23 Facts About Economic democracy

Economic democracy is a socioeconomic philosophy that proposes to shift decision-making power from corporate managers and corporate shareholders to a larger group of public stakeholders that includes workers, customers, suppliers, neighbours and the broader public.

Proponents of economic democracy generally argue that modern capitalism periodically results in economic crises characterized by deficiency of effective demand as society is unable to earn enough income to buy its output production.

Economic democracy has been proposed as a component of larger socioeconomic ideologies, as a stand-alone theory and as a variety of reform agendas.

Economic democracy asserted that the merging of banks and industrial cartels gave rise to finance capital, which was then exported in pursuit of greater profits than the home market could offer.

In real-world practice, Schweickart concedes economic democracy will be more complicated and less "pure" than his model.

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Economic democracy requires the abolition of the employment relation, not the abolition of private property.

Schweickart's economic democracy is a form of market economy, at least insofar as the allocation of consumer and capital goods is concerned.

Economic democracy is described as an integral component of an inclusive democracy in Takis Fotopoulos' Towards An Inclusive Democracy as a stateless, moneyless and marketless economy that precludes private accumulation of wealth and the institutionalization of privileges for some sections of society, without relying on a mythical post-scarcity state of abundance, or sacrificing freedom of choice.

Inclusive Economic democracy is based on the principle that meeting basic needs is a fundamental human right which is guaranteed to all who are in a physical condition to offer a minimal amount of work.

Economic democracy's suggested mechanism to this end is the establishment of a "Commons Sector", ensuring payment from the Corporate Sector for "the commons" they utilize, and equitably distributing the proceeds for the benefit of contemporary and future generations of society.

Economic democracy estimated that roughly 60 percent of American capital is little more than capitalized values of unearned wealth.

Economic democracy proposed that elimination of these monopoly values would double economic efficiency, maintain quality of life, and reduce working hours by half.

Economic democracy listed three general categories of "secondary monopoly"; insurance, law, health care.

Worker cooperatives generally employ an industrial model called workplace Economic democracy, which rejects the "master-servant relationship" implicit in the traditional employment contract.

Economic democracy admits it is difficult to maintain collaboration among cooperatives while avoiding integration that typically results in centralized authority.

Economic democracy claimed that no country was free when another country has such leverage over its entire economy.

Economic democracy claimed that their intentions of exclusive entitlement were clearly exposed when the imperial centers resorted to military force to prevent such barter and maintain monopoly control of others' resources.

Workplace Economic democracy has been cited as a possible solution to the problems that arise from excluding employees from decision-making such as low-employee morale, employee alienation, and low employee engagement.

Capital owners of a firm wield power within a system of shareholder Economic democracy that allocates voice democratically according to how much capital investment they place in the firm.

Economic democracy argues that firms are more than just economic organizations especially given the power that they wield over people's livelihoods, environment, and rights.

Germany and to a lesser extent the broader European Union have experimented with a way of workplace Economic democracy known as Co-determination, a system that allows workers to elect representatives that sit on the board of directors of a company.

Common criticisms of workplace Economic democracy include that democratic workplaces are less efficient than hierarchical workplace, that managers are best equipped to make company decisions since they are better educated and aware of the broader business context.

Theorists of economic democracy have argued that one solution to this unequal concentration of power is to create mechanisms that distribute ownership of productive assets across the entire population.