Paine contrasts the old governments, which he defines by their hereditary nature, with the new revolutionary governments of America and France, which are based not on heredity power but on representation. He denounces the hereditary principle as tyrannical and absurd. He notes that Burke views all governments through the lens of three categories—monarchy, aristocracy, and democracy—with elements of all three supposedly comprising the British constitution. He argues that Burke confuses the democratic elements in the British system with genuine representation. Significantly, Paine distinguishes between democratic elements within a non-republican system and direct representation, describing the latter as part of the republican system adopted in America and France. He identifies the American government, which is based on representation, as the world’s only true republic. 

He then contrasts the vast American republic with the simple democracy of ancient Athens. In America, representation allows for the enlargement of the sphere of self-government, where simple democracy would be impracticable. He returns to the subject of monarchy, contrasting the exalted reputation of US President George Washington with the monarchs who sit on Europe’s thrones.