November 26, 2020

Is capitalism inherently anti-democratic?

IASmind.com 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.

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