The function of our pluralistic democracy is the cause of America's recurring economic problems and contributes to growing income inequality. Inflation/stagflation (inflation with slow economic growth), perpetual trade deficits, and perpetual federal budget deficits that contribute to the US national debt are major recurring economic problems that threaten the nation's prosperity. These recurring problems are largely the unintended consequences of pluralism, the interaction of many groups in the American political process. (Michael G. Roskin, 2010). A Closer Look at Recurring Economic Problems Inflation and stagflation are often part of the “business cycle,” the tendency for the economy to alternate between periods of growth and recession (economic decline) over the course of several periods. years (Michael G. Roskin, 2010). While these two economic issues are not mutually exclusive, in recent history, when inflation rises, the economy slows. It should come as no surprise that inflation and slow economic growth have an inverse relationship in a monetary system that relies heavily on consumer and business credit. Inflationary conditions of any significance would naturally and logically lead to a slowdown in consumer activity, thus leading to stagnation in economic growth. While the US trade deficit may not be seen as a problem, since a trade imbalance means cheaper consumer goods for the US population and increased foreign investment means greater prosperity (Michael G. Roskin, 2010), but has a deleterious effect on the prosperity of the American working class as the demand for low-cost goods makes outsourcing an attractive and profitable option for American businesses. keep taxes low while… middle of paper… military-industrial complex. The potential for a disastrous rise of misplaced power exists and will persist.” (Gill, 2011) In conclusion, our pluralistic democracy contributes to generosity on many levels. Government spending continues to rise to record levels due to the influence of the middle and upper class on politicians. Most government programs benefit politically engaged individuals in our society, leading to the perpetuation of programs that contribute to spending that grows exponentially each year. Because government generosity really benefits only those who are politically active through interaction with interest groups, a growing gap exists between the top 1% of income earners and the bottom 90%. Corporate welfare is a perpetual war that not only increases the deficit and debt, but also has other negative effects on the overall economy, enriching the few at the top, the oligarchs..