The elitist theory of democracy fundamentally challenges the classical ideal of democracy as 'rule of the people' (demos kratos). While traditional democratic theory emphasizes popular sovereignty, direct participation, and the equality of citizens in decision-making, elitist theories argue that in any complex society, power is inevitably concentrated in the hands of a small, organized minority – the 'elite' – regardless of the formal political structure.

Early proponents like Vilfredo Pareto, Gaetano Mosca, and Robert Michels (with his 'Iron Law of Oligarchy') contended that organization itself necessitates leadership, and leaders, once in power, tend to perpetuate their rule, forming an elite. They viewed mass participation as impractical, irrational, and potentially dangerous, susceptible to demagoguery and mob rule.

Later elitist theorists, such as Joseph Schumpeter, offered a more 'realistic' definition of democracy. Schumpeter famously argued that democracy is not about the people ruling themselves, but rather a 'method' for selecting leaders. In his view, the role of the citizens is limited to choosing among competing elites in elections. The actual governance and policy-making are carried out by these elected elites, who possess the necessary expertise and organizational capacity. The competition among elites for votes is what makes the system democratic, not the direct rule of the masses.

Robert Dahl's concept of 'polyarchy' further refined elitist theory, suggesting that power is not held by a single, monolithic elite, but by multiple, competing elites across various sectors (e.g., economic, political, military, cultural). While this offers a more pluralistic view, it still maintains that governance is ultimately conducted by elites, with the general public's role largely confined to influencing which elites hold power, rather than directly exercising it.

Thus, elitist theories deny the possibility of democracy as 'rule of the people' by asserting that:

1. Mass incompetence: The general public is often apathetic, ill-informed, and lacks the expertise for complex governance.
2. Organizational necessity: Large-scale organization inherently requires leadership and specialization, leading to elite control.
3. Limited popular role: The people's role is primarily to choose leaders, not to make policy decisions themselves.

In essence, elitist theories present a more pragmatic, albeit less idealistic, view of democracy, emphasizing the practicalities of governance in large, complex societies. They argue that while the rhetoric of 'rule of the people' persists, the reality is always 'rule by elites,' albeit elites who are accountable to some degree through competitive elections.