Economic Democracy: Situating Women

Economic Democracy: Situating Women

By: Mirra B. Price

            In the United States, we say we have a representative democracy. The term “democracy” implies that the people rule, which, especially in these times, is debatable. However, what I will focus on is the distinction between political democracy and economic democracy. While the United States is a so-called political democracy, it’s not economically democratic.  There have always been haves and have-nots. According to the Congressional Budget Office, in the United States, wealth and income are highly concentrated among the wealthy, with the top 1% of the population holding a disproportionately large share of total wealth (Congressional Budget Office, 2024).

            In 2024, the top 1% held about 31% of total wealth, and the top 10% held about 67% of total wealth (USA Facts, 2025). In 2022, families headed by women had 55 cents in median wealth for every dollar of wealth owned by families headed by men (Women’s Way, 2025). There are many factors influencing the lower wealth of women, for instance, white women making 82 cents on the dollar  compared with white men; women of color earn even less. But it’s not only earning less, it’s also that women experience the following:

• Women are more likely to be denied mortgages or be overcharged for them, complicating their access to homeownership.
• They are more vulnerable to predatory lending.
• Women hold more debt, including 2/3rd of all student debt in the U.S.
• Women provide the majority of unpaid caregiving, reducing their availability for paid work.
• Women of color have the least amount of wealth because they suffer from the biases of both gender and racial discrimination (https://womensway.org/gwi/thegenderwealthgap/).

              In an economic democracy, women will become empowered and have more of a key role as significant participants. Not only women, but the middle and under classes,  people of color, the elderly, and youth face economic inequity. When both genders share power jointly, rather than in the current situation where women are subordinate and have less access to economic resources, then a new era of coordinated cooperation with social and economic equality can dawn.

            Any conversation about the establishment of a new economic system that doesn’t include women at its core will not address the needs and financial concerns of over half the population, and, therefore, will not provide a legitimate and workable alternative. The consumer-driven capitalist consolidation of wealth marginalizes and exploits women, shreds social safety nets, and tromps on human rights and environmental protections. At the heart of women’s economic inequality is the deepening poverty caused by the inequities inherent in capitalism.

            According to world-renowned linguist, political theorist, and activist, Noam Chomsky, “You can’t have meaningful political democracy without a functioning economic democracy. I think this is, at some level, understood by working people. It has to be brought to awareness and consciousness, but it’s just below the surface,” (Chomsky, 2013, p. 282). A just political democracy is not possible without economic democracy. Mega-corporations, large financial institutions and corporate-owned media have corrupted democracy in the United States and elsewhere. Because big money controls the political process so tightly, reform is not enough. Instead, we need “economic democracy” that economically empowers people and communities, and  unites people around a common cause, replacing the tyranny of corporate power.

            Economic democracy may be viewed as a vehicle for expanding access and control over resources by transferring power from the few to the many, not merely through taxation, but through access to control and influence over economic decisions. Ideally, economic democracy would be shaped by democratic, transparent, and accountable systems and institutions. According to Prout (Progressive Utilization Theory), propounded in 1959 by philosopher and social theorist P. R. Sarkar, there are four requirements in creating a successful economic democracy.

1. Everyone must be guaranteed the minimum requirements of life.
2. Everyone’s quality of life needs to be gradually enhanced.
3. Localities will control their own economies.
4. The standard of living will be increased by increasing the purchasing capacity of everyone (Proutist Economics, 1993).

            Additionally, to include women in this change to economic democracy, the following needs to happen:

1. Women must get access to higher-paid jobs and receive more support to create women-owned businesses. 
2. Access to universal childcare to enable caregivers to attend school or work.
3. Women’s consciousness raising groups are needed to provide mutual support.
4. There needs to be strict enforcement to prevent violence against women in the workplace, home, and society in general.
5. All women need access to quality education, no matter their race, income, or place of residence (The Awakening of Women, 1995).

When women are empowered to take control of their own financial resources, they can achieve independence from men. By shifting the focus of the economy from one that benefits the interests of an affluent few to one that includes and sustains the entire populace, economic democracy offers a clear, practical model that can be used to usher in a new era of equality, opportunity and prosperity. With economic democracy, we can build an equitable, sustainable economy that will bring about a better quality of life for all. Women, who make up a majority of the population, need to play a central role in shaping and then benefiting from economic democracy. Finally, economic democracy is a viable way to mediate and overcome divisions based upon gender to build a universal society with true social and economic justice.

Mirra Price is an author, editor, feminist, activist, and retired high school English teacher who lives in and breathes the fresh air of Asheville, North Carolina.

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