This bleak piece is essential reading if you live in a democracy which is currently ruled by a demagogue such as Trump. Steven Levitsky of Harvard University and Lucan Way from the University of Toronto are distinguished political scientists. If you are too busy to read their outstanding piece, here is the crux of it:

“…authoritarianism does not require the destruction of the constitutional order. What lies ahead is not fascist or single-party dictatorship but competitive authoritarianism—a system in which parties compete in elections but the incumbent’s abuse of power tilts the playing field against the opposition. Most autocracies that have emerged since the end of the Cold War fall into this category…Under competitive authoritarianism, the formal architecture of democracy, including multiparty elections, remains intact. Opposition forces are legal and aboveground, and they contest seriously for power. Elections are often fiercely contested battles in which incumbents have to sweat it out. And once in a while, incumbents lose, as they did in Malaysia in 2018 and in Poland in 2023. But the system is not democratic, because incumbents rig the game by deploying the machinery of government to attack opponents and co-opt critics. Competition is real but unfair.”

If like us, you are curious to understand why men like Trump are able to subvert democracies so easily, you find plenty of answers in this long read. The first reason lies in the vast bureaucracies that most democracies end up cultivating. These bureaucracies are prone to manipulation: “…much of the coming authoritarianism will take a less visible form: the politicization and weaponization of government bureaucracy. Modern states are powerful entities. The U.S. federal government employs over two million people and has an annual budget of nearly $7 trillion. Government officials serve as important arbiters of political, economic, and social life. They help determine who gets prosecuted for crimes, whose taxes are audited, when and how rules and regulations are enforced, which organizations receive tax-exempt status, which private agencies get contracts to accredit universities, and which companies obtain critical licenses, concessions, contracts, subsidies, tariff waivers, and bailouts. Even in countries such as the United States that have relatively small, laissez-faire governments, this authority creates a plethora of opportunities for leaders to reward allies and punish opponents. No democracy is entirely free of such politicization. But when governments weaponize the state by using its power to systematically disadvantage and weaken the opposition, they undermine liberal democracy. Politics becomes like a soccer match in which the referees, the groundskeepers, and the scorekeepers work for one team to sabotage its rival….

Professional civil servants often play a critical role in resisting government efforts to weaponize state agencies. They have served as democracy’s frontline of defense in recent years in Brazil, India, Israel, Mexico, and Poland, as well as in the United States during the first Trump administration. For this reason, one of the first moves undertaken by elected autocrats…has been to purge professional civil servants from public agencies responsible for things such as investigating and prosecuting wrongdoing, regulating the media and the economy, and overseeing elections—and replace them with loyalists.”

The second lever that demagogues use is the law. More specifically, they use the law to target their opponents through prosecutions & investigations: “The most visible means of weaponizing the state is through targeted prosecution. Virtually all elected autocratic governments deploy justice ministries, public prosecutors’ offices, and tax and intelligence agencies to investigate and prosecute rival politicians, media companies, editors, journalists, business leaders, universities, and other critics. In traditional dictatorships, critics are often charged with crimes such as sedition, treason, or plotting insurrection, but contemporary autocrats tend to prosecute critics for more mundane offenses, such as corruption, tax evasion, defamation, and even minor violations of arcane rules. If investigators look hard enough, they can usually find petty infractions such as unreported income on tax returns or noncompliance with rarely enforced regulations.

Trump has repeatedly declared his intention to prosecute his rivals, including former Republican Representative Liz Cheney and other lawmakers who served on the House committee that investigated the January 6, 2021, attack on the U.S. Capitol. In December 2024, House Republicans called for an FBI investigation into Cheney….His nominee for attorney general, Pam Bondi, has declared that Trump’s “prosecutors will be prosecuted,” and his choice for FBI director, Kash Patel, has repeatedly called for the prosecution of Trump’s rivals. In 2023, Patel even published a book featuring an “enemies list” of public officials to be targeted…

Targets of investigation will be forced to devote considerable time, energy, and resources to defending themselves; they will spend their savings on lawyers, their lives will be disrupted, their professional careers will be sidetracked, and their reputations will be damaged. At a minimum, they and their families will suffer months or years of anxiety and sleepless nights.”

The third lever is the education system which in most democracies receives substantial funding from the government and that funding, in turn, gives the demagogue a powerful lever: “The Trump administration will almost certainly deploy the Department of Education against universities, which as centers of opposition activism are frequent targets of competitive authoritarian governments’ ire. The Department of Education hands out billions of dollars in federal funding for universities, oversees the agencies responsible for college accreditation, and enforces compliance with Title VI and Title IX, laws that prohibit educational institutions from discriminating based on race, color, national origin, or sex. These capacities have rarely been politicized in the past, but Republican leaders have called for their deployment against elite schools.”

And the fourth level that demagogues use is rewards for those who fall into line and kiss the ring: “A weaponized state is not merely a tool to punish opponents. It can also be used to build support. Governments in competitive authoritarian regimes routinely use economic policy and regulatory decisions to reward politically friendly individuals, firms, and organizations. Business leaders, media companies, universities, and other organizations have as much to gain as they have to lose from government antitrust decisions, the issuing of permits and licenses, the awarding of government contracts and concessions, the waiving of regulations or tariffs, and the conferral of tax-exempt status. If they believe that these decisions are made on political rather than technical grounds, they have a strong incentive to align themselves with incumbents.

The potential for co-optation is clearest in the business sector. Major American companies have much at stake in the U.S. government’s antitrust, tariff, and regulatory decisions and in the awarding of government contracts….For aspiring autocrats, policy and regulatory decisions can serve as powerful carrots and sticks to attract business support. This kind of patrimonial logic helped autocrats in Hungary, Russia, and Turkey secure private-sector cooperation. If Trump sends credible signals that he will behave in a similar manner, the political consequences will be far-reaching. If business leaders become convinced that it is more profitable to avoid financing opposition candidates or investing in independent media, they will change their behavior.

Indeed, their behavior has already begun to change. In what the New York Times columnist Michelle Goldberg termed “the Great Capitulation,” powerful CEOs who had once criticized Trump’s authoritarian behavior are now rushing to meet with him, praise him, and give him money. Amazon, Google, Meta, Microsoft, and Toyota each gave $1 million to fund Trump’s inauguration, more than double their previous inaugural donations. In early January, Meta announced it was abandoning its fact-checking operations—a move that Trump bragged “probably” resulted from his threats to take legal action against Meta’s owner, Mark Zuckerberg. Trump himself has recognized that in his first term, “everyone was fighting me,” but now “everybody wants to be my friend.”

A similar pattern is emerging in the media sector. Nearly all major U.S. media outlets—ABC, CBS, CNN, NBC, The Washington Post—are owned and operated by larger parent corporations….The Washington Post, for instance, is controlled by Jeff Bezos, whose largest company, Amazon, competes for major federal contracts.”

Amazon, Alphabet (Google’s parent company), Microsoft and Meta forms part of Marcellus’ Global Compounders Portfolio, a strategy offered by IFSC branch of Marcellus Investment Managers Private Limited. Hence, we as Marcellus, our immediate relatives and our clients may have interest and stakes in the mentioned stock. The stocks mentioned are for educational purposes only and not recommendatory.

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