Capitalist democracy combines private ownership and free markets with majority rule through free elections, and its main characteristics are listed below.
1. It encourages the existence of many interest groups and political parties (pluralism). Citizens are free to form parties, unions and pressure groups, so many voices compete to influence government policy.
2. It is guided by the provisions of a federal and rigid constitution. The United States, the model capitalist democracy, has a federal and rigid constitution, though Britain shows such a state can also be unitary with an unwritten, flexible constitution.
3. It is a government of the majority. The party or candidate that wins the majority of votes forms the government, while the minority remains free to oppose it and contest the next election.
4. It recognises and respects the principles of the rule of law and fundamental human rights. Everyone, including those in power, is subject to the law, and the courts protect citizens’ rights such as freedom of speech and association.
5. It allows private ownership of the means of production, distribution and exchange of wealth. Individuals and companies, not the state, own farms, factories, banks and shops and keep the profits they make.
6. It encourages popular participation through free, fair and credible elections. Adult citizens choose their leaders at regular elections and can remove an unpopular government peacefully through the ballot box.
7. It engenders healthy and robust competition that boosts economic growth. Firms compete for customers by improving quality and cutting prices, and this rivalry drives innovation, investment and growth.
How it is asked: typical essay forms are “Highlight five characteristics of capitalist democracy.” and “State four features of capitalist democracy.”