Four theorems about the market and democracy

Abstract. Schumpeter's account of the relationship between capitalism, socialism and democracy is reviewed by means of a critical analysis of four contemporary neo-liberal theorems about the market and democracy. It is argued that they each embody partial truths that can only be accepted with considerable qualifications, which the paper seeks to provide. The connection of the four theorems with Schumpeter's work is then traced through the continuities of the liberal political tradition.