Economic Democracy is a viable alternative to capitalism. Economic Democracy is not a crisis-prone
system, which means that it could successfully replace capitalism. This essay will, firstly, describe the
characteristics of this system. This first section will be concluded with a brief discussion of Economic
Democracy’s objectives, scope and strategies. Secondly, this essay will address how Economic Democracy
diverges from current neoliberal capitalism. Thirdly, Economic Democracy’s strengths and weaknesses will
be discussed. The fourth section of this essay will provide examples of how Economic Democracy has been
trialed in the real world in order to establish the viability of this system on a global level. This fourth section
will be further divided into two subsections. This is because Economic Democracy’s underlying principles
have been trialed in the real world on a macro level. This will be discussed first. Secondly, however,
Economic Democracy has been trialed in specific corporations on a micro scale, which will also be
discussed. Finally, the feasibility of Economic Democracy as a replacement to capitalism will be ascertained
by determining whether or not Economic Democracy could exist in isolation.
Firstly, a brief contextualisation of the characteristics of this alternative will be provided. The characteristics
will be stated with limited explanation because detailed accounts of each characteristic will be given when
the strengths and weaknesses of this system are explored. Johanisova and Wolf give a comprehensive
explanation of the definition of Economy Democracy. Firstly, they state that as with many other alternatives,
the definition is contentious and varies depending on different sources (2012, 564). This source, however,
states that Economic Democracy is primarily a system of regulation (564). Regulation serves the purpose of
reducing the concentration of wealth in the hands of a few people. In other words, regulation serves to ensure
that there is wealth distribution and greater social equality. Furthermore, Johanisova and Wolf state that
Economic Democracy has a strong social focus (565). This is substantiated by the fact that Economic
Democracy also draws strongly from socialist principles in terms of how it proposes distributing wealth
throughout society. The socialist elements of Economic Democracy will be further discussed by drawing on
evidence from Schweickart (2016) and Zimmermann (2009). The last key characteristic of Economic
Democracy discussed by Johanisova and Wolf is that this system still aims to maintain a competitive and
healthy economy (566). This is because Economic Democracy draws on some of the elements of capitalism
such as competition. To conclude the outlining of Economic Democracy’s characteristics, the objectives,
scope and strategies of this system will be briefly mentioned. The key objective of Economic Democracy is
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, to create social equality and to promote economic vitality, which links to the characteristics which have
already been discussed. The scope of this alternative covers both a micro and macro perspective. This will be
later substantiated by investigating how Economic Democracy can be applied in individual corporations as
well as throughout entire nations. The scope links to the examples of where Economic Democracy has been
trialed in a real world context. This is discussed in the fourth section of this essay. The strategies used by
Economic Democracy include public banks, full employment and Workplace Democracy. All of the
aforementioned strategies will be further explored in greater detail as already mentioned.
Economic Democracy can, secondly, be contrasted to neoliberalism. Economic Democracy differs
significantly from the principles of capitalism and neoliberalism. Capitalism focusses on producing a profit
which is concentrated in the hands of a few people in a society. Economic Democracy directly opposes this
viewpoint because it suggests that wealth should be more equally distributed. According to the principles of
Economic Democracy, this will be achieved by using public banks to collect surplus money in the economy.
Public banks were introduced as one of the key strategies utilised by Economic Democracy in the preceding
paragraph. These public banks will be in charge of distributing this profit amongst the sectors of the
economy that are in need of funding (Schweickart, 2016, 15). This distribution will theoretically be
controlled by the general public who will be able to democratically decide where money should be allocated
(15). Capitalism remains a very hierarchal system but Economic Democracy aims to promote equality
between all people through Workplace Democracy. Workplace Democracy has also already been introduced
as one of Economic democracy’s primary strategies. Workplace Democracy is discussed by Hatcher (2007)
who states that Workplace Democracy gives employees greater freedoms in a corporate environment and the
ability to have more control over outcomes relating to their treatment, positions and equality (3). Clearly
neoliberal capitalism and Economic Democracy diverge greatly in both their principles and aims. It should
be acknowledged, however, that Economic Democracy still aims to promote economic competition, which is
similar to the underlying principle of neoliberal capitalism (Schweickart, 2016, 7). This means that neoliberal
capitalism and Economic Democracy do share one similarity regarding promoting economic vitality.
The third section of this essay will discuss Economic Democracy’s strengths and weaknesses. Its strengths
will be discussed first. The primary strength of this alternative is that it aims to create a more equal society.
Although the goal of equality is a broad one, Economic Democracy makes use of tangible policies to achieve
this goal. These policies are discussed in detail by Schweickart. He states that a key strength of this
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system, which means that it could successfully replace capitalism. This essay will, firstly, describe the
characteristics of this system. This first section will be concluded with a brief discussion of Economic
Democracy’s objectives, scope and strategies. Secondly, this essay will address how Economic Democracy
diverges from current neoliberal capitalism. Thirdly, Economic Democracy’s strengths and weaknesses will
be discussed. The fourth section of this essay will provide examples of how Economic Democracy has been
trialed in the real world in order to establish the viability of this system on a global level. This fourth section
will be further divided into two subsections. This is because Economic Democracy’s underlying principles
have been trialed in the real world on a macro level. This will be discussed first. Secondly, however,
Economic Democracy has been trialed in specific corporations on a micro scale, which will also be
discussed. Finally, the feasibility of Economic Democracy as a replacement to capitalism will be ascertained
by determining whether or not Economic Democracy could exist in isolation.
Firstly, a brief contextualisation of the characteristics of this alternative will be provided. The characteristics
will be stated with limited explanation because detailed accounts of each characteristic will be given when
the strengths and weaknesses of this system are explored. Johanisova and Wolf give a comprehensive
explanation of the definition of Economy Democracy. Firstly, they state that as with many other alternatives,
the definition is contentious and varies depending on different sources (2012, 564). This source, however,
states that Economic Democracy is primarily a system of regulation (564). Regulation serves the purpose of
reducing the concentration of wealth in the hands of a few people. In other words, regulation serves to ensure
that there is wealth distribution and greater social equality. Furthermore, Johanisova and Wolf state that
Economic Democracy has a strong social focus (565). This is substantiated by the fact that Economic
Democracy also draws strongly from socialist principles in terms of how it proposes distributing wealth
throughout society. The socialist elements of Economic Democracy will be further discussed by drawing on
evidence from Schweickart (2016) and Zimmermann (2009). The last key characteristic of Economic
Democracy discussed by Johanisova and Wolf is that this system still aims to maintain a competitive and
healthy economy (566). This is because Economic Democracy draws on some of the elements of capitalism
such as competition. To conclude the outlining of Economic Democracy’s characteristics, the objectives,
scope and strategies of this system will be briefly mentioned. The key objective of Economic Democracy is
Emily Straus
c3344404 Page 1 of 8
s
, to create social equality and to promote economic vitality, which links to the characteristics which have
already been discussed. The scope of this alternative covers both a micro and macro perspective. This will be
later substantiated by investigating how Economic Democracy can be applied in individual corporations as
well as throughout entire nations. The scope links to the examples of where Economic Democracy has been
trialed in a real world context. This is discussed in the fourth section of this essay. The strategies used by
Economic Democracy include public banks, full employment and Workplace Democracy. All of the
aforementioned strategies will be further explored in greater detail as already mentioned.
Economic Democracy can, secondly, be contrasted to neoliberalism. Economic Democracy differs
significantly from the principles of capitalism and neoliberalism. Capitalism focusses on producing a profit
which is concentrated in the hands of a few people in a society. Economic Democracy directly opposes this
viewpoint because it suggests that wealth should be more equally distributed. According to the principles of
Economic Democracy, this will be achieved by using public banks to collect surplus money in the economy.
Public banks were introduced as one of the key strategies utilised by Economic Democracy in the preceding
paragraph. These public banks will be in charge of distributing this profit amongst the sectors of the
economy that are in need of funding (Schweickart, 2016, 15). This distribution will theoretically be
controlled by the general public who will be able to democratically decide where money should be allocated
(15). Capitalism remains a very hierarchal system but Economic Democracy aims to promote equality
between all people through Workplace Democracy. Workplace Democracy has also already been introduced
as one of Economic democracy’s primary strategies. Workplace Democracy is discussed by Hatcher (2007)
who states that Workplace Democracy gives employees greater freedoms in a corporate environment and the
ability to have more control over outcomes relating to their treatment, positions and equality (3). Clearly
neoliberal capitalism and Economic Democracy diverge greatly in both their principles and aims. It should
be acknowledged, however, that Economic Democracy still aims to promote economic competition, which is
similar to the underlying principle of neoliberal capitalism (Schweickart, 2016, 7). This means that neoliberal
capitalism and Economic Democracy do share one similarity regarding promoting economic vitality.
The third section of this essay will discuss Economic Democracy’s strengths and weaknesses. Its strengths
will be discussed first. The primary strength of this alternative is that it aims to create a more equal society.
Although the goal of equality is a broad one, Economic Democracy makes use of tangible policies to achieve
this goal. These policies are discussed in detail by Schweickart. He states that a key strength of this
Emily Straus
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s
