Democratic economy
The theory of an anti-capitalistic and anti-socialistic economy

Suomenkielinen

send mail: matti.hyrylainen@nic.fi

What is democratic economy?   What is the difference between democratic economy and socialism?

In democratic economy, economic process is being conducted from below, according to the wishes of individuals. Hence it is analogical with democratic politics, as far as democratic politics is understood as free and neutral way of conducting political action by individuals. When politics provides the society with common regulations and aims, economy provides the society with economic commodities. In democratic economy democracy is applied to economy and politics separately.

 
The idea of socialism is to control and direct the economy by political intervention. The government tryes to correct the biases and defects of capitalist market economy by categorizing economic functions and giving different obligations to different categories.
The idea of democratic economy is to make the market more perfect. Market participants and governments agree on rules that prevent market participants, including governments, to control market by categorizing each other and granting different rights to different categories.
How does democratic economy work?   What is the difference between democratic economy and capitalism?
The same principles apply in democratic economy as do in democratic politics. What is essential is the influence from below, that every individual has an equal and direct opportunity to conduct the progress of society. In politics these rights are ensured by e.g. the free distribution of information, an open discussion and an equal right to vote, i.e. to "buy" political decisions. In economy democratic rights are ensured by free and public information of all market actions, an open discussion about this information and an equal and direct right to buy commodities in public market.  
The practice of capitalism grounds on principles of unfettered private ownership and freedom of contract. This combination leads to an economy where producers and sellers can, by discriminative contracts, pressure buyers and consumers into trades that are more profitable to bigger players than to smaller ones.
The practice of democratic economy grounds also on market but on public ownership of market information and the denial of discriminative contracts. Since market information is open the misuse of it is easy to discover. Since discriminative contracts are banned the big players cannot take the advantage of the smaller one's weaknesses.
What are the aims of democratic economy?   What is the relation between citizen's movements and democratic economy?
Like real democratic politics real democratic economy can be seen as a progress toward ideal democracy where individual equality is fully implemented. Although the ideal democratic economy is impossible to achieve, it sets the end toward which democratic powers aim against the forces which try to maintain the status quo. The following aims result from the principle of public openness of market information and equal freedom to directly buy what ever there is sold.
 
1. Everyone has an equal right to know all the factors of trade: possessors, prices, qualities and quantities.
2. Everyone has an equal right to buy anything that is sold. Hence, exclusive or discriminatory trading rights are not for sale.
3. Every individual has the same rights and obligations to trade as any economic organization.
 
The two main problems of today's economy are a growing global socio-economic unbalance due to a widening wealth gap and a high pressure on environment due to globally growing production.
Numerous local and global civil movements have developed to solve these problems. Some movements have a special agenda, e.g. human rights, environment, unemployment or corporate power, and a special solution to the problem in question. Some movements prefer a worldwide political agent that could control the whole global economy in favor of a random citizen. And some movements have no expressed goals but to break down the present system and bring up a better one.
The aim of democratic economy is not to concentrate on specific problems, nor to build a global government nor to break down the present economy. Its goal is to change the rules of trade so that the big ones cannot pressure the small ones so that the gap between rich and poor narrows. But when the market rules are democratized and a competitive pressure is lowered every small community has a better chance to cope with local problems.
Two ideas for global economy 2003. A contribution for Helsinki Process.
Market Economy Solved 2001. The writing explains what a market economy is for, how is it built and how to improve it. The central idea is to differentiate a free market from a free trade.
A More Perfect Market Theory 1999. A scientific article.
The Third Way 1998. An article defining a non-capitalist and non-socialist economy. Contribution to the discussion in the New Statesman concerning the third way.
If Smith lived today 1998. A comment to Jonathan Schlefers article in the Atlantic Unbound.
A letter to George Soros 1998. Inspired by Soros' writings in which he criticeses capitalism and introduces the concept of  reflexibility. I'm afraid he didn't have time to read this.
Riposte to Kaplan 1998. My first participation in the internet conversation. A comment to Robert D. Kaplan's article about the western democracy in the Atlantic Unbound.

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