Capitalism and the future of democracy

Supporters wave their hands in unison as they gather at a rally for U.S. Democratic presidential candidate Bernie Sanders in Anaheim, California, U.S., May 24, 2016. REUTERS/Mike Blake  - D1AETFXPDRAB

This paper argues that the earlier mixed economy model in the U.S. was replaced after about 1980 with an ideology of market fundamentalism. Failure to address problems such as growing inequality and stagnant wages now threatens both the survival of capitalism and democracy. Supply side economics has spawned supply-side (donor-based) politics, inhibiting an effective response.

These developments are beginning to be challenged by the far left (democratic socialists), by moderates (liberal democrats), and by some conservatives (social capitalists). While the future remains uncertain, the current debate suggests that new forms of economic organization and new goals that go beyond simply encouraging free markets and economic growth are gaining popularity.

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