Why not economic democracy

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Chapter 8 in Neoliberal Social Justice, 2021, pp 86-92 from Edward Elgar Publishing

Abstract: Economic democracy is another theorised way of instantiating Rawls’ commitments to justice as fairness. Scholars propose replacing private-property markets with a new structure that nevertheless avoids state control. Instead, worker cooperatives lease capital assets from the state. Private ownership of capital is prohibited but other forms of market cooperation are permitted. Without capitalists, the rest of the economy can be subject to greater democratic accountability. From a market process perspective, the problem with this approach is that it disregards the inevitably of failure of many cooperative ventures. Private investors risk their capital in a private-property market system, but workers will be financially liable under economic democracy. Moreover, the prices produced by private-property markets provide important information about the costs and benefits of policies in a democracy. A democracy without widespread capital markets cannot make decisions that are likely to foster beneficial cooperation.

Keywords: Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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