The Politics Industry

Key Takeaways

1. The politics industry is a private enterprise within a public institution

Much of today's system is a self-serving, self-perpetuating private industry composed of gain-seeking actors who write their own rules.

Industry structure. The politics industry operates like any other business sector, with the Democratic and Republican parties forming a duopoly. This industry includes:

• Political parties
• Special interest groups
• Lobbyists
• Big-money donors
• Think tanks
• Media organizations

Dual currencies. The politics industry trades in two forms of currency:

1. Votes
2. Money

This dual currency system creates a power imbalance, with money often having greater influence than votes. The result is a system that prioritizes the interests of well-funded groups over those of average voters.

Self-regulation. Unlike other industries, politics lacks independent regulation. The Federal Election Commission, ostensibly an independent body, is effectively controlled by the two major parties. This self-regulation allows the industry to operate with little accountability to the public it purportedly serves.

2. Unhealthy competition in politics fails to serve the public interest

In today's political competition, then, serious legislation is often only passed under single party control.

Zero-sum game. Political competition has devolved into a win-lose scenario where:

• Parties prioritize defeating opponents over solving problems
• Compromise is seen as weakness
• Gridlock is often preferred to giving the other side a "win"

Customer neglect. In a healthy competitive environment, businesses strive to serve customers better. In politics:

• Average voters are largely ignored
• Special interests and donors receive preferential treatment
• Partisan primary voters wield disproportionate influence

Lack of accountability. The current system lacks mechanisms to hold politicians accountable for poor performance:

• Safe districts reduce electoral competition
• Party loyalty is rewarded over effective governance
• The duopoly structure prevents new entrants from challenging incumbents

3. Party primaries and plurality voting create barriers to new competition

Party primaries create an eye of the needle through which no problem-solving politician can pass.

Party primaries:

• Empower a small, often extreme subset of voters
• Force candidates to cater to partisan interests
• Discourage compromise and bipartisanship

Plurality voting:

• Allows candidates to win with less than 50% support
• Creates the "spoiler effect," discouraging third-party and independent candidates
• Leads to strategic voting rather than sincere preference expression

Combined effect:
These two elements of the election machinery:

• Raise barriers to entry for new competitors
• Reinforce the two-party duopoly
• Reduce voter choice and representation

4. The legislative machinery is designed to serve partisan interests

Congress has been carefully constructed to institutionalize partisanship and work against bipartisan solutions.

Partisan control: Key aspects of the legislative process are designed to reinforce party power:

• Committee assignments based on party loyalty
• The "Hastert Rule" allowing majority party leaders to block bipartisan bills
• Partisan staff and think tanks supplying policy ideas

Gridlock by design: The current system incentivizes:

• Obstruction over cooperation
• Messaging bills over substantive legislation
• Maintaining party unity at the expense of problem-solving

Loss of deliberative capacity: Congress has diminished its ability to address complex issues:

• Reduced committee hearings and expert testimony
• Cuts to nonpartisan research staff and agencies
• Increased reliance on partisan lobbyists for policy development

5. America's political dysfunction mirrors the Gilded Age crisis

Today, our shared challenge is to reform our political system to restore healthy competition in the public interest.

Historical parallel: The late 19th century Gilded Age saw:

• Extreme economic inequality
• Political corruption and party machine dominance
• Social upheaval and polarization

Progressive Era reforms: In response, reformers implemented:

• Direct primaries
• Secret ballots
• Initiative and referendum processes
• Direct election of senators

Contemporary crisis: Today's challenges echo the Gilded Age:

• Growing economic disparity
• Loss of faith in democratic institutions
• Technological disruption and social change

The success of Progressive Era reforms demonstrates that systemic political change is possible and provides a model for modern reform efforts.

6. Final-Five Voting can restore healthy political competition

Final-Five Voting will change the very nature of our elections. It realigns the incentives that drive the elected officials who lead us and it forces open the gates of our elections to new competition.

Two-part reform:

1. Nonpartisan top-five primaries
2. Ranked-choice voting in general elections

Benefits:

• Eliminates the spoiler effect
• Encourages more diverse candidates and ideas
• Rewards problem-solving over partisanship
• Increases voter choice and power

Implementation: Final-Five Voting can be adopted at the state level through:

• Ballot initiatives in states with direct democracy
• Legislative action in other states

Even adoption in a handful of states could create a critical mass of reform-minded legislators in Congress.

7. Reengineering legislative machinery is crucial for effective governance

To change the results our system delivers, we must change the rules of the game.

Zero-based redesign: The authors propose:

• Discarding existing rules and practices
• Reimagining Congress from scratch using best practices in negotiation, communication, and problem-solving

Key areas for reform:

• Committee structures and powers
• Debate and amendment processes
• Staffing and research resources
• Voting procedures

Potential outcomes:

• Increased bipartisanship and compromise
• More effective policy development
• Greater accountability to voters

Reforming legislative machinery is challenging but essential for translating electoral reforms into better governance.

8. Political innovation requires cross-partisan coalitions and local efforts

Keep It Cross-Partisan.

Building coalitions: Successful reform efforts require:

• Engagement from across the political spectrum
• Focus on process reform rather than partisan outcomes
• Emphasis on shared democratic values

Local leadership: Effective campaigns are:

• Rooted in local communities
• Led by committed state-based reformers
• Tailored to specific state political contexts

Four key constituencies:

1. Grassroots volunteers
2. Donors and civic leaders
3. Political figures for credibility
4. Opinion leaders for public education

Reform efforts must be prepared for pushback from entrenched interests and plan for long-term implementation battles.

9. Investing in political reform offers the highest return on investment

Political philanthropy offers the greatest potential return on investment available today.

Leverage effect: Improving the political system can unlock progress across multiple policy areas:

• Education
• Healthcare
• Infrastructure
• Economic development

Scale of impact: Government spending dwarfs philanthropic giving:

• Annual charitable donations: $410 billion
• Federal and state government spending: $405 billion every four weeks

Call to action: The authors urge:

• Philanthropists to redirect resources to political innovation
• Business leaders to support reform efforts
• Citizens to engage in local and state-level campaigns

Investing in political reform is not just about improving governance—it's about preserving and strengthening American democracy for future generations.

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Last updated: April 21, 2025

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