In spite of the claims of the conservatives, the principles underlying capitalism and democracy are not in concert with one another; they are, in fact, very much in conflict. The recent political changes in Eastern Europe need to be seen in greater complexity than simply the victory of the U.S. democratic-capitalist system over the communist system. The public school role in the United States can be understood most clearly if it is seen as occupying a contested site where the imperatives of democracy and capitalism, historically powerful and contradictory, clash. With a focus on recent decades, the history of U.S. public schooling is summarized. A 29-item list of references is included. (DB)