The Cambridge Dictionary defines “equity” as the “value of a company, divided into many equal parts owned by the shareholders, or one of the equal parts into which the value of a company is divided.”

But why do companies and shareholders have the authority to own equity at all? There is also – earlier on – the equity one has in one’s democracy, or the share one has in their political system that makes one relatively self-determining or free, as opposed to being determined by others.

Generally, citizens receive their shares at birth, which vest when one becomes emancipated, and can vote. 

And because persons are generally considered politically equal, a rule that means each person gets one vote, one’s share of their democracy, first and foremost depends on the number of other individuals in it. That is why many thinkers have been concerned with the way growth dilutes the average person’s share, a fact hidden by formulas like representative ratios that are not based on empowering those subject to the law by treating them as equally empowered, relative to a neutral standard.

But growth does not really account for other key factors that account for the equity, or level of influence, one has over one’s political system. What if that system has created macro changes in the environment so that persons are influenced, say by heat waves, against their will? What if one has a share, but because of structural racism and birth-based economic inequality, it really is not an equal share?

Equity matters because it gives us some control over the systems in which we live, and that equity depends on the number of people with whom we share those systems, the disparities in the resources each of us may have, and things like the way we impact the physical environment around us.

If one does not have equity in the political system, it’s hard to understand how they are free, or relatively self-determining. And there are hard parameters for what the amount of equity each of us deserves.

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