastor of The Chapel Without Walls on Hilton Head Island, SC. More of his writings may be viewed at www.chapelwithoutwalls.org.