The Crisis of Democratic Capitalism

From the author of The Shifts and the Shocks, and one of the most influential writers on economics, a reckoning with how and why the relationship between democracy and capitalism is coming undone

We are living in an age when economic failings have shaken faith in global capitalism. Political failings have undermined trust in liberal democracy and in the very notion of truth. The ties that ought to bind open markets to free and fair elections are being strained and rejected, even in democracy's notional heartlands. Around the world, democratic capitalism, which depends on the determined separation of power from wealth, is in crisis. Some now argue that capitalism is better without democracy; others that democracy is better without capitalism.

This book is a forceful rejoinder to both views. It analyses how the marriage between capitalism and democracy has become so fraught and yet insists that a divorce would be an almost unimaginable calamity. Martin Wolf, one of the wisest public voices on global affairs, argues that for all its recent failings - slowing growth, increasing inequality, widespread popular disillusion - democratic capitalism, though inherently fragile, remains the best system we know for human flourishing. Capitalism and democracy are complementary opposites: they need each other if either is to thrive. Wolf's superb exploration of their marriage shows us how citizenship and a shared faith in the common good are not romantic slogans but the essential foundation of our economic and political freedom.

Review

The book's power lies in Wolf's central perception and the scale of the canvas he uses to illustrate it. The problems he describes - inequality, lack of social mobility, slowing productivity gains, the influence of money over politics, disaffection with democracy - are familiar, but by identifying them collectively as causes of the calamity he foresees, he gives new urgency to the need to address them. -- Emma Duncan ― The Times

Martin Wolf is one of the world's most influential economists ... His new book, The Crisis of Democratic Capitalism, is both his magnum opus and an explanation of his crisis of faith. ... Wolf argues that democracy and capitalism are complementary opposites: Opposites because capitalism depends on inequality of rewards while democracy depends on political equality, complementary because they both enshrine the principle of individual choice. But in recent decades this marriage of opposites has been falling apart, most importantly in the supposed standard-bearer of democratic capitalism, the United States. ... a penetrating analysis of Western society's ills -- Adrian Wooldridge ― Bloomberg

The Crisis of Democratic Capitalism draws on the wisdom accumulated over his distinguished career... The case he makes is authoritative and compelling. ― Economist

The Crisis of Democratic Capitalism will reach a wide and powerful audience. It will be read by world leaders and CEOs. If it convinces some of them to change tack, away from the plutocratic path that national and international economies are currently on, then we should all be grateful. -- William Davies ― New Statesman

Martin Wolf shines a light on the doom loop of democratic capitalism ... in his fine new book -- Bill Emmott ― Financial Times

About the Author

Martin Wolf is Chief Economics Commentator at the Financial Times. He was a member of the UK's Vickers Commission on Banking, which reported in 2011. He holds an honorary doctorate at the London School of Economics and is an honorary Fellow of Nuffield College, Oxford.He is a member of the International Media Council of the World Economic Forum. In 2000, he was awarded the CBE for services to financial journalism and in 2019 won the Lifetime Achievement Award at the Gerald Loeb Awards. His books include The Shifts and the Shocks, Fixing Global Finance and Why Globalization Works.