Recovering_irrationalist comments on The Two-Party Swindle - Less Wrong
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Excellent post, especially the important point that conscious dishonesty or specific conspiracy aren't required for this to happen.
The best doctor isn't the one who just gives patients whatever treatment they ask for. It may be the one who gives them what they would ask for if they were equally informed.
In Tony Blair's first term, he made policy largely based on popular opinion. They asked focus groups their priorities, railways scored low, money was poured out of railways, the railway infrastructure fell apart, people were understandably angry. Joe Public can't be expected to have the knowledge and experience to judge the possible implications of every political decision.
Here, here. But it would weaken both sides of the currently in power, so...