2. • The Affluent Have Different Priorities
• The Affluent Don’t Prioritize Policies for Upward Mobility
• The Priorities of Lower Income Americans Are Often Ignored or
Blocked
• The Affluent Participate More in Politics and Civic Life
• The Affluent Have More Influence Over Policy Outcomes
• The Affluent Have More Ways to Shape Politics
• Political and Economic Inequality Are Mutually Enforcing
www.demos.org
5. THE AFFLUENT DON’T PRIORITIZE POLICIES FOR UPWARD MOBILITY
Even when the affluent do support policies for upward mobility, they
often do not prioritize these policies over other goals, such as lower
taxes.
Elected officials are sacrificing investments in the future workforce in
order to cut taxes for corporations.
Case Study: Some Governors have prioritized tax cuts for corporations
over investments in higher education. NJ cut higher education funding
by $1.6B, as state gave away $1.57 in corporate tax breaks.
www.demos.org
6. THE AFFLUENT HAVE MORE INFLUENCE OVER POLICY OUTCOMES
“…under most circumstances the preferences of the vast majority of
Americans appear to have essentially no impact on what policies the
government does
or doesn’t adopt.”
- Martin Gilens
Princeton Political Science Professor
and author of Affluence & Influence
“…the preferences of the people in the bottom third of the income
distribution have no apparent impact on the behavior of their elected
officials. ”
- Larry Bartels
Vanderbilt Political Science Professor
and author of Unequal Democracy
www.demos.org
8. AN ECONOMY SHAPED BY THE ALREADY-WEALTHY
“…the starkest difference in responsiveness to the affluent and the
middle class occurs on economic policy, a consequence of high-income
Americans’ stronger opposition to taxes and corporate regulation.”
- Martin Gilens
Princeton Political Science Professor
and author of Affluence & Influence
www.demos.org
9. DEBT & UNEMPLOYMENT &
VS.
DEFICITS JOB CREATION
www.demos.org
17. RACIAL DIMENSIONS OF CAMPAIGN FINANCE
More than 90% of itemized 2012 donations came from
majority white neighborhoods. Less than 4% came from
Latino neighborhoods, even though Latinos make up 16%
of the population. Less than 3% came from African
American neighborhoods and less than 1% came from
Asian neighborhoods.
www.demos.org
18. LOBBYING
Wealthy and business interests exercise outsized influence over policy
making through lobbying. Corporations and business groups spend
vastly more than organizations that represent large constituencies of
ordinary Americans:
• Chamber of Commerce spent $886M lobbying federal
government between 1998 and 2012
• Labor Unions spent $518M
• Healthcare groups spent three times as much as AARP
www.demos.org
19. POLITICAL AND ECONOMIC INEQUALITY ARE MUTUALLY ENFORCING
Changes in capital gains and dividends were the largest contributor to
the increase in the overall income inequality between 1996 and 2006.
Rolling back of regulations in ways favored by influential business
interests has stripped away key protections for the middle class and
made it harder for lower income groups to get ahead.
Wealthy interests have used their resources to block reforms aimed at
reducing
political inequality:
• Bankrolling efforts to suppress voting by low-income Americans
• Lobbying to oppose campaign finance reform measures
www.demos.org
20. CONCLUSION – POLICY RECOMMENDATIONS
Any comprehensive effort to create a more balanced society, one
where the deck isn’t stacked in favor of the wealthy, must achieve
progress in four main areas:
1. RESTRICT THE INFLUENCE OF MONEY IN POLITICS
• Amend the U.S. Constitution to restore the ability of the people to
enact restrictions on political contributions
• Enact strict limits on the amount that individuals and interests can
spend on U.S. politics.
• Match small contributions with public resources
• Encourage small contributions by providing vouchers or tax
credits
• Require greater transparency around political spending
• Strengthen rules governing lobbying www.demos.org
21. CONCLUSION – POLICY RECOMMENDATIONS
2. PROTECT AND EXPAND THE FREEDOM TO VOTE
• Remove Barriers to Registration and Voting
• Same-Day Registration
• Expand Agency Registration and Automate the Registration
Process
• Making Registration Permanent and Portable
• Protect Against Intimidation and Wrongful Challenges
3. MAKE CORPORATIONS MORE RESPONSIVE TO PUBLIC
INTEREST
• Develop a more reasonable approach to corporate personhood
• Corporations should be accountable to a wider array of
stakeholders
• Corporations could be defined in a manner that is morewww.demos.org
22. CONCLUSION – POLICY RECOMMENDATIONS
4. PROMOTE A STRONGER AND MORE DIVERSE MIDDLE CLASS
• Invest in human capital and education
• Increase employees’ power in the workplace
• Use tax policy to strengthen and expand the middle class
• Enable Americans to build assets
www.demos.org
