What is Democratic Economy?

How does democratic economy work?

In democratic economy, the economy applies the same principles as democratic politics to politics. The bottom line is that everyone has an equal opportunity to steer the development of society. In politics, this means, among other things, free information about political activities, open debate, and universal and equal voting rights, which ”buy” political decisions. In the economy, this means transparent information on all market events, free transmission of data, and general and equal purchasing rights.

What are the goals of democratic economy?

 Like democratic politics, democratic economy must be seen as a development towards an ideal democracy. Although it is impossible to achieve a fully democratic economy, it defines the objective that the democratic forces must pursue against the powers of the old order. The following principled goals are the logical consequence of the requirement of free and equal purchasing and that no economic organization is granted exclusive commercial rights.

  1. Everyone has an equal right to know all the factors involved in the trade: owners, products, prices, grades, and quantities.
  2. Everyone has an equal right to buy everything on the market. Exclusive or discriminatory rights are not sold.
  3. Individuals shall have the same economic rights and obligations as commercial organizations.

What is the difference between democratic economy and socialism?

The purpose of socialism is to remedy the injustices of capitalism with political guidance. The government classifies different economic activities and actors and assigns different rights and obligations to various categories to steer development in a particular direction.

The purpose of democratic economy is to remedy the ills of capitalism by making the markets more complete. The economy is not steered politically in a specific direction but is allowed to drive from the bottom by banning intra-market steering.

What is the difference between democratic economy and capitalism?

Capitalism is a private market economy, where each one privately and by collusion with others determines the limits of their property rights. Stronger players are allowed to steer the markets to their advantage by concealing their information and with other discriminatory contracts.

Democratic economy is a public market economy where all trades and contracts are open. Nor does it use discriminatory contracts or sellers discriminate against buyers. Buyers have complete freedom to choose so that the markets share the wealth as directed from below.

What is the relationship between democratic economy and popular movements?

 The two significant problems of today’s economy are the worsening social imbalances resulting from the widening gap between the rich and the poor, and the increasing burden to nature due to increasing production.

Countless national and international movements have emerged to combat these. Some have a particular problem that they are focusing on, such as the position of women, pollution, local unemployment, or international capital movements, which specific policy programs seek to address. Some groups are trying to form a world government that would solve global problems. Moreover, some groups have no agenda other than to oppose the present world and replace it with a better one.

Democratic economy is not about solving separate problems, not about forming a world government, not against globalization, but capitalism. It sets rules for the market economy, compliance with which breaks down corporate power and narrows the gap between the rich and the poor without increasing the control of any political body. However, as markets become more democratic than they are at the present and competition weakens, solving all the specific economic problems will also be more manageable.



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