Capitalism and the Future of Democracy

This 2019 essay from Isabel V. Sawhill argues that rising populism in the U.S. and other Western nations stems from the failures of market-based liberal democracy to meet people’s needs. Economic inequality, political dysfunction, and cultural tensions are feeding off each other, creating a dangerous spiral. At the core is a dominant mindset—market fundamentalism—that prioritizes markets over government and has led to elite capture and eroding trust. Without challenging this ideology, the current system risks deeper crisis.