CSS Solved Political Science 2021 Past Paper | Capitalism and Its Relations with Democracy?
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Question breakdown
The examiner has inquired to deliberate on capitalism and figure out its relations with democracy. The answer starts with an introduction, then deciphers the terminologies, capitalism and democracy. After that, find the relationship between Capitalism and democracy, whether capitalism promotes or shuns democracy. In the end, critical analysis and conclusion is necessary to properly handle the topic.
Outline
1-Introduction
Though the current scenario of democratic administration secures some freedom of speech and property ownership rights, prevalent inequality in resource distribution, political rights, and capital ownership due to capitalism is sheer antagonistic to the democratic values of economic and political equality.
2-Diagnosing the term “Capitalism”, its genesis, and its properties
3-The terse glimpse of democracy
4-Capitalism in promoting democratic values
- ✓Liberty over property
- ✓Freedom of expression
5-Capitalism in antagonizing democracy
- ✓Marginalization of political rights
- ✓Alienation from liberty and good government
- ✓Breach of meritocracy and justice
- ✓Information bias and intellectual decay
- ✓Economic disparities and the vertical division of capital
6-Critical analysis
7-Conclusion
Answer to the question
Introduction
The typical slogan that democracy moves hand in hand with capitalism is merely a populist scheme to legitimize property ownership. Historically, democracy has functionalized to bestow legal ownership on property, profit, and the means of production, where the government has little to no involvement in trade deals, profit margins, market prices, and surplus generation as long as these would not violate the ethical and legal code of society and constitution. However, as time passes, the contemporary capitalist democratic states have more tilted to capitalist values, leaving the democratic ideals of equality, ethical revenue generation, political fairness, and rule of law index scarce. All in all, feudal and landlords, including business tycoons and industrialists, have gained an important say in governmental decision-making. Though the current scenario of democratic administration secures some freedom of speech and property ownership rights, the prevalent inequality in resource distribution, political rights, and capital ownership due to capitalism is sheer antagonistic to the democratic values of economic and political equality.
Diagnosing the term “Capitalism”, its genesis, and its properties
Initially, capitalism was introduced as an economic system, legitimizing the rights of investors and bestowing property ownership. Capitalism, in its early period, was defined by Joyce Appleby as an economic system that relies on the investment of money or resources in machines and advanced technology to increase the production of marketable commodities.
- ✓Genesis of Capitalism
The Industrial Revolution in Britain in 1789 was thought to be the starting point of capitalism, increasing industrial yields. Moreover, it is a system of enhancing trade deals beyond borders by inventing advanced transportation services and yielding. Starting with industrialization, men have indulged in a variety of jobs, and the diversification of job responsibilities and augmentation of employment rates have revolutionized society. Europe, particularly London, Paris, and other big cities has been flooded with labourers. Nonetheless, the downsides of capitalism, such as arduous working conditions, low wages for labourers, monotonous working environments, women and child labour, and elite monopolies over resources and capital, have succumbed to the rights and living environments of the working classes of society.
- ✓Characteristics of Capitalism
Numerous features of capitalism, in general assumption, make it a stimulant to enhance democracy. The primary features of capitalism, for instance, freedom to accumulate surplus or capital accumulation, independence of voluntary trade, private property ownership, and surplus productivity, acclaim it a people-centred economic model. In addition, these characteristics strengthen their legitimacy through constitutional parameters: a competitive market allows the minimum involvement of government in controlling market prices, trade deals, and labour wages.
Understanding “Democracy”
Before this quality of how capitalism relates to democracy, a conception of democracy must first be recognized in conversation; even though every individual perceives a different set of interests and opinions, the fundamentals of democracy lie in the common good, with the ultimate decision-making mechanism being majority rule. Democracy is a political ideology, a product of the English parliamentary system, stating that every citizen has certain liberties, enjoys freedom of thought and opinion, owns property rights, perceives equality before the law, has the sanctity of life, and obviously, avails equal political and religious rights. An additional necessary state is that the grade of influence is not determined by monetary affluence, social class, race, gender, and so on, elaborating that each inhabitant must have an adequate and equal opportunity to influence the law-making that directly or indirectly affects his social, constitutional, economic, and political liberties and rights. Moreover, the objective of obtaining this independence, components such as freedom of media, open public debate, equal economic rights, and social activism act as fuel for a democratic state.
Capitalism in promoting democratic values
Exploring the areas where capitalism is needed to support democracy, capitalism is the right way to organize an economy, but its legality as a system of civil good is certainly in doubt. However, an open market system, as capitalism claims it is, performs a virtuous occupation of allocating resources, fostering dynamism, and preserving individual choices.
- ✓Liberty over property
Generally, capitalism is preserved as a system that provides independence for persons from the state in a way that is necessary for a democratic society. Economic liberty, a protocol deemed necessary for democratic values, allows the right to private property, including the rights of owners to control or delegate control over one’s business, firms, profits, salaries, trade agreements, and profit generation. Consequently, the corporate structure of modern-day democracy has legitimized its inalienable right over property and profit margins regardless of class, gender, and social status.
- ✓Freedom of expression
Another important factor that relates capitalism as an enhancing factor to democracy is freedom of expression. Strengthening the labour class by making labour unions, giving voice to the lower classes, and allocating resources are some of the social aspects of capitalism. Moreover, in a capitalist democratic state, citizen, without endangering their jobs and safety, can criticize governmental policies and demand laws that have the potential to strengthen their economic rights, working conditions, and salaries. Freedom of expression can be enjoyed in a capitalist economy; however, media literacy and ethical journalism are primary requirements.
Capitalism in antagonizing democracy
The current institution of global politics is profoundly dependent on capital, which threatens the fundamental ideals of a democratic society. Numerous democratic values have been maligned by property owners, business tycoons, feudal lords, and other classes of bourgeoises under capitalism, unfortunately marginalizing civil liberties and shattering social justice and the rule of law.
- ✓Marginalization of political rights
It is argued that contemporary democratic states, being excessively dependent on capital rather than any other social value, undercut the criteria of political equality. Political equality could be measured by analyzing the social activism of people, their representative government, rights to justice, freedom of speech and expression, meritocracy, options to hold public office, the rule of law index, and so on. Nonetheless, this bliss is scary to find in the present society. Akin to the ancient monarchies, as human history reveals that the independence of persons, especially in terms of voting rights, political socialism, and constitutional liberties, was strictly bound to capital and property ownership, the present democracies lesser or more following the same patterns of politics. Though the constitutional authority bestows multiple liberties to common men, the reality of political inequality, in all its domains, can be effortlessly exemplified.
- ✓Alienation from liberty and good government:
Moreover, while democracy is closely related to social equality and justice, capitalism by no means allows the elite to share resources, profit margins, and social justice. As Greek philosophy argues, liberty and progress are achieved by the leisure and privileged classes, intriguing the ordinary men, especially of lower classes, who are wretched in the customs and prejudices of the old. The corporate sector, including the political parties, think tanks, interest groups, journalists, media, and so on, of democratic governments, has attained disproportionate political authority and enormous influence in campaign elections; it would automatically better represent the agendas and opinions of the affluent segments of society in political campaigns than those of lower classes of society. To conclude, a democratic government demands equal participation of the people regardless of wealth in governmental decision-making. However, a political system polluted with elite sections would not only snub the rights, opinions, and demands of underprivileged classes but also get more political space and influence in the country.
- ✓Breach of meritocracy and justice
Most governmental vacancies, especially those of higher ranks, are filled with the elite class, giving them additional privileges, resources, and authority while victimizing meritocracy and equality. “For instance, “the case study of Pakistan on the divide of its resources claims that the elite sector of the country governs 90% of resources”, per the International Monetary Funds, this can pose large consequences for the democratic process and threaten democratic ideals.
- ✓Information bias and intellectual decay
Moreover, the mass media in many democracies are owned or dominated by high-income groups rather than low-income ones. Thus, the general public is more likely to receive data from selected upper classes, propagating the interests of elite units than the requirements and strains of lower-income sections. As Karl Marx put it, “In every epoch, the philosophies of the ruling class are the ruling principles of the state, and in due course, the ruling class, having the means of material power of society, emerges as the ruling intellectual power. In crux, democracy, being the advocate of social and political equality, allows people to actively participate in laws and policy formation, but then again, under capitalism, capitalists are inclined to design laws and policies. This could be apprehended through the Oxford dictionary definition, cataloguing capitalism as “an economic and political scheme in which a state’s trade and commerce are regulated by private owners for revenue generation,” which is merely a democracy at the brims of collapse.
- ✓Economic disparities and the vertical division of capital
The emergence of capitalism, though giving property ownership rights to proprietors, this is, however, gave meager monetary benefits to the local public. The plight of workers, such as alienation from jobs, monotonous working environment, skimpy salaries, arduous labor conditions, and lengthy duty timings, has caused democracy to lose its legitimacy, and the desperation in the working class has exponentially raised. Similarly, trade and technological advancement have not only caused common men to lose their jobs but also excluded women from mainstream economy and modernization.
Critical analysis
Critically diagnosing the discussion, the reality of capitalism could be examined as a system that certainly does not strive to achieve equality. If we gauge political equality, especially in the northern European countries where the establishment of sturdier unions to counterpoise the political power of entrepreneurs, higher tax rates, a more egalitarian labour market, and distributive policies stabilize capitalism’s drawbacks, is commonly called social democracies instead of capitalist democracies. In lieu, the failing democracies all around us, the rise of economic inequality in India, the poor law and order index of Pakistan, the authoritarian governments in Iran and Europe, and the increased role of congressmen in decision-making in America are due to the excessive control of capitalism. Further, capitalism usually favours corruption, nepotism, and control over resources through means other than merit, such as party loyalty, agenda groups, and favouritism, marginalizing the democratic ideals of a state.
Conclusion
To sum up, capitalism is a troubling scheme that undermines the rights of the general public and gives monetary benefits to the few luckiest groups, the producers of society. Owing to the capital-based political structure, living with justice, rule of law, and equality is not a norm. In addition, capitalism fuels the governments of the elite class; feudal lords, landlords, and entrepreneurs assume the public benches and governmental offices by controlling the lower classes through money, agenda groups, militarism, bounded labour, and political authority. Similarly, the equal political rights of people, access to information, and economic fairness are distance dreams, and in every society, people, on the grounds of wealth status, are segregated into multipronged cliques. The rich are enjoying resources, luxuries, and impunity from political and constitutional obligations while the poor, labourers, petty business owners, and middle class merely meet their ends, which is utterly antagonizing democratic values. In consequence, by emphasizing individualism and personal interests, capitalism breeds market concentration and a long series of abuses of the liberties and rights of commoners.
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