For a Democratic Society, Democratize Finance

The immense power financial institutions wield over most aspects of our lives makes a mockery of democracy. To build a truly democratic society, we need to democratize finance.

Markets Open As Investors Eye Tuesday's Testimony From Fed Chair Powell In Congress

The New York Stock Exchange in the Financial District on March 7, 2023, in New York City. (Spencer Platt / Getty Images)


Michael McCarthy’s The Master’s Tools opens with an evocative description of life under a new social order.

“It’s a sunny Friday morning in 2045, and you’re running late for a meeting to deliberate over and agree on the priorities of the city.” You ride to the meeting on a public railway network and step off into the Public Finance District, “where the streets were converted into pedestrian zones after huge investments in transportation eliminated the need for cars.” When you arrive at the People’s Bank of Los Angeles, you join an assembly made up of your fellow workers, and together you set about deciding how to spend the city’s budget.

This vignette works because it is based on democratic innovations that already exist. McCarthy’s vision is not some unrealistic socialist utopia; it’s based on proposals — from community wealth building to participatory budgeting — that exist right now, if you know where to look.

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