The Invisible Hand
How money has corrupted American politics
If you want to understand why American politics have become so polarized and chaotic, and why the interests of the average American seem to get lost in the partisan battles, you have to follow the money. The influence of money in politics is not new, but over the last few decades, it has grown to unprecedented levels, fundamentally reshaping governance and society in ways that most Americans fail to realize.
A look back to when the rules started to change
To understand where we are today, it’s useful to go back to the 1970s and examine how things began to shift. Before this period, laws and regulations placed restrictions on the behavior and operation of business and finance in America. These regulations were designed to prevent the kinds of abuses that characterized the 19th century Gilded Age; an era of vast economic disparity, monopolistic practices, and exploitation of workers.
However, chafing under these constraints, both the ultra-wealthy and large corporations began using their considerable financial resources to push for deregulation. The rallying cries of “free markets” and “free trade” were used as ideological weapons to dismantle the framework of well-regulated capitalism that had brought prosperity and stability to the American middle and working classes. These terms became code words for rolling back protections, reintroducing monopolistic practices, and concentrating wealth at the top — just as it had been in the days of unfettered capitalism.
The rise of money as the dominant force in politics
Money has always played a role in politics, but today, it is the dominant force. The past few decades have seen an erosion of campaign finance laws, allowing unlimited and often opaque political contributions. This transformation has given wealthy individuals and corporations outsized influence over lawmakers, who now rely on their funding to remain in power. The Supreme Court’s Citizens United decision in 2010 was a watershed moment, effectively allowing corporations and special interest groups to spend unlimited amounts to influence elections. This ruling accelerated the trend of money becoming the lifeblood of American politics.
[The Citizens United ruling set the dangerous precedent that corporate entities have the same rights of political speech as citizens — and that money is speech. It was completely unnecessary, because corporate officers, employees, and shareholders, individually, have always had a citizen’s right of political expression — and it resulted in opening the floodgates of dark money in American politics.]
The influence of money extends far beyond campaign contributions. Corporate lobbyists exert enormous pressure on Congress, drafting legislation favorable to their interests while often working directly with policymakers to ensure its passage. The revolving door between government and private industry further entrenches this dynamic, with former lawmakers and regulators frequently taking lucrative positions in the industries they once oversaw.
The weaponization of media and misinformation
To maintain their hold on power and prevent meaningful reforms that would challenge economic inequality, the wealthiest interests have invested heavily in media and propaganda. The rise of well-funded media outlets like Fox News, rebranded by billionaire Rupert Murdoch as an ultra-conservative megaphone, has played a crucial role in shaping public opinion. These media empires promote divisive narratives that distract from the real issue at hand: the staggering redistribution of wealth from the middle and working classes to the wealthiest Americans and large corporations.
Social media platforms, backed by powerful financial interests, have further exacerbated cultural and political divisions. Algorithm-driven echo chambers reinforce preexisting biases, stoke outrage, and foster an environment where compromise and rational debate are nearly impossible. This digital landscape has allowed misinformation to thrive, ensuring that the public remains more focused on demonizing the “other side” rather than addressing the systemic issues that impact us all.
The distraction from wealth inequality
While Americans are consumed by cultural battles and partisan animosities, economic inequality has reached historic levels. The wealth gap between the richest Americans and everyone else continues to widen, yet meaningful policy changes to address this disparity remain elusive. The political elite, beholden to their donors, avoid enacting policies that could curb corporate excesses, equitably tax the ultra-wealthy, or provide stronger social safety nets.
Instead, the electorate is kept occupied with divisive social issues, ensuring that working- and middle-class Americans remain too fractured to mount a unified challenge against the entrenched economic elite. This strategy, though deeply cynical, has been remarkably effective in maintaining the status quo.
Where do we go from here?
If we want to restore a political system that serves the interests of everyday Americans rather than just those of the financial elite, campaign finance reform must be a priority. Ending the dominance of big money in politics would require overturning Citizens United, instituting transparent campaign financing by individuals - not corporations or special interests, and implementing stricter lobbying regulations.
Additionally, breaking up media monopolies and ensuring a more diverse and independent press could help combat the dangerous spread of propaganda and misinformation. Addressing social media’s role in political polarization, through regulatory measures and platform accountability, could also help create a more informed and engaged citizenry.
Ultimately, the first step to solving the problem is awareness. Americans must recognize that the dysfunction in politics is not an accident, nor is it solely the product of partisan gridlock. It is a carefully orchestrated system that benefits those with wealth and power by distracting the average citizen: very much like the bread and circuses of Imperial Rome.
If you want to understand why American politics and governance have sunk to such a dangerous level, look for the money. It tells the story of how democracy has been hijacked by economic elites, and until that influence is curbed, the American Dream will remain out of reach for the many, while serving only the privileged few.
Author’s Note: I’m a software designer and developer. My training and expertise is in understanding why systems work or don’t work. As I became more and more worried about the state of my country, I’m also an Army combat veteran, I naturally tried to determine why this system wasn’t working. This article represents my conclusions. Draw your own.
The following table is my analysis of the major economic systems. I believe that it makes a good case for well-regulated capitalism as the best fit for America. We need to get it back.
