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“So take something that's been happening in recent years: devolution―that is, removing authority from the federal government down to the state governments. Well, in some circumstances, that would be a democratizing move which I would be in favor of―it would be a move away from central authority down to local authority. But that's in abstract circumstances that don't exist. Right now it'll happen because moving decision-making power down to the state level in fact means handing it over to private power. See, huge corporations can influence and dominate the federal government, but even middle-sized corporations can influence state governments and play one state's workforce off against another's by threatening to move production elsewhere unless they get better tax breaks and so on. So under the conditions of existing systems of power, devolution is very antidemocratic; under other systems of much greater equality, devolution could be highly democratic―but these are questions which really can't be discussed in isolation from the society as it actually exists.” 

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