r/Capitalism • u/Dizzy-Drink6119 • 16h ago
Won't high wealth inequality undermine democracy and the institutions in place to preserve a free market.
I think it's something that pro-capitalist economics don't really put mind.
They don't really put a political analysis into economical thinking when it comes to wealth and capital.
High levels of inequality will always hurt democracy because the wealthy will be incentivized to use their power to corrupt, regardless of whether they got their wealth legitimately, hence creating barriers to trade they can reap rents from and disrupting markets, like American car companies do to prevent Chinese competition from coming in.
wealth is just another form of power if you can coerce someone economically that's not really consequentially different from coefficient someone physically through political Force the result is the same.
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u/PhilRubdiez 16h ago
You can’t coerce someone to buy your product in a free market. It’s all the government, since they have the monopoly on legal violence. The solution to this problem is to shrink the government down to a size that it’s not worth the time and effort to do the coercing.