Question

Participatory Economy: Is there more or less investment in a participatory economy than in a capitalist economy? Relate your answer to the difference between who owns Capital and who gets profits. Explain.

Answer 1

Participatory economy is based on the concept of socialsism which believes in decentralisation of the economy where means of production system belong to common ownership and equity, solidarity, economic justice etc are common goals. As against capitalism which is based on the idea of production system belonging to the private indivituals and exploitation of labourers; participatory economy is based on the idea of entailing production system to the social ownership where workers are employed instead of labourers who have their own voices in the production system. So there will be more investment in a participatory economy than a capitalist economy as it provides equal opportunity of participation to everyone in the production system.

In a participatory economy, the capital or means of production are owned by the society. Society owns the natural capital like land, natural resoureces; produced capitals from the factories and the human capital which includes skills, talents, knowledge that people have for the production system. On the other hand, the society itself gets profit from the production system as the profits earned from it are used for the welfare of public and public resources.