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TikkunMagazine,May/June2009

ACasefor
Economic
Democracy
ByGaryDorrien

Thislecturewasdeliveredon
March25,2009,atUnion
TheologicalSeminaryinapublic
forum,"ChristianityandtheU.S.
Crisis,"associatedwithaclass
cotaughtbyCornelWest,
SereneJones,andGaryDorrien.ItisanabridgedversionofachapterinDorrien'sforthcomingbook,Social
JusticeinQuestion:Economy,Difference,Empire,andProgressiveChristianity(ColumbiaUniversityPress,
2010).
Todaywearecaughtinaglobaleconomiccrashanddepression,acalamityaffectingeverynation
connectedtotheglobaleconomy,especiallypoornationslackingeconomicreserves.Butthiscrisisalso
putsintoplaynewpossibilitiesforademocraticsurge,perhapstowardeconomicdemocracy.
FromtheperspectiveofEconomics101,everybubblemaniaisbasicallyalike,butfromthebeginning,this
onehasbeenhardertoswallow,becauseitstartedwithpeoplewhowerejusttryingtobuyahouseoftheir
own,whousuallyhadnoconceptofpredatorylending,andwhohadnosayinthesecuritization
boondogglethatsplicedupvariouscomponentsofrisktotradethemseparately.Itseemedablessingto
getalowratemortgage.Itwasamysteryhowthebanksdidit,butthiswastheirbusinesswetrustedthey
knewwhattheyweredoing.Ourbanksresoldthemortgagestoaggregatorswhobunchedthemupwith
thousandsofothersubprimemortgages,choppedthepackageintopiecesandsoldthemascorporate
bondstopartieslookingforextrayield.Ourmortgagepaymentspaidfortheinterestonthebonds.
Fortwentyyearssecuritizationsandderivativesweregreatatconcoctingextrayieldandallowingthebanks
tohidetheirdebt.Broadlyspeaking,aderivativeisanycontractthatderivesitsvaluefromanother
underlyingasset.Morenarrowlyandpertinently,it'saninstrumentthatallowsinvestorstospeculateonthe
futurepriceofsomethingwithouthavingtobuyit.Thewordsthatareusedforthisbusinesssecuritization,
insurance,diversifyingrisksoundreassuring,buttheymaskthatthebusinessispurehighleveraged
speculationandgambling.Creditdefaultswapsareprivatecontractsinacompletelyunregulatedmarket
thatallowinvestorstobetonwhetheraborrowerwilldefault.Tenyearsagothatmarketwas$150billion
todayit's$62trillion,andit'sattheheartofthemeltdown.Creditdefaultsellersarenotrequiredtoset
asidereservestopayoffclaims,andin2000Congressexemptedthemfromstategaminglaws.AIG's
derivativesunitwasahugecasino,sellingphantominsurancewithhardlyanybacking,forwhichwenow
havetopay.Thetallyforthepastsixmonths:fourbailouts,$160billion,someveryhardtotakebonus
payments,andnobottominsightforasinkholeoftoxicdebtexceeding$1trillion.
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Derivativescreateddangerousincentivesforfalseaccountingandmadeitextremelydifficulttoascertaina
firm'strueexposure.Theygeneratedhugeamountsofleverageandweredevelopedwithvirtuallyno
considerationoftheirbroadeconomicconsequences.
Somanypluggedinplayersrodethisfinanciallunacyforallitwasworth,caughtintheterriblyreal
pressureofthemarkettoproduceconstantshorttermgains.Speculatorsgamedthesystemand
regulatorslookedtheotherway.Mortgagebrokerssoldbadmortgagesbondbundlerspackagedtheloans
intosecuritiesratingagenciesgaveinflatedbondratingstotheloanscorporateexecutivesputthebonds
ontheirbalancesheetsandallmadefortunesofftoxicproductstheyhadnobusinesscreatingorpassing
off.Thechiefratingagencies,Moody'sandStandard&Poor's,weresupposedtoexposefinancialrisk.
Instead,paidbytheveryissuersofthebondstheyrated,theyhungtripleAratingsonrubbish.Therewas
somuchmoneytobemadethatfirmscouldn'tbeartoleaveitasideforcompetitorstograb.Thebanksgot
leveragedupto50to1(that'swhereBearStearnswasattheend)andkeptpilingondebt.Themaniafor
extrayieldfedonitself,blowingawaybusinessethicsandcommonsense.
Todaywearestaringintoaneconomicabyss,aglobaldeflationaryspiral.Deflation,oncestarted,hasa
terribletendencytofeedonitself.Incomefallsinarecession,whichmakesdebthardertobear,which
discouragesinvestment,whichdepressestheeconomyfurther,whichleadstomoredeflation.Tohaveany
chanceofbreakingthedeflationaryspiral,theObamaadministrationhastosolvethebankproblemand
disposeofthetoxicdebt.
OneoptionisHenryPaulson'soriginalplan,"cashfortrash,"thistimewithmorepublicaccountability.
Anotheristorampuptheinsuranceapproach,"ringfencing"badassetsbyprovidingfederalguarantees
againstlosses.Butthesearemoreofthesameoptionsthatcoddlethebanksanddon'tsolvethevaluation
problemthatnoonetrustsanyoneelse'sbalancesheet.Thebanksareholdingatleast$2trillionoftoxic
debt.Forthepastsixmonths,thebankingsystemhasbeenparalyzedbecausethebigprivateequityfirms
andhedgefundsarerefusingtopaymorethanthirtycentsonthedollarforthemortgagebundlesandthe
bankscan'tstayinbusinessiftheybooksuchhugelossesontheirholdings.Inthemeantimethebanksare
holdingoutforatleastsixtycentsandpleadingformorerelief.

TheLatestBailoutFad:CreatingBadBanks
Thethirdoption,the"badbank"model,createstransitionalbankstosoakupbaddebt.Heretheriskof
gettingpriceswrongisevengreater,assumingthatassetsarevaluedimmediately.Ifthegovernment
overpaysfortoxicsecurities,taxpayersarecheatedifitdoesn'toverpayandthebankstakemarkto
marketprices,manyaresuretofail.Someadvocatesofthebadbankstrategysaythegovernmentcould
stallonthepriceissue,waitinguntilvaluesrise,butFDICchairSheilaBairsaysno,bankingisnotalchemy:
assetscan'tbefloatedintotheether.
BairandTimothyGeithnerhavesettledonanaggregatorbankmodelthatblendstheoriginalPaulsonplan
withsomeelementsofthebadbanktoppedoffwithanauctionschemetofindprivatebuyersforthetoxic
debt.Geithnerwantsthegovernmenttocreatea$2trillionpublicprivateinvestmentfundthatsubsidizes
upto95percentofdealspartneredwithhedgefundsandprivateequityfirmstobuyupthebadassetsof
thezombiebanks.TheprivatefundswillendupowningtheassetstheFDICwilldomostofthepartnering
workandtheTreasurywillhirefourorfiveinvestmentmanagementfirms.
Sincethisisapparentlywhatwe'regoingtodo,Icertainlyhopeitworks.Butthisplanisbyfarthemost
cumbersomeandleasttransparentstrategyofall.Itcoddlesthebanks.Itisbasedonthedubioushopeof
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findingenoughprivatebuyersforrottengoods.Itassumesthatprivatefundmanagershavebeenwrong
thusfarabouttherealvalueofthemortgagebundles.Itoffersataxpayerguaranteetoinvestorstoensure
theywon'tlosemoneyiftheygetin.Anditdependsonconvincingtaxpayerstoponyupanother$2trillion
forthatpurpose.Essentially,thisisaschemetopayfantasticbribestoprivateinvestorstobuythebad
assetsformorethanthey'reworth.

Here'sABetterIdea:Let'sCreateGoodBanks!
Iamforbitingthebulletnow.It'sobscenetokeeppayingofftheverypeoplewhocreatedthisdisaster.It's
bettertotakecontrolofthesituationnowthantoditherforanothernineortenmonthswhilewelose
600,000jobspermonth.Atsomepointmoralfairnessandaccountabilityhavetoenterthispicture.We
shouldnationalizethezombiebanks,transferthebadassetstoareincarnationofthe1980sResolution
TrustCorporation,andselloffthesellablepartstonewowners.
Nationalizationiscleanerandmoretransparentthanthealternatives.Ittakesholdofthevaluationproblem
byfindingthebottom.Itcutsoffthegusheroftaxpayergiftstomanagersandshareholders.Itoffers
taxpayersawayofgettingsomeoftheirmoneyback.Itputsanendtomergersbetweenzombiebanks,
whichcreatemorezombiebanksthataretoobigtofail.
Mostimportantlytome,anaggressivenationalizationstrategywouldputintoplaythepossibilityof
somethingmorecreativeandconstructive:establishingpubliclyfundedventurecapitalbanks.Ifwecan
seriouslytalkaboutcreatingbadbanksoraggregatorbanks,weoughttobeabletotalkaboutcreating
publiclyownedgoodbankstodogoodthings.Publicbankscouldfinancestartupsingreentechnology
thatarecurrentlylanguishingandprovidefinancingforcooperativesspurnedbytraditionalbanks.The
publicbankscouldbefinancedbyaneconomicstimuluspackage,orbyclaimingthegoodassetsofbanks
seizedbythegovernment,orboth.
WemustpushObamaforhimtocreateanythinglikethat,asheissurroundedbycentristcorporate
establishmenttypeseagertoplacateWallStreetandaversetowipingoutshareholders.Wemustalso
pushhimtosticktoasocialinvestmentstrategythroughouthispresidency,insteadofbackingofffromitas
FranklinRooseveltdid.
Apublicbankthatsupportedgreentechnologyandcooperativeswouldbeamajorbreakthroughfor
economicdemocracyinthiscountry.Economicdemocracyisaboutdemocratizingpowerandcreating
environmentallysustainableeconomies.Initsfullorbedversion,itfeaturesmixedformsofworker,
community,andmutualfundorpublicbankenterprises.Iamnotsuggestingthatfactorsofproduction
trumpeverythingelse.Anysocialjusticepoliticsworthyofthenamerequiresafeminist,interracial,
multicultural,ecological,andantiimperialconsciousnessthatprivilegesliberationistandenvironmental
issues.
Butnoseriouschallengetoexistingrelationsofpowercanignorethefactorsofproduction.Economic
justiceisneverdispensable.Thosewhocontroltheterms,amounts,anddirectionofcreditplayahugerole
indeterminingthekindofsocietythateverybodyelselivesin.We'regettingadramaticdemonstrationof
thattoday.Thequestionofwhocontrolstheprocessofinvestmentisenormouslyimportant.Gainstoward
socialandeconomicdemocracyareneededtodayforthesamereasonthatpoliticaldemocracyis
necessary:torestraintheabuseofunequalpower.

ProsandConsofEconomicDemocracy
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Economicdemocracy,likepoliticaldemocracy,ismessyandtimeconsuming.Democraticallycontrolled
capitalislessmobilethancorporatecapital,andthereturntodemocraticallycontrolledcapitaltendstobe
lowerthanincorporations,becauseworkercontrolledenterprisesaremorecommittedtokeepinglow
returnfirmsinoperation.Producercooperativesareoftentooslow,small,andhumanetocompetewith
corporations,andtheyrequirecooperativehabitsandvaluesthatcutagainstthegrainofAmerican
individualism.IntheUnitedStates,anystrategytobreakdownconcentratedeconomicpowerbyexpanding
thecooperativesectorconfrontsdifficulttradeoffs,politicalopposition,andculturalbarriers.
Buteconomicdemocracyalsohaspragmaticconsiderationsinitsfavor.Economiclossescausedbyworker
participationcanbeoffsetbygainsinproductivitymadepossiblebyit.Peopleoftenworkharderandmore
efficientlywhentheyhaveastakeinthecompany.Workerownershipisakeyoptionforcommunities
threatenedbyrunawayplantsanddeindustrialization.Experimentswithvariouskindsofworkerownership
increaseddramaticallyinthe1990s,aidedbyagrowingnetworkofpolicyexperts,andsomeunionsbegan
tobargainforworkerownership,workercontroloverpensionfunds,andworkermanagementrights.These
developmentshavethepotentialtobecomethebuildingblocksofaseriousmovementforeconomic
democracy.
Todaythereareapproximately12,000workerownedfirmsintheUnitedStates,includinglargeenterprises
suchasRepublicEngineeredSteels,PublixSupermarkets,andNorthwesternSteelandWire.Most
employeeownershipplansoffershareswithoutvotingrightsmostassurethatemployeeswillbekeptina
minorityownershippositionfewprovideeducationalopportunitiestohelpworker/ownersdevelop
managementskillsandvirtuallynoneofferprogramstobuildsolidarityorhelpworker/ownersforgelinks
withothercooperativeenterprisesorraiseawarenessofeconomicdemocracyissues.Workerownership
withoutdemocraticcontrolisanominalversionofeconomicdemocracy,thwartingtherealthing,and
Americanunionshaveagenerallydismalrecordinthisarea,reinforcingtheshortcomings.
Withallitslimitations,however,workerownershipisaviableoption,andanecessaryone.TheMondragon
networkinSpainisspectacularlysuccessfulintheUnitedStates,severalthousandfirmshaveconvertedto
employeeownership,thousandsofothershavebeenlaunchedwithworkerownershipplans,and
approximately1,000companiesintheUnitedStatesarefullyworkercontrolled.

ItBeginsbyBuildingtheCooperativeSector
Fullorbedeconomicdemocracyisobviouslyfaroff.Onthewaytosomethinglikeit,economicdemocracyis
aboutbuildingupinstitutionsthatdonotbelongwhollytothecapitalistmarketorthestate.Itbeginsby
expandingthecooperativesector.Producercooperativestakelaboroutofthemarketbyremoving
corporatesharesfromthestockmarketandmaintaininglocalworkerownership.Communitylandtrusts
takelandoutofthemarketandplaceitunderlocaldemocraticcontrolstoservethesocialneedsof
communities.Communityfinancecorporationstakedemocraticcontrolovercapitaltofinancecooperative
firms,makeinvestmentsinareasofsocialneed,andfighttheredliningpoliciesofbanks.Thesestrategies
widenthebaseofsocialandeconomicpowerbymixingtogethercooperativebanks,employeestock
ownershipplans,producercooperatives,communitylandtrusts,andplanningagenciesthatguide
investmentsintolocallydefinedareasofneedsuchashousing,softenergyhardware,infrastructure
maintenance,andmasstransit.
Butmerelyexpandingthecooperativesectorisnotenough.Cooperativesusuallyprohibitnonworking
shareholders,sotheyattractlessoutsidefinancingthancapitalistfirms.Theyarecommittedtokeeping
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lowreturnfirmsinoperation,sotheytendtostayinbusinessevenwhentheycan'taffordtopay
competitivewages.Theyarecommittedtoparticularcommunities,sotheyarelessmobilethancorporate
capitalandlabor.Theysmackofanticapitalistbias,sotheyhavetroublegettingfinancingandadvicefrom
capitalistbanks.Theytendtomaximizenetincomeperworkerratherthanprofits,sotheytendtofavor
capitalintensiveinvestmentsoverjobcreation.Andbecausecooperativeownersoftenhavetheirsavings
investedinasingleenterprise,theytendtoavoidriskyinnovations.
Theseproblemscanbemitigatedwithproductivityenhancingtaxincentivesandregulations.Cooperative
economicsandecologicalsustainabilityarenaturallylinkedbythenecessityofcreatingstructural
alternativestothecapitalistfantasyofunlimitedgrowth.Thekindofeconomicdevelopmentthatfavorsthe
needsofpooranddisenfranchisedcommunitiesanddoesnotharmtheearth'senvironmentrequiresa
dramaticallyexpandedcooperativesectorconsistingofworkerownedfirmsrootedincommunities,
committedtosurvival,andpreparedtoacceptlowerreturns.
Butworkerownershipdoesnotdoenoughforequality,especiallyinthehighestyieldingcooperatives,
whichnearlyalwayshavehighentryfees.Ratherthanallowmemberstosellouttothehighestbidderand
taketheircapitalgains,mostcooperativesrequirememberstosellouttothecompany.Thispolicyguards
againstrevertingtotraditionalcapitalistownership,butincooperativeswithhighshareprices,onehasto
beratherwellofforverydeterminedtoapply.Onemightaddresstheequalityproblembyuniversalizing
cooperation,butthatwouldruinamostlygoodthing.Ifeveryonehadtobelongtoacooperative,theentry
feeswouldbewavedandmanyenterpriseswouldfail.

BetterSocialOwnershipModels
Weneedformsofsocialownershipthatfacilitatedemocraticcapitalformation,haveagreatercapacityfor
scalingup,andaremoreentrepreneurial.Specifically,weneedformsofeconomicdemocracyfeaturing
publicbanksandmutualfundedholdingcompanies.Thisapproachcantakeavarietyofforms,butthe
essentialideaistoestablishcompetingbanksorholdingcompaniesinwhichownershipofproductive
capitalisvested.Thecompanieslendcapitaltoenterprisesatmarketratesofinterestandotherwise
controltheprocessofinvestment,includingdecisionmakingpowertoinitiatenewcooperativesandshut
downunprofitablefirms.Equityshareholders,thestate,and/orothercooperativesowntheholding
companiesorpublicbanks.
Unfortunatelythereisalotmoretheoryonthissubjectthanconcreteexamplesofit.Thetheoristsinclude
PeterAbell,RaymondPlant,AlecNove,SaulEstrin,DavidMiller,JohnRoemer,RobertDahl,Joanne
Barkan,GarAlperovitz,RadoslavSelucky,OttoSik,ThomasWeisskopf,andDavidWinter.Thebiggest
experimentthusfarwastheMeidnerPlaninSweden,namedafterGermaneconomistRudolfMeidner,
whichwasenactedin1982bytheSocialDemocraticgovernment.Itcalledforanannual20percenttaxon
majorcompanyprofitstobepaidintheformofstocktoeightregionalmutualfunds.Worker,consumer,and
governmentrepresentativescontrolledthefunds,andastheirproportionofstockownershipgrew,these
groupswerecollectivelyentitledtorepresentationoncompanyboards.Iffullycarriedout,thisexperiment
wouldhaverenderedeffectivecontroloverprofitablefirmsinSwedentotheworkerandpublic
organizations.ButtheSocialDemocratsmadelittleefforttoeducatethepublicaboutitorwinpopular
supportforit.ForeightyearsSweden'scorporateclassrailedagainstitconstantly.TheMeidnerPlan's
termexpiredin1990,andespeciallyaftertheSwedishbankingcrisisof1992,theSocialDemocratslost
theirenthusiasmforit.Thatmadepoliticalsenseforthemattheoutsetofsecondwaveglobalization.Itmay
provetobethedeathknellforlargescaleexperimentsinfullorbedeconomicdemocracy.
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Butlessambitiousformsofeconomicdemocracyhavesucceededinmanyplaces,andthescalequestion
restsonpoliticsandculturemorethaneconomicviability.Publicbanktheorytakesseriouslythefailuresof
statesocialism,thelimitationsofworkerownership,andthenecessityofbuildinguphighlycapitalizedforms
ofeconomicdemocracy.Thedistinctadvantageofthisapproachisthatitdiversifiesformsofrisksharing
andpromotesgreaterefficiencybyforcingfirmstobefinanciallyaccountabletoabroadrangeofinvestors.
Essentially,itisasolutiontotheentrepreneurialdeficienciesofworkerownership,addressingconflictsof
interestbetweencooperativeownersandprofitabilitythatcausecooperativestomissmarketsignals.

ThereCanBeNoSocialistBlueprintorMagicWand
Thisapproachdoesnotrestonidealisticnotionsabouthumannatureanditshouldnotbethenext
progressiveblueprint.Economicdemocracyisabrakeonhumangreedanddominationthewholepointof
itistofighttheuniversalpropensityofdominantgroupstohoardsocialgoodsandabusedisenfranchised
people.Neithershouldprogressivesabsolutizeanyparticularmodelofeconomicdemocracy,forthe
blueprintmentalityisinherentlyproblematic.Socialistswerewrongtoequatesocializationwith
nationalization.Theywerewrongtorejectproductionforprofit,wrongtothinkthatstateplannerscould
replicatethecomplexpricingdecisionsofmarkets,andwrongintryingtoorganizeaneconomynotlinked
bymarkets.NotallSocialisttraditionsmadethesemistakes,buttheblueprintmentalitywasdeeply
ingrainedinvirtuallyallofthem.
Fromademocraticperspective,thekeyproblemwiththemutualfundmodelisthatitweakensworkers'
poweratthefirmlevel.Totheextentthattheholdingcompaniesaregrantedsupervisorycontrolovertheir
cliententerprises,workercontrolisdiminished.Totheextentthattheholdingcompaniesarekeptinaweak
position,theadvantagesofthemutualfundmodelaretradedoffastheenterprisesessentiallybecome
cooperatives.
Ihaveatheoryabouthowtodealwiththatproblemit'sacircularschememodeledonMondragon's
"seconddegree"cooperativesthatupholdstheauthorityoftheholdingcompaniesbutmoreimportant
thananyparticulartheoryormodelisthewillingnesstoexpandthesocialmarketindifferentwaysandfind
outwhichmodelsworkbestinparticularcircumstances.ThetraditionofChristiansocialethicsand
progressivetheologytowhichIbelonghasanamplehistoryonthissubject.Thefatherofthesocialgospel,
WashingtonGladden,believedthatprofitsharingindustrialpartnershipswouldputanendtotheclass
struggle,untilhelivedlongenoughtoseeotherwise.Thefounderofsocialethics,FrancisG.Peabody,
sharedtheconvictionofmostsocialgospelersthatcooperativeswereobviouslytheprogressiveChristian
solution.Thegreatestsocialgospeler,WalterRauschenbusch,believedthatacombinationofstateand
cooperativeownershipwouldcreateagoodsociety.ArchbishopofCanterburyWilliamTempledevelopeda
typeofguildsocialismfeaturingaMeidnerlikeplanforworkercontrolledcollectivecapitalfunds.Reinhold
NiebuhrstoodforradicalstateSocialismbeforeoptingforthewelfarestate.Manyliberationistsandsocial
ethicistshavepromoted"socialism"withoutdescribingwhatitis.
Mostofthistraditionwronglyoperatedwithunitaryideasofcapitalismandsocialism,asthougheachwere
onlyonething,culminatingintheliberationisttendencytocondemn"capitalism"categoricallywhile
employing"socialism"asamagicwand.Thelatterapproachistoovague,monolithic,andevasive,but
neithershouldsocialjusticemovementsembraceanyparticularmodelasthenextsignofthedivine
commonwealth.

TheBetterWay:Organic,Pluralistic,Pragmatic,Voluntary
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Economicdemocracymustbeaprojectbuiltfromthegroundup,piecebypiece,openingnewchoices,
creatingmoredemocracy,buildinganeconomicorderthatallowsforsocialcontracts,commongoods,and
ecologicalflourishing.Economicdemocracynurturesandsustainssocialtrust:socialcapitalthatnohealthy
societycandowithout.Itisaprojectthatbreaksfromtheuniversalizinglogicofstatesocialismandtakes
seriouslythattherearedifferentkindsofcapitalism.SocialtheoristRobertoM.Ungercallsfor"alternative
pluralisms,"stepbystepconstructionsofalternativepoliticalandeconomicinstitutions.Abstractconcepts
ofamonolithic"capitalism"or"market"obscurethevarietyofpossibilitieswithinexistingcapitalismand
markets.Socalled"capitalism"isalwaystheproductofparticularhistoricalconfigurations,contingencies,
andstruggles.
Thetestsofanyexperimentineconomicdemocracyarepragmatic.Toimposesomethinglikethe
Mondragonnetworkonacapitalistsocietywouldrequirecoercionoverworkerswhodon'twanttobelongto
cooperatives.TheU.S.PacificNorthwesthasanetworkoflongstanding,highlysuccessfulplywood
cooperatives.Someplywoodworkerschoosetoworkinconventionalfirmsinsteadofthecooperatives.No
politicaleconomyworthbuildingwouldforcethemintoadifferentchoice.
Theissueofchoice,however,isthekeytoabetteralternative.Apoliticsthatexpandedthecooperative
andsocialownershipsectorswouldgiveworkersimportantnewchoices.Thecentralconceitof
neoclassicaleconomicscouldbeturnedintoarealityifmeaningfulchoiceswerecreated.Theneoclassical
conceitisthatcapitalismdoesn'texploitanyone,becauselaboremployscapitalasmuchascapitalemploys
labor.Butintherealworldtheownersofcapitalnearlyalwaysorganizethefactorsofproduction.To
expandthecooperativeandothersocialmarketsectorswouldgivechoicestoworkersthatneoclassical
theorypromises,butdoesnotdeliver.Itwouldshowthatthereisanalternativetoasystemthatstokesand
celebratesgreedandconsumptiontothepointofselfdestruction.
Theearth'secosystemcannotsustainaU.S.levellifestyleformorethanonesixthoftheworld's
population.Theeconomyisphysical.Therearelimitstoeconomicgrowth.Globalwarmingismeltingthe
Arcticicecapatashockingpace.ItismeltinglargeareasofpermafrostinAlaska,Canada,andSiberia,
anddestroyingwetlandsandforestsaroundtheworld.Themaniclogicofcorporatecapitalismpayslittle
heedtocommunitiesandtheenvironment,andnonetoequality.CorporategiantslikeExxonMobilsucceed
asbusinessesandinvestmentswhiletreatingthedestructiveaspectsoftheirbehaviorassomeoneelse's
problem.
Forthirtyyearsonehadtobeastubborntypetosailagainstthereligionofthemarket.Nowoneonly
needstobeawake.Ifthestubborntypescanseizethisterriblemomentasanopportunitytobuildabetter
socialorder,wemayactuallydoit.
GaryDorrienistheReinholdNiebuhrProfessorofSocialEthicsatUnionTheologicalSeminaryand
ProfessorofReligionatColumbiaUniversity.AnEpiscopalpriestandauthorofthirteenbooks,includinga
trilogyonliberaltheology,hehasalonghistoryofinvolvementinantiimperialistandracialjustice
organizations.

SourceCitation
Dorrien,Gary.2009.ACaseforEconomicDemocracy.Tikkun24(3):34.

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