We have a Constitutionally LIMITED republican form of government.
A representative government where the representatives are dependent on 'donations' to maintain their employment is the problem.
There is good reason for the founders to fear simple (or direct) democracy; the way the initiative process is operating in California is a great example of why the founders established a republic. The initiative along with the referendum and recall have been abused and that abuse will only get worse now that CU v FEC is the law of the land.
Our representative republic is subject to the abuse of greedy and dishonorable men. And all of our contrivances will not rectify that problem. What is required remains the same. First, institutional checks and balances. Then, an elevated level of transparency in the process. And then, but not necessarily least important, close scrutiny by the public and public prosecutors.
There ARE indeed good reasons for the Founders and Framers to have feared simple democracy. They saw the dangers of a tyrannical majority for example. This is
part of the reason we established a Constitutionally limited form of Republic with built in safeguards.
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Also true; unless all forms of advertising are eliminated, money will always be necessary to campaign. Allocating resources from taxpayers for "public funding" is not a solution, nor Constitutional, I BELIEVE.