In the modern day world, many countries are considering democracy as the best form of governance. Democracy can be described as a form or a system of government in which the principle of the rule by the people for the people is applied. Capitalism refers to an evolving system of government for economic affairs (Scott 2). Other forms of government include theocracy while other forms of economic systems include the communism and socialism. In capitalism, the government may control certain factors in the economy although the industry and production activities are privately owned. In this system, the owner gains more than any other person although the system has been widely criticized all over the world (Difference Between). At some point in the governance of a country, decisions have to be made based on the relationship between capitalism and democracy, although this has always been a source of tension.
In a democratic system, the wish of the people comes first. Democracy strives to create a society in which the interests of the larger society and majority of the people who are governed comes ahead of the benefits and interests of an individual. On the other hand, in a capitalist system, the freedom and desire of one individual are considered to be of more importance than those of the entire society (Difference Between). In terms of benefits that are accrued from the capital, the society benefits more under the democratic system of governance while the owners of capital benefit more in a capitalist economic system (Difference Between). It is also true to say that capitalism system has the tendency of dividing the society into two classes, the rich and the poor. On the other hand, the democratic system has no such effects at all on the society. These contrasting features of the two systems basically imply that they are incompatible. Trying to introduce democracy into capitalism or capitalism into a democratic system usually results in tension.
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"Can you have Flourishing Democracy in Capitalism?".
Former U.S.A President George Bush once argued that one of the best systems of governance that can ever be devised is a democratic capitalist system (Ash). In line with this claim during a televised address to the nation, the Congress was desperately seeking the support to obtain a whopping $700 billion package to bail-out the economy. The direct effects of this actions by the House of Representatives who voted down the said package were witnessed through various indicators of the economy such as the Dow Jones Index. It’s value depreciated by $1.2 trillion which sparked a conflict between democracy and capitalism (Ash). The attempts to merge and consider the emerging and urgent needs of the U.S.A. version of democracy and capitalism failed terribly. The legislators viewed the situation as the perfect and timely moment to restore the public confidence bestowed on them as the election was just around the corner (Ash).
The U.S.A witnessed a series of civil disobedience, picketing, internet activism and massive demonstrations from 17th September 2011. The activity was named ‘Occupy Wall Street’ and was aimed at addressing the issues of both economic and social injustices and was themed ‘We are the 99%’. This idea also featured greatly in the 2017 presidential campaign trails. The campaign’s initiative of preaching the message of 99 % and 1% continued to spread across the U.S.A. 4 years after many people thought the initiative died (Levitin). Hillary Clinton and Bernie Sanders were calling for a tax to be imposed on heavy financial transactions and also for a break up to be introduced in some of the bigger banks to solve the income gap. In attempts aimed at solving the disparity between the rich and the poor as addressed by the Occupy Wall Street Campaigns, Marco Rubio suggested that the inequality condition could be solved by converting the tax credit inform of earned-income into subsidy which should be allocated to what was viewed as the 1% (Levitin).
The protest was basically a consequence of the failure of both the political choices and economic rights of the citizens. It is viewed as a failure of political choices since no valid efforts are put in place through the formulation and implementation of policies to curb the widening rift between the rich and the poor in the society. The disparity in income, a situation which Clinton compared using the income earned by fund managers and kindergarten teachers’ salary also motivated people to protest. They felt that their rights were being abused by the rich minority. The fact that the minimum wage of fast-food workers in New York was raised to $15 per hour implies that the owners had the ability to meet the needs of the workers but chose not to (Levitin). The protest is a clear indication of the existing conflict between democracy and capitalist systems.
The two systems are incompatible, that is, it is very difficult to have a flourishing democratic form of governance in a capitalist economic system. This is because of the different interests and priorities that are addressed and set by the two systems. For instance, as democracy will be advocating for the interests of the society, specifically the compact majority, the capitalist form, on the other hand, will be working against this by lobbying for the satisfaction of the interests of individuals who are owners of production process and industries. The conflict between democracy and capitalism was also witnessed in the famous campaign activity named Occupy Wall Street Protest.
- Ash, Garton, T. The US Democratic-capitalist Model is on Trial. No Schadenfreude, Please, The Guardian, October 2, 2008. https://www.theguardian.com
- Difference Between. Difference between Democracy and Capitalism. Difference Between, 2018. http://www.differencebetween.info
- Levitin, Michael. The Triumph of Occupy Wall Street. The Atlantic, June 10, 2015.https://www.theatlantic.com
- Scott, Bruce R. The Political Economy of Capitalism. Harvard Business School, 2006.
