Socialists call for workers to have control over how society is run. Marx said it best: “Democracy is the road to socialism.” In that vein, democracy is fundamentally antithetical to capitalism. Tobias Lütke’s most recent comment offers a rallying cry in support of expanding democracy.
Who is Tobias Lütke?
Tobias Lütke, the third-richest individual living in Canada, is the co-founder and CEO of Shopify. In the last week, Lütke came under scrutiny for a post he made containing two words: “good system.” The system in question: income-qualified voting. Under the proposal, an individual with no income would not have a vote; anyone earning less than $100,000 gets one vote; those earning between $100,000 and $200,000 would get two votes. Thankfully, the system is capped at five votes for anyone earning more than $500,000.
For Lütke, this is all too familiar. In 2024, Shopify shareholders introduced a “Founder Share”, giving him a 40 percent voting share over the company. Unsurprisingly, for the man whose company increasingly has the ear of the current government—with the Prime Minister and ministers hosting approximately 12 meetings with Shopify officials from January to March—he wishes to have more say in how society runs. Of course, this is nothing new, which is why everyone who took to social media to comment showed no surprise.
An old concept
The tiered system that Lütke supports is baked into the fabric of capitalism. In Canada, those without property have had to fight for the vote at every turn. At the time of Confederation, voting was limited to men with property. Women would not get the official right to vote until 1918. Even the proposed quid pro quo that would name retirees as dependents appears as a horrifying facsimile for the circumstances of First Nations, Indigenous, Metis, and Inuit peoples before 1960—having to give up their status in exchange for the vote. Prisoners, as one example, only received the right to vote in 2004. In many countries, prisoners still do not have the right to vote. The United States, for example, still disenfranchises prisoners—with Virginia permanently taking away the right to vote, except in individual cases.
Capitalism’s limitations on democracy exceed formal barriers to voting. Income, or lack thereof, has a material impact on the electoral process. A study from Cambridge University Press demonstrates how economic factors affect the ability to vote, with many lacking the resources to research candidates or to take time off to vote. This is in addition to some of the criticisms the public raised about Lütke’s proposal. One comment stated it best, “If you want to know why Canada is sucking its because people like him are too influential in running it”. Increasingly, Canadians feel that voting does not affect their daily lives and are opting not to vote at all. Why take time off work when the dollar influences your day more than a vote every few years?
These sentiments will grow as the current government continues to transfer funds away from social services and toward private investment. Although retirees would have the right to vote under the proposal that Lütke was supporting—demonstrating an incredible lack of understanding of what is considered an income under Canada’s current tax regime—those Canadians who rely upon disability benefits, unemployment, and Canada Pension (CPP) and Old Age Security (OAS) would have their vote tied to government (both provincial and federal) willingness to provide these benefits. Of course, this is what Lütke and his ilk want: a more pliant labour force.
Expanding democracy outside of elections
For democracy to reach its full potential, workers need to have more of a say in how society operates. It would be best if workers controlled their workplaces, but that requires a level of class consciousness that does not currently exist. Opportunities for workers to flex their power present themselves at every turn; it is not strictly confined to elections. This is what Marx meant. Yes, the electoral process is important, but what is more important is supporting lab workers battling for better work conditions or standing with teachers upholding our basic right to a free and public education. Supporting these efforts will not trickle down, for they come from those standing together on equal footing. The WestJet flight attendants provide a great example: reaching a tentative agreement less than two days after initiating a strike. These workers successfully fought for what is theirs and now provide an example of how quickly things can improve.
Capital is served by limiting conversations of democracy to electoralism. Capitalists remain hypervigilant in hopes of reducing costs to aid declining profit margins. This is made easier by limiting democracy. This is why Lütke and his ilk detest unions and public shows of solidarity. Even if he is a “useless idiot”, Canadian society is running increasingly at his behest. The only way to fight back is to increase democracy through solidarity.
Author
Did you like this article? Help us produce more like it by donating $1, $2, or $5. Donate
