Democratic capitalism, also known as capitalist democracy, is a political, economic and social ideology that involves the combination of a democraticpolitical system with a capitalisteconomic system. It is based on a tripartite arrangement of a private sector-driven market economy based predominantly on a democraticpolicy, economic incentives through free markets, fiscal responsibility and a liberalmoral-cultural system which encourages pluralism.[1][2] This ideology supports a capitalist economy subject to control by a democratic political system that is supported by the majority. It stands in contrast to corporatism by limiting the influence of special interest groups, including corporate lobbyists, on politics.
It is argued that the coexistence of modern capitalism and democracy was the result of the creation of the modern welfare state in the post-war period, which enabled a relatively stable political atmosphere and widespread support for capitalism. This period of history is often referred to as the "Golden Age of Capitalism".[3]
Benne, Robert (1981), The Ethic of Democratic Capitalism: A Moral Reassessment, Philadelphia: Fortress Press, ISBN0-8006-1445-3
J. Michael Miller, ed. (1996), The Encyclicals of John Paul II, Huntington: Our Sunday Visitor
Prindle, David (2006), The Paradox of Democratic Capitalism: Politics and Economics in American Thought, Baltimore, MD: The Johns Hopkins University Press, ISBN0-8018-8411-X