the corporations who effectively control the parties
While I don't entirely disagree, I'd note that the control runs in both directions.
The only reason that corporate interests steer the government is that the government controls the corporations. By creating regulations that favor a company or the industry, they improve corporate returns. Even regulations that damage a company, but damage competitors worse, may enable rent-seeking and be a good long-term investment for a corporation.
So when the people, aghast at the kinds of problems they see, demand that the government must do something, and allow the government to gather more power in order to do so, this makes more power available for capture by the corporate interests, and so in the long run, makes the problem worse.
While I don't entirely disagree, I'd note that the control runs in both directions.
The only reason that corporate interests steer the government is that the government controls the corporations. By creating regulations that favor a company or the industry, they improve corporate returns. Even regulations that damage a company, but damage competitors worse, may enable rent-seeking and be a good long-term investment for a corporation.
So when the people, aghast at the kinds of problems they see, demand that the government must do something, and allow the government to gather more power in order to do so, this makes more power available for capture by the corporate interests, and so in the long run, makes the problem worse.