KSET Exam 2014 Solved Paper

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Question Numbers: 25-30
Direction: Noam Chomsky has presented his views on the functioning of democracy in USA in the following passage. Read the passage and answer questions :
American power is diminishing, as it has been in fact since its peak in 1945, but it’s still incomparable. And it’s dangerous. Obama’s remarkable global terror campaign and the limited, pathetic reaction to it in the West is one shocking example. And it is a campaign of international terrorism – by far the most extreme in the world.
According to received doctrine, we live in capitalist democracies, which are the best possible system, despite some flaws. There’s has been an interesting debate over the years about the relation between capitalism and democracy, for example, are they even compatible ? I won’t be pursuing this because I’d like to discuss a different system – what we could call the “really existing capitalist democracy”, RECD for short, pronounced “wrecked” by accident. To begin with, how does RECD compare with democracy ? Well that depends on what we mean by “democracy”. There are several versions of this. One, there is a kind of received version. It’s soaring rhetoric of the Obama variety, patriotic speeches, what children are taught in school, and so on. In the U.S. version, it’s  government “of, by and for the people”. And it’s quite easy to compare that with RECD.
In the United States, one of the main topics of academic political science is the study of attitudes and policy and their correlation. The study of attitudes is reasonably easy in the United States : heavily-polled society, pretty serious and accurate polls, and policy you can see, and you can compare them. And the results are interesting. In the work that’s essentially the gold standard in the field, it’s concluded that for roughly 70% of the population – the lower 70% on the wealth/income scale – they have no influence on policy whatsoever. They’re effectively disenfranchised. As you move up the wealth/income ladder, you get a little bit more influence on policy. When you get to the top, which is may be a tenth of one percent, people essentially get what they want, i.e. they determine the policy. So the proper term for that is not democracy : it’s plutocracy.
These characteristics of RECD show up all the time. So the major domestic issue in the United States for the public is jobs. Polls show that very clearly. For the very wealthy and the financial institutions, the major issue is the deficit. Well, what about policy ? There’s now a sequester in the United States, a sharp cutback in funds. Is that because of jobs or is it because of the deficit ? Well, the deficit.
Europe, incidentally, is much worse – so outlandish that even The Wall Street Journal has been appalled by the disappearance of democracy in Europe. “ ..... Economic policies have changed little in response to one electoral defeat after another. The left has replaced the right; the right has ousted the left. Even the center-right trounced Communists (in Cyprus) – but the economic policies have essentially remained the same : Governments will continue to cut spending and raise taxes.” It doesn’t matter what people think and “national governments must follow macro-economic directives set by the European Commission.” Elections are close to meaningless, very much as in Third World countries that are ruled by the international financial institutions. That’s what Europe has chosen to become. It doesn’t have to.
Returning to the United States, where the situation is not quite that bad, there’s the same disparity between public opinion and policy on a very wide range of issues. Take for example ..... national healthcare. The U.S., as you may know has a health system which is an international scandal, it has twice the per capita costs of other OECD countries and relatively poor outcomes. The only privatized, pretty much unregulated system. The public doesn’t like it. They’ve been calling for national healthcare, public options, for years, but the financial institutions think it’s fine, so it stays : stasis. In fact, if the United States had a healthcare system like comparable countries there wouldn’t be any deficit. The famous deficit would be erased, which doesn’t matter that much anyway.
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