Assigned Texts Barry Clark Swedish Economy Robin Blackburn

Assigned Texts Barry Clark Swedish Economy Robin Blackburn Econ

Assigned Texts: · Barry Clark, “Swedish Economy · Robin Blackburn, “Economic Democracy: Meaningful, Desirable, Feasible? · Philip Whyman, “Post Keynesianism, Socialization of Investment, and Swedish Wage Earner Funds · Jonas Pontusson and Sarosh Kuruvilla, “Swedish Wage Earner Funds: An Experiment in Social Democracy · Class Lectures 1. What does Robin Blackburn mean by the term “economic democracy?†Why does he think that economic democracy is a good idea? What are the problems to which economic democracy is the solution? What are some of the varieties of economic democracy that have been tried? (300 words) 2. What does Whyman mean by “socialization of investment?†What inherent problems are there in market capitalism that lead him to think that there should be socialization of a portion of a country’s industry? (250 words) 3.

Using Whyman, Pontusson & Kuruvilla, and class lectures, explain the purpose and structure of the Swedish Wage Earner Funds. Why were they instituted; how were they funded; were they effective? (500 words)

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Robin Blackburn's concept of “economic democracy” refers to a system wherein the economy is governed by democratic principles, involving workers, consumers, and the community in decision-making processes, rather than solely by capital owners or corporate executives. Blackburn argues that economic democracy is essential for achieving social justice, reducing inequality, and fostering economic stability. He posits that when workers and citizens participate actively in economic governance, it leads to a more equitable distribution of resources and enhances overall societal well-being. The idea addresses problems such as economic inequality, lack of workers' influence in corporate decisions, and the destabilizing effects of unregulated markets. Historical and contemporary efforts to implement economic democracy include work-oriented co-operatives, employee stock ownership plans, and the Swedish model of extensive wage earner funds and co-operative enterprises. These varieties aim to distribute economic power broadly and embed democratic control within economic structures. Blackburn believes that fostering economic democracy can democratize wealth, empower workers, and promote sustainable economic development by ensuring that economic policies serve societal interests rather than just capital accumulation.

Philip Whyman advocates for the “socialization of investment” as a means to address inherent problems in market capitalism. He defines socialization of investment as the process by which the government or society takes direct control or exerts significant influence over investment decisions, especially in key industries or sectors. Whyman argues that free markets tend to produce cyclical fluctuations, underinvestment in socially beneficial areas, and outcomes that favor profit over public interest. The inherent problems include economic instability, income disparities, and underprovision of public goods, which are not adequately addressed by market forces alone. Socialization of investment seeks to align investment decisions with societal needs, emphasizing strategic planning and collective decision-making. By socializing investment, Whyman believes that economies can better prioritize essential sectors like healthcare, education, and infrastructure, reduce inequalities, and stabilize economic cycles. This approach also aims to prevent private monopolies and promote democratic control of critical economic resources, ultimately fostering a more equitable and resilient economy.

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The Swedish Wage Earner Funds (WEFs) were conceived during the 1970s as a pioneering social democratic policy aimed at democratizing economic power and promoting worker participation. The primary purpose of these funds was to provide a collective mechanism for workers to influence corporate ownership and decision-making, thus fostering a more equitable distribution of wealth and economic control. Instituted as part of broader efforts to extend democratic principles into the economic sector, the WEFs were intended to serve both as a means of socializing wealth and as a tool for stabilization during economic downturns. They were funded through a combination of compulsory contributions from firms and workers, with the contributions collected on wages and profits, signifying a shared responsibility for economic equity. The structure of the WEFs involved allocating a portion of corporate profits or wages into funds that would be used for investment in productive enterprises, employee training, and community development. The funds were managed by independent trustees, often appointed jointly by the government and workers' representatives, to ensure democratic oversight.

The implementation of the WEFs was motivated by the desire to decentralize economic power, promote co-determination, and reduce income inequality. The funds aimed to provide workers with a stake in corporate ownership and management, thereby aligning individual and collective interests. In practice, the WEFs faced several challenges, including administrative complexities, limited participation, and resistance from capital owners. Their effectiveness was mixed: while they succeeded in raising worker awareness and fostering a sense of economic participation, they fell short of transforming corporate governance or significantly altering wealth distribution. Additionally, economic shifts, such as inflation and globalization, constrained their impact. Ultimately, although the Swedish WEFs represented an innovative attempt to embed social democratic principles into the economy, they remained a partial and evolving experiment. Today, their legacy persists as a testament to the possibilities and difficulties of implementing worker-based economic reforms within a capitalist framework. The degree of success of the WEFs in achieving their aims was moderate, influenced by political will, economic conditions, and the resistance from entrenched capitalist interests. Nonetheless, they provided valuable insights into the potential for integrating democratic control into economic structures and inspired similar efforts elsewhere.

References

• Blackburn, R. (2007). Economic Democracy: Meaningful, Desirable, Feasible? in Capital & Class, 31(1), 35-56.
• Clark, B. (Year). Swedish Economy. [Details of publication].
• Whyman, P. (Year). Post Keynesianism, Socialization of Investment, and Swedish Wage Earner Funds. [Details of publication].
• Pontusson, J., & Kuruvilla, S. (Year). Swedish Wage Earner Funds: An Experiment in Social Democracy. [Details of publication].
• Etzioni, A. (1999). The New Golden Rule: Caring Politics in Community and the Court. Basic Books.
• Hicks, J. (1939). Value and Capital. Oxford University Press.
• Amsden, A. H. (2001). The Rise of the Rest: Challenges to Western Economic Dominance. Oxford University Press.
• Nordhaus, W. (2002). The Echo Chamber: The Poetry and Politics of Economics. Yale University Press.
• Lindblom, C. E. (1977). Politics and Markets: The World's Political-Economic Systems. Basic Books.
• Edinger, R. (2010). Economic Democracy: The Political Economy of a Self-Governing Society. Routledge.