Traditionally, democracy and capitalism are perceived as closely intertwined concepts. Moreover, the contemporary society often identifies both concepts. In other words, for contemporary people the concept of democracy and the concept of capitalism are identical. However, it is necessary to clearly distinguish democracy and capitalism because these concepts are not only different but, in a way, they exclude each other. In this respect, it is important to underline that the concept of capitalism basically denies major principles of democracy, such as the principle of equal rights and opportunities. In fact, capitalism, by its nature, implies the inequality in society. At first glance, it is possible to argue that such an inequality is diversity, which is an essential element of democracy since the pluralism of views and opinions is extremely important for democracy because it gives an opportunity to choose between a variety of ideologies and ways of the development of society. On the other hand, it is necessary to understand the fact that capitalism engenders the huge disparity and social inequality because the accumulation of capital inevitably leads to the enrichment of upper classes and pauperization of lower classes. In other words, more successful people manages to accumulate larger capital, while the rest lose their capital and, therefore, they become dependant on owners of the capital since it is in their hands the major material and productive resources are concentrated, while the majority of society is forced to serve to the small group that has a total control over economic, political, social and cultural life of society. Naturally, in such a situation, it is hardly possible to speak about equal rights and opportunities since rich are in a privileged position compared to lower classes. In such a situation, it is important to maintain the balance between capitalism and democracy in order to prevent widening the gap between rich and poor. In fact, democracy should be based on the middle class which should constitute the main part of the population and which controls upper classes and ruling elite via public organizations.