Democracy Overwhelmed



Outline of Reich, chapter 4

pp. 168

of Reich`s argument for chapter 4

pp. 168-171

Main background: Reich demonstrates how citizens lack credence with the government due to inadequate services. He shows how the government ignores it`s citizens and how businesses are dominating the political arena. The argument is on how the markets have grown and the impacts to the citizens.

pp. 172-178

Reich shows how huge amounts of money are used by political parties to gain popularity. He also demonstrates how big businesses are favored by those politicians that they support financially.

pp. 178-183

Reich argues that the evidence on republicans on the condition of lobbying is undemanding. He contends that democrats were no longer in need of the finances because they had lost the bicameral legislature in 1994. He insists that having good government relations and communication is imperative.

pp. 183-185

Reich argues on finances and government as the main challenges. Reich shows how more funds on the general security, healthcare and welfare of the citizens has led to businesses being involved in the operation of government affairs.

pp. 186-189

Reich argues that investors with big companies are to blame for the huge amounts of money that is supplied to politics. Reich demonstrates the need to expropriate the government in order to stop these avenues through which funds flow into politics via business owners.

pp. 189-195

Reich argues that a hypercompetitive economy still has effects on the democracy of citizens of America. Reich outlines how the inequalities of wealth, job security and corruption disrupt the political processes.

pp. 195-206

Reich outlines the undertakings that interfere with economic and political issues in a given country as well as the effects that the American capitalism has on the economy.

pp. 206-212

Reich describes how politicians have greatly interfered with the citizen’s democracy and the impacts of their actions.

pp. 212-216

Reich summarizes this chapter by outlining how politics has been influenced by the investors. He shows how the relationship between the politicians and investors work in their interests. He suggests that all citizens should be given equal chances to participate in the affairs of their country.

Argumentoutline of Reich, chapter 4


Theaverage citizens are being ignored while consumers and investors inthe market are doing well. Citizens are with fear and lack credencewith the government due to deteriorating services. Citizens aredenied the chance and are being ignored.


  • Huge amounts of money are being used in the political arena that helps promote investors who dominate the market.

  • The government sets laws that exploit its citizens by reducing their salaries and raising taxes for the average citizen.

  • There is the relationship between investors and politicians whereby the investors manipulate and control political processes.

Competitionthat has favored investors has further led to lobbyists in Washingtonand the entire world (Reich,2007).

of Reich’s Main argument:

Reichcontends that the citizens of the United States are with fear andlack credence with the governance because the government does notlisten to their grievances. The citizens began to lose faith with thegovernment after the Great prosperity that involved events likedouble digit inflation and oil shortages. Reich states that this lackof confidence has continued to decline since these events occurred.He further attributes this loss of faith because the government wasreluctant in providing services to the citizens that were as a resultof tax cuts.

Themerging of business organizations that work for the benefits ofthemselves inflicts fear to the Americans. Reich insists that thesebusinesses lead to an efficient market that greatly improves theeconomy of the entire world and is has become easier to access goodsand services in the market (Reich,2007).The investors also benefit from an increased return on theirinvestment. However, this competition has led to the dominance ondemocracy and politics. Reich quotes that the consumers and investorsare doing very well, while the average citizen is being ignored(Reich,2007).Most of the citizens who were desperately looking for jobopportunities and conserved the environment were in adverseconditions.

Evidencefor argument, that hugeamounts of money are being used in the political arena that helpspromote investors who dominate the market.

Inthis chapter, Reich explains how huge amounts of money are used inthe political arena to support investors who dominate the market. Thepresence of huge investments in the political system significantlyaffects the people’s freedom. Reich conducted a research toidentify how these amounts can destroy an open society (Reich,2007).When these politicians raise money, they concentrate on ways toenrich themselves. Reich says that politicians are mostly favored bythese investors as they provide them with the finances needed topromote their political careers.

Onthe other hand, these investors benefit from these politicians in anumber of ways. First, these politicians implement laws that helpthese businessmen. For instance, reduction of their corporate taxesand other policies that helps them earns an advantage over theirrivals in the market (Reich,2007).Reich concludes by saying that, giving such businessmen a chance todominate the market adversely affects the ordinary people who areforced to enjoy the goods and services that would rather not be theirpreferences. On the issue of super capitalism, Reich insists thatthere should be separation between capitalism and politics, and thiswill help promote an environment that will favors businesses and thegovernment. He says that this will be achieved by placing capitalismas a service of justice.

Evidencefor argument that thereis the relationship between investors and politicians whereby theinvestors manipulate and control political processes.

Reichalso identifies the existence of a relationship between investors andpoliticians whereby the investors manipulate and control thepolitical processes. This is the biggest problem that exists in mostof the countries worldwide. Majority of the prominent businessmenprovide financial support to political parties so that theirbusinesses are favored in terms of their operations (Reich,2007).The citizen’s opinions are disregarded. Reich demonstrates thatthis relationship between politicians and businessmen has led to acompetition that has further made the citizens be ignored in allperspectives.

Evidencefor argument, that governmentsets laws that exploit its citizens by reducing their salaries andraising taxes for the average citizen.

Reichused an example of the way politically controlled businesses exploitthe workers by paying them low salaries and wages. Reich believesthat this happens because most of the laws that were to protect thecitizens have been influenced politically (Reich,2007).The workers can only benefit if the laws are changed to change therules of the game set by politicians. Changing these laws means thatemployees will benefit from better salaries and wages. Reich claimsthat these laws can only be changed through the legislature becausehaving them altered through the parliament will be politically biased(Reich,2007).Increasing the wages will lead to a hike in the cost to consumers.

Reflection:How the chapter intersects with my life

Itis clear that the evidence demonstrated by Reich in the “DemocracyOverwhelmed” relates in my life. I second his arguments on therelationship between the companies and politicians. Today, most ofthe politics are controlled by prominent people who own bigbusinesses in the country. This scenario is evidenced in the countryI live because the political party that I support has all the leadersas people with big businesses and investments. The businessmencontrol the movement and operation of this party. The main agenda inthese associations of political parties and investors is to act intheir advantage.

Theincrease in the free market that was as promoted by the media andbooks was greatly funded by powerful and wealthy people. Reich alsoexplains the concept of American oligopolistic capitalism thatexisted in America during the twentieths century. This had ensuredeconomic equality to the American citizens before spreading to theentire world. They are organized to benefit themselves and theirmembers. The laws and regulations established to govern thesebusinesses exploit the workers by paying them poorly and denying themtheir rights at workplaces. Reich demonstrates that citizens havelost faith with the government. They claim that the government doesnot provide adequate services. The interests of citizens are ignoredand are left suffering. Reich concludes by saying that the onlysolution to solving these issues is by having everyone participateand plays by the same rules. I would compare these arguments to thedemocrats who support issues like education, health care and jobcreations.


REICH,R. B. (2007). Supercapitalism: the transformation of business, democracy, and everydaylife.New York, NY, Knopf.