I came across an opinion piece in the NY Times whose second half is a delightfully cogent debunking of the notion that democracy and capitalism are mortal enemies. Its arguments are remarkably accessible, and don’t rely so much on statistics and other facts that trigger an allergic reaction in rightwing knuckle-draggers. Sometimes us intellectuals on the Left overcomplicate things, and we need a clarity reset like this from time to time.
But the idea that there is an inherent tension between democracy and the integrity of property rights is wildly misguided. The liberal-democratic state is a relatively recent historical innovation, and our best accounts of the transition from autocracy to democracy points to the role of democratic political inclusion in protecting property rights.
As Daron Acemoglu of M.I.T. and James Robinson of Harvard show in “Why Nations Fail,” ruling elites in pre-democratic states arranged political and economic institutions to extract labor and property from the lower orders. That is to say, the system was set up to make it easy for elites to seize what ought to have been other people’s stuff.
In “Inequality and Democratization,” the political scientists Ben W. Ansell and David J. Samuels show that this demand for political inclusion generally isn’t driven by a desire to use the existing institutions to plunder the elites. It’s driven by a desire to keep the elites from continuing to plunder them.
It’s easy to say that everyone ought to have certain rights. Democracy is how we come to get and protect them. Far from endangering property rights by facilitating redistribution, inclusive democratic institutions limit the “organized banditry” of the elite-dominated state by bringing everyone inside the charmed circle of legally enforced rights.
Democracy is fundamentally about protecting the middle and lower classes from redistribution by establishing the equality of basic rights that makes it possible for everyone to be a capitalist. Democracy doesn’t strangle the golden goose of free enterprise through redistributive taxation; it fattens the goose by releasing the talent, ingenuity and effort of otherwise abused and exploited people.
At a time when America’s faith in democracy is flagging, the Republicans elected to treat the United States Senate, and the citizens it represents, with all the respect college guys accord public restrooms. It’s easier to reverse a bad piece of legislation than the bad reputation of our representative institutions, which is why the way the tax bill was passed is probably worse than what’s in it. Ultimately, it’s the integrity of democratic institutions and the rule of law that gives ordinary people the power to protect themselves against elite exploitation. But the Republican majority is bulldozing through basic democratic norms as though freedom has everything to do with the tax code and democracy just gets in the way.
The Tax Bill Shows the G.O.P.’s Contempt for Democracy by Will Wilkerson.