Capitalism and democracy go hand in hand, according to new index

We cover a lot of data on our show — inflation indices, employment rates, GDP, and everything in between. So, when we came across this new dataset from the University of Virginia called the Global Capitalism Index, we thought it was well within our wheelhouse to check it out.

The GCI sets out to rank countries with capitalist systems across the globe. The index essentially puts a number to how capitalist an economy is. It’s composed of eight subindices, measuring everything from the free flow of goods to property rights and market competition.

“What we found unequivocally is that if your democracy declines, your capitalism will decline as well, and that's vital,” said Scott Miller, the director of the Democracy and Capitalism Lab at UVA’s Karsh Institute of Democracy.

“Marketplace” host Kai Ryssdal spoke with Miller to talk through some of his findings. including why the U.S. doesn’t top that list and why everyone, from everyday consumers to corporate execs, should understand the link between democracy and capitalism.

To hear their conversation, click the audio player above.