This chapter is an introduction to research of how participatory budgeting (PB) processes can be transformed into local direct democracies. The potential benefits are public happiness, greater understanding of others, greater development of morality, and an increased sense of belonging. The primary methodology of this inquiry is philosophical research.

PB can become an ideal democracy by improving its communicative and political dimensions. The communicative dimension involves improving public deliberation. The benefits of public deliberation are reviewed and an example, League of the Iroquois, of a successful deliberative society is given. The political dimension includes building strong civic support, fully empowering participants, and expanding the process to make all, or most, local decisions. The original PB process in Porto Alegre, Brazil is given as an example of a successful fully empowered process.

Finally, the two main arguments against the need for PB are given and refuted. The first is to let local politicians do the job and the second is to rely on experts. It is shown that PB processes are better than either politicians or experts.