Democratizing Money

Levy Economics Institute, Working Papers Series, 2019

26 Pages Posted: 3 Jun 2019

See all articles by Jan A. Kregel

Jan A. Kregel

Bard College - The Levy Economics Institute

Date Written: May 13, 2019

Abstract

In the Western interpretation of democracy, governments exist in order to manage relations of property, with absence of property ownership leading to exclusion from participation in governance and, in many cases, absence of equal treatment before the law. Democratizing money will therefore ensure equal opportunity to the ownership of property, and thus full participation in the democratic governance of society, as well as equal access to the banking system, which finances the creation of capital via the creation of money. If the divergence between capital and labor—between rich and poor—is explained by the monopoly access of capitalists to finance, then reducing this divergence is crucially dependent on the democratization of money. Though the role of money and finance in determining inequality between capital and labor transcends any particular understanding of the process by which the creation of money leads to inequity, specific proposals for the democratization of money will depend on the explanation of how money comes into existence and how it supports capital accumulation.

Keywords: Money, Finance, Financial History, Clearing Systems, Unit of Account

JEL Classification: E42, E51, E52

Suggested Citation

Kregel, Jan A., Democratizing Money (May 13, 2019). Levy Economics Institute, Working Papers Series, 2019. Available at SSRN: https://ssrn.com/abstract=3387582 or http://dx.doi.org/10.2139/ssrn.3387582

Jan A. Kregel (Contact Author)

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504
United States
845-758-7700 (Phone)
845-758-1149 (Fax)

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