Economics and Democracy

This is always an interesting topics. Two books coming out recently on this matter have quite different views.

Economic Origins of Dictatorship and Democracy By Daron Acemoglu and James A. Robinson. Their view is that democracy is a compromise between the elites and the citizens, both will be better off with this arrangement.

A Free Nation Deep in Debt: The Financial Roots of Democracy By James MacDonald. The argument here is sort of evolutionary: states exist to fight wars and the winners survive. And the most effective way to finance wars is through democracy. Quite provocative, but it's backed up by a lot of historical accounts.

I am of course in the latter camp. People can always come up with noble reasons for democracy and the like, but I am always skeptical towards those ex post explanations, survival is always the first priority, and only the fittest fights its way to be the dominant.

Here is the original post from Economist's View.