The governing system of the United States is often defined as a democratic republic or a constitutional democracy, both emphasize its key characteristics of popular participation, decision making by elected representatives, and the rule of law and set procedures as laid out in a constitutional document. But the United States is also defined as an economic system, best described as capitalism which emphasizes private ownership, free enterprise, corporate entities controlling the means of production and an open market environment marked by competition and profit-making.
There has been endless debate in this country over which system, democratic government or private sector capitalism, has more influence on the direction and development of our nation. While government is responsible for setting priorities and making laws and regulations, capitalism, and particularly the corporate sector, has significant influence in enhancing the wealth, the innovation, the growth and the prosperity of our nation. It is accurate to state that the United States is a unity of both systems combining to create a country best described as democratic capitalism.
The question of which system controls the levers of power may come down to the role corporations play in the second term of Donald Trump. We live in a time when super wealthy billionaires and major corporations associated with Big Oil, Big Technology, Big Banks, Big Wall Street and Big Defense have an inordinate amount of control shaping national priorities, law-making, regulatory policies and the distribution of wealth. President Trump has championed the “Bigs,” even defining his comprehensive tax bill, which favors the rich, as the “Big Beautiful Bill.” The President has advanced the power of the “Bigs” as he grants access to his administration to billionaires, makes government appointments to those associated with major corporations, accepts gifts from wealthy campaign donors, and works closely with Republicans in Congress to foster favorable private sector legislation.
The result of public policy making and national leadership skewed toward the “Bigs” has led to significant challenges for average Americans such as growing income inequality which fosters issues of affordability for everyday goods, weakened employment opportunities as corporate sponsored artificial intelligence programs reduce the workforce, and heightened antagonism between the working class and the corporate sector as wealth is transferred to the rich. As some have suggested, we have likely entered the 21st century version of the Gilded Age when the so-called Robber Barons controlled the major foundations of the national economy — railroads, steel, oil, and manufacturing — while ignoring the plight of the workers and the poor.
In the current political climate with the Republican Party controlling Congress, the courts often leaning toward President Trump’s positions and vision, and the power that money plays in the governing process, there is little leverage among those at the bottom rungs of the economic ladder that can be used to weaken the dominance of the corporate sector and the billionaire class. Corporations are represented by large and well-funded trade associations, prestigious law firms, experienced lobbying groups and the donor class who have become effective advocates in making the case to support their goals and objectives before Congress or in the courts. Teamed with President Trump and his White House advisors, the corporate sector and the “Big” billionaires are in a prime position to continue their dominance of the governing system.
At one time in the post-World War II era, labor unions used their membership, organizing skills and support from Democrats in Congress to challenge corporate power. Today, however, unions are in disarray and face regular defeats to win over workers when unionizing elections are held. Also, the Democratic Party is in a weakened condition in Congress and at the state level. All that the leadership team of the Democrats is capable of doing in opposition to corporate power and billionaire clout is an occasional outburst of public criticism of the status quo and halfhearted efforts in the legislative branch of government to gain the attention of the American people, who too often are not listening or accept corporate power as the reality of politics.
The excessive power and influence of the corporate sector and the billionaire class can have a corrosive impact on American democracy. Americans have often embraced the view that the United States is founded on the principles in the Declaration of Independence: “We the People,” “all men are created equal” and “the people are endowed by their Creator with certain inalienable Rights, among these are Life, Liberty and the Pursuit of Happiness.” But as more and more power and influence shifts toward the Bigs and the Billionaires, small businesses, workers and the poor (and increasingly the middle class) that make up the largest segments of the citizenry and are responsible for contributing the largest share of productivity and prosperity participate in a governing system that is anything resembling popular rule. The U.S. is rather a nation controlled by the rich, the well connected, the top executives, the bankers, the stock market investors, the media moguls, and the tech innovators. There is no doubt that local, state and national elections are held regularly and voters have an opportunity to pick their leaders, but between elections and when important policies are debated and implemented the “We the People” promise becomes a myth, a grandiose slogan, a false promise.
There is no doubt that our capitalist system is the wonder of the world and has transformed the United States into the most powerful and richest nation on the planet. Corporations and corporate giants such as Meta’s Mark Zuckerberg, Amazon’s Jeff Bezos, Berkshire Hathaway’s Warren Buffett, and Tim Cook of Apple and thousands of other leaders of industry, technology, finance and manufacturing are living the American Dream through their innovation, hard work, organizational skills, and genius. But there is a downside to their corporate power and wealth as they become attracted to a governing system that is not what the Declaration of Independence promised when it began with the words “We the People.” Their governing system is one based on exclusion, control, inequality, and injustice. Somewhere along the line, “We the People” got replaced with “We the Rich and Powerful,” and “all men are created equal” became “some men and a few women are equal,” and “life, liberty and happiness” was changed to “rights that only billionaires can enjoy with certainty.” It would be beneficial for the future direction and development of United States if we embraced the key principles contained in the original Declaration of Independence.