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Sample Essay on Relationship between Democracy and Capitalism

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Sample Essay on Relationship between Democracy and Capitalism

The relationship between democracy and capitalism has always been a tense one, capitalism is figured out by those who owns capital or identifies with its needs. Democracy on the other hand it is the rule of the majorities who have neither capital to identify with the needs of capitalism. According to Varoufakis experience as finance minister he tries to look at the present and future of capitalism and democracy and conclude with their similarities and how they relate to each other. Professor Varoufakis is viewed as a reliable reference source since he was appointed to become the finance minister of Greece when it was facing its problem of bankruptcyin 2010 (Varoufakis).

According to professorvaroufakis democracy began in Athens where it was flooded with severely racism, sexism, migrants and slave trade. According to him at this ancient time in Athens democracy was majorly ruled by the working poor (Varoufakis). Democracy therefore stated that it was a constitution in which the poor and the freecourtesy being the majority control the government. It was in this context that the so-called democratic capitalism emerged, this is a system that consists of the idea that, in order to be compatible with democracy, capitalism ought to be regulated. This fostered to the nationalization of key sectors to the economy and facilitated taxation, collective bargaining and other economic constraints.

Professor Varoufakis relates to an impossibility theorem in his link and concludes that it is impossible to take the preferences desire of individuals and manufacture out of them a notion of a common will. According to this theory he goes further to give two interpretations where he states that no well-defined notion of a common will in a state, therefore he compares this to capitalism without the state is like Christianity without help. He gives another interpretation that there can be no technical solution to the problem of finding out what we want using as input the perfect information of one’s desire.














Works Cited

Varoufakis, Yanis. “Yanis Varoufakis: The Future of Capitalism | The New School”. Youtube, 2016, 




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