Bell presents a number of lessons to teach us about the rules to rule by. First, politics is about getting and keeping political power. It is not about the general welfare of “We, the people.” Second, political survival is best assured by depending on few people to attain and retain office. That means dictators, dependent on a few cronies, are in a far better position to stay in office for decades, often dying in their sleep, than are democrats. Third, when the small group of cronies knows that there is a large pool of people waiting on the sidelines, hoping to replace them in the queue for gorging at the public trough, then the top leadership has great discretion over how revenue is spent and how much to tax. All that tax revenue and discretion opens the door to kleptocracy from many leaders, and public-spirited programs from a very few. And it means enhanced tenure in power. Fourth, dependence on a small coalition liberates leaders to tax at high rates, just as was true in Bell. Taxing at high rates has a propensity to foment the threat of popular uprisings, just as happened in Bell. Of course, in Bell it was easy for the people to rise up and end Rizzo’s rule because they have essential freedoms: the rights to free speech and assembly. We shall see that how the structure of government and the economy works explains variation in how many of these rights people have. This in turn accounts for whether the people take to the streets and whether they can succeed in orchestrating change, as we recently saw in some parts of the Middle East, or remain oppressed, as we saw in others.
We will see that Bell’s story offers a nearly perfect script for how to govern when the hold on office depends on very few people, especially when they are selected from among many. The politicians of Bell intuitively understood the rules of politics. Leaders who follow these rules faithfully truly can stay on top without ever having to do “the right thing” for their subjects. The people governing Bell clung to power for a very long time before probes from outside uncovered their means of holding on to office. As we will see, what works for those at the top usually works against those at the bottom, hence our shock and surprise at headlines of the misdoings of so many in high positions. The way places like Bell are governed (and that is the way most places and most businesses are governed) assure the Bell Bottom Blues.
One important lesson we will learn is that where politics are concerned, ideology, nationality, and culture don’t matter all that much. The sooner we learn not to think or utter sentences such as “the United States should do . . . ”or “the American people want . . . ” or “China’s government ought to do . . . ,” the better we will understand government, business, and all other forms of organization. When addressing politics, we must accustom ourselves to think and speak about the actions and interests of specific, named leaders rather than thinking and talking about fuzzy ideas like the national interest, the common good, and the general welfare. Once we think about what helps leaders come to and stay in power, we will also begin to see how to fix politics. Politics, like all of life, is about individuals, each motivated to do what is good for them, not what is good for others. And that surely is the story of Robert Rizzo of Bell, California.
Great Thinker Confusion
As Robert Rizzo’s story highlights, politics is not terribly complicated. But by the same measure, history’s most revered political philosophers haven’t explained it very well. The fact is, people like Niccolò Machiavelli, Thomas Hobbes, James Madison, and Charles-Louis de Secondat (that is, Montesquieu), not to forget Plato and Aristotle, thought about government mostly in the narrow context of their times.
Hobbes sought the best form of government. His search, however, was blinded by his experience of the English civil war, the rise of Cromwell, and his fear of rule by the masses. Fearing the masses, Hobbes saw monarchy as the natural path to order and good governance. Believing in the necessary benevolence of an absolute leader, the Leviathan, he also concluded that, “no king can be rich, nor glorious, nor secure, whose subjects are either poor, or contemptible, or too weak through want, or dissension, to maintain a war against their enemies.”7 Taking a bit of liberty with Hobbes’s more nuanced philosophy, we must wonder how Robert Rizzo, by Hobbesian lights, could grow so rich when his subjects, the citizens of Bell, were so demonstrably poor.
Machiavelli, an unemployed politician/civil servant who hoped to become a hired hand of the Medici family—that is, perhaps the Robert Rizzo of his day—wrote The Prince to demonstrate his value as an adviser. It seems the Medicis were not overly impressed—he didn’t land the job. He had, we believe, a better grasp than Hobbes on how politics can create self-aggrandizing practices such as were experienced in Bell half a millennium later. Writing in The Discourses, Machiavelli observes that anyone seeking to establish a government of liberty and equality will fail, “unless he withdraws from that general equality a number of the boldest and most ambitious spirits, and makes gentlemen of them, not merely in name but in fact, by giving them castles and possessions, as well as money and subjects; so that surrounded by these he may be able to maintain his power, and that by his support they may satisfy their ambition. . . .”8
Robert Rizzo might have done well to study Machiavelli as the best source of his defense against public opprobrium. He maintained his power for long years by satisfying the ambition for wealth and position of those loyal to him on Bell’s city council, and they really were the only people whose support he had to have.
James Madison, a revolutionary trying to bring his brand of politics into power, was, like Hobbes, looking revolution in the face. Unlike Hobbes, however, Madison actually liked what he saw. In Federalist 10, Madison contemplated the problem that was to bedevil the citizens of Bell a quarter of a millennium later, “whether small or extensive Republics are most favorable to the election of proper guardians of the public weal: and it is clearly decided in favor of the latter.”9 His conclusion, not easily reached as he was fearful about tyranny of the majority, is close to what we argue is correct although, as always, the devil is in the details and Madison, we believe, fell a bit short on the details of good governance. In describing a republic as large or small, he failed to distinguish between how many had a say in choosing leaders and how many were essential to keeping a leader in place. The two, as we will see, can be radically different.
Madison’s view was at odds with that of Montesquieu, who maintained that, “In a large republic the public good is sacrificed to a thousand views; it is subordinate to exceptions; and depends on accidents. In a small one, the interest of the public is easier perceived, better understood, and more within the reach of every citizen; abuses have a lesser extent, and of course are less protected.”10 Not so in Bell—and in Bell we trust.
For Montesquieu, the Enlightenment, the new Cartesian thinking, and the emerging constitutional monarchy of Britain all combined to stimulate his insightful ideas of political checks and balances. Through these checks and balances he hoped to prevent exactly the corruption of public welfare that the charter city election in Bell foisted on its citizens.
Of course, the option of forming a charter city was motivated, in theory, exactly by a quest for checks and balances on the authority of California’s state legislature. But the electoral public in the charter city special election was a meager 390 souls, and even in Bell’s contested elections before the scandal, fewer than a quarter of registered voters, themselves only a quarter of the city’s population, bothered to vote. That’s not enough to prevent the very corruption Montesquieu hoped to avoid.
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