"But we don't have an example of a democratic society existing in a socialist economy - which is the only real alternative to capitalism in the modern world"

Peter L. Berger’s observation addresses the ongoing debate about political and economic systems and their compatibility. He argues that while democracy and capitalism often coexist, the existence of a truly democratic society functioning within a socialist economy is unproven or perhaps even unattainable based on historical precedents. Berger implies that, despite the appeal of socialism as a theoretical alternative to capitalism, practical examples where socialism and genuine, sustained democracy thrive together are lacking. Throughout the 20th century, attempts to engineer socialist economies, particularly in large, complex societies, frequently resulted in centralized state control. This centralization often undermined the checks and freedoms essential to democracy, free press, multiparty elections, open civil society, by concentrating economic and political power within a single authoritative structure.

Berger further hints that socialism, insofar as it requires substantial economic planning and collective ownership, can restrict the pluralism that democratic societies require to function. Democracy depends on dispersion of power and a robust sphere for individual and collective autonomy, not only in politics but also in markets and civil society. The socialist experiments of the Soviet Union, Maoist China, and Eastern Europe, for example, failed to establish or preserve democratic institutions. On the other hand, Western European democracies with social welfare states stopped short of full socialism, instead opting for strongly regulated but fundamentally capitalist economies, maintaining both competitive markets and democratic governance.

The "only real alternative" clause suggests that, despite numerous attempts, no other robustly articulated or historically successful system challenges capitalism on such a scale. Social democracy, mixing markets with redistributive policies, has been attainable, but full-scale socialism with democracy remains elusive. Berger’s perspective invites reflection on the structural requirements for democracy and whether socialism, as historically practiced, inherently clashes with them. It also asks readers to consider why sustained democratic socialism has not emerged despite its frequent advocacy and theoretical allure.