A major reason for the decline of American democracy is the stranglehold of the two-party duopoly (Democratic and Republican Parties) on our political system. Third-parties are kept out and marginalized. A ruling and upper class controls both major parties and the interests of working- and middle-class Americans are sacrificed. So, what should we do? STOP VOTING FOR ALL DEMOCRATS AND REPUBLICANS. You can still vote for ballot measures and third-party candidates. In this way you can stop making our corrupt political system appear legitimate and credible. Read Delusional Democracy - Fixing the Republic Without Overthrowing the Government for a complete articulation of why this idea makes sense.
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As much as I agree that the two party system is in trouble I cannot see much hope in urging people to abandon the two main parties. The crux of the problem is the high financial requirement for re-election which permits corruption to take place. If the media were required to provide time for elections without charge in exchange for the right to use the public airwaves to make money at other times, much of the corruption probably would disappear.