Democracy, Markets and Capital: Are there Necessary Economic Limits to Democracy?

This article reviews the neo-liberal case for economic limits to democracy, assesses the counterposed argument of socialists and social democrats and considers why the latters' practical experience in 'democratizing economic life' has been so unsatisfactory. The second half of the paper considers the claim that some form of market socialism can overcome these limitations. While the market socialists have some success in undermining the claims of the neo-liberals, there are acute difficulties in transforming their agenda for economic democracy into a practicable politics. At the same time, it is suggested that while there may indeed be some economic limits to democracy, we are still very far from reaching them.