Conference 2009 Birks : Downs with traction 1 An Economic Theory of Democracy Revisited - Downs with Traction Paper for the NZAE Conference Wellington

Anthony Downs assumed no false information, and no irrationality. Neither of these assumptions is realistic in politics. Adam Smith recognised the role of rhetoric (deliberative eloquence) in political debate. The significance of propaganda was recognised in the 1940s. Modern approaches to political processes, agenda setting and discourse analysis also emphasise persuasion. This paper begins by outlining logic and rhetoric as means of proof and persuasion. In section two the case is made that economics takes a logic-based view of society, whereas rhetoric is central to policy debate. Section three discusses the implications of a relaxation of Downs' assumptions to allow for a rhetoric-based view, with alternative propositions being suggested. Section four then considers the implications of these propositions for economists' approaches to policy. NZAE Conference 2009 Birks: Downs with traction 2 An Economic Theory of Democracy Revisited Downs with Traction