The claim that capitalism harms democracy and freedom is more complex than simply proposing that capitalism is opposed to freedom and democracy. Rather, the logic is that capitalism generates severe deficits in realizing the values of democracy and freedom. Capitalism promotes the emergence and partial development of both freedom and democracy, but it obstructs the fullest possible realization of these values. [...]

First, the way the boundary between the public and private sphere is drawn in capitalism excludes crucial decisions that affect large numbers of people from participating in democratic control. Perhaps the most fundamental right that accompanies private ownership of capital is the right to decide where and when to invest and disinvest. [...]

Second, private control over major investments creates constant pressure on public authorities to enact rules favorable to the interests of capitalists. The threat of disinvestment and capital mobility [...]

Third, wealthy people have greater access than non-wealthy citizens to political power. This is the case in all capitalist democracies, although wealth-based inequality in access to political power is much greater in some countries than in others. The specific mechanisms for this greater access are quite varied: contributions to political campaigns; financing lobbying efforts; elite social networks of various sorts; outright bribes and other forms of corruption. [...]

Fourth, capitalist firms are allowed to be organized as workplace dictatorships. An essential power of private ownership of businesses is that the owners have the right to tell employees what to do. [...]

Finally, the inequalities in wealth and income intrinsic to capitalism create inequalities in what philosopher Philippe van Parijs calls “real freedom.” Whatever else we might mean by freedom, it is the ability to say “no.” A wealthy person can freely decide not to work for wages; a poor person lacking an independent means of livelihood cannot reject employment so easily. [...]