Free markets are a prerequisite for political freedom. That simple truth is too often forgotten across the United States, and has become especially urgent amid the rise of so-called democratic socialism.
Over the weekend, Daniel Di Martino, an economist, Manhattan Institute fellow, and immigrant from socialist Venezuela, reminded attendees at Young America’s Foundation’s National Conservative Student Conference why. Political freedom, whether under a democracy or a constitutional republic, cannot endure without economic freedom: the ability of individuals to own property, build businesses, and exist independently of the state.
"You cannot have a democracy and a socialist economy.
— Manhattan Institute (@ManhattanInst) August 11, 2026
You can live in a country without democratic freedoms and with economic freedoms...but in those countries, people don't starve to death. In those countries, people actually immigrate.
All those countries are actually richer… pic.twitter.com/p0k5ZKg5zW
"Democratic socialism is an oxymoron," Di Martino said. "You cannot have a democracy and a socialist economy. You can live in a country without democratic freedoms and with economic freedoms. It's true, I mean, think about the Arab Gulf nations, right? Think about Dubai, you know, Kuwait. Think about UAE, right? Think about Singapore. You know, Singapore has much more political freedom than the Arab countries, but, you know, the same party has been in power for like 60 years. But in those countries, people don't starve to death. In those countries, people actually immigrate. All those countries are actually richer on average than the United States."
"But there is not a single example of a socialist economy that is democratic," he said. "You see, economic freedom, capitalism, free enterprise is a precondition to democracy. It's not a sufficient condition, but it's a requirement. Socialists know this, and that's why they implement socialism."
How do economic freedom, and free markets lead to a politically free society?
What too many people take for granted is that private enterprise serves as a powerful check on government authority. It keeps a nation’s wealth creation, productive capacity, and economic decision-making from being concentrated in the hands of the state. Instead, it disperses power among millions of workers, consumers, investors, entrepreneurs, and business owners, allowing individuals to pursue innovation, creativity, and opportunity in ways no centralized government can replicate.
That dispersion of power matters immensely. When the government controls the economy, it can easily control livelihoods: who receives a license, a loan, a job, a contract, or the ability to start and sustain a business. A society with independent businesses and private property creates institutions that exist outside the state that resist political pressure and give citizens a significant measure of genuine freedom.
Free markets also cultivate a belief in the power of individual agency, the conviction that people should be free to make choices, take risks, build something of their own, and keep the rewards of their hard work. That belief is not separate from political freedom; it is one of its very foundations. A public accustomed to economic independence is far less likely to accept a government that claims the power to direct any other part of life.
When a political movement like the DSA seeks to centralize economic power, it attacks one of political freedom’s essential pillars, based on the belief that wealth creation is inherently evil. In reality, private wealth, enterprise, and economic independence are tools for resisting the tyranny of the state.
When the DSA claims to fight for the people, it does so in a narrow sense. Its vision reduces politics to mob rule: the tyranny of the majority, backed by the power to force its preferred vision on the rest of society.
Too many Americans ignore the free market’s role as the backbone of our constitutional republic. And it's time to give capitalism its rightful credit, for without it, the United States ceases to be the country it was founded to be.
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