A democratic government usually has a form of capitalism. One of the goals of a democracy is to allow people the freedom to form, buy or create business either at an individual level or a national level.
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There are several countries that have a market based economies. France and England are two countries that have this type of economy.
No, every country should be free to choose they type of government they want. Democracy does not necessarily bring prosperity.
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The US has an open economy. This type of economy has a capitalist nature.
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