Inverted totalitarianism is a system where economic powers like corporations exert subtle but substantial power over a system that superficially seems democratic. Over time, this theory predicts a sense of powerlessness and political apathy, continuing a slide away from political egalitarianism.
Sheldon Wolin coined the term in 2003 to describe what he saw as the emerging form of government of the United States. He said that the United States was turning into a managed democracy (similar to an illiberal democracy). He uses the term "inverted totalitarianism" to draw attention to the totalitarian aspects of such a system, while the term inverted helps to portray the many differences with classical totalitarianism.