StephanieValerioZamora

I want to add to the "Modern Capitalism section under the "Relationship to democracy" section on this wikipage: Capitalism.

The section is titled "Relationship to democracy." What we want to add is insights from Hahnel's "How the Market Subverts Democracy"

Original entry below:

Relationship to democracy[edit | edit source]

Many analysts^[who?] assert that China is one of the main examples of state capitalism in the 21st century.

The relationship between democracy and capitalism is a contentious area in theory and in popular political movements. The extension of universal adult male suffrage in 19th century Britain occurred along with the development of industrial capitalism, and democracy became widespread at the same time as capitalism, leading capitalists to posit a causal or mutual relationship between them. However, in the 20th century, according to some authors, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies, and single-party states.Democratic peace theory asserts that democracies seldom fight other democracies, but critics of that theory suggest that this may be because of political similarity or stability rather than because they are democratic or capitalist.

Moderate critics argue that though economic growth under capitalism has led to democracy in the past, it may not do so in the future, as authoritarian regimes have been able to manage economic growth without making concessions to greater political freedom.

[Our addition]:

One of the biggest supporters of the idea that capitalism promotes political freedom, Milton Friedman, argues that competitive capitalism allows economic and political power to be separate, ensuring that they do not clash with one another. This idea has been challenged given the current influence capitalist lobbying has had on policy in the United States. The approval of Citizens United (organization), has led people to question the very idea that competitive capitalism promotes political freedom. The ruling on Citizens United allows corporations to spend undisclosed and unregulated amounts of money on political campaigns, shifting outcomes to the interests and undermining true democracy. As explained in Robin Hahnel’s writings, the centerpiece of the ideological defense of the free market system is the concept of economic freedom, and that supporters equate economic democracy with economic freedom and claim that only the free market system can provide economic freedom. According to Hahnel, there are a few objections to the premise that capitalism offers freedom through economic freedom. These objections are guided by critical questions about who or what decides whose freedoms are more protected. Often, the question of inequality is brought up when discussing how well capitalism promotes democracy. An argument that could stand is that economic growth can lead to inequality given that capital can be acquired at different rates by different people. In Capital in the Twenty-First Century, Thomas Piketty of the Paris School of Economics asserts that inequality is the inevitable consequence of economic growth in a capitalist economy and the resulting concentration of wealth can destabilize democratic societies and undermine the ideals of social justice upon which they are built. Marxists, anarchists (except for anarcho-capitalists), and other leftists argue that capitalism is incompatible with democracy since capitalism according to Marx entails "dictatorship of the bourgeoisie" (owners of the means of production) while democracy entails rule by the people.

States with capitalistic economic systems have thrived under political regimes deemed to be authoritarian or oppressive. Singapore has a successful open market economy as a result of its competitive, business-friendly climate and robust rule of law; nonetheless, it often comes under fire for (1) its brand of government, which, though democratic and consistently one of the least corrupt, operates largely under a one-party rule, and (2) not vigorously defending freedom of expression, given its government-regulated press, as well as penchant for upholding laws protecting ethnic and religious harmony, judicial dignity and personal reputation. The private (capitalist) sector in the People's Republic of China has grown exponentially and thrived since its inception, despite having an authoritarian government. Augusto Pinochet's rule in Chile led to economic growth and high levels of inequality by using authoritarian means to create a safe environment for investment and capitalism.