Research

Hyperconcentration Theory: Reframing the Inequality-Democracy Paradigm

ABSTRACT:

This paper reorients the inequality-democracy debate by introducing the concept of Hyperconcentration — the extreme consolidation of elite power — as a primary driver of democratic backsliding. I critique redistributionist and efficacy models, arguing that Hyperconcentration, not just economic inequality, undermines democracy. Hyperconcentration creates material and evaluative effects. By fracturing the social contract, inducing the working poor into risk-seeking behavior within a “Loss Environment,” thereby increasing susceptibility to anti-democratic populist appeals, Hyperconcentration creates a material effect. By creating extreme wealth and power disparities, Hyperconcentration erodes trust in the functioning of the democratic regime, creating an evaluative effect. This paper will analyze the effect of Hyperconcentration on democratic support in Latin America. By applying Probit, Logit, and LPM models to analyze Latinobarometro survey data, it becomes clear that both material and evaluative effects of Hyperconcentration significantly predict democratic disillusionment. These findings indicate elite power concentration, rather than inequality alone, causes contemporary democratic erosion.