Final answer:
Democracies are political systems that ensure the rule of law, protection of property rights, and equitable taxation, thus potentially leading to greater private investment than non-democracies. They provide an equal say for all citizens in decisions, helping to avoid elite dominance but are not free from their challenges.
Step-by-step explanation:
The discussion surrounding the question relates to the economic and political advantages of democracies, as opposed to non-democratic systems. Democracies are characterized by the rule of law, protection of property rights, and guarantee of certain individual freedoms such as speech, the press, and assembly. These features contribute to law-making and taxation policies that reflect the majority's will and maintain predictability and fairness, which, in turn, can foster a conducive environment for private investment. An accountable government in a democratic system must ensure the economic policies it enacts benefit the identifiable majority and not just a select few, which could lead to biased policies.
Moreover, democracies, by allowing citizens to express their opinions through votes, provide a system where everyone in society has an equal say. This helps to prevent the concentration of power among a small elite, which is a risk in non-democratic systems. Despite its popularity and advantages, no system is perfect, and democracies have their own set of challenges to address.