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View Diary: Are Capitalism and Democracy Incompatible? (159 comments)

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  •  Capitalism and Democracy do not play well together (7+ / 0-)

    In terms of how we distribute resources in society, we have two main methodologies on how to distribute those resources: economic and political.

    Politics is the distribution of power in a society

    Economics is the distribution of resources in society

    Power is a resource

    Power is therefore a subset of economics

    All political systems are derived from the underlying economic system.  Regardless of the form of the political system, from democracy to despotism, it will be dictated to by the economic system.

    This is because of some fundamental forces that we need to acknowledge.

    Democracy : one person = one vote

    Capitalism : one dollar = one vote

    Because both systems are about trying to make decisions about the distribution of resources in society, they compete with each other.  Capitalism demands that money makes the decisions, while democracy is about people making decisions.  Because of this, capitalism cannot abide the limitations of democracy and will always try to make it subservient to money.

    While simplistic, I find this to be a useful tool to understand the relationship between economic and political systems.

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