Competition and Democracy

Abstract

Competition and democracy are the most respected and perhaps most efficient ways to organize the economy and the society. Far from resolving all the difficult issues these institutions raise, this paper will demonstrate their connections. I will argue that competition and democracy are two sides of the same coin in our Transatlantic culture. During my research, of the numerous competition schools of thoughts, I was inspired mainly by the German ordoliberal school. I explain how the freedom of choice, market access, the protection of private property, the role of checks and balances, and fair and non-misleading communication are, or should be common building blocks of both an efficient free-market system and a well functioning democracy. A short overview of relevant texts of Catholic social teaching will show that neither competition, nor democracy can function without a strong and widely respected moral foundation.

Keywords: Competition, Democracy, Ordoliberal, Freiburg School, Moral Foundations

JEL Classification: K21