Two of Western Civilization’s greatest contributions to humankind —namely, formal democracy and the modern competitive marketplace —are now reaching their final hour. The very system long held to be the ultimate bulwark against tyranny and authoritarian control is eroding from within, having fallen victim to the false precepts of capitalist ideology.

Capitalism — defined as a system of private control over the means of production — was almost defensible during the early days of agrarian society. Family farmers and small business owners operating within the discipline of the private marketplace were rewarded for their initiative, self-reliance, responsibility and efficiency. Despite the instability and personal insecurity that came with it, this economic order represented a dramatic improvement over the indentured servitude of European feudalism.

Over time, however, it became clear that the process of capital accumulation would increasingly allow owners to reap unearned benefits from a powerless and vulnerable work force. Many observers also noted that larger and larger enterprises were continuing to form, forcing more and more people to become dependent on fewer and fewer companies. Fearing the ever-growing power of large plantations and huge commercial interests, Thomas Jefferson wrote that “legislators cannot invent too many devices for subdividing property.”

Whether we agree or disagree with Jefferson’s strong antitrust sentiments, it is obvious from a late 20th century perspective that his fears were completely justified. Presently, around three-quarters of all domestic private sector output comes from less than one percent of all U.S. corporations, most of which operate in monopolistic or oligopolistic markets. Globally, fewer than 500 transnational corporations now control over two-thirds of world trade, much of which is actually intra-firm transactions.

Structurally, these corporate behemoths resemble quasi-governmental institutions. Their far-reaching control over resources gives them extensive latitude in setting prices, granting them the effective power of taxation. Moreover, their complex bureaucratic hierarchies and extreme divisions of labor prevent any tangible sense of ownership from blossoming within employee ranks. And with CEO pay now averaging around 150 times that of ordinary workers, employees’ sense of self-importance is all but nonexistent.

Of course, unlike the government, the corporate sector is almost thoroughly insulated from popular democratic influence. Built more or less on a totalitarian model of organization, corporations maintain a radical division of power between owners and workers, requiring the latter to either “put up or shut up” just to keep their jobs.

In the new period of globalization, large companies have gained even greater leverage over workers and increasingly, over communities, states, provinces, and even entire nations. Now that unions are nearly vanquished and most of our public officials are little more than big business lackeys, precious little is likely to be done about the growing attacks on our environmental, health and worker safety laws or about the ongoing decline in real wages and the massive layoffs from corporate “downsizing” — at least not within the narrow confines of capitalist “democracy.”

Fortunately, there is an alternative — one which restores the integrity of the market economy while enhancing formal democracy.

In government, our public servants should be denied contributions or gifts from private groups and individuals. Furthermore, public elections should be publicly funded so as to make office holders accountable to their constituents, not to the highest bidder.

In companies with say, 50 employees or more, workers should be given official democratic representation within management. This would give each worker a direct stake in the well-being of his or her firm, boosting individual initiative and company loyalty. Most importantly, however, such an arrangement would force owners to consider the welfare and interests of those who provide them with their wealth.

Admittedly, these policy suggestions are unlikely to appear any time soon within the platforms of any of the mainstream political parties. Nonetheless, their eventual consideration remains a critically important challenge for the future. Defenders of democracy and social justice would do well to remind themselves of the hard-won struggles of centuries past. Their success required relentless determination and unwavering commitment. Today, with the growing misery and environmental chaos occurring worldwide, our current historic mission demands no less.

Aaron Lehmer is a continuing senior in environmental studies from Ames. He is the opinion page editor of the Daily.