Capitalism is a lot more important than democracy. I’m not even a big believer in democracy.
– Stephen Moore, a potential future member of the Federal Reserve Board
The dominant American ideology has long claimed that capitalism is about democracy. It isn’t – and one need not be an anti-capitalist “radical” to know better. My old copy of Webster’s New Twentieth Century Dictionary defines capitalism as “the economic system in which all or most of the means of production and distribution … are privately owned and operated for profit, originally under fully competitive conditions: it has been generally characterized by a tendency toward concentration of wealth and, [in] its latter phase, by the growth of great corporations, increased government controls, etc.”
There’s nothing—nada, zero, zip—about popular self-rule (democracy) in that definition. And there shouldn’t be. “Democracy and capitalism have very different beliefs about the proper distribution of power,” liberal economist Lester Thurow noted in the mid-1990s: “One [democracy] believes in a completely equal distribution of political power, ‘one man, one vote,’ while the other [capitalism] believes that it is the duty of the economically fit to drive the unfit out of business and into extinction. … To put it in its starkest form, capitalism is perfectly compatible with slavery. Democracy is not.”
Thurow might have added that capitalism is…