Capitalism and democracy

Hancké, Bob ORCID: 0000-0002-3334-231X, Van Overbeke, Toon ORCID: 0000-0002-0620-9943 and Voss, Dustin ORCID: 0000-0001-5329-2682 (2025) Capitalism and democracy. In: Understanding political economy: capitalism, democracy and inequality. Edward Elgar. ISBN 9781035325078

Text (Understanding Political Economy Ch2) - Accepted Version Repository staff only until 14 January 2026. Download (458kB)

Abstract

Since the inception of the discipline, the complex relationship between capitalism and democracy has been at the vanguard of political economy debates. This chapter unpacks these two key concepts and shines a light on the many complementarities and frictions between them. While democracy is based on the principle of equality (one person, one vote), capitalism allocates resources (if only ideally) based on ability, skill, merit, and productivity. We explore the interactions between capitalism and democracy and the tensions that these conflicting logics beget. To this end, this chapter reviews and conceptualises optimistic and pessimistic views on the questions if capitalism and democracy can ultimately coexist. We close the chapter with a discussion of democratic backsliding.

Item Type:	Book Section
Additional Information:	© 2025 Edward Elgar
Divisions:	European Institute
Subjects:	J Political Science H Social Sciences > HB Economic Theory
Date Deposited:	10 Apr 2025 09:12
Last Modified:	10 Apr 2025 09:18
URI:	http://eprints.lse.ac.uk/id/eprint/127879

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