This dissertation concerns the inter-relationship betweenliberal theory and the political culture and practices of liberalsocieties. It seeks to show that liberal principles are inadequateas a basis tor social identity and political integration. Thusaspects of other cultures have,been added to liberal culture to makeliberal society more cohesive. However, following the arguments ofBell and Habermas it is possible to demonstrate a process where thetunctionally necessary elements of traditional culture are destroyedby developments in capitalist evolution. This is highly significantpolitically because the state's attempts to ward off an economiccrisis is central in the process of the destruction of tradition.In turn the greatest danger to the state is an expansion of democracywhich would pulblicise questions of allocation. Hence the thesisexamines the mechanisms which keep the conflict between capitalistand democratic principles latent. I conclude that ultimatelycapitalism is more likely to accept a high level of economic dislocationthan initiate a process which might democratise economic distribution.Accordingly a sub-theme of the dissertation is that there is nodirect relationship between economic and political crises and thatpolitical conservatism today is essentially an attempt to disengage thetwo. In this regard a liberal political culture is especially useful.