A widely-debated topic in the political sphere is whether capitalism undermines democracy. Within a society that places a lot of emphasis on the recognition of individual rights, capitalism and democracy work in cohesion to protect such rights. The key in establishing a capitalist democracy is through an intricate system of free markets, and individual rights. The sustainability and progress of the economy depend entirely on these two prominent ideologies, capitalism and democracy. With that being said, in this essay, I will argue that capitalism supports democracy since modern democracy is a product of capitalism, it facilitates a decentralized economy, and promotes both political and economic freedom. In the first section of the essay, I
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It's inevitable, and can never be eradicated or permanently solved as corporations will always try to reduce costs and increase production. With that being said, capitalism and democracy support each other and advocate for a decentralized system within the economy, removing the unwanted economic exploitation. Economic prosperity is generated by investment and trade, which depend on the legal protection and public infrastructure. A fundamental fact of modern economic growth is that it requires decentralization, and a wide distribution of political power throughout the nation (Myerson, 2014). Thus, capitalism and democracy together create a decentralized economy since democracy provides a foundation to reduce inequality, and capitalism supports free markets. Central governments have failed to achieve stimulated economic growth, reduced poverty and strengthening society. Many countries are experimenting with decentralization as it is seen as a solution to a wide range of problems. The mix between democracy and capitalism produces a decentralized economy (Almond, 1991). Decentralization makes it simple for citizens to voice their demands, which is the ultimate goal of democracy. Concerning capitalism, it creates a less corrupted economy and allows citizens to participate more freely in the market system. Therefore, the scope of the government must be limited. The governments major function must be to protect …show more content…
There are two types of freedom within society. Those two kinds are economic freedom and political freedom. To begin, political freedom is often defined as the privilege to exercise rights, have civil liberties and human, and have protection from the state (Capitalism, 2017). As for economic freedom, it is the ability for society to perform economic actions, with emphasis on free markets, free trade, and private property (Fraser Institute, 2016). With that being said, it is evident that throughout history, freedom of both side of the spectrum came from the cohesion of democracy and capitalism. Capitalism and democracy, when connected in society, develop an opportunity for any individual to have political and economic freedom to make their own choices, and have equal rights. Without economic freedom, there cannot be political freedom. So, capitalism would not be connected to a democratic society and vice versa. An economic democracy means more than general control of an economy by the citizenry (Schweickart, 1992). Also, capitalism supported free trade as a means of linking society together democratically. Thus, political freedom in this instance clearly came along with the free market and the development of capitalist institutions (Friedman, 1962) Although, there is an issue with economic and political freedom. Consequently, if economic power is joined to political power, concentration
It's inevitable, and can never be eradicated or permanently solved as corporations will always try to reduce costs and increase production. With that being said, capitalism and democracy support each other and advocate for a decentralized system within the economy, removing the unwanted economic exploitation. Economic prosperity is generated by investment and trade, which depend on the legal protection and public infrastructure. A fundamental fact of modern economic growth is that it requires decentralization, and a wide distribution of political power throughout the nation (Myerson, 2014). Thus, capitalism and democracy together create a decentralized economy since democracy provides a foundation to reduce inequality, and capitalism supports free markets. Central governments have failed to achieve stimulated economic growth, reduced poverty and strengthening society. Many countries are experimenting with decentralization as it is seen as a solution to a wide range of problems. The mix between democracy and capitalism produces a decentralized economy (Almond, 1991). Decentralization makes it simple for citizens to voice their demands, which is the ultimate goal of democracy. Concerning capitalism, it creates a less corrupted economy and allows citizens to participate more freely in the market system. Therefore, the scope of the government must be limited. The governments major function must be to protect …show more content…
There are two types of freedom within society. Those two kinds are economic freedom and political freedom. To begin, political freedom is often defined as the privilege to exercise rights, have civil liberties and human, and have protection from the state (Capitalism, 2017). As for economic freedom, it is the ability for society to perform economic actions, with emphasis on free markets, free trade, and private property (Fraser Institute, 2016). With that being said, it is evident that throughout history, freedom of both side of the spectrum came from the cohesion of democracy and capitalism. Capitalism and democracy, when connected in society, develop an opportunity for any individual to have political and economic freedom to make their own choices, and have equal rights. Without economic freedom, there cannot be political freedom. So, capitalism would not be connected to a democratic society and vice versa. An economic democracy means more than general control of an economy by the citizenry (Schweickart, 1992). Also, capitalism supported free trade as a means of linking society together democratically. Thus, political freedom in this instance clearly came along with the free market and the development of capitalist institutions (Friedman, 1962) Although, there is an issue with economic and political freedom. Consequently, if economic power is joined to political power, concentration