Capitalism Subverts Democracy - Essay Example

Capitalism Subverts Democracy Section 12 December 2005 Capitalism Subverts Democracy Thesis: Capitalism subverts democracy by creating and unequal distribution of wealth, property, and resources casing the formation of a definitive class system. Democracy is a governmental system, which focuses on hearing the voice of the people and taking into account the interest of all citizens. Democracy takes into account the needs of the whole in order to balance out individual interest. Capitalism is an economic system that encourages profit and the acquisition of wealth for the individual, while democracy encourages equality and participation for the citizens and accountability for the actions of the government. Capitalism encourages the freedom to obtain wealth, which in turn creates inequality and encourages the survival of the fittest instead of the needs of the whole. Capitalism subverts democracy by creating and unequal distribution of wealth, property, and resources casing the formation of a definitive class system. Capitalism encourages inequality in the pursuit of wealth and property and undermines Democracy and its pursuit of equality and a voice for all people. Voters allow the government to hear their voice by voting on the issues and the candidate that best represents their view on the issues. However, a voter discouraged by the economy and the government has a tendency not to vote and their voice is not heard. Is the government really listening to the people anyway? Political Parties take money to finance campaigns (sometimes as bribes and sometimes legitimately) from wealthy businesses with the promise to provide something for that wealthy constituent. Capitalism creates an inequality in the distribution of wealth and a class system forms. Capitalism’s inequality subverts Democracy. “Marx argued that as long as Capitalism and private property exist there could be no genuine democracy.” (Almond 469) The free market produces inequality in the distribution of political and economic resources. Capitalism creates competition in society to obtain property and wealth, however, only a small percentage of citizens obtain wealth and prosperity. The uneven distribution of wealth and property created by capitalism causes the formation of a class system. The middle class is the majority of the democratic voice and the middle class voice should be the predominating voice in the democratic system. However, the wealthy finance the campaigns of the political parties or bribe them to gain a stronger voice in the government. This undermines democracies desire for equality and a voice for all citizens. The many decisions of the government effects what happens in the economy causing the free market to “imprison policymaking”. (Lindbloom 329) A promise made to a wealthy constituent against the better judgment of the political parties could affect the economy with negative results and an economy that is not very productive in turn discourages the citizens. Discouraged citizens tend to cause a decrease in voter turnout where the opposite should be true. The decrease in voter turnout decrease the voice that they have to create change in the government and therefore increases the opportunity for the wealthy to increase their voice in the government and this creates a never-ending circle – a prison. The opposite could also be true, however, if voters come together to voice their disapproval it is not the wealthy business owners that take the fall it is the government officials. “ When a decline in prosperity and employment is brought about by decisions of corporate and other business activities it is not they but the government who consequently are retired from tier offices.” (Lindbloom 329) Punishing the government officials only solves half the problem because the wealthy will still influence the government with their vast resources. Wealth may be needed to create economic growth, however, the unequal distribution of wealth, property, and resources undermines democratic practices. Capitalism creates a class system in the business environment as well as the economic and political environment. Investors and employers control the lives of their employees in the pursuit of profits by gaining wealth, property, and power off the hard work and perseverance of their employees. The employees continue to be in dead end careers that will never make them wealthy out of economic and social necessity. People who defend the capitalist view insist that capitalism rewards those citizens that contribute the most of the creation of wealth for the growth of the economy. While economic growth happens with the increase of wealth in the economy, the wealthy don’t necessarily earn their wealth through their continued contributions to the economy and therefore their wealth can’t be a reward. Many old fortunes have been inherited wealth and therefore are not earned and cannot be a reward for hard work and contributions. Some newer fortunes were created through hard work and contributions but others were created from the downfall of other unsuccessful people and suffering businesses. Regardless of how wealth was created, if it is not earned then the “wealth is deserved” argument means nothing. “Capitalist democracy could only result in the increasing exploitation of the working class.” (Almond 469) Investors and employers use their laborers to get rich off their hard work and efforts for the lowest possible wages while farmers provide the basic need of food to all people but their profession provides no opportunity to obtain wealth. All professions contribute something to the economy and are needed for the workings of the country and government and they are all equally important, however, not every profession provides an opportunity to gain wealth and property. In fact the expectations of profitability tend to cause lay offs of lower level workers when wealthy business owners have to spend money to keep up with safety and environmental regulations, which in turn decrease profitability. To make up for the bottom line, the wealthy business owners lay off employees to increase profits. If the distribution of wealth were equal then every profession would have the opportunity to create wealth. Some might argue that democracy subverts capitalism. Advocates argue that the demands on democracy to control the market through regulations undermine the effectiveness of capitalism. However, the regulations and taxes only cause a decrease of wealth and profitability that the wealth’s solution to make up for the decrease is usually to lay off workers within their company to reduce wages and increase profitability. “According to Smith business men were prone to bribe public official to gain special privileges, and legal monopolies.” (Almond 471) The wealthy use their vast money, resources, and power to tempt the government to pass regulations that will benefit their interest. The inequality of resources created by capitalism creates a definite problem for democracy. Even Robert A Dahl suggest that the inequality of resources is a problem in the United States even though he believe that capitalism is necessary in democracy. “Robert A. Dahl, who makes a point that capitalism has been a necessary precondition of democracy, view contemporary democracy in the United States as seriously compromised, impaired by the inequality of resources among the citizens.” (Almond 470) “Only the elimination of capitalism and private property could result in the emancipation of the working class and the attainment of true democracy.” (Almond 469) Elimination of capitalism might be a harsh solution but reforming capitalism to include a more even distribution of wealth and property would be a better solution. If wealth and property were distributed more equally, then the separation of classes would start to fade. Democracy will be able to achieve its purpose of a voice for all people and equality for its citizens without the competition capitalism creates to gain wealth. Work Cited Almond, Gabriel A. "Capitalism and Democracy” Political Science and Politics, Sept.1991: Vol.24 Iss.3, p. 467-474. Lindblom, Charles E. "The Market as Prison” The Journal of Politics, May 1982: Vol.44, Iss.2 p. 324-336. Stiglitz, Joseph "The Roaring Twenties” The Atlantic Monthly, Oct.2002. Read More