Politicians only reflect the part of society that thinks it would know better what to do with other people money, either straight corruption or genuinely for the good of society. Those not following that cult are not represented.
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Spot on, our primal instincts know better than centralized control, just like our bodies know beef is better than grains.
Decentralized systems like blockchain can mitigate this issue by implementing transparent, auditable, and programmable governance models.