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Is capitalism compatible with democracy?

Essay1 3 Prof. Dr. W. Merkel ( )Abteilung Demokratie und Demokratisierung, Wissenschaftszentrum Berlin f r Sozialforschung WZB,Reichpietschufer 50,10785 Berlin, Deutschlande-mail: capitalism compatible with democracy ?Wolfgang MerkelZ Vgl Polit WissDOI capitalism and democracy follow different logics: unequally distributed property rights on the one hand, equal civic and political rights on the other; profit-oriented trade within capitalism in contrast to the search for the common good within democracy ; debate, compromise and majority decision-making within demo-cratic politics versus hierarchical decision-making by managers and capital owners. capitalism is not democratic, democracy not the first postwar decades, tensions between the two were moderated through the socio-political embedding of capitalism by an interventionist tax and welfare state. Yet, the financialization of capitalism since the 1980s has broken the precarious capitalist-democratic compromise.

The success of democracy in the last quarter of the twentieth century was impres-sive. However, democracy’s success pales in comparison to the spread of capitalism throughout the world. If we take the minimal standards of democracy as a measure-ment, there were 123 countries (out of around 200) that could be called an “electoral

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