Skip to content
Subscribe

OPINION: The Secret to a Better Economy Lies in the Principles of Democracy

Published:

Things are not going well for our ‘Western’ (or ‘Modern’) way of life. To save it, we must make fundamental changes. The most important thing is to reduce arbitrariness.

“Reduce arbitrariness” might not be what the reader expected there, but as John Locke said, arbitrariness in human relations is injustice. As a concept, “arbitrariness” is less abstract than “injustice” is (if not by much). As a practical matter, less arbitrariness in human relations means more liberty.

We cannot hope to eradicate arbitrariness in human relations, but we must seek to minimize it. Here I will focus on how political democracy already minimizes arbitrariness and how we can reduce arbitrariness in the economy.

By itself, majority rule reduces arbitrariness. It is true that ‘the people’ must abide by whatever decisions are made in any political process (or bear the consequences). In a democracy, however, people are always free to participate in the political process to have a different decision be effected.

There are rules governing participation in the political process of every nation. Those rules place restrictions on participation in it. The less arbitrary those restrictions are, the more just the political process is.

In a democracy, everyone is allowed to participate in the political process through freedom of speech. That means it is completely devoid of arbitrariness in that respect.

A democratic distribution of political rights minimizes arbitrariness in restrictions on further participation in the political process. A “democratic distribution” of political rights means that any restriction on those rights is universally applicable and universally applied.

For instance, in all democratic nations, age is used to determine whether a citizen may vote and what elective offices a citizen may seek. Age is a proxy for maturity. While choosing specific ages is ultimately, if unavoidably, arbitrary, age itself is universal; it does apply to every human being. Gender, race, color, and creed are not valid restrictions on political rights because they are not universal, and are therefore patently arbitrary. (Of course, the prerequisites of citizenship must also be free of all avoidable arbitrariness.)It did surprise this author to realize that although we must make fundamental changes, we must retain the market-based economy. There is plenty of randomness in it, such as the circumstances of one’s birth and blind luck, but being market-based does reduce arbitrariness in the allocation of resources in the economy (much as ‘majority rule’ reduces arbitrariness in political democracy).

There is one area, however, in which there is too much arbitrariness in the market-based economy: incomes. How could we reduce arbitrariness in incomes? We can look to political democracy for the answer.

Think of it this way: money is to the economy as political rights are to the political process. Just as rights are necessary to participate fully in the political process, money is necessary to participate meaningfully in the economy. Just as a democratic distribution of political rights reduces arbitrariness in the political process, a democratically-distributed income would reduce arbitrariness in the economy.

Rights are abstract, however, whereas money is material. It is therefore easy to see how any number of people can share a right, but difficult to see how any number of people could share an income.

I’ve figured out how that can be done. It is not a scheme for taxing the rich (or otherwise taking from them) to give to others. In fact, taxes (with their inevitable arbitrariness) would be eliminated.

Having a democratically-distributed income does not mean that everyone would have to be paid the same amount. There would still be no limit on how much money a person could make (or how much property a person could own).

For that matter, in my proposal for reducing arbitrariness in incomes, everyone being paid an amount equal to the current median income or more would continue to be paid the same amount of money by their employers. Future changes in those incomes are not pre-determined in this proposal.

So, there would still be rich people. Indeed, eliminating taxes would make those who are already rich instantly richer. Poverty, however, would be eliminated as positively as taxes would.

The specific proposal for creating a democratically-distributed income is deceptively simple. For more details, go to “A New and Different Monetary System for a Better Economy” on IVN or www.ajustsolution.com or the first chapter of my book, A Just Solution. Is it any surprise to anyone that the key to a materially better life for more people is less injustice?

Photo Credit: STILLFX / shutterstock.com

Adhere to the IVN etiquette

By posting a comment, you agree to adhere to our etiquette rules: No partisan attacks, no personal attacks, substantiate your sources, no self-promotion.

Contact IVN

Questions about this article or our coverage? Send us a message. A free IVN member account is required.

Message sent

Thanks, we’ll review it and get back to you if needed.

Message not sent

Sorry, something went wrong. Please try again.

Sign in to send a message

Messages are tied to your IVN member account. Signing in is free and takes a few seconds.

Contact IVN

Questions about this article or our coverage? Send us a message. A free IVN member account is required.

Message sent

Thanks, we’ll review it and get back to you if needed.

Message not sent

Sorry, something went wrong. Please try again.

Sign in to send a message

Messages are tied to your IVN member account. Signing in is free and takes a few seconds.

Republish this article

Republishing guidelines

Republish IVN articles for free. Independent Voter News articles may be republished online or in print under a Creative Commons BY-NC-ND 4.0 license, on these terms:

  1. Credit the author and IVN. Keep the byline ("By Author Name, Independent Voter News") and the attribution note at the end, which links to the original.
  2. Keep the meaning. You may update time and place references and apply your house style. You may trim for length, as long as the cuts don't change the meaning or misrepresent the author. Keep the headline. Mark any additions as your own (for example "Additional reporting by ...").
  3. Translations are welcome. Translate faithfully, add "Translated from English by [your outlet]", and tell us at editor@ivn.us.
  4. Keep the links, including the link to the original article.
  5. Keep the tracking image. The HTML includes a 1-pixel image that counts readers on your page. It collects no personal information.
  6. Photos and illustrations. Images credited to IVN may be used with this article only. Images credited to others (AP, Getty, Unsplash, Wikimedia and so on) stay under their owners' terms. Secure the rights or switch "Include images" off.
  7. Don't sell it. You can't sell our articles or sell ads specifically against them. Your normal site advertising is fine.
  8. No implied endorsement. Don't suggest that IVN or the author endorses you, your candidates or your causes, or that donations to you support IVN.
  9. Keep labels. Opinion or analysis pieces keep that label.
  10. Point search engines to the original. Where your CMS allows, set the canonical URL to the original IVN article.
  11. No bulk or automated republishing, and don't submit our articles to aggregators (Apple News, Google News, MSN) as your own.
  12. Corrections and removals. Update your copy when we correct it, and remove it promptly if we ask. We'll contact you at the email you give us.
  13. Questions or print republication: editor@ivn.us.

IVN staff: fill in who you're inviting above, then create the invite.

Preparing the article

OPINION: The Secret to a Better Economy Lies in the Principles of Democracy

Choose a format
  • HTML
  • Email HTML
  • Markdown
  • Formatted (.docx)
  • Plain text
  • WordPress blocks
  • PDF
Choose a platform

Photos credited to others need their owners' permission.

To for

Republishing somewhere else? Questions? editor@ivn.us