Economic Democracy and the Expediency of Worker Participation

Abstract

The increased discussion of economic democracy in America in recent years makes sense given the context of crises in Keynesianism, the welfare state, corporate legitimacy and American ‘competitiveness’. Departing from Dahl's recent analysis, this paper argues that one notion of economic democracy – the internal democratization of the firm – can be conceived and plausibly linked to objectives of increased American competitiveness and community stability. The argument rejects purist schemes of universal cooperative ownership as well as so-called shareholder democracy. It proposes a representative system for the firm based on a balance among shareholder, employee and community interests, a separation of powers between boards of directors and management, and a concept of transition based on democratic development of already widespread employee stock-ownership plans.