Unregulated Capitalism Undermines the Legitimacy of Liberal Democracy E

Introduction In a capitalist system, businesses compete with one another to produce the most innovative merchandise at the most competitive prices; in turn, consumers freely select the most desirable products. According to Adam Smith, this competition, when left unregulated, fosters maximum wealth and the common good (Economist 2-3). Indeed, unmanaged competition may ensure prices are affordable for consumers (2). However, in a global free market that exploits cheap labour; market demand dwindles, resulting in excessive credit lending and debt crises (Li 295-6). In this way, capitalism’s efficiency and promotion of the common good is questionable. Since the resurgence of unregulated capitalism in the late 20th century, social inequalities have grown significantly, with one percent of the most powerful countries attaining more wealth than half the world (Dunklin 2). Canada’s income gap has also risen, exacerbating morbidity and mortality (Bryant 47). However, the extent that government should reduce social inequities is controversial in a liberal democracy, which prioritizes economic freedom. That being said, social inequalities may lead to wealthier individuals gaining an advantage in policy making (Bryant 54; Rein 63), undermining the liberal democratic value of political equality. Moreover, the ideal of economic freedom is shrinking in today’s global economy, which exhibits massive enterprises stifling competition and creating economic instability (Foster 2). In light of these issues, the aim of this essay is to detail how unregulated capitalism detracts from a liberal democracy by undermining political eq uality and economic freedom. Ideals of a Liberal Democracy The values of freedom and equality, which are pr... ...21-134. Retrieved from Academic Search Complete. Raphael, D., Curry-Stevens, A., & Bryant, T. (2008). Barriers to addressing the social determinants of health: Insights from the Canadian experience. Health Policy, 88, 222-235. doi: 10.1016/j.healthpol.2008.03.015. Reich, R. (2007). How capitalism is killing democracy. Foreign Policy, Sep/Oct2007, 38-42. Retrieved from Academic Search Complete. Rein, S. (2009). Radical politics. In J. Brodie & S. Rein (Eds.), Critical concepts: An introduction to politics (4th ed.) (pp. 60-71). Toronto, Ontario: Pearson Education Canada. Shahrokhi, M. (2011). The global financial crises of 2007-2010 and the future of capitalism. Global Finance Journal, 22, 193-210. doi: 10.1016/j.gfj.2011.10.010. Workman, T. (2010). Renewing the left in Canada. Canadian Dimension, 44(3), 49-52. Retrieved from the Canadian Reference Centre.