The Making of a Democratic Economy: How to Build Prosperity for the Many, Not the Few

by Marjorie Kelly, Ted Howard

Our economy is designed by the 1 percent, for the 1 percent. This book offers a compelling vision of an equitable, ecologically sustainable alternative that meets the essential needs of all people.

We live in a world where twenty-six billionaires own as much wealth as half the planet's population. The extractive economy we live with now enables the financial elite to squeeze out maximum gain for themselves, heedless of damage to people or planet. But Marjorie Kelly and Ted Howard show that there is a new economy emerging focused on helping everyone thrive while respecting planetary boundaries.

At a time when competing political visions are at stake the world over, this book urges a move beyond tinkering at the margins to address the systemic crisis of our economy. Kelly and Howard outline seven principles of what they call a Democratic Economy: community, inclusion, place (keeping wealth local), good work (putting labor before capital), democratized ownership, ethical finance, and sustainability. Each principle is paired with a place putting it into practice: Pine Ridge, Preston, Portland, Cleveland, and more.

This book tells stories not just of activists and grassroots leaders but of the unexpected accomplices of the Democratic Economy. Seeds of a future beyond corporate capitalism and state socialism are being planted in hospital procurement departments, pension fund offices, and even company boardrooms.

The road to a system grounded in community, democracy, and justice remains uncertain. Kelly and Howard help us understand we make this road as we walk it by taking a first step together beyond isolation and despair.

Genres: Economics, Politics, Nonfiction, Audiobook

192 pages, Hardcover

First published July 23, 2019

Reviews

[Ailith Twinning · Rating 2 out of 5]

In short: I have little patience for Yuppie capitalism. It keeps means testing, elite division, and offers restitution for the villains. Would this world be better than ours? Probably, but it would not be just.

[Ira Wood · Rating 4 out of 5]

By whatever gauge you choose to measure—economic, environmental, or social—our country is in frightening shape, and the future, if we continue doing business as usual is only looking worse. That business, of course, is our market economy. The fact is that virtually all of the major decisions that affect our health, our safety, our climate, and our material wealth, are driven by purely commercial concerns; not by any ethical and/or moral notions that we have a responsibility to the earth and to others living today and in the future.

Kelly's book shows us better business models, largely unseen except by those people already enjoying their benefits, systems that are actually democratizing workplaces, respecting workers, protecting the environment, and producing profits. This book enables us to see what's possible so we can envision an alternate future.

[JRT · Rating 4 out of 5]

I really enjoyed this book. The authors catalogued real world examples of democratic economies in action, and highlighted the fundamental and soon-to-be cataclysmically fatal problems posed by the “extractive economy” (i.e. industrial and financial capitalism). My only issue is that not enough is said about reparative justice—or reparations—for the groups of people who’s labor and land was exploited and extracted to build this monstrous global economic order. A Democratic Economy without reparations for colonized people (those living in the U.S. and throughout the Global South) is both unjust and insufficient. Aside from that, tremendous book. Extremely inspiring.

[Ietrio · Rating 1 out of 5]

This is a very immoral book. What is democratic economy: you do the work, you spend your money, time, and energy, and Kelly will take the profit, because he knows better than you.

[Mark · Rating 4 out of 5]

This book is an uplifting collection of stories of the work that has been slowly developing in the United States and elsewhere (mainly England) since approximately the year 2000.

The concept of a democratic economy calls "capital bias" to the front of the discussion and successfully shows how alternatives have developed by a variety of new and different approaches. Some you've heard of: employee owned benefits corporations and coops others are also included. Some have been around for along time like the community owned bank and community owned utilities.

The Democracy Collaborative has done some very good work for the last twenty years. Their work is based on the principles of place, community, inclusion, good work, democratic ownership, sustainability, and ethical finance.

The simple explanation for this book is to discuss the contrast between our current "extractive economy" and what a "democratic economy" will grow to look like.

[Jeffrey · Rating 5 out of 5]

When we look around today we see so much that is wrong. We feel it inside us - this is just not right. A big part of the reason we keep spinning in circles, where ‘solutions’ proposed to solve these wicked problems never seem to work, is because we are building solutions from within a framework that is fundamentally flawed.

We need a systems change.

The Making of a Democratic Economy proposes, and illustrates, just how we can build pathways to a new way of thinking, and doing, that can fundamentally alter the institutional design typologies that limit our societies full potential.

This is not a book full of theory and idealism, although there are some, at its core this book features actual programs, in practice today, transforming the lives of millions of people, and proving that we can build and implement programs that work outside the extravive undemocratic ecologically unsustainable framework, and successful transform communities.

The programs highlighted in this book shine a light upon the path to actualize true systems change that can, and must, carry humanity through the 21st century and beyond.

[Henry Olders · Rating 4 out of 5]

As Naomi Klein states in the Foreword, this book gives hope, by telling the stories of real-world instances of how we can build economies which are different. But I think that the authors failed to flesh out the moral imperative that Klein also identified: "saying 'no' to the rise of oligarchs and authoritarians around the globe". Kelly and Howard have a tendency to identify institutions, such as the "extractive economy" as being the problem, rather than the individuals who created these institutions for their own benefit.

[Jeffrey Prins · Rating 5 out of 5]

Puts the principles forward that need to be followed to make our economies work for people and planet, in light of the two big challeges we face: growing inequalties and clmate change. A great go-to book for how to function differently in society.

[ronn · Rating 5 out of 5]

A inspiring blueprint for change!

[Abby · Rating 4 out of 5]

“There can be no real political democracy unless there is something approaching an economic democracy.” --Theodore Roosevelt

An interesting idea that undergirds this book: Just like racism and sexism, "capitalism" can be seen as a bias (toward profit over people). But it doesn't have to be that way. A hopeful, quick read for anyone interested in how to move forward, even a little, with fixing our unjust economy. I've done a lot of detailed reading on worker-owned enterprises and their history and this book is really all you need to help you clarify your personal beliefs and get started making informed decisions.

[Wilson Lai · Rating 4 out of 5]

Inspired by democratic economies concept and how it is working in different places, it demonstrated the key to focus the business back to people rather than capital. It’s also my strong belief - people first.
Part of the book is a bit boring as it spent too much talking about political stuff and too much focused in US.

[Betty Bennett · Rating 5 out of 5]

The authors offer a review of an alternative to our current economic model to the boom/bust cycle that penalized the vulnerable. They document the outcomes where diverse populations developed their interdependent local economic communities rather than wait for the bailout that would keep them hostage to repetitive economic challenge.

[Heather · Rating 4 out of 5]

This book explores alternatives to business as usual models that have been in place, especially in the United Sates. It gives real life examples and trends that shift power from the top to wider distribution through companies and communities.

[Alberta · Rating 4 out of 5]

We read this for the study circle. It only addresses the Anchor Institution strategy. No bootstraping strategy, but important for the movement. Also, short enough. Good ratio.

[Chip]

Great case studies of working towards workplace equity.

[Fionn McGorry · Rating 3 out of 5]

Feel that maybe this is a bit harsh of a rating given that it actually is a good introduction to what community wealth building is, it just feels a little light touch.

[are we there yet · Rating 4 out of 5]

This did read like a super long ad for The Democracy Collaborative, but upon learning that Bernie worked with them for the 2020 presidential run I approve.

[thehoggle · Rating 3 out of 5]

3.5 stars.

[Andrew · Rating 4 out of 5]

Great alternatives for a people's economy.