Capitalism and Democracy

Abstract

Capitalism is a social formation, the only historical one of its kind, in which the economy has an autonomous existence. The functioning of the capitalist economy is governed by economic "laws" which are generated by the mutual interaction of competing capitals on the one hand, and of capitalists and wage laborers on the other. No overall direction exists or is needed: the system runs itself so long as capitalists act to maximize their profits and use their profits to expand their capitals. This does not mean that the economy is independent of the state: the latter is necessarily involved in the economic process as the guarantor of the underlying property system and enforcer of the rules of the competitive struggle, and it also typically plays a role in strengthening the hand of some interests against others and in attempting to resolve or ameliorate the contradictions to which the system gives rise. But the functions of the state are determined by the operation of the economy and not the other way around.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.