Capitalism and Democracy

Abstract

Abstract Chapter 8 examines the rise of capitalist democracies, from the early unjust exploitative capitalism, led by the violence power principle, to its gradual convergence into a much fairer democratic capitalism. Despite its early unjust outcomes capitalism managed to deliver an impetus for persistent social change, eventually resulting in political changes, as old aristocratic elites were being replaced by democratic governments. This permanent incentive for change gradually started delivering basic human rights, as well as equal representation, rule of law, equality of opportunities, and eventually equality of gender and race. All of this was achieved under capitalist democracies, through a unique trial-and-error mechanism that helps societies learn from their errors, never again to repeat them. Socialist countries also achieved rapid progress in the aftermath of World War II. However, when faced with their first major internal crisis, they failed as they had no trial-and-error mechanism that could help them overcome the crisis.