Inequality, power relations, and democracy

In the post-World War II period, capitalism has been characterized by rapid economic growth, but accompanied by social maladies as side effects. This has been the growth age of capitalism, as growth rates of output per capita have been higher than ever. The basic social maladies include income inequality, social disorder, and environment degradation. Today's social maladies are also higher than ever. This outcome is certainly a paradox in a democratic society. The unified theory of capitalism supplies an explanation: The outcome reflects the power relations under which democratic capitalism operates. Given this striking finding, this essay summarizes the foundations of the unified theory and the epistemological justification of its findings, and then elaborates further on the explanation. The ultimate factor explaining the outcome of growth with social maladies in the capitalist system, taken by parts and taken as a whole, is the initial inequality. Societies that are very unequal by birth can hardly attain social progress. The initial inequality is truly a curse.