Democratic theory and individual autonomy

Abstract. Schumpeter argued that the norms of what he called the 'classical' theory were unrealisable within modern societies and offered what he believed to be a more realistic alternative. However, his critics accuse him of confusing 'is' with 'ought'. This paper seeks to save him from this criticism. It shows that Schumpeter's attack on the classical model rested on a correct appraisal of the constraints on individual autonomous action within modern societies. Unlike the 'competitive theory' of Downs and others, Schumpeter's own alternative cannot be treated as a naive apologia for contemporary parliametary party democracy. He was well aware that such systems easily degenerate into oligopolies. Indeed he welcomed this development, viewing the party elections as means for moulding rather than responding to the people's will. Nevertheless, a series of procedural norms underlay his theory which are elucidated with reference to Wittgenstein's account of language.