Is Capitalism Bad for Democracy? A Review of Lisa Herzog’s The Democratic Marketplace

In The Democratic Marketplace, Lisa Herzog offers a damning indictment of democratic capitalism. Among other things, she argues that capitalism has led to increased inequality, fosters an unhealthy culture of competition, that it is bad for the environment, and that it is ultimately bad for democracy itself. To save democracy we must pursue various reforms: we need to address economic inequality; we must abjure the unsustainable pursuit of economic growth and instead democratically determine the functions of the economy; and we should give citizens more time for meaningful civic engagement. In this review essay I push back in defense of democratic capitalism, arguing that while Herzog overstates the negative aspects of capitalism, she also greatly understates its many benefits. Additionally, I show that her own distinctive proposals for how to democratize the economy face serious issues that should not be overlooked. Overall, expanding the scope of democratic politics is not as promising as many seem to think, while democratic capitalism is unjustifiably underappreciated.