An economic theory of political action in a democracy

In this summary, Anthony downs has raised a discussion that explains the relationship

of political parties and citizens on the maximization of social welfare in an economic country.

Several principles have been formulated to guide governmental actions in the economy.

Some of the key discussion points will be based on citizens’ role towards the public affairs

apathy. It explains the reason why citizens tend to ignore the essential issues raised by

political parties during campaigns. The importance of two-party systems in a democratic

nation. The effects of anti-consumer bias on the ruling government’s activities.

The role of elected political parties in a democracy nation maximizes citizens’ social

welfare using the economic theories. The ruling parties tend to take advantage of citizens

failing to understand the context of social welfare; instead, they fulfill their own interests. In

a country, economic actors play the role of a private motive to the citizens and social

functions to the ruling government. The motivation for the politicians in participation of

social welfare is because not included in the division of labor. The government’s social

function is to carry out policies to serve the welfare of the society or citizens where the

private motive for politicians tends to be stronger since its aims to gain income, prestige,

power, and feed the families.

Government is defined as an agency in the division of labor to control all other agents

in a country for economic purposes. The author gives different explanations of democracy as

a political system based on different categories. That is, many parties are involved in

elections to gain the power of the government. Parties unite to gain the majority of votes to

win elections and rules the nations until the next elections. Losing parties have no power in

controlling the government, where the law-abiding adults become citizens. In an election,

each citizen represents one vote.

 Some of the axioms discussed are political party comprises people whose aim is to be

in office to enjoy the income, prestige, and power since they have control of government

properties. The winning party has full control of the government, its economic power is

unlimited, and it cannot interfere with the freedom of the opposition party and the citizens.

Political parties in democracy come up with policy to gain votes and power then follow paths

that server their interest best.

A political market is divided into government cases where perfect knowledge and

information are costless in a world consisting of perfect knowledge and information. In this

case, citizens can decide which party’s policy meets their demand to utility income depending

on past elections. Policies are designed to gain maximum votes, which give strategic benefits

to the oppositions. In a world where knowledge is imperfect and information is costly, parties

have no idea with citizens’ interests. Citizens have no idea of strategies formulated by the

government to fulfill their interests.

Some of the stated consequences of these cases are persuaders, who give out facts and

information only favorable to the supporting side since citizens tend to lack knowledge in

voting decisions. Persuaders are more valued than citizens in parties. The importance of

decentralization of power is to have a representative who can persuade citizens for the

reelection of government. Imperfect knowledge makes the ruling party more prone to bribery

and the establishment of the need for ideologies.