georgephillip
Diamond Member
https://projects.iq.harvard.edu/fil...-_is_capitalism_compatible_with_democracy.pdf
"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 democratic politics versus hierarchical decision-making by managers and capital owners.
"Capitalism is not democratic, democracy not capitalist.
"During 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."
Reagan's tax cuts facilitated low interest rates and financial bubbles to promote US financial expansion by making real estate speculation and junk-bond corporate takeovers effectively exempt from income taxation.
This set in motion a chain-reaction of asset price inflation that is still polarizing this economy today.
The primary mode of accumulation has become financial, enabling investment bankers to replace government planners.
"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 democratic politics versus hierarchical decision-making by managers and capital owners.
"Capitalism is not democratic, democracy not capitalist.
"During 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."
Reagan's tax cuts facilitated low interest rates and financial bubbles to promote US financial expansion by making real estate speculation and junk-bond corporate takeovers effectively exempt from income taxation.
This set in motion a chain-reaction of asset price inflation that is still polarizing this economy today.
The primary mode of accumulation has become financial, enabling investment bankers to replace government planners.