Abstract

Joseph Schumpeter’s Capitalism, Socialism and Democracy captures the unique blend of politics and economics, along with a particular culture and civil society, that are characteristic of liberal democracy. Commercial and economic activity have been so crucial to liberal democracy that it has often been characterized as “commercial republicanism,” and Schumpeter referred to it with justification as “bourgeois democracy.” Schumpeter’s view, which is too often characterized as simply elitist, can be situated in the realist tradition, offering a helpful corrective to simplistic understandings of democracy, such as populist understandings, that are at odds with the promise of liberal democracy. Yet while Schumpeter thought that capitalism would collapse under its own contradictions, and wondered if democracy could survive without it, today global capitalism looks unstoppable. It is bourgeois democracy that looks fragile, not because of the collapse of capitalism, as Schumpeter predicted, but because of its success. Can liberal democracy surive if global capitalism undermines the middle class on which it depends?