Democratization as an Institutionalized Myth

Abstract

This chapter explains why the stock market and its bureaucracy, as it is designed and as it works, does not bring about democratization of markets, and how this problem is connected to the financial crisis. First, I will describe previous views that suggest that there has been “democratization” of markets. The fact that this discussion exists is a reason to address this myth. It is important to strike it down or else it will be very hard to change the systems we have in place, necessary for improving arrangements that affect our economy by generating financial crises. I will identify some of the characteristics of a democracy and show that the stock market does not characterize it.