Economic democracy is a system in which economic decisions are made in a democratic way. Economic democracy is thus in opposition to the principles of liberal capitalism, in which decisions are taken by the private owners of raw materials and means of production (factories, etc.) according to the one dollar principle. One vote: the distribution of shares is based on the distribution of shares.
According to proponents of economic democracy, it is necessary to form a true democracy: in other systems, political democracy is disturbed by the political power of owners, especially multinationals and other large companies.
Opponents of economic democracy point to an alleged lack of economic insight among others than educated economists and entrepreneurs; similar arguments were previously used on the political level against universal suffrage and women’s suffrage.
Economic democracy is a central theme in modern forms of market socialism a anarchist movements also generally strive for democratic management of the means of production.