In the United States, many take for granted that freedom and democracy are inextricably connected with capitalism. Milton Friedman, in his book Capitalism and Freedom, went so far as to argue that capitalism was a necessary condition for both.

It is certainly true that the appearance and spread of capitalism brought with it a tremendous expansion of individual freedoms and, eventually, popular struggles for more democratic forms of political organization. The claim that capitalism fundamentally obstructs both freedom and democracy will then sound strange to many.

To say that capitalism restricts the flourishing of these values is not to argue that capitalism has run counter to freedom and democracy in every instance. Rather, through the functioning of its most basic processes, capitalism generates severe deficits of both freedom and democracy that it can never remedy. Capitalism has promoted the emergence of certain limited forms of freedom and democracy, but it imposes a low ceiling on their further realization.