The Fading Light of Democratic Capitalism: How Pervasive Cronyism and Restricted Suffrage Are Destroying Democratic Capitalism as a National Ideal ... And What to Do About It

What are we to do about declining public trust and confidence in democratic capitalism, which many citizens consider a cornerstone of our national ideology and identity? In this book, I address how we can rekindle the fading light of democratic capitalism as an aspirational ideal. I begin by defining what democratic capitalism encompasses as a system of economic and political governance. I then explain how this governance system has become corrupted in recent decades by the toxic combination of pervasive cronyism and restricted political voice and suffrage. The inevitable result is a political economy that has become increasingly less democratic and less capitalist over the years, as well as increasingly criticized by an anxious public as not serving its needs. Drawing on the fundamental democratic principle of political equality, as well as the two related sub-principles of power sharing and reciprocity, I propose a series of practical steps to make our economic and political markets more democratic. I also address how private corporations can become more "democracy supporting." As a way of suggesting future possibilities, I describe uniquely American approaches to successful power sharing and reciprocity in highly competitive business settings. I end with some personal reflections on the moral culture required to support the restoration of a more relational democratic capitalism, along with suggestions about how the norms and values underpinning such a culture can be socialized in the years ahead. In an appendix, I discuss how the canonization of the shareholder wealth maximization doctrine as the primary expression of corporate purpose over the past forty years has provided a strong rationale and financial incentive for corporations to disengage as a moral force in our political economy, even to the extent of compromising the fairness and justness of our system of economic and political governance. I also discuss the doctrine’s conceptual flaws as a normative economic theory.