The Crisis of Democratic Capitalism

From the chief economics commentator of the Financial Times comes a powerful examination of the unraveling relationship between democracy and capitalism—and what must be done to repair it.

Martin Wolf, one of the world’s most respected economic thinkers, has never been an optimist, but he has also never been as concerned as he is today. Liberal democracy is faltering, and authoritarianism is gaining ground. The once-strong bond between free markets and democratic governance is weakening, even in nations that have long championed both, like the United States and the United Kingdom.

Some now argue that capitalism thrives without democracy, while others believe democracy would be better off without capitalism. Wolf refutes both perspectives, making a compelling case that separating the two would be disastrous. Despite its imperfections, democratic capitalism remains the most effective system for human progress. Yet, something has gone deeply wrong—economic growth has slowed, inequality has widened, and the wealthiest have withdrawn from the collective good, eroding public trust in government’s ability to foster opportunity and sustainability. If left unchecked, these forces could pave the way for an even greater surge in autocracy, ultimately threatening everyone, including the elites who believe themselves immune.

Wolf contends that citizenship is more than a lofty ideal—it is the key to saving democracy itself. The alignment of political and economic freedom is not just desirable but essential for the future. Drawing on deep analysis and historical insight, this urgent and thought-provoking book argues that democracy is now at a crossroads—and its survival depends on rebuilding trust in a system that serves the many, not just the privileged few.