June 26, 2016
Posted by Jay Livingston
In yesterday’s post on the Brexit vote, I wondered aloud about the wisdom of using a referendum to decide on specific policies. A commenter characterized my views as “the quintessential liberal view – elitist, snobbish, dismissive of democracy.”
I had thought that my reservations about direct democracy were more on the conservative side, something along the lines of Edmund Burke (1729 - 1797), much beloved among American conservatives. (“In the twentieth century, he became widely regarded as the philosophical founder of modern conservatism.” Wikipedia) Burke was elitist and snobbish, and he favored decisions by elected representatives, not the masses, even when a representative’s decision contradicted the views of those who elected him. As Burke says to a hypothetical constituent of such a representative, “Your representative owes you, not his industry only, but his judgment; and he betrays, instead of serving you, if he sacrifices it to your opinion.”
As for “elitist, snobbish, dismissive of democracy,” the phrase also describes another icon of American conservatism, William F. Buckley, Jr.
Hamilton and Madison also favored a republic, with laws made by representatives, rather than what Madison calls “pure democracy.” Federalist #10 emphasizes this idea, though more to thwart the tyranny of the majority than to provide a buffer against bad judgment. Madison has a point. Suppose that a majority of the members of a community, a university for example, want to prevent conservatives from giving talks on campus.
Pure democracy would give us stronger gun control (including an outright ban on assault weapons), much more government spending on infrastructure, higher taxes on the wealthy (especially on capital gains), Senate hearings and a vote on Supreme Court nominee Merrick Garland.
But would we really want public opinion to determine these matters? Would we want a referendum on whether we return to the gold standard? Nearly all economists say it’s a bad idea. But it sounds good. After all the gold standard is, well, the gold standard of economic policies. And if something is the gold standard, that means it’s the best in its category. It’s easy to imagine a majority of the people being convinced of its virtues.
Maybe the 2008 bank bailout is a better analogy to Brexit. The bailout was a controversial matter. Simply put, the government would be giving a ton of money to the people who tanked the economy. Still, most economists as well as the Wall Street elites, thought it was necessary. The quintessentially democratic, non-elitist way to decide the matter would have been a referendum.
In March of that year, a poll showed that 60% of Americans opposed a bailout.
Maybe a referendum wouldn’t have been such a great idea even though it may have seemed like on at the time.