Capitalist democracy, also known as democratic capitalism, is a political, economic and social ideology that involves the combination of a democratic political system with a capitalist economic system.
Capitalist economic system is an economic system based on private ownership of the means of production and their operation for profit
Characteristics of Capitalist Democracy
- Private property- people are free to own and operate businesses, with little intervention from the government. The government controls only certain products that are vital to the country (with possible collaboration from the private sector), while everything else is in the hands of the private sector.
- Profit oriented - The government's role is only that of a regulator and it intervenes only when necessary. Thus, the market is free to vary according to market forces..
- Entrepreneurship is encouraged in this system. Private ownership coupled with the least regulatory intervention encourages people to start individual ventures and strive for success.
- Democratic governance - The system requires the establishment of a government by the majority through free and fair elections.
- Equality- The system supports the provision of equal opportunities for all in order to improve productivity and the quality of life.
- Freedom of production: People are free to decide what to produce and how much to produce, without the government's intervention. Such decisions are made purely based on an economic basis and market forces.