I need to know a few things on the democratic economy. For a debate i need topics and information to talk about on the democratic economy.please give me some topics and background information on...

I need to know a few things on the democratic economy. For a debate i need topics and information to talk about on the democratic economy.

please give me some topics and background information on the topics. Thanks

Asked on by parisughes

2 Answers | Add Yours

readerofbooks's profile pic

readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted on

I think a good way to approach this question is to examine what type of economy usually thrives in a democracy. When you look at it from this point of view, usually we are in the realm of capitalism, but not exclusively. For example, some would say that the Chinese are the best capitalists today! Just think of their growth compared to ours. With that said, democracies usually have a capitalistic economy. The benefits of this economy are that it allows people to work hard and get ahead, at least theoretically. It also promotes competition and investment, since the government is not really supposed to intervenee to regulate things. In short, I think what capitalism does is create forum where greed can compete with greed.  

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

Just to be clear, democracy really refers to government.  I think what you are talking about is what we call a market economy or a free market economy, or capitalism.  These are all more or less the same thing.  But if your teacher wants you to call it a democratic economy, go ahead.

The pros of this kind of economy are:

  • More freedom -- people can do what they want with their property and make whatever economic decisions they want -- what job to have, what kind of place to live, etc,
  • Best quality of goods -- competition between companies makes them make stuff that is as good as possible for the price.
  • Big variety of goods.  In this economy, companies try to make lots of things -- if there is a market for it, it will get made.  So you can buy pretty much anything you want (or can afford).

The cons are:

  • People aren't equal.  Poor people can't afford things that rich people can.  Maybe they can't even afford some things they really need.
  • Companies can end up doing things that really hurt their society.  They can pollute the air and water.  They can do stuff like the banks did that led to the crash and to the recession we are now in.

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