John O. McGinnis, professor at Northwestern Pritzker School of Law, discussed his new book Why Democracy Needs the Rich in a recorded interview published on Mar. 19. In the conversation, McGinnis argued that wealthy individuals play an important role in supporting and renewing democratic systems through their independence, philanthropy, and ability to fund excellence.
The topic is significant as debates continue about the influence of wealth on democracy and whether the ultra-wealthy undermine or strengthen democratic practices. McGinnis contends that wealth acts as a catalyst for democracy rather than its rival.
In the interview, McGinnis said that commerce was considered essential by America’s founders because it created wealth and fostered cooperation among citizens: “commerce was really excellent,” he said, noting it helped unite people across religious or ethnic divides. He also emphasized that philanthropic activity has been part of American society since its founding, referencing Alexis de Tocqueville’s observations about civil society and voluntary associations.
McGinnis distinguished between Tocquevillian civil society and today’s tax-incentivized nonprofit sector: “Oh, absolutely not. But another point: there was not a large income tax back then.” He explained that while modern philanthropy is different due to higher taxation and government involvement, it still channels some of the same impulses seen nearly two centuries ago.
On technology and artificial intelligence, McGinnis expressed both excitement and concern: “I’m sort of ambivalent and worried and excited and worried” about how AI may fundamentally change society within 20 years. He noted that wealthy individuals are funding think tanks focused on these challenges because government alone may not be able to address them effectively.
Discussing regulation, McGinnis drew a distinction between politicians who are “elections specialists” and policy experts whose work is often supported by philanthropic funding. He suggested there should be limits on tax benefits for political activities conducted through nonprofits: “If it actually gets involved in actually trying to elect candidates with grassroots organizing…that strikes me as much more like politics…we might not want to have tax benefits for it.” Concluding his remarks on his book’s perspective, he said: “Not a lot of people are thinking about defending the rich. A lot of people are attacking the rich. So I thought this was a useful contrarian perspective.”
