A powerful nonpartisan solution to fix U.S. Politics
[Music]
everything i need to know about politics
i learned
from cheese for the last decade of my
business career i ran
a 250 million dollar food company in
wisconsin
yes we made cheese if customers liked my
cheese
i did well if they didn’t they bought
cheese from someone else
and i did less well that’s healthy
competition
healthy competition incentivizes
businesses
to make better products better products
equals happier customers and happier
customers equals successful businesses
win-win now while i was running gale
foods
i was also deeply engaged in
and increasingly frustrated by
politics the more frustrated i got
the more i wondered why competition in
politics didn’t deliver the same kind of
win-win results
how do the democrats and the republicans
keep
doing so well when their customers
that’s us are so unhappy
why is the politics industry win lose
they win we lose the answer
it turns out that one thing almost
all americans agree on washington
is broken is also one thing
we’re all wrong about
washington isn’t broken it’s
doing exactly what it’s designed to do
it’s just not designed to serve us the
citizens
the public interest most of the rules in
politics
are designed and continuously fine-tuned
by
and for the benefit of private
gain-seeking organizations that’s the
two parties a textbook duopoly
and the surrounding companies in the
business
of politics and they’re all
doing great even as the american public
has never been more dissatisfied said
another way
politics isn’t broken it’s
fixed this is a guiding principle of
politics industry theory the
non-partisan body of work
that i originated and have championed
over the last seven years
now before i go further i should tell
you i’m not on the red team
or the blue team i call myself
politically homeless which
may resonate with some of you and my
work doesn’t focus
blame on individual politicians on
either side of the duopoly
the root cause of our political
dysfunction
the cause that endures across all
election cycles and
all administrations is the system
the perverted rules of the game
the rules of the game and politics even
make prisoners of our senators and
representatives
their only option is lockstep
allegiance to their side of the divide
so what do we do about it how do we free
our
congress and make politics win win
we change the rules but which ones
it’s not what we think it’s not
gerrymandering
not the electoral college not the
absence of term limits
and not even money in politics really
by looking at the system through a
competition lens
politics industry theory identifies the
two rules
that are both our greatest obstacles and
our greatest opportunities
they’ve been hiding in plain sight
let’s start with bad rule number one
party
primaries you all know primaries those
first-round elections that we mostly
ignore
the ones that identify the single
republican
and the single democrat who can appear
on the november general election ballot
party primaries have become low turnout
elections
dominated by highly ideological
voters and special interests
candidates know that the only way to
make it to the general election ballot
in november
is to win the favor of these more
extreme partisans in the primary
so candidates from both parties
have little choice but to move towards
those extremes
why does this matter because it
dramatically affects
governing and not in a good way
imagine you’re a member of congress
you’re deciding how to vote
on a bipartisan bill that addresses a
critical national challenge
you might ask yourself is this a good
idea
is this what the majority of my
constituents want
but that’s not how it works in the
politics industry
instead the question that matters most
to you
is will i win my next party primary if
i vote for this bill the answer
is almost always no consensus solutions
don’t win party primaries let’s
illustrate this key design flaw with a
venn diagram
in the current system there’s virtually
no intersection
no connection between congress acting in
the public interest and the likelihood
of their getting reelected
if america’s elected representatives do
their jobs the way we need them to
they’re likely to lose those jobs that
is crazy no wonder congress doesn’t get
anything done
okay now let’s talk about bad rule
number two
plurality voting which i’ll explain in
just a moment
in any other industry as big and as
thriving as politics with
this much customer dissatisfaction and
only two companies some entrepreneur
would see a phenomenal business
opportunity and create a new competitor
but that doesn’t happen in politics
our current parties don’t feel
competitive pressure to serve the public
interest
in large part because of
one rule that keeps out almost
all new competition plurality voting
it sounds fancy but it simply means
the candidate with the most votes wins
that also seems logical but it’s a
really
bad idea why
because in the united states you can win
almost any election even if a majority
didn’t vote for you for example
in this three-ray race the winner only
has
34 percent of the votes 66 percent of
the voters
most people wanted someone else
with plurality voting we may not feel
free to vote for the candidate we really
want because we’re afraid that we’ll
just waste our vote
or worse will spoil the election
so if you think back to the 2016
presidential race
voters on the right who liked
libertarian candidate gary johnson
were told by the republicans don’t
vote for him he’s just a spoiler he’ll
take votes away from
trump and help elect hillary and voters
on the left
who liked green party candidate jill
stein were told by the democrats
don’t vote for her she’s just a spoiler
she’ll take votes away from hillary and
help elect trump
the spoiler problem that comes from
plurality voting
is the single biggest reason almost
nobody knew
outside the duopoly ever runs or gets
any traction
because everyone knows they don’t stand
a chance politics
is the only industry where we’re
regularly told that
less competition is better and if
there’s never any new competition
the existing parties aren’t accountable
to us for results
because they don’t need us to like
what they’re doing they only need us to
choose
one of them as the lesser of two evils
or to
just stay home the founders foresaw
our situation and they warned us
as when john adams said there is
nothing which i dread so much as a
division of the republic
into two great parties each arranged
under its leader and concerting measures
in opposition to each other
now there’s nothing inherently wrong
with parties or
even having only two major parties the
problem is
the current two are guaranteed to remain
the
only two regardless of what they do or
don’t get
done on behalf of the country does this
sound like the best we can do
of course not so the founders gave us
what they knew we’d need
they gave us this our constitution
there’s a reason it’s called the pocket
constitution
it’s short guess what’s not in here
instructions on how to run our elections
crazy rules like party primaries and
plurality voting
they’re made up but thanks to what is in
here
article one they’re optional
article one gives every state the power
to change the rules of election for
congress at any time
personally i think now sounds like the
perfect time
and here’s where we turn nonpartisan
politics industry theory into action
the political innovation we need is what
i call
final five voting with final five voting
we make two simple changes to our
elections for congress
we get rid of what doesn’t work party
primaries and plurality voting
and replace it with what will work
open top five primaries and instant
runoffs in the general election
let me explain these changes with an
example of final five voting
in a hypothetical and kind of cool
election so here we have eight
candidates
from four different political parties
alexander hamilton george washington
abigail adams all the way through to
aaron burr
ambitious as ever immediately you notice
how diverse this field is
it’s a primary people would want to vote
in because it’s exciting
it has experience and vision but it’s
also
young scrappy and hungry okay maybe not
so young and because this is an open
primary all eight candidates are on the
same ballot
regardless of party when the results are
in the top five finishers move on to the
november election
again regardless of party
in the general election voters pick
their favorite
just like always but then if they would
like
they can also rank their
second third fourth and last
choices you may have heard of this idea
as
ranked choice voting here’s where things
get interesting
if this election were a plurality vote
like normal
aaron burr would win because he has the
most first place votes
30 percent but because this is final
five voting
the winner will be the candidate who’s
most popular with a majority
not just with a narrow slice of voters
so we use instant runoffs we drop the
candidate who came in last
and those who had marked that candidate
as their first choice
get their second choice counted instead
the process continues until a candidate
emerges with a majority
it’s just like a series of runoffs but
instead of having to keep coming back
for another election
voters simply cast all their votes at
once
and after those results are in alexandra
hamilton
wins with 68 percent of the vote
final five voting is the name
for this combination of top five
primaries and instant runoff general
elections
we must change both rules at the same
time
because it’s how they work in
combination
that transforms the incentives in
politics
the ultimate purpose of final fight
voting is not necessarily to change who
wins
it’s to change what the winners are
incentivized to do
under this system the message of
congress is
do your job or lose your job innovate
reach across the aisle whenever it’s
helpful
and come up with real solutions to our
problems and create
new opportunities for progress or
be guaranteed new and healthy
competition
in the next election final five voting
gives voters more choice
more voice and most importantly better
results i like to call it free market
politics
because it will deliver the best of what
healthy competition delivers in
any industry innovation results
and accountability now before you think
that i’m
just making a naive over promise of some
crazy unattainable utopia i want to
clarify that i’m not
i agree with winston churchill when he
said
democracy is the worst form of
government out there
except when compared to all the others
democracy is messy and hard and what we
have now
is messy hard and
bad results really bad results
with final five voting we’ll have messy
hard and good results to show for it
and perhaps the most amazing part of all
of this
final five voting is powerful and
achievable we now have proof
in 2017 i published my early work on
politics industry theory through harvard
business school
with my co-author michael porter the
report
made its way to alaska where scott
kendall read it and then
he took action scott
used the work to design a ballot
initiative
including these new rules just last
month
november 2020 alaska voters
passed this initiative and alaska became
the first state in the nation to choose
healthy competition
in elections for congress they won’t be
the last
it’s devastating to really face
how little we’ve come to expect from our
politics
we think this is normal we complain
about it
but we’ve almost given up believing that
it could ever be different
but this is no way to run the shining
city on a hill that is america
we can choose different our constitution
gives us that power and i believe the
responsibility
to remake our politics when we need to
and we need to with the greatest
urgency and without fatigue we must
aggressively reclaim
the enormous promise of the great
american experiment of our
american politics our
politics not read politics not blue
politics
ours thank you
you