When certain branches of the economy become obsolete, as in the case of the steel industry, not only do jobs disappear, which is obviously a terrible social hardship, but certain cultures also disappear.
Let me say again that the relationship is asymmetrical: there's no democracy without a market economy, but you can have a market economy without democracy.
But we don't have an example of a democratic society existing in a socialist economy - which is the only real alternative to capitalism in the modern world.
Some people think that as the Chinese economy becomes more and more capitalistic it will inevitably become more democratic
It has been true in Western societies and it seems to be true elsewhere that you do not find democratic systems apart from capitalism, or apart from a market economy, if you prefer that term
In a market economy, however, the individual has some possibility of escaping from the power of the state
So I think one can say on empirical grounds - not because of some philosophical principle - that you can't have democracy unless you have a market economy.
If a socialist economy is opened up to increasing degrees of market forces, a point will be reached at which democratic governance becomes a possibility.
An economy oriented toward production for market exchange provides the optimal conditions for long-lasting and ever-expanding productive capacity based on modern technology.
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