IR102: Capitalism, Democracy and Inequality: The Crisis of Market Liberalism in Wealthy Democracies

Democracy and capitalism have had a complex and often conflictual relationship, shown recently in political upheaval amid the lingering aftermath of the global financial crisis of 2008.

Market liberalism appears increasingly inadequate as a formula for managing tensions between capitalism’s necessary inequality and democracy’s characteristic demand for redistribution.

This course offers a comprehensive introduction to how these tensions have developed in the rich market economies of the world, especially North America and Europe. You will investigate why some are more unequal than others, and how they have responded to the economic and political crises of the early 21st century. Key areas of enquiry include the distribution of income and wealth, the politics of taxation, public spending and welfare, the role of voting and elections, the politics of money, banking and financial crisis, and the rise of populism and political instability.

By the end of this topical and engaging course you will have acquired a deeper understanding of the political, social, and economic forces that shape modern society. You will also have cultivated an ability to analyse events from different perspectives understanding their relationship to one another.

Students who receive an offer for this course are also eligible to apply for the Academic Director's Scholarship.

Prerequisites: There are no prerequisites for this course. However, students will acquire a solid understanding of the basics of monetary and fiscal policy. No background in economics is required. 

Level: 100 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: One examination and one essay

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course is suitable if you would like to deepen your understanding of the relationship between capitalism and democracy in order to analyse the political, economic and social landscape of the 21st century. It is especially suited if you are targeting a role in government, policy development, research or consulting.

• Understand key concepts and theories of comparative political economy

• Apply comparative political economic theory to compare institutions, policies and outcomes across countries and over time, and how they affect growth and income inequality.

• Acquire a solid understanding of the basics of monetary and fiscal policy.

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.