This book examines the intellectual ideas that underpin our understanding of capitalism. Framing these debates through the work on John Stuart Mill and Joseph Schumpeter, the development of democracy and its relationship with capitalism is explored to provide insight into the rationality of individuals and the distribution of power. By analysing the evolution of economic systems, ideas relating to democracy, capitalism, liberalism, competition, and elites are also defined. This book aims to inform current economic and political debates and to highlight new forms of democracy and capitalism. It will be relevant to students and researchers interested in the political economy and the history of economic thought.