Question

Do markets and democracy undermine each other? What countrie's experiences best support your conclusion?

Answer 1

I think markets and democracy compliment each other rather than undermining each other. Democracy is based on the notion that each individual has a right to express and exercise his/her political preferences and the state cannot interfere with that right of the individual. The market also assumes that each individual is an independent agent and resources are allocated in the most efficient way when they indulge in production and consumption according to their own preferences. Therefore, free market request democratic rights of people. If people do not have democratic rights like freedom of speech or freedom of professional activities, they cannot exercise their economic freedom and the free market cannot exist at all.

For example, the US is the oldest democracy and the world and it has a free market. The free market of the country is supported by the democratic rights enjoyed by people. There would not be free entrepreneurial activities in the USA if people did not have their democratic freedom.