Capitalism vs. Democracy — What's the Difference?

Minimal government interference in business activities.

Decisions are made based on majority rule but protect minority rights.

Promotes innovation through competitive pressures.

Provides mechanisms for changing leaders and laws non-violently.

Economic system where private parties own and operate businesses.

Government by the people, either directly or through representatives.

Characterized by the pursuit of profit and market competition.

Emphasizes equality and participation in governance.

Wealth and resources are unevenly distributed based on market success.

A political system in which power is derived from the people through elections.

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property and the recognition of property rights, voluntary exchange and wage labor.

Democracy (Greek: δημοκρατία, dēmokratiā, from dēmos 'people' and kratos 'rule') refers to a form of government in which the people either have the authority to choose their governing legislators, or the authority to decide on legislation. Who is considered part of the people and how authority is shared among or delegated by the people has changed over time and at different speeds in different countries, but more and more of the inhabitants of countries have generally been included.

An economic system in which the means of production and distribution are privately or corporately owned and development occurs through the accumulation and reinvestment of profits gained in a free market.

Government by the people, exercised either directly or through elected representatives.

(politics) A socio-economic system based on private ownership of resources or capital.

A political or social unit that has such a government.

(economics) An economic system based on private ownership of the means of production and their operation for profit.

The common people, considered as the primary source of political power.

A socio-economic system based on private property rights, including the private ownership of resources or capital, with economic decisions made largely through the operation of a market unregulated by the state.

Majority rule.

An economic system based on the abstraction of resources into the form of privately owned capital, with economic decisions made largely through the operation of a market unregulated by the state.

The principles of social equality and respect for the individual within a community.

An economic system based on predominantly private (individual or corporate) investment in and ownership of the means of production, distribution, and exchange of goods and wealth; contrasted with socialism or especially communism, in which the state has the predominant role in the economy.

(uncountable) Rule by the people, especially as a form of government; either directly or through elected representatives (representative democracy).

An economic system based on private ownership of capital

A government under the direct or representative rule of the people of its jurisdiction.

(countable) A state with a democratic system of government.

(uncountable) Belief in political freedom and equality; the "spirit of democracy".

Government by the people; a form of government in which the supreme power is retained and directly exercised by the people.

Government by popular representation; a form of government in which the supreme power is retained by the people, but is indirectly exercised through a system of representation and delegated authority periodically renewed; a constitutional representative government; a republic.

Collectively, the people, regarded as the source of government.

The principles and policy of the Democratic party, so called.

The political orientation of those who favor government by the people or by their elected representatives

A political system in which the supreme power lies in a body of citizens who can elect people to represent them

The doctrine that the numerical majority of an organized group can make decisions binding on the whole group

Capitalism can drive significant economic growth by encouraging competition and innovation.

Elections are fundamental in democracy, as they allow citizens to choose their leaders and influence government policies.

Wealth disparities in capitalism arise from unequal access to resources and differences in business success.

Democracy protects minority rights through laws and constitutions that prevent majoritarian rule from infringing on minority interests.

Common criticisms of capitalism include fostering economic inequality and focusing excessively on profit at the expense of social welfare.

Public participation in democracy is often expressed through voting, but also through public debates, protests, and civic activities.

Yes, many countries successfully maintain both capitalist economies and democratic governments.

Fairness in capitalism is often regulated by laws that ensure competition, prevent fraud, and protect consumer rights.

The main advantage of democracy is that it allows for the representation and participation of the general population in government.

While capitalism advocates for minimal governmental interference, some oversight is often necessary to regulate and prevent monopolies and unfair practices.

Societal values shape democracy by influencing what is considered important in decision-making processes and in the election of representatives.

Democracy allows for the removal of ineffective leaders through regular elections or, in some cases, impeachment processes.

Economic policies in democracies are shaped by elected representatives and are often the subject of significant public debate and voting.

Yes, economic power under capitalism can influence political processes, sometimes leading to policies that favor the wealthy.

Capitalism often promotes innovation as companies seek competitive advantages in the market.