Economic democracy
Name
Institution
Examine economic democracy. Assess the pros and cons of this economic system and what it means for inequality.
Economic democracy is a structure that allows individuals to share ownership of the existing resources within the community as well as making decisions regarding how they are utilized. Resources in this context involve essential services and things that are used in meeting daily needs. The diversity presents a more significant commitment to crucial changes that occur within the economy while offering a better system that can help promote positive behavior and overall commitment to expanding the economy, which is emphasized upon by the people. People play a major role in a democratic economy; they understand what needs to be produced and discard based on the changes within the community (Cumbers et al., 2019).
Economy democracy is an economic system that presents a different perspective within which it is easier to implement various factors that help in strengthening the economy, such as keeping the defined institutions in place within the economy. These institutions help create a structure within the economy that can be followed to help create a sustainable trade. These institutions help in the production of competing goods hence increase the quality of products and offered alternatives that the consumers can choose from( Zafirovski, 2020). The democratic economy transforms wage labor into a cooperative trade, which plays a major role in shaping the labor aspect of production. Financial markets also play a significant role in helping create a transformed system that can improve investment and promoting individual transformation and development of major factors that reshape the economy.
The pros of economic democracy are that it empowers individuals with the chance to transform their economy based on how they wish is the most appropriate method. The society that is controlled by people allows making decisions based on the existing issues rather than a preplanned system which controls the economy without consideration of issues within the society (Haidinger et al., 2018).
It allows for the economy to grow rationally. The government plays a role in setting policies and guidelines based on an understanding of the developments within the economy. Investment decisions that can be undertaken present a highly informed context which offers a more exceptional system that defines change. Therefore the decisions that are made currently to invest focus on the future and ensuring that it is financial and economic security (Casper-Futterman & DeFilippis, 2017).
However, some cons limit the overall focus on the democratic economy. The system requires a high level of supervision. The free nature of the markets allows different individuals with a different ideology to influence growth through various decision making, which are essential concepts that promote change and positive integration.
It is easy to destabilize a democratic economy because people have different needs and decisions which are likely to have a negative influence on the level of growth. Every individual within the system is allowed to make his or her own decision. The determination of the wrong or right of a given decision is influenced by individual discretion (Zafirovski, 2020).
The decision that is undertaken within a given context must be highly informed based on the decisions that are made by individuals. Individuals can make a correct or wrong decision based on the overall ability to maintain a proper platform that helps in creating a unique level of change development. Free markets are not controlled by any fixed measures but the behavior and trends developed by individuals (Casper-Futterman & DeFilippis, 2017). Therefore when the market shifts positively, it helps maintain a specific approach that emphasizes a reliable system that is designed within a given context.
References
Casper-Futterman, E., & DeFilippis, J. (2017). On economic democracy in community development. In Entrepreneurial Neighbourhoods. Edward Elgar Publishing.
Cumbers, A., McMaster, R., Cabaço, S., & White, M. J. (2019). Reconfiguring economic democracy: generating new forms of collective agency, individual economic freedom, and public participation. Work, Employment and Society, 0950017019875935.
Haidinger, B., Iannuzzi, F., Sacchetto, D., Lillie, N., & Kall, K. (2018). Enhancing Economic Democracy for Posted Workers: PROMO report.
Zafirovski, M. (2020). Some dilemmas of economic democracy: Indicators and empirical analysis. Economic and Industrial Democracy, 0143831X19893761.