Why Capitalism Is in Constant Conflict With Democracy
The capitalist economic system has always had a complicated relationship with democracy, especially in societies with universal suffrage. Capitalists resisted extending voting rights beyond the wealthy for a long time, but mass pressure eventually led to universal suffrage. Even so, capitalists still employ legal and illegal mechanisms to limit suffrage, fearing its implications for their interests. The root of capitalism’s political problem lies in the stark contrast between the small minority of employers who own and run businesses and the majority of employees and their families.
In capitalist corporations, major shareholders and selected board members make all the crucial decisions, distributing net revenues among themselves. This uneven distribution perpetuates income and wealth inequality in society. The capitalist minority, backed by its disproportionate wealth, wields power over the macro-economy and politics.
Universal suffrage enables employees to challenge capitalism’s economic disparities through political means. By electing officials who implement tax, minimum wage, and government spending laws, income and wealth can be redistributed. Employees could turn capitalist enterprises into democratic cooperatives, where all workers have an equal say in distributing net revenues. Such a shift would eliminate the multiple levels of inequality characteristic of capitalism.
To preserve their interests and the system’s survival, capitalists must prevent employees from forming majorities that threaten them. They form alliances with other social groups to deter or suppress emerging employee majorities. In times of crisis, capitalist minorities often form alliances with the military to secure their dominance. Such alliances may lead to military dictatorships or even fascism.
Capitalists may also form political blocs with segments of the employee class and other non-capitalist sectors to thwart anti-capitalist movements. Their goal is to establish hegemony, to tame society by controlling mass media, winning elections, and disseminating pro-capitalist ideologies through education.
The Republican Party, traditionally allied with capitalists, lost its appeal to portions of the employee class, which led to Trump’s rise to power. To regain dominance, Trump formed alliances with various groups, including Christian fundamentalists, white supremacists, and anti-immigration forces. Capitalists prefer Republicans because they consistently deliver pro-capitalist policies. However, when Republican alliances weaken, capitalists shift to the Democrats if they offer solid hegemonic partnerships.
Progressives face a choice. They can be the most attractive allies for anti-capitalists by sharpening social criticisms and forging stronger alliances with employees than the Democratic establishment. Alternatively, progressives may break away from the two-party system and introduce an anti-capitalist and pro-socialist party, offering greater free choice for the public.
Capitalism’s conflict with democracy stems from its inherent inequality and the struggle to maintain dominance. The clash between employer minorities and employee majorities has led to political maneuvering to sustain capitalist hegemony. Ongoing contradictions may eventually lead progressives to transform U.S. politics and bring about much-needed social changes.
🔭 This summary was human-edited with AI-assist.
