The Dismantling Of The Social Contract
Once upon a time, American democracy was grounded on a fundamental agreement: citizens agreed to obey the law, pay taxes and join the armed forces to defend the country.
In return, the government promised to ensure economic stability, public welfare, protection and justice.
This relationship based on reciprocity was called the social contract—a concept developed by 18th century philosopher Jean Jacques Rousseau.
Today, that promise is crumbling. The United States government is abandoning its role as protector of the common good.
In the 2026 federal budget, the White House proposed eliminating or reducing more than 46 government funded programs such as food stamps, elder care, oversight agencies, veterans’ assistance and NASA initiatives.
Although these programs are vital for the greater part of our nation, proposed cuts show little concern for the millions who depend on their services. An example is the Low-Income Home Energy Assistance Program (LIHEAP). It only accounts for 0.06% of the discretionary budget.
If economic responsibility were truly the goal, the cuts would begin at the top—where wealth is most concentrated—not with programs that keep working-class Americans afloat.
Instead, corporate welfare is thriving. The most alarming issue isn’t the profit these markets are making—it’s who they owe their success to.
Each year, the government allocates an estimated $181 billion in subsidies, tax breaks, and incentives to industry giants—the 1% of American population—of which the top 0.1% alone controls nearly 14% of total wealth in our country.
As The New York Times recently reported, the Treasury Department and the Internal Revenue Service (IRS) are planning to implement regulations that grant tax relief to large private firms, crypto companies and foreign real estate investors.
These benefits should not be limited to America’s top companies; they should support the smaller businesses that actually rely on them.
For the record, subsidies are not new. Since the late 18th century, the U.S. has subsidized industries—from railroads to fur trading—to accelerate growth.
By 2025, they have evolved into a cornerstone of economic policy, favoring not just industries but specific corporations. This creates an uneven playing field that contradicts the very ideals of free enterprise.
On October 1, the country entered the longest government shutdown in its history. The 43-day shutdown, stemmed from opposition leaders refusal to approve what NPR described as “an odious spending bill,” a clash rooted in deep disagreement over the fiscal budget.
At the core of this conflict lies a harsh reality: economic policies are being engineered to benefit the few at the expense of the many.
Despite the past five years of economic struggle for most Americans, there has been a large-scale economic boom—just not for the average person.
“The ten richest men doubled their fortunes during the pandemic while incomes of 99% of humanity fell…new billionaires minted every 26 hours, as inequality contributes to the death of one person every four seconds,” reported Oxfam International in 2022.
All of this is eroding the social contract. As Rousseau warned: “Man is born free, and everywhere he is in chains.”
Today, those chains are not forged by monarchs. They are designed by government entities who are handing the fate of our economy to small elite groups.
When the government abandons its duty to the collective good, it breaks that unspoken agreement with its citizens. And when that contract is dismantled, the foundation of our society begins to fracture.
