What is the relation of capitalism to democratic principles?

Pure democracy is collectivist mob-rule.

Under capitalism, no individual, nor any group of individuals, whether they be a minority (aristocracy, oligarchy) or a majority (democracy), can violate the inalienable rights of any other minority, including the smallest minority that exists — the individual.

Capitalism limits the democracy — the majority of the moment — to a useful purpose: the electing of individuals to various positions of public office. Other than this limited aspect, the power of the majority is severely limited. Capitalism in this sense only supports a limited “democracy,” but not a pure unlimited one.

[In a sense, commonly used, that (pure) democracy means egalitarianism — the equality of results (wealth), by an unequal protection (violation) of rights.]

What did the founding fathers of America have to say about democracy?

To quote The Federalist, on democracies: “it may be concluded that a pure democracy…can admit of no cure for the mischiefs of faction … [as] there is nothing to check the inducements to sacrifice the weaker party or an obnoxious individual. Hence it is that such democracies have ever been spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their deaths.”

Politically, in today’s context, what is a capitalist political system?

A capitalist system is a republic and not a democracy. It is a system of checks and balances so ordered to protect the rights of the individual, from criminals and most importantly from the democratically elected voices who claim to speak for the “public good.”

For those who are confused by the issue, the essential point is this: is it right for another man to rape, rob, and murder another? Capitalism says never; democracy says yes — if the majority wills it.