Capitalism, Democracy, and Elites Today

Since the beginning of the neoliberal era, it has been argued that there was a correlation between democracy and capitalism, and a strong democracy could ensure capitalist development and increase welfare. Thus, M. Friedman’s (1912–2006) especially discussed democracy and capitalism as coexisting systems in Capitalism and Freedom ([1962]2002). This approach argued that a strong democracy would lead to capitalism, individual freedoms would be guaranteed under the capitalist system, and capitalist development would in turn lead to democratic development. However, the events of the twenty-first century demonstrated that capitalism was not a guarantor of individual freedoms and democracy as claimed by the liberals. The abovementioned correlation between capitalism and democracy became quite controversial after the crisis of 2008. In the affected countries, the crisis led to an increasing authoritarian trend. Public or state-driven corporations started to compete in international markets, leading to the emergence of an economic and political elite closely associated with politicians. Today, neoliberalism and state capitalism ensured security for the richest but increased the poverty and misery of most of the society. Increasing inequality made the consent on neoliberal policies unsustainable. This increased the conflict between democracy and liberalism as the states became increasingly authoritarian.