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The U.s. As One-party State?

Cato's Arnold Kling, quoted favorably by AEI's Nick Schulz, writes:

The importance of the rule of law is declining, and the importance of political connections to the elite is increasing. I think we will see this trend emerge much more strongly over the next decade, as it becomes clear that the Republican Party is not going to win another national election. Interest groups will lose hope in competitive elections, and instead they will focus on accomodating the Democrats, which in turn will consolidate the power of the ruling party.

Kling concludes, "we may be headed toward a stagnant economy and a one-party political system." Schulz titles his post "One-Party State Watch." Do Kling and Schulz think that interest groups can have that much influence over the outcomes of elections -- so much influence that the Democrats will have a near lock on power? If so, shouldn't they support public financing or other very tough reforms to limit the political power of economic elites?

--Jonathan Chait