Nowadays it appears widely accepted that democracy can only function in accordance with capitalism, especially because there is no example of a democracy that “endured in a country with a predominantly nonmarket economy.” However, there are also various scholars criticizing the relationship between democracy and capitalism, pointing out, that this relation is defined by fundamental tensions, therefore democracy and capitalism cannot go hand in hand with each other. This paper wants to critically examine the connection between these two concepts and evaluate whether they are compatible or not, starting with basic definitions of the concepts of market economy and democracy, then continuing with the arguments of those who say that both conceptions in fact need each other in order to compare them then with the claims of the opposing site and finally draw a conclusion on their link.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Democracy and Capitalism: Are they Compatible?
- Arguments for the Compatibility of Democracy and Capitalism
- Historical Development
- Shared Intellectual Origins
- Economic Freedoms as Preconditions for Political Freedoms
- People's Choice in Both Systems
- Centralized Planned Economy as an Alternative
- Arguments Against the Compatibility of Democracy and Capitalism
- Fundamental Tensions between the Concepts
- Capitalism as a Source of Inequalities
- Market and Democracy Operating on Different Levels
- Interdependence of Economic and Political Freedoms
- Capitalist Class Influence on Politics
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the relationship between democracy and capitalism, exploring whether these two concepts are compatible. It begins by defining the terms "market economy" and "democracy" and then proceeds to analyze arguments presented by both proponents and critics of the compatibility between these systems. The paper aims to provide a comprehensive and critical evaluation of the relationship between democracy and capitalism. Key themes explored in this paper include:- The historical relationship between democracy and capitalism
- The arguments for and against the compatibility of these systems
- The role of economic freedoms in promoting political freedoms
- The impact of economic inequalities on democratic principles
- The influence of the capitalist class on political decision-making
Zusammenfassung der Kapitel (Chapter Summaries)
This preview will only discuss the main themes of the chapter arguing for the compatibility of democracy and capitalism. The paper begins by defining the concepts of "market economy" and "democracy" as described by Beetham. It then explores arguments from scholars who believe that capitalism is necessary for democracy. These arguments are based on historical development, shared intellectual origins, the role of economic freedoms in promoting political freedoms, and the similar nature of both systems in offering choices to individuals. The paper further argues that capitalism is necessary for democracy because a centralized planned economy is an undesirable alternative. It highlights the potential for abuse of power in a state-controlled economy and the limitations it places on public accountability.Schlüsselwörter (Keywords)
This paper focuses on the relationship between democracy and capitalism, examining arguments for and against their compatibility. Key concepts explored include market economy, political freedoms, economic freedoms, inequalities, and the influence of the capitalist class on politics. The paper also discusses the potential for a centrally planned economy as an alternative to capitalism and its limitations.- Quote paper
- Felix Wiebrecht (Author), 2014, Democracy and Capitalism. Compatible systems?, Munich, GRIN Verlag, https://www.grin.com/document/277315
