'No bourgeoisie, no heterogeneity'

The other Moore's law | http://www.economist.com/node/13063306


'What is it about the middle class that influences politics? To oversimplify, its crucial feature is heterogeneity. Compared with the poor and the rich, the middle class contains a greater range of interests. It covers a wide range of occupations: software engineers, shopkeepers, teachers and all the manifestations of economic complexity. 


'Because of this variety, the middle class is driven by a wider range of concerns than either the poor—whose main worry is the need for more money—or the elite, who concentrate on defending their political or economic position. The middle class is not a narrow special-interest group in the same way. 


'Other things being equal, any group in the middle should act as a moderating influence on social conflicts. By definition, a growing middle class will reduce income inequality because it will moderate the stark divide between rich elite and rural poor that is often a source of conflict in emerging markets.  


'In sum, the middle class acts as a buffer. Sometimes it allies itself with the poor, sometimes with the rich. That does not guarantee the emergence of democracy, but the presence of a large, varied middle class does make democracy more attractive than if a country is dominated by just two classes. 


'Such a large, varied middle class encourages new policies, often (though not always) more liberal ones. To oversimplify again: the characteristic political demand of the poor is for transfers. They want a new well in the village or electricity for the slums. This encourages a politics of patronage. The characteristic political demand of the middle class is for things like property rights and a stable economic policy. This tends to give rise to a politics of accountability, if not necessarily democracy. 


'Because the middle class contains so many competing interests, patronage politics—handing out goodies to a favoured few—can end up hurting as many members of the group as it helps, so it becomes less tempting.'