Comment by AnthonyMouse

> it represents a change from full participatory democracy to narrower and ultimately aristocratic governance.

I don't think that's the relevant distinction. "Benevolent dictatorship" is still one of the most efficient forms of governance, if you actually have a benevolent dictator.

The real problem is perverse incentives. If you have a situation where 0.1% of people can get 100 times as many resources as the median person through some minimal-overhead transfer mechanism, that's maybe not ideal, but it's a lot better than the thing where 0.1% of people can get 100 times as many resources as the median person by imposing a 90% efficiency cost. In the first case you lost ~10% of your resources so someone else could have 100 times as much, but in the second case you lost >90% of your resources only so that someone else could have 10 times as much as they'd have had to begin with, because now the pie is only 1/10th as big.

But the latter is what happens when corruption is tolerated but not acknowledged, because then someone can't just come out and say "I'm taking this because I can get away with it and if you don't like it then change the law" and instead has to make fanciful excuses for inefficiently blocking off alternative paths in order to herd everyone through their toll booth, at which point they not only get away with it but destroy massive amounts of value in the process.