Capitalism: The Ultimate Destroyer of Democracy

About the Project

My name is Isabel Boix and I am currently a Junior at Science leadership Academy. For my last History project, I was tasked with creating a project based on the work of Alexis de Tocqueville. He was a french political scientist who came to America and studied Democracy. For our project, we had to inspect one aspect of America and how it relates to democracy. I decided to look at how capitalism is overpowering democracy in some ways. Specifically, I took a look at how wealth inequality is impacting how people view elections.

Capitalism Vs. Democracy

The United States of America isn’t just a democracy. It’s a leader in democratic capitalism. Since the birth of our country democracy and capitalism have been forced together under the rule of our country. But as many philosophers and researchers have noted, democracy and capitalism don’t always easily coexist. Most of the time they are at war with each other. We can see evidence of this in our country, from the way politics are split between two parties and the constant fight between what is best for the economy vs. what is best for the people. One example of this war is how wealth inequality impacts participation in elections. Elections are important because they are one-way citizens of our country are able to show their democratic beliefs.

"Under capitalism, decisions and their implementation lead to a degree of economic and social inequality (of income, wealth, power, and life chances) that is hardly acceptable in a democracy built on principles based on equal rights, opportunities, and duties."

To understand why wealth inequality might impact participation in elections we have to understand why the forces behind these two things are fighting. Wolfgang Merkel, a political scientist outlines the incompatibilities of democracy and capitalism in his paper “Is Capitalism Compatible with Democracy?” In this, he writes that “Under capitalism, decisions and their implementation lead to a degree of economic and social inequality (of income, wealth, power, and life chances) that is hardly acceptable in a democracy built on principles based on equal rights, opportunities, and duties.” To Merkel, the need for a hierarchy in capitalism directly contradicts the nature of Democracy. In a democracy, everyone gets a chance to vote but Merkle seems to believe that Capitalism will jeopardize that fact. The idea of inequality even existing endangers the democratic ideas of equality even in aspects where there is no hierarchy. Besides establishing why he believes that democracy and capitalism are incompatible, Merkel points to wealth inequality as a symbol for the competitive nature of capitalism.

Wealth Inequality in Government

Now that we have established that capitalism is incompatible with democracy’s voting system we can look at how the election candidates themselves are impacted by wealth inequality. Isabel V. Sawhill a senior fellow in Economic Studies at the Brookings Institution writes in her paper "Capitalism and the Future of Democracy” that “Although political reform is badly needed, so is a shift in the market mindset. My critique of market fundamentalism is not a narrative about evil people or simple greed. It’s a story about the alleged miracle of markets turned into an ideology...” Sawhill brings up the idea that the way our society works makes it so that government officials will bend to capitalist ideas because they have been raised to believe that these same ideas are true.

This can be applied to wealth inequality and participation in elections. Government officials are not people who came out of a lab, they are people who grew up in this country the same as the rest of us. They grew up surrounded by different wealth groups and internalized these ideas. So even when we participate in elections we are electing people who have also had their views skewed by the idea that there must be a wealth hierarchy. Many people don’t vote in this country. Some of these people believe that participating in an election will not bring any change. In the case of wealth inequality, it feels this way because the people who run for the government have likely benefited from wealth inequality themselves. Running for the government takes a lot of money so to run for government many officials have to be wealthy. It is rare that a person would actively work against systems that help themselves. These officials then do nothing to help the growing wealth gap which leads to feelings of frustration by voters. This leads to some people deciding not to vote because they aren’t seeing any change.

Next steps

If people aren’t voting and are feeling discouraged participation in our democracy will drop. Eventually, democracy in America will fall apart. In order to preserve democracy, we need to start examining our relationship with capitalism and putting some distance between the two ideas. There is no model for what to do in this situation because there aren’t any countries in a similar situation. Patricia Cohen, a journalist for the New York Times writes that “Some scholars pointed out that the American experience, where democracy and capitalism arose at the same time, wasn't so much a model for the rest of the world, but an anomaly.” Since we have no country that has really experience what America has we can only speculate on what it would be like to change our country. However, looking at what we know today one step we could take in ensuring the safety of our democracy is moving towards more affordable politics. What I mean by that is having it be easier for less wealthy individuals to be real competitors at even a presidential level. If we can help stop the effect of wealth inequality on the participation of our elections we can take a step towards building a more perfect union.

Works Cited:

Merkel, Wolfgang. "Is Capitalism Compatible with Democracy?" Z Vgl Polit Wiss, 26 July 2014, doi:10.1007/s12286-014-0199-4. Accessed 20 May 2021. https://projects.iq.harvard.edu/files/mobilized_contention/files/merkel_-_is_capitalism_compatible_with_democracy.pdf

Sawhill, Isabel “Capitalism and the Future of Democracy.” July 2019, https://www.brookings.edu/wp-content/uploads/2019/07/Sawhill_Capitalism-and-the-Future-of-Democracy-.pdf

Cohen, Patricia. "Patricia Cohen: Does Capitalism Lead to Democracy, and How?" The New York Times, New York Times, 13 June 2007, https://www.nytimes.com/2007/06/13/world/europe/13iht-letter.1.6120596.html