Is capitalism inherently anti-democratic? Knowledge is power.
Trilok Singh

Let’s see: Capitalism is a system in which capitalists (investors) use their money to establish businesses that generate goods and services, with the goal of obtaining the maximum return on their investment. Those businesses employ people, who are paid a salary to do their jobs to the satisfaction of their employer. Therefore, you have a inherently anti-democratic system because key decisions are not made by the majority of people (the employees) but by the minority (the capitalists).

For that same reason, governments in a capitalist systems take the role of protectors of the interests of the capitalists, maintaining the conditions for them to get the maximum possible return on their investments. Therefore, even though in modern “democracies” there are periodic elections in which people vote to elect officials who supposedly represent their interests, ultimately laws and political decisions will always be oriented towards benefiting  the minority (the capitalists), and not of the majority (the employees).

Yes. Capitalism by its very nature is anti-democratic:
1.In capitalism, the stockholder with 1,000 shares of stock has ten times the voting strength of the stockholder with 100 shares of stock.  In a democracy, with the principle of one man, one vote, each voter is regarded as equal to every other voter.

2.In capitalism, the priority of the board of directors is to advance the interests of the stockholders. In a democracy, the priority of the government is to advance the interests of the nation, including those who for whatever reason (including age) are not registered to vote.

3.Capitalism is motivated by profit. In a democracy, many institutions–the military, police and fire protection, schools, road construction, medical research, etc.–by their very nature will not be profitable.

What do you think?

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  1. Thank you sir. As far as my understanding Capitalism is defined as, “– a social system based on the principle of individual rights. Politically, it is the system of laissez-faire (freedom). Legally it is a system of objective laws (rule of law as opposed to rule of man). Economically, when such freedom is applied to the sphere of production its result is the free-market.”

    I would be interested in how any interpretation of this definition could lead anyone to believe that capitalism is anti-democratic. With an historical understanding of the practice of democracy and it’s evolution into a possible totalitarian state; I can see where capitalism would be victim to a democracy as democracy, as mob rule, is certainly not the best definition of liberty.

  2. Once again thank you so much Trilok Sir.
    Yes. There is nothing surprising here.
    You want to buy a cellphone. If that is a democractic decision, there has to be a vote in the country where everybody will vote on which cellphone are you going for. Then you have to buy that one. Or, in a more representative form of democracy, may be the parliament will decide for you by a vote of its elected representatives.
    Under capitalism, when you want to buy a cellphone…well you just go and buy whichever you like and afford.

  3. Not necessarily, and not at all inherently. Crony capitalism is, and not a system where people who work hard and are entrepreneurial enjoy a better quality of life. Most capitalistic nations are more democratic than authoritarian communist or socialist states.

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When is socialism anti-democratic?

Black hole tragedy?