Introduction In a capitalist system, businesses compete with each other to produce the most innovative goods at the most competitive prices; in turn, consumers freely choose the most desirable products. According to Adam Smith, this competition, if unregulated, favors maximum wealth and the common good (Economist 2-3). Indeed, unmanaged competition can ensure that prices are affordable for consumers (2). However, in a global free market that exploits cheap labor; market demand decreases, causing excessive lending and debt crises (Li 295-6). In this way, the efficiency of capitalism and the promotion of the common good are questionable. Since the resurgence of unregulated capitalism in the late 20th century, social inequalities have grown significantly, with the most powerful 1% of countries achieving more wealth than half the world (Dunklin 2). Canada's income gap has also increased, exacerbating morbidity and mortality (Bryant 47). However, the extent to which government should reduce social inequalities is controversial in a liberal democracy, which prioritizes economic freedom. That said, social inequalities can lead to wealthier individuals gaining an advantage in decision making (Bryant 54; Rein 63), undermining the liberal democratic value of political equality. Furthermore, the ideal of economic freedom is shrinking in today's global economy, which features massive corporations stifling competition and creating economic instability (Foster 2). In light of these issues, the purpose of this essay is to detail how unregulated capitalism undermines a liberal democracy by undermining political equality and economic freedom. Ideals of a liberal democracy The values ​​of freedom and equality, which are pr...... middle of paper......21-134. Retrieved from Academic Search Complete.Raphael, D., Curry-Stevens, A., & Bryant, T. (2008). Barriers to addressing the social determinants of health: Insights from the Canadian experience. Health Policy, 88, 222-235. doi: 10.1016/j.healthpol.2008.03.015.Reich, R. (2007). How capitalism is killing democracy. Foreign Policy, September/October 2007, 38-42. Retrieved from Academic Search Complete.Rein, S. (2009). Radical politics. In J. Brodie & S. Rein (Eds.), Critical concepts: An introduction to politics (4th ed.) (pp. 60-71). Toronto, Ontario: Pearson Education Canada. Shahrokhi, M. (2011). The global financial crises of 2007-2010 and the future of capitalism. Global Financial Journal, 22, 193-210. doi: 10.1016/j.gfj.2011.10.010.Workman, T. (2010). Renewing the left in Canada. Canadian Dimension, 44(3), 49-52. Retrieved from the Canadian Reference Centre.