Plebiscites,Fiscal Policy and the Poor: Learning from US Experience with Direct Democracy

Many countries are contemplating direct political participation as a way of giving marginalised people more say in national fiscal policies. The United States is a natural laboratory for studying how large‐scale direct democracy actually works in this regard. Every state allows voters to decide certain ballot questions about how to raise and spend public revenue. The 100‐year record shows, however, that state‐wide plebiscites fail to produce uniformly equitable or financially sustainable government budgets, or to mobilise low‐income groups to defend their economic interests. When called upon to make decisions about state government spending, the electorate is apt to disregard any hardship for poor people. Traditional political parties and advocacy organisations are usually a more promising avenue for promoting anti‐poverty budgets.