Politics Economy Country 2026-03-30T19:18:22+00:00

The Clash of Economy and Democracy

An analysis of how economism undermines democracy's foundations, turning rights and civic participation into objects of market logic and eroding social cohesion.


The Clash of Economy and Democracy

If citizens perceive democracy as a mere simulation, it is inevitable to feel subjected to a spurious system. Economism posits that decisions can be reduced to simple economic calculations. The problem of introducing economic valuations into democracy is that it erodes the principles that sustain social cohesion and the political regime's legitimacy. In response, it is necessary to recall the existence of goods intrinsic to democracy, whose economic quantification only produces distortions. Voting, participation in public consultations, or the right to be elected, to name a few, are today subject to market logic. It does not matter if it is a crime or not; what is certain is that a reasoning prevails that reduces rights to a price. One of them is the constant struggle between economy and democracy. Economism applied to democracy leads to nothing other than a loss of freedom. The author is a lawyer and advisor on political and parliamentary issues. His function is precisely to balance the inequalities between political actors. This logic is reproduced, normalized, and integrated into political culture under a known expression: the “juega vivo”. The logic of rights and the democratic system cannot be governed by economic criteria. Michael Sandel develops this idea in his book "What Money Can't Buy", where he shows how this logic has penetrated American democracy. There, unlike in Panama, it does not happen outside the law, but as part of an established industry. There are debates in our society that revolve around the underlying values of our Constitution. In that context, the rise of authoritarian leaderships, which, although born of democracy, end up undermining it in the name of a supposed common good, is not surprising. When economic valuation is imposed over ethics, institutions fail. However, the underlying logic is the same. The lack of effective sanctions against those who corrupt the system generates a debt that ends up affecting institutional credibility and trust in democracy. We have moved from a market economy to a market society, which implies the commodification of essential aspects of public life. While it may seem like an exaggeration, the truth is that in the current times, it makes more sense than ever. Participation is possible, but choice becomes a privilege not everyone can afford. Like tectonic plates, they clash and generate tremors that shake us from the depths of the nation. To pretend that society self-regulates like a market implies —as is already the case— that the most powerful actors impose their interests. Consultations are filled with supporters. Votes are bought.