Difference between Democracy and Capitalism

Key difference: Democracy is a form of government made by the people and for the people. Capitalism is a form of governance in which the resources or means of production lies with the private owner.

Capitalism is an economic system in which capital resources are privately owned; the goods and the services are produced for profit in a market economy. In a capitalist economy, the parties which make the transaction nominally decide the prices at which the assets, goods, and services are exchanged. The fundamentals of capitalism include the practice of capital growth, competitive markets and wage labor. It is basically an economic system characterized by private or corporate ownership of goods, by the investments that are determined by private decision, and by the prices. Production and the distribution of goods are determined mainly by competition in a free market. It is a dominant system worldwide, it is also criticized enough. It is because capitalism creates more wealth than any other possible economic system, and that it is only benefiting the owner. It is associated with economic instability and a failure to provide for the well-being of all the people. Individual freedom is above the state or society. In capitalism, an individual is responsible for his works and if he wants to raise the profits, he has to work hard. Capitalism stands for private property. It has been said to help divide the society into rich and poor.

Democracy is a form of government made by the people. It means the rule of the majority. People choose their own representative to run for the government. They help form the government by casting votes. All citizens are considered equal. The people have and manage their own property. All the economic profits made by the government or the state are shared by the people. This helps in the growth of both, people and the government. In this form of governance, all the resources are public property. There are not different classes among the people. It is individual living, along with the government or the state. It is more about letting people make their own choices and deciding what is right for them.

Comparison between Democracy and Capitalism:





It is a government made by the people.

It is a form of governance in which the resources or means of production lies with the private owner.


It is public sector.

It is private sector.


It is public and government combined growth.

It is individual growth.


It does not divide the society into two classes.

It divides the society into rich and poor.


Society comes before individual living.

Individual freedom is above the society.


It benefits both society and public.

It benefits only the owner.

Economic growth

There is growth of the state.

There in no economic growth of the state.

Image Courtesy: hermes-press.com, wordpress.comĀ 

Most Searched in Food and Drink Top 10 Most Searched Differences
Most Searched in Computers and Internets Most Searched in Home and Garden
Alcatel One Touch Idol vs Nokia Lumia 620
Liquid vs Gas
Quality Assurance vs Quality Control
Sony Xperia P vs Nexus 4

Add new comment

Plain text

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.