Regarding authoritarianism inherent in free markets

Context

The reality of American politics and government is very bad and getting worse fast. We are operating under a highly energized, corrupt, structurally authoritarian/oligarchic, demagogue‑friendly system. There is an ongoing war between that and what is left of the old status quo, i.e., a frozen, obsolete Constitution and system of law. The big picture is complex. Far bigger and more complex than a single ~400 word blog post can convey.

This post links a trait of unregulated free markets in capitalism with what that means for America’s bitter war of authoritarianism (concentrated wealth & power) vs democracy (less concentrated wealth & power).

Two relevant research data points: First, most experts now believe that the US is sliding toward authoritarianism, which is tightly linked to Trump’s mendacious demagoguery and bad behaviors. Second, research consistently shows (and this, and this) that that economic inequality is one of the strongest predictors of democratic erosion and failure. Concentrated wealth and power push democracies toward authoritarianism.

How unregulated free markets behave

A 2019 SciAm article, Is Inequality Inevitable?, asks a key question about free markets. It turns out that inequality is the norm in unregulated markets, but not in reasonably regulated markets. This trait of capitalist markets is simply inherent. Absent regulation, wealth usually trickles up to a few. For better or worse, wealth naturally concentrates and tends toward oligarchy unless there is wealth redistribution by law or other wealth-distributing factors, e.g., taxes.

 
Later research continues to reinforce this data point. Given current forms of capitalism, weak labor power, and porous tax/ownership laws, rising inequality is structurally likely. If Trump and MAGA maintain (1) their current tax cuts (already tilted to favor the rich), (2) gutted regulations, and (3) open legalized influence‑buying (corruption), the probability that US inequality will rise further is extremely high. Current evidence shows that is happening right now. Link 1, link 2, link 3, link 4

A plausible (likely?) end game for American democracy

With increasing wealth inequality comes increased inequality in power. Power goes with the wealth. The wealthy elites buy policy and law that protects and expands their wealth and power. The US Supreme Court protects and expands the scope of legalized corruption (and this). In the end, we probably wind up with some form of kleptocratic (and this) authoritarianism, most likely a combination of Trump/MAGA elite dictatorship (and this), oligarchy (and this), and bigoted Christian nationalist theocracy. In the end, the American experiment in democracy and self-government will have failed.