ABSTRACT
The purpose of this study is to present evidence that, contrary to conventional wisdom, public opinion can critically influence economic policy in a negative manner. Democracy is generally defined as a form of government in which all member citizens have an equal right in the decisions that affect their lives. One of its consequences is that a dominant notion held by the public becomes the most decisive factor in public decision-making process. Although democracy is assumed to be the best means of governance and to have no rivals, its defects have been well known since it was first adopted. If the political masses are no wiser than the political elites, as is the usual scenario, political performance in a democracy would likely be unfavorable compared with that of an elitist autocracy. History has shown the veracity of this supposition by presenting us with cases in which policy decisions made in the name of the public have had disastrous consequences.
