Author: Jerrod A. Laber

Is Democracy Doomed?

A review of The People vs. Democracy: Why Our Freedom is in Danger and How to Save it by Yascha Mounk, Harvard University Press (2018), 393 pages The great Austrian-American political economist Joseph Schumpeter once asked, “[c]an capitalism survive?” He answered this question in the negative, believing that markets undermine themselves because they perform too well. The market’s emphasis on innovation and disruption make it difficult for people to recognize how essential they are to rising standards of living. In Schumpeter’s view, capitalism’s downfall will be due to its success. Schumpeter agreed with Marx that socialism (or something like it) would eventually emerge in capitalism’s place, but he believed it would happen gradually. Willing majorities, buttressed by the anti-capitalist mentality of the intelligentsia, would snuff out entrepreneurs through legislation with large welfare states and burdensome regulations. Schumpeter didn’t live to see the collapse of socialism around the world. Nor did he witness the rise of social democracy in Europe, where states provide generous social safety nets while maintaining liberal economic policies in other areas such as international trade. …