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Democracy and Capitalism: the Issue Joined from Within Western Michigan University ScholarWorks at WMU Master's Theses Graduate College 12-1991 Democracy and Capitalism: The Issue Joined from Within Christopher E. Bischoff Follow this and additional works at: https://scholarworks.wmich.edu/masters_theses Part of the Economics Commons, and the Political Science Commons Recommended Citation Bischoff, Christopher E., "Democracy and Capitalism: The Issue Joined from Within" (1991). Master's Theses. 942. https://scholarworks.wmich.edu/masters_theses/942 This Masters Thesis-Open Access is brought to you for free and open access by the Graduate College at ScholarWorks at WMU. It has been accepted for inclusion in Master's Theses by an authorized administrator of ScholarWorks at WMU. For more information, please contact [email protected]. DEMOCRACY AND CAPITALISM: THE ISSUE JOINED FROM WITHIN by Christopher E. Bischoff A Thesis Submitted to the Faculty of The Graduate College in partial fulfillment of the requirements for the Degree of Master of Arts Department of Political Science Western Michigan University Kalamazoo, Michigan December 1991 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. DEMOCRACY AND CAPITALISM: THE ISSUE JOINED FROM WITHIN Christopher E. Bischoff, M.A. Western Michigan University, 1991 This study utilizes contemporary and classical literature to illuminate the complexities of Western democracy. Of specific focus is American democracy and the effects that capitalism has had upon demo­ cracy in America. The achievement of democracy on the scale of the modern nation-state appears problematic even without the adversarial burdens posed by a capitalist economic consort. It emerges that Ameri­ can democracy is particularly compromised by its roots in liberal tradition. Forced by nature to depend upon the allocative abilities of its economic consort, democracy must endure a relationship that dra­ matically undermines its ideological orientation. Although American democracy is not yet in crisis, there is little doubt about the inevi­ tability of crisis as democratic practice is increasingly sabotaged by capitalism. For democracy to prosper, capitalism must be the servant and not the master of democratic society. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGMENTS I wish to express special acknowledgment and sincere appreciation to my advisor and committee chairperson, Dr. William Ritchie, for his encouragement, direction, intellectual stimulation, and efforts to accommodate my irregular requests to meet; and to my committee members, Dr. Alan Isaak, and Dr. Robert Kaufman, for their advice and assis­ tance. Special appreciation is expressed to Dr. Helenan Robin who supported and inspired me; and Ms. Laura Hoistad, who without com­ plaint, procured invaluable materials for my project. Appreciation is also due to Mr. David Mick and Mr. Michael Kaucheck who provided computer assistance; Mrs. Michelle Kaucheck who assisted with the task of proofreading; and to my parents who encouraged me to pursue my academic goals. Christopher E. Bischoff Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand corner and continuing from left to right in equal sections with small overlaps. Each original is also photographed in one exposure and is included in reduced form at the back of the book. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6" x 9" black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. University Microfilms International A Bell & Howell Information Company 300 North Zeeb Road. Ann Arbor, Ml 48106-1346 USA 313/761-4700 800/521-0600 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Order Number 1347056 Democracy and capitalism: The issue joined from within Bischoff, Christopher E., M.A. Western Michigan University, 1991 Copyright ©1991 by Bischoff, Christopher E. All rights reserved. UMI 300 N. Zeeb Rd. Ann Arbor, MI 48106 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Copyright by Christopher E. Bischoff 1991 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS ACKNOWLEDGEMENTS.......................................... ii CHAPTER I. INTRODUCTION........................................ 1 Statement of Problem............................ 4 Methodological Parameters....................... 5 Overview of Study.............................. 7 PART I THE CONCEPT OF DEMOCRACY II. OVERVIEW OF DEMOCRACY.............................. 13 Why Democracy?................................. 17 Greek Origins.................................. 18 Significance of Scale........................... 20 Classical Democracy............................. 25 III. LIBERALISM........................................ 27 Economic Liberalism............................. 28 Liberalism..................................... 33 Liberalism and Democracy........................ 34 Liberal Democracy.............................. 35 Democracy Within Liberalism..................... 37 IV. DELINEATIONS OF IDEAL AND METHOD..................... 41 Ideal.......................................... 41 Method......................................... 44 V. TENETS OF DEMOCRACY................................. 47 iii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Table of Contents— Continued CHAPTER Participation.................................. 47 Political Liberty/Freedom....................... 52 Political Equality............................. 55 Systemic Responsiveness......................... 57 VI. SYSTEMS FOR DEMOCRATIC PARTICIPATION................. 58 Lot System..................................... 58 Direct Democracy............................... 58 Representative Democracy........................ 60 VII. PARADOXES OF DEMOCRACY........................ 64 ENDNOTES— PART 1 ................................... 67 PART II THEORIES IN DEMOCRACY VIII. PARTICIPATORY THEORY............................... 70 Thematic Positions............................. 72 Themes of Participation.......................... 77 Visions of Classical Theory..................... 78 The Purpose of Participation.................... 82 Levels of Participation......................... 87 IX. PLURALIST THEORY.......................... 94 Monism Versus Pluralism......................... 100 Organizations, Political Autonomy, and Control.... 102 Conflictive and Organizational Pluralism.......... 108 Pluralism and Incremental Politics.............. 113 Problems of Pluralism........................... 116 iv Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Table of Contents— Continued CHAPTER X. THE THEORY OF POLYARCHY............................. 127 Requisites of Polyarchy......................... 128 Regime Type.................................... 130 Evolutionary Product............................ 132 Necessary Process............................... 132 Control Through Competition..................... 132 System of Rights................................ 133 ENDNOTES— PART II................................. 135 PART III CAPITALISM AND THE DEMOCRATIC STATE XI. THE MARKET SYSTEM.................................. 138 The Linkage of Market and Democracy............. 139 The Allocative Function of Markets.............. 144 The Market and Private Enterprise............... 145 XII. THE HERITAGE OF THE AMERICAN POLITICAL ECONOMY....... 147 The Early American Democratic Milieux............ 147 American Political Liberalism Revisited.......... 158 XIII.CAPITALISM AND ITS CONTEXT.......................... 165 Pluralism and Capitalism........................ 165 Capitalism and the Democratic State............. 167 XIV. FREEDOM AND EQUALITY IN CAPITALIST SOCIETY.......... 174 The Promise of Capitalism....................... 174 Freedom Versus Equality: The "Grand Choice"...... 180 The Economic Impetus for Government Intervention.. 183 v Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Table of Contents— Continued
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