Because of these two elements of social democracy over time it subverts both democracy and trust. The first in that it inherently creates projects and partnerships with large corporations that are "too big to fail." In other words, the project or agency or fund or whatever, must ultimately be backed by public money because it becomes so large a part of the economy that its failure would destroy that entire economy. The choice of funding or defunding is taken away from Congress, the democratically elected representatives and place in the hands of unelected agencies, thus subverting democracy. And trust is diminished by social democracy because it tends to turn government into a faction. Government ceases to become the arbitrator of society but increasingly becomes the employer of last resort in the economy. Government and those it employs become the ends in themselves, not the brokers among interest groups but an interest group with the force of law behind it incessantly grasping, grabbing and griping for a bigger portion of a diminishing economic pie that it plays no role in expanding. This faction of government by its nature creates an atmosphere of us versus them. Government ceases to become an agent of the People and a trusted arbitrator and regulator. It becomes a group competing for the succor and sustenance of a declining pool.
Listen to the words of Ben Franklin writing in 1774 about the dangers of allowing the Colonies to be more closely controlled by London,
"I cannot but apprehend more mischief than benefit from a closer Union; their(the British ruling class) wide-wasting prodigality and profusion is a gulf that will swallow up every aid we may distress ourselves to afford them. Here (London) numberless and needless places, enormous salaries, pensions, perquisites, bribes, false accounts and jobs devour all revenue and produce continual necessity in the midst of natural plenty. I apprehend, therefore, that to unite us intimately will only corrupt and poison us also."
Can we not say in our own time we see some of the same elements in our own government? Can we not see the breakdown of Democracy and Trust that in the 1770s led to a revolution?