I have been reading an interesting book, "How the West Grew Rich", by Nathan Rosenberg and LE Birdzell. One of the interesting points they make is that as organization evolves, commercial activity changes. For example, at various times man has self-organized around clans, tribes, kingdoms, feudalism, city-states, countries and self-governing countries. Commercial changes began probably with barter, progressed through guilds, private companies, public companies and now there are multi-nationals. Whenever there is a significant change in how people are governed, such change permits new commercial activities.
A reader wrote after my post "Would Y Combinator Invest in a Militia" to tell me that democracy was never the intention of the Founding Fathers (they designed a republic). The writer may be correct, but if we follow Rosenberg and Birdzell maybe we are at one of those inflection points where the form of government is going to change again-- from a republic to a true democracy. Technology is definitely available for populous voting in a direct, secure, authentic way where citizens could propose laws and certain levels of popular votes would make them effective. Challenge will be getting the existing government to agree to such changes, which is why we may need to start without their consent. Maybe a small city like where I live could be an example and pass a law based on popular vote. All the citizens could agree to abide by the law. Failure to follow the law would result in social ostracization.
Many factors tell me that we are on the verge of change in the current form of government in the U.S. For example, new technologies in social media always precede profound social changes, such as a move to democracy. The complete stupidity of the current two party system may suggest that such a system is breaking down. For all the years that I have watched the federal government I cannot remember a period where government was less effective than a period that began with Clinton and continues through Bush to today.
Note: An alternative to democracy as the fundamental organizational change may be a partial return to city-states, as described in this post "City-States and Romer's Idea of Urbanization". Maybe Shanghai or Sao Paulo would be candidates. Another alternative may be private cities.