Economic Democracy is a socio-economic 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, neighbors, and the broader public. This ideology is rooted in the belief that markets and economies should be run democratically to meet public needs, not to make profits for a few. It suggests that wealth and power should be shared broadly in a democratic manner.
The concept of Economic Democracy has its roots in various forms of socialism and cooperative economics. It emerged as a critique of capitalism, particularly its tendency to concentrate wealth and power in the hands of a small elite. The term itself was first coined in the late 19th and early 20th centuries by progressive thinkers who sought to create a more equitable economic system.
The idea gained traction during the Great Depression in the 1930s, when many people began to question the viability of capitalism. It was during this time that various models of Economic Democracy were proposed, including worker cooperatives, publicly owned enterprises, and social wealth funds.
In the post-World War II era, the concept of Economic Democracy became associated with the labor movement and the social democratic parties of Western Europe. These groups advocated for a mixed economy, where both the state and private sector play a role, and where workers have a say in the management of their workplaces.
In recent years, the idea of Economic Democracy has been revived in response to growing income inequality and the perceived failures of neoliberal economic policies. Today, proponents of Economic Democracy argue for a variety of reforms, including greater regulation of corporations, increased worker ownership and control, and more democratic control over investment.
Despite its long history, Economic Democracy remains a somewhat marginal idea in mainstream political discourse. However, it continues to inspire a wide range of social movements and political projects, from the cooperative movement to the fight for a Green New Deal.
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