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Economic Democracy: The Role of Privilege in Advancing Civilization

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  • Drew L. Harris
  • Teresa M. Twomey

Abstract

What characterizes the progress of civilization? We propose that it can be understood as expanding democratic principles in governance and economic affairs. In both cases, progress involves advance followed by retreat. Advances come from democratizing and de‐concentrating privileges. This counterbalances the opposing tendency towards monopolization. A two‐by‐two typology of privilege identifies four distinct categories: formal (state sanctioned) vs. informal (culture‐based) privileges on one axis, and efficient vs. inefficient privileges on the other. This matrix leads to a set of propositions that, taken together, should aid in understanding how to advance economic democracy and hinder concentration of economic power: 1) remove inefficient, formal privileges, 2) collect economic rents from efficient, formal privileges, and 3) recognize sovereign rights of individuals in economic activity (which leads to removing taxes on labor and savings). We define our core terms, provide examples to illustrate meaning, provide historic examples to illustrate the feasibility of our analysis, and analyze the dynamic implications of putting our propositions into action.

Suggested Citation

  • Drew L. Harris & Teresa M. Twomey, 2019. "Economic Democracy: The Role of Privilege in Advancing Civilization," American Journal of Economics and Sociology, Wiley Blackwell, vol. 78(5), pages 1229-1249, November.
    • Handle: RePEc:bla:ajecsc:v:78:y:2019:i:5:p:1229-1249
    DOI: 10.1111/ajes.12304
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    References listed on IDEAS

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    2. Coleman-Jensen, Alisha & Rabbitt, Matthew P. & Gregory, Christian A. & Singh, Anita, 2018. "Statistical Supplement to Household Food Security in the United States in 2017," Administrative Publications 292096, United States Department of Agriculture, Economic Research Service.
    3. Coleman-Jensen, Alisha & Rabbitt, Matthew P. & Gregory, Christian A. & Singh, Anita, 2018. "Household Food Security in the United States in 2017," Economic Research Report 291966, United States Department of Agriculture, Economic Research Service.
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