America Isn’t an Oligarchy

The Free Press  |  Tyler Cowen

The United States federal and local government spending structures demonstrate that democratic voter demand, rather than oligarchic influence, remains the primary driver of American public policy. This democratic responsiveness is reflected in the allocation of state and local budgets, which prioritize public education, infrastructure, and Medicaid expansions. Historically, critics from the political left have argued that a small cadre of ultra-wealthy individuals controls the nation's political trajectory.

However, the vast majority of federal outlays are directed toward highly popular social safety net programs, including Medicare, Social Security, and Medicaid, alongside essential national defense spending and interest payments on the national debt. These massive entitlement programs persist because of broad public support among the electorate rather than the lobbying efforts of billionaires. Consequently, the fiscal realities of both state and federal governance underscore that the American electorate, not an elite oligarchy, ultimately steers the country's legislative and financial priorities.

Comment

The structural locking of the United States federal budget into mandatory entitlement spending like the Social Security Act programs limits fiscal flexibility for long-term military modernisation. As non-discretionary outlays expand due to demographic shifts, the discretionary portion allocated to the Department of Defense faces persistent downward pressure. This fiscal reality constrains the Pentagon's capacity to fund large-scale procurement initiatives, such as the Columbia-class submarine programme, without incurring significant national debt. Consequently, the primary limitation on American strategic power projection stems from domestic legislative commitments rather than external geopolitical competition.

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