The Structural Crisis of Democratic Capitalism: Inequality, Global Markets, and Democratic Recession

Abstract

Hancké, Van Overbeke, and Voss's “Understanding Political Economy” offers a timely diagnosis of the structural tensions defining the contemporary relationship between capitalism, democracy, and inequality. The book argues that these are not discrete crises but interconnected outcomes of a political-economic system in which market dynamics have overwhelmed democratic accountability and inequality has become an intentional feature rather than an incidental byproduct. This critical review evaluates the book's central theses by placing them in direct and structured dialogue with key scholarly works. Using the empirical findings of Burkhart, this review provides statistical support for the book's claims on inequality. It then incorporates the frameworks of Milner and Gonzalez-Vicente & Carroll unpack the specific mechanisms—namely, economic insecurity and global interdependence—through which market forces erode democratic processes. Finally, it draws on Barroso’s analysis to contextualize the current democratic recession and point toward future challenges. The review concludes that while the book provides a powerful theoretical framework, its explanatory force is significantly deepened and strengthened when integrated with analyses that specify the mediating roles of globalization, technological change, and the structural limits of populist responses in the era of late capitalism.