Joseph Schumpeter ominously speculated that as capitalism succeeded, democracies in time would come to expect its end (wealth) but reject its means (free-market competition). He worried that because of the inequality and creative destruction it brings, capitalism would provoke a kind of adverse reaction. A popular call would arise for government to plan market outcomes according to some utopian view of society's good, and this democratically guided central planning would inevitably slow economic growth. Schumpeter predicted, in turn, that if economic expansion faltered, individual liberty would be directly imperiled or quietly ceded by citizens resigned to having their diminished economic position protected by the state.
We hear more voices these days yearning for a benevolent autocracy, including the creepy Thomas Friedman. The whole terrific essay, Can Democracy Survive Capitalism?, at Claremont Review.
Photo: Kim Jong-il, beloved, benevolent, altruistic autocrat who understands everything and who only cares about what is best for his people