The one economic drawback to democratic governance is - - - democratic governance. Democracy is only effective at providing for the common welfare if the voting populace is informed and votes beyond their own narrow special interests. No where is this more evident than the success the wealthy have had in distorting the perceptions of the average American concerning the role of the federal government in the economy.

The percentage of the population represented by those who have any actual knowledge of how money is created and the purpose of the various players in the economy is almost too small to measure. However, the percentage of the voting population that "believes" they understand it all is likely close to 100%. The problem with this is that those beliefs are the product of experience as "currency users" while the people they are voting for become "currency issuers" when elected. The roles are very different.

Just the concept of a central government being able to create money without regard for revenue is so foreign to uninformed citizens that it stirs up resentment in them and that anger can easily be turned to votes by skillful politicians and activists. However, while perception can influence policy, it cannot determine outcomes if it is incorrect or even opposite to reality.