by Rob O'Hannon

Created on: September 21, 2010

When we consider American Democracy, we need to consider two driving forces – Capitalism and Democracy. These forces are sometimes complementary and sometimes competitive, but they are not the same:

Capitalism is an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market

Democracy is government by the people; especially: rule of the majority b: a government in which the supreme power is vested in the people and exercised by them directly or indirectly through a system of representation usually involving periodically held free elections

There are inherent dangers in viewing Capitalism and Democracy as being the same thing, dangers that have been, and are being, displayed in our nation, and in the world. The prime and key difference can be summed up in two simple phrases: Business is about profit. Government is about people.

Capitalism, as the definition states, is an economic system driven by private sector free market competition. Capitalism can, and has, thrived under many political systems, including totalitarian governments. Free market competition has been channeled into destructive pursuits in the past (Slavery was a free market agricultural business model, the Holocaust encouraged free market competition to design the killing machines

While the concept of Capitalism is not evil in and of itself, it is not a system of government. By form and function is it designed to be accountable to a degree to its investors, not the community or society in which it operates. The pursuit of free market profit can inflict damage to communities and societies, like toxic waste and pollution by-products. Because Capitalism is only accountable to the private or corporate ownership, which make private decisions based on profit concerns, the community or society may have little recourse to protect themselves, or recover damages, without a government structure that can establish and enforce protective laws.

Democracy provides that structure by allowing people a voice in the decision making process. This voice allows a community or society to regulate those practices that could adversely affect their rights to "life, liberty and the pursuit of happiness."

Democracy should provide a complimentary counter-point to Capitalism through infrastructure development, police and national protection, and regulations that protect the workers, and citizens that might be affected by the business. These functions, viewed by some as overly controlling, actually allow businesses to better focus on efficiencies rather than laborious regulatory discussion.

The deregulation of business in service of Capitalism must always be weighed in term of its affect on community and society, and their citizens. Democracy assures that the concerns are heard, and accounted for, in the process.

The two can work hand in hand, but they are not the same. The dangers of confusing and merging the two are apparent in today's world, where a war can be conceived of as a struggle to control oil, and corporations making massive profits still demand tax breaks. This raises an ideological question that must be answered is: Will Capitalism's private, profit- driven concern determine our domestic and foreign approaches, or will Democracy, a system of government "of the people, by the people, for the people", use its representative voice to determine what is best for all? The answer to this question will determine what happens in our country, and the world.

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