Democracy and capitalist are synonymous in many respect. In a capitalist
society property rights are well protected. Property right means a private
property rights. Each and every individual in the capitalist society can hold a
piece or more than a piece of moveable and immovable property in their own
name. And transaction of property between individuals are well-recorded by the
documentary mechanism of the state. Everybody has a right to increase his
property by purchasing it or can decrease his property by selling it to others.
This transaction is recorded, maintained and legally protected by the law and
order system of the country under capitalism. In a capitalist society a part or
whole of the physical asset can be transferred into capital which are invested in
the market economy as efficiently as possible. Preciously speaking, legal
framework of the ownership of private property is the basis or integral to the
development of capitalism. In many cases there is a market failure under
capitalism. Due to the creation of negative externality, market imperfection and
the formation of a market syndicate by buyers or sellers or by both party. In
either case this kind of collusion in the market can take place under capitalism.
This is called a market failure. In case of market failure consumer have to buy
everything at a very high price even though quality of goods and services may
not be good enough. So, according to the economist government intervention is
necessary to improve on market outcomes under the situation of market failure
in capitalist society.
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