Lindblom - The Market System - Afghan Journalists' Committee

Enterprise Obstructions to Democracy 249The privileged political position of the market elites isstrengthened, I suggest, by popular perception that publicpolicy must accommodate their elite needs. Masses of peoplewho might otherwise support, for example, a higherlegally required minimum wage do not do so for fear, notnecessarily irrational, that its effects might be to induceemployers to reduce their hiring. Or however unjust theymay think tax reductions for the wealthy may be, they maystill support them for fear of weakened incentives to investment.They know—but they are also taught—that “businessconfidence” is a plant that can either wither or flower.One sees their acknowledgment of the need to give businesselites a privileged position in their frequent acceptance,however reluctant, of what is called the trickle-downtheory. It promises that gains will trickle down from elitesto mass if elites are well enough treated. If that is how gainsare to be had—and often that is in fact how they are to behad—the immediate requirement then, is that elites firstenjoy some gains. Hence a popular perception develops thatmarket elites need a special position in politics in order toprotect their gains.The privileged position of business can on one greatcount be strongly defended: it is necessary to make the marketsystem work. The defense grants that the market systemdoes indeed obstruct democracy. It then goes on to saythat this downgrading of democracy is a price worth payingfor making the market work.Up to some point, it makes sense to dull democracy inorder to stimulate the market system, all the more so becausethey are both systems of popular control. Whethermarket societies in practice accept greater limits on democracythan are necessary to stimulate the market system is aquestion that these societies have rarely asked. Granting