Representative democracy, then, would drive out virtuous people
Maybe it shows the difference between political and market institutions. Market institutions are a way of ensuring that vices work for the public good, so bad men can do good things. Political institutions, however, have an adverse selection effect, ensuring that virtuous men can do no good.
detained criminal suspects, prior to police questioning, must be informed of their constitutional right to an attorney and against self-incrimination.
It was politics that segregated the races because the incentives of the political process are different from the incentives of the economic process. Both blacks and whites spent money to ride the buses but, after the disenfranchisement of black voters in the late 19th and early 20th century, only whites counted in the political process.
Private owners of streetcar, bus, and railroad companies in the South lobbied against the Jim Crow laws while these laws were being written, challenged them in the courts after the laws were passed, and then dragged their feet in enforcing those laws after they were upheld by the courts.