Capitalism and Democracy:

 The Impact of Political and Economic Alliances

in Democratic Societies

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             Although the prevailing historical view has closely aligned democracy with capitalism, increasingly this view has been challenged by modern political sociologists and economists. Robert Reich, the former Secretary of Labor under president Clinton postulates a divergence that has taken place in recent history between capitalism and democracy, revealing a more complex and intricate dynamic between the two that merits a more thorough and meticulous investigation (Reich, ch.1). Scholars have long debated whether free market capitalism aids or hinders democracy, some have espoused that it promotes its growth, while others have contended that it undermines its sustainability. Milton Friedman, one of the most prominent proponents of free market capitalism posited that it is necessary for democracy and political freedom (ch.1); whereas Harvard economist, Bruce R. Scott considers the income inequality that often results in a capitalist society to be ultimately incompatible with democracy (Cohen). Although they both see a strong correlation between the two, they hold opposite views regarding the direction of the correlation. A close analysis and comparison of these opposing views lead us to inquire about the possible existence of any discrepancies between these ideologies that make them fundamentally incongruent with each other and to find out whether, in fact, the practice and reality on the ground support and bear out these theories.  But first defining the terms in question is critical in creating a common ground for our purposes of understanding and comparison.