Economic Democracy: The Left’s Big Idea for the Twenty-First Century?

Abstract

Abstract While the notion that parts of the economy should be subject to democratic oversight is not particularly new, it is only recently that the term “economic democracy” has begun to emerge as a political label and a political project in its own right. Interest in economic democracy is at a historical high as more and more people search for a comprehensive alternative to neoliberal capitalism that is neither state socialism nor social democracy. In addition, the fact that mainstream concern with economic inequality is at a historical peak means that economic arrangements are on the political agenda in a way that they have not been for many years. The central argument of this article is that economic democracy has the potential to be the “big idea” of the left this century for two main reasons. First, although economic democracy is usually thought to be concerned solely with workplaces, in fact it has implications far beyond this. Indeed, economic democracy is best understood as a comprehensive critique of the economy and a corresponding encompassing vision of an alternative. This article thus aims to offer a sympathetic overview of the main facets of economic democracy—the attempt to democratize workplaces, finance, investment, and the market system—as a holistic and integrative project. Second, economic democracy offers an important method for challenging inequality. The expansion of democratic accountability through representation, and particularly the expansion of opportunity for direct participation in economic decisionmaking is a fundamentally important method of redressing the structural inequality that continues to be a defining dilemma of our societies.