The purpose of this study was to know: (1) Rationale of Economic Democracy Mohammad Hatta, (2) Thought Muhammad Hatta on social economy. (3) The relevance of thought Muhammad Hatta in the Indonesian economy.This research used the Historical research or historical method. Data source in this study are used primary sources and secondary sources. Historical method is Heuristic process, Criticism, Interpretation, Historiography reconstructed based on the data obtained so as to produce events or Historical Facts.Based on this research can be concluded: (1) Rationale of democratic economy Mohammad Hatta, his biography that tells Hatta?s life began as a child, studied in the Netherlands, fought for independence of Indonesian, until he died in 1980. Then, when Hatta as an economist. Mohammad Hatta is a pioneer or rationale of economy that democracy based, the concept is the first foundation in building the economy in Indonesia. (2) Thought for Economic Democracy Mohammad Hatta , Hatta choose cooperation as a way out of the Indonesian nation out of economic problems faced during this . Hatta said that the cooperative consists of two joints , the joints of solidarity and joint individualist . While the rest of cooperatives are people, not money and cooperatives are not looking for maximum profit , but to serve the needs of joint and container participation of small-scale economic actors . Hatta argue with the spirit of togetherness and family as well as cooperation in the cooperative can deliver the Indonesian nation to achieve the goals and ideals of development. (3) The relevance of thought Mohammad Hatta in the Economic and Social part, as well as the relevance of Hatta?s thought with economical that occurred in Indonesia at this time.
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