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Disintermediation and Politics
code_rage writes "Everett Ehrlich (capsule biography) writes an article in the Washington Post that examines Howard Dean's effective use of the internet to create a political organization. He says that Dean has created a 'virtual' party that has taken over the only remaining asset of value, the brand name of the Democratic party. His analysis refers to the theory of Nobel-winning economist Ronald Coase: that the size of an organization is determined by the cost of gathering information. Ehrlich's article makes some predictions about the effect that Dean's strategy will have on the political system." In a related story, there's an mp3 interview with Dick Morris, along with a couple of (appropriately) blog posts about it.
I am not necessarily a big fan of Howard Dean, but I love what he is doing to political fundraising and grassroots organization. His campaign team's efforts have really reversed the equation and empowered the small-money donors to make a difference. I think it is much better for the American political system for a candidate to raise $100 from 2 million donors than $200 million from some very large donors and interest groups. It's bottom-up campaign finance reform. Once again a technological and social solution can do what convoluted legislation cannot.
Dean's improbable sprint to internet cash-and-glory will only get him so far. And then the incredibly labor intensive huge Democratic machine will have to take over.
If you look at Dean's main Website and official blog you'll notice that it's not just fundraising that's going on. There are 150,000 people involved in Dean Meetups and thousands more have already sent over 100,000 handwritten letters to voters in New Hampsire and Iowa. Plus there are scores of independent websites discussing and promoting Dean from various perspectives. He's got more troops on the ground than the Democratic Party - particularly if you count the union troops he's already recruited as his and not the Democrats', per se.
What Dean's doing isn't taking over the "Left Wing" or even the Democratic Party so much as it is taking over the middle of the road. He's steamrolling right down the center with a good dose of traditional American common sense (although his invocation of Thomas Paine is a bit lame, at least it's an error in the right direction). He's redefining what the center of the road means.
And this whole thing about his - and his fans' - "anger" is just off the point. George W. is an idiot, and he's calling the Emperor naked and saying clearly that we should replace him with all haste. People aren't angry at Bush so much as disappointed and disgusted because Bush doesn't live up to the Main Street American values that Dean invokes.
The cynicism of the corporate-owned press is that we don't have any values to speak of beyond consumerism and the money to support our "American way" habits (and their advertisers). According to this cynicism all politicians are a bit false, so calling them naked is a bit beside the point. Dean's not a cynic, not false, and is using the Net to communicate directly with others who love America and see higher ideals as once again attainable by it, rather than a continued slide into blustering corruption.
He' proving the Republic still has some blood in its veins. He's no Thomas Jefferson (alas), but could well become the best US president since FDR.
"with their freedom lost all virtue lose" - Milton