Capitalism needs democracy as a counterweight because the capitalist system by itself shows no tendency toward equilibrium. … Financial markets are inherently unstable … George Soros, 1998

Soros’ arguments in support of this thesis are compelling.1 They are an urgent reminder that maintenance of civilization requires vigilance and concerted effort. Soros fears that “political developments triggered by the financial crisis may eventually sweep away the global capitalist system itself. It has happened before.” Marx and Engels gave a very good analysis of the capitalist system 150 years ago, says Soros—“better in some ways than the equilibrium theory of classical economics.” We believe that the financial innovation created by Louis Kelso and expounded with Mortimer Adler in The Capitalist Manifesto2 (with details in The New Capitalists) may be the best available instrument for preserving the open society that is essential to a stable and democratic capitalism.