Democracy
and Capitalism: Friends or Foes?
Capitalism Supports Democracy
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the orthodox American view; underlies modernization perspective
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Historical Evidence: capitalism brought down feudalism; created
conditions for more inclusive rule
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Contemporary Evidence: correlations between capitalism and democracies
Capitalism Subverts Democracy
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the goals of capitalism (profits) and the goals of democracy (accountability
and popular participation) are in tension
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concentrations of wealth lead to concentrations of political power which
distorts democratic practice
Democracy Subverts Capitalism
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popular demands (taxation, regulation) to control the market undermine
its effectiveness
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"democratic" processes aren't good substitutes
Democracy Fosters Capitalism
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popular demands (social security, regulation) that created the welfare
state softened the edges of capitalism and made it politically palatable