Democratizing Investment

Politics & Society Vol. 47(4) 573-591.

29 Pages Posted: 26 Jun 2018 Last revised: 23 Jan 2020

See all articles by Lenore Palladino

Lenore Palladino

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics; Franklin & Eleanor Roosevelt Institute

Date Written: September 2, 2019

Abstract

Americans have trillions of dollars invested in public and private companies, yet stock ownership is highly unequal: the wealthiest one percent of American households possess forty percent of all wealth, and there is a large and persistent racial wealth gap. What if new innovations in distributed technologies allowed for democratic facilitation of new opportunities for wealth and a rebalancing of power within the capital markets? This chapter proposes the creation of a “Public Investment Platform” to use innovative financial technologies to create a public option for participation in the capital markets, and a “Public Investment Account” to universalize access to investment opportunities. Capital markets are currently governed by public policies that submerge the role of the public in structuring them and enable an inequitable accumulation of wealth. To democratize finance, new policies are required to democratize participation in investment.

Keywords: crowdfunding; investment; fintech; economic democracy

Suggested Citation

Palladino, Lenore, Democratizing Investment (September 2, 2019). Politics & Society Vol. 47(4) 573-591. , Available at SSRN: https://ssrn.com/abstract=3194693 or http://dx.doi.org/10.2139/ssrn.3194693

Lenore Palladino (Contact Author)

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics ( email )

Amherst, MA 01003
United States

Franklin & Eleanor Roosevelt Institute ( email )

4079 Albany Post Rd.
Hyde Park, NY 12538
United States

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