Incentivizing Democracy
Two global crises are troubling policy-makers, academics, and large swaths of the general public. The first one is political, currently unfolding, and could be best labelled as a crisis of democracy. As the latest V-DEM Report on Democracy shows, the gains of the so-called “third wave of democracy” have been almost completely wiped out, with democracy worldwide going back to 1978 levels. Only 7% of the world population are now considered to live in a liberal democracy. Moreover, global dissatisfaction with democracy among ordinary citizens has reached unprecedented levels in the last few years. The other crisis is economic, currently looming, and is traceable to the impact that loosely regulated AI development is likely to have for the job market. While it is too early to offer more than potential scenarios for this evolution, even in the near to medium-term future, there is a fairly widespread sentiment that the consequences of AI for employment, at least in some sectors, will be rather pernicious. For example, most business executives believe that AI is likely to displace a large number of existing jobs, while about two thirds of both EU and US citizens believe that AI will lead to more jobs dissappearing than being created. Dario Amodei, the CEO of Anthropic, has strikingly predicted as recently as January 2026 that AI could displace half of all entry-level white collar jobs within the next five years. In this piece I briefly outline an institutional proposal, which is not novel but instead has excellent historical pedigree, that could contribute to attenuate these crises if coupled with other kinds of substantive democratic reforms.

Athenian Tetradrachm
Source: https://www.navic.org.au/numismatic-items/the-athenian-tetradrachm/
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