Daron Acemoglu and Gulten Kazgan's Political Economy Debate: The Crisis of Liberal Democracy and Worker-Class Liberalism

Can economics be considered separate from everything else? This question has been reignited by the works of Prof. Daron Acemoglu and Prof. Dr. Gulten Kazgan. Acemoglu criticized The Economist's approach to his book review, calling it a 'strategic distortion,' while Kazgan's questions from years ago have taken on new relevance in analyzing how economics intersects with politics. When Acemoglu's new book 'What Happened to Liberal Democracy?' is read alongside Martin Wolf's 'The Crisis of Democratic Capitalism,' it becomes clear that economic inequality can transform into political inequality. Kazgan's legacy was her refusal to separate economics from society. In Turkey, where women found it difficult to establish themselves in academic fields, Kazgan not only built an academic career but also analyzed societal issues. This debate shifts focus from the existence of market economies to the question of 'what kind of capitalism?' Should the state submit to market forces, or can markets be regulated in the interests of democratic society? Will workers remain mere cost factors, or will they become economic and political citizens? These questions take on renewed significance today.

The Transformation of Economic Power into Political Power: Acemoglu's Warning Acemoglu questioned how the shift of economic power into political power alters the balance of power among institutions and society. The state must be strong, but it must also be accountable to society. Citizens must be free not only from the state but also from powerful economic actors. This challenges the notion of liberalism as solely market freedom and supports Kazgan's proposal for a 'worker-class liberalism' that prioritizes common welfare and local communities.

The Crisis of Democratic Capitalism: Wolf's Insights Wolf focused on the breakdown of the economic stability of democratic capitalism. There is a voter, but how much of the decision-making power that determines the voter's economic future is truly open to political negotiation? As this gap widens, citizens' trust in politics erodes. With declining trust, populism gains strength, exerting pressure on democratic institutions.

Globalization and Political Dependence Kazgan warned that countries dependent on capital from technology to crisis management, external ratings, and foreign financial support are vulnerable to external interference. This raises questions about the relationship between economic sovereignty, state capacity, and democracy. Technology exacerbates the gap between the democratic promises of governance and their implementation.

An economic issue can evolve into a political trust crisis and then into a regime issue. This chain, echoing Kazgan's warnings from years ago, is now framed by Acemoglu's conceptual tools, highlighting the relevance of her questions today. This debate underscores the significance of Kazgan's achievements in an era where women struggled to establish themselves in academic fields, yet she not only pursued an academic career but also analyzed societal challenges.