Democratic Capitalism: The Way to a World of Peace and Plenty
Updated on January 11, 2017
For some time there has been a general feeling that there is something wrong with the American economy. There is: the domination by finance capitalism slows growth and keeps millions from good jobs.
The solution: Democratic Capitalism, was described in my book but it was rejected by publishers and received no reviews. I published and distributed it at my expense but in time the following leaders of industry and education confirmed the solution.
Reuben V. Anderson, Esq., First African-American Mississippi Supreme Court Justice, Director of A T & T. and Kroger
“I have followed Ray Carey’s work, and just as important the young scholars he’s nurturing. I know of few things taking place in this country that are as exciting as Ray’s vision of democratic capitalism. I look forward to working with him and hopefully introducing democratic capitalism at the Univ. of Mississippi School of Law.” (1996)
John C.Bogle, Vanguard Founder, Author, The Little Book of Common Sense Investing
“Thanks Ray for your wonderful manifesto. I share your enthusiasm for tax-free dividends for low-and-middle income citizens. This administration has got it backwards. Great breaks on dividend income for the super rich and virtually nothing for the rest of America. Mutual funds rip-off the man in the street by confiscating their dividend income.” (2004)
Gerald F. Cavanagh, S.J., Chair of Business Ethics, University of Detroit Mercy
“Ray, you did a superb job of stating both the weakness of financial capitalism and providing some suggestions for remedy. I do not know of any assessment that is as experienced, wide-ranging, and informed as yours. It is essential that a wider group of people hear that assessment; your analysis must have a wider exposure.” (2005)
Diane M. Dunlap, Ph.D., Dean, Graduate School, Hamline University.
“We are impressed with Ray Carey’s vision of democratic capitalism and are committed to making his vision a reality in school and university curricula. We have made a good start this term in running a graduate-level seminar with Education, Public Administration, Liberal Studies, and Law faculty and students present. We have argued and thought about democratic capitalism for the semester. Tonight is the last class, and I can tell you that the whole group is even more committed to the critical need for Ray’s vision across the globe at the end of the semester that we were at the beginning.” (1996)
Denny Flynn, Former Vice President Finance, ADT
“Ray, your book was an excellent read, the resolutions are even better and are one of the best writings I have ever read. I shall keep a copy handy for an opportunity to share it with a wider audience.” (2006)
Robert W. Galvin, Chairman of Executive Committee, Motorola
“Thank you for the update Ray, I rarely find anything that I can do other than applaud when you are the advocate.” (2001)
Dr. Michael T. Greenwood, Professor Fitchburg State University
“Again you make the complex simple. When are the American people going to benefit from your talents in Washington? I sincerely wish there was some way to build you a bigger soapbox someday. America needs your thought leadership.” (2014)
William Greider, National Affairs Correspondent, The Nation, author, Secrets of the Temple, One World, Ready Or Not, Fortress America
“Ray, I express my great admiration for what you have accomplished. You have created something of value that will be important and enduring—a book that helps others understand our circumstances more deeply and perhaps gives them the courage to engage in changing the future. Liberals typically don’t understand capitalism and are intimidated by the subject. Your voice can be especially meaningful in bringing around such good people, helping them out of the fog.” (2004)
Michael Hartoonian, Ph.D. Professor, College of Education and Human Development, University of Minnesota, Past President, National Council for the Social Studies
“Carey’s work gives a needed historical perspective to the principles of democracy and capitalism. The attending intellectual discourse and action that it invokes are urgently needed both in our nation and in the larger world. Carey gives birth to a new 21st century idealism and presents a heroic plan for economic and ethical harmony.” (2004)
George T.Maloney, Former CEO and Chairman of the Board, C. R. Bard, Inc.
“When Ray sent me his book he said that I, like him, was a democratic capitalist. I could not argue with him because I did not know what one was. Reluctantly, I took the book with me on a vacation in sunny Puerto Rico and returned without a tan because I became fascinated with Ray’s work. I am proud that Ray recognized me for what I am: a democratic capitalist. I believe that Ray’s work is in the early stages of what could, in time, be the template of: “How to make America great again.” ( 1995)
Whitney MacMillen, former CEO and Chairman of Cargill
“Flying back from Washington recently, Ray, I found the peace and quiet time to read your chapter 10. It’s a superbly laid out program based on deep philosophical roots and common sense. I share all of your views about the need for democratic capitalism over financial capitalism. I also agree with your rationale toward short-term “itis” and the misallocation of resources through the float of the dollar and ERISA.” (2003)
Robert H. McCaffrey, Former Chairman and CEO, C R Bard, Inc.
“Ray, I always thought of myself as a capitalist but hated to say so for fear of being classed with “Wall Street,” Now you’ve so clearly articulated the difference between democratic capitalism and financial capitalism, that I see that my philosophy of operating companies was close to that of a democratic capitalist. I hope you can get your book into the right hands so that the best political and economic thinkers can start to give serious consideration to changing how we approach our social and economic challenges through emphasis on democratic capitalism.” (2003)
T. Ballard Morton, Former publisher, professor at the University of Louisville, Kroger Director
“Ray your book is an extraordinary accomplishment, and I gained much insight from reading it-and studying it. I found your account of the Enron debacle the most complete analysis that I have read. Your explanation of ultra-capitalism makes so much sense. I just did not know how much Wall Street has been able to dominate us.” (2004)
Charles T. Munger, Warren Buffett’s partner
“Thank you for sending me Democratic Capitalism. I read it through in one sitting, ending in the early morning hours of the following day. I am as horrified as you are by what you call “ultra-capitalism”, with its huge collection of talent seeking “croupier” type profits in derivatives trading, promotional investment funds, and the most misleading parts of investment banking. I share your dismay with respect to formal education in leading universities as they deal with subjects outside the hard sciences.” (2004)
Michael Osheowitz, Chairman Edwin Gould Foundation, New York
“Ray’s important and timely book emphasizes how the U. S., through democratic capitalism, is capable of unifying its people, elevating many who live in poverty, and set an example for the rest of the world. Carey is unique! Part philosopher, part CEO, he applied his beliefs to his company and transformed it into a well managed meritocracy in which associates acted like owners, worked as a team, and were rewarded based on performance, a true culture of equal opportunity.” (2004)
A.F.Reposi, Chairman and CEO, Hansome Energy Systems, Former Marketing Manager. Electro Dynamic Div of General Dynamics
“What a revelation it was to see how markedly Ray differed from his predecessors. In his daily walks through the factory, Ray would stop at the various work-stations to chat with the operators. They looked forward to these daily visits and often made suggestions on how to improve certain operations. This relationship proved invaluable after a devastating fire that completely destroyed Electro Dynamic in 1963. There is no doubt in my mind that our “miracle” recovery stemmed from Ray’s unusual visionary leadership. First in convincing corporate management to rebuild the division; second in creating an atmosphere of teamwork, which helped achieve the results and which profited everyone. Reviewing Ray’s work in Democratic Capitalism, one can see the correspondence between theory and practice. Ray was a strong leader who respected people and empowered them. They in turn trusted and respected him and, together, we accomplished much. Many years later, Hansome Energy System was founded by three fledgling entrepreneurs who had all learned from Ray and applied his guidelines.” (1995)
Selma Rossen, President Hansome Energy Systems, former V.P. Engineering ADT, Inc
“ADT had a charter that was taken seriously. We, the employee-associates, were entrusted with a business that we ran for the benefit of the stockholders. We were encouraged to become stockholders through profit sharing. A “relaxed and purposeful” provision was in the charter. The organization was decentralized and authority went with responsibility. Integrity was a given, and advancement was by merit. There was a real sense of togetherness and common purpose between senior management, mid-level management, and associates. At ADT, union members were part of the team.” (1995)
Robert C. Serfass, Associate Dean for Academic Affairs, College of Education and Human Development, University of Minnesota
“When I began reading your chapter 10, I couldn’t put it down without completing it. I was amazed at how your hypotheses systemically outlined virtually all of the concerns that I have as an average person who tries to keep up with how government, business, financial, and educational institutions interact to try to meet the needs of the
Julia Sneden, reviewer for Senior Woman’s Web
“This fascinating, important, erudite book is not an easy, weekend read, nor a book you’d like to take on vacation for a beach read. It requires patience and hard thinking. Fortunately, it is written in a clear, accessible style that leads the reader, step by careful step, through the history and development of capitalism, and explains the current state of the world’s economics in terms even a layman can comprehend. It also makes a clear case for what needs to be done in the future. The proposals set out in the final chapter are short, clear, and well supported by the preceding evidence. When you’ve read this important book you might want to consider sharing your copy with your Congressman and your Senator who would probably thank you for it.” (2005)
Richard Van Scotter, Ph.D., former V.P. Marketing, Junior Achievement
“I was impressed with the depth and scope of your knowledge on political and economic thought as well as your ability to weave these ideas into a larger theme. Many people do view capitalism only in its financial and speculative form, causing some to be cynical towards the system while others become corrupted with narrow visions of self interest, private gain, and economic power. We all have the need to better understand the potentially more humanizing dimensions embedded in democratic capitalism, which you richly capture in the manuscript.” (1995)
John Whitehead, Former Co-Chair of Goldman Sachs, and Deputy Secretary of State
“As a Director of ADT, I knew Ray Carey as an excellent CEO but did not know that Ray had the remarkable academic qualities that shine so brightly in this important book. Ray has applied his analytical skills and considerable energy to our free enterprise system and explains how it works and in specific terms how it should work better.” (2004)
Keith Wilde, Ph.D., Committee for Monetary and Economic Reform, Ottawa, Canada
“This is an unusual book, an unusually important and helpful book. It is remarkable not only for the theme, but also for the breadth of coverage and the authoritative grasp with which the topics are treated. In my opinion, Ray Carey has provided the most comprehensive and persuasive case yet for the idea of broad ownership and the best account of mechanisms for achieving it. The adversary of this democratic vision of capitalism is a parasitical financial behemoth which has been a threat to it since the dawn of industrial development in the 17th century and which vaulted into dominance as “ultra-capitalism” in the past three decades. Ultra-capitalism combines financial dominance with old-fashioned mercantilism that treats the wage earner as a disposable cost commodity. Business schools have failed to see this, and schools of economics have been its patsies.” (2005)
Greed versus Growth
Updated on June 9, 2015
During the 20th century fourth quarter, the source of investment capital was democratized by the workers’ ownership plans and retirement savings. The rewards from this capitalism, however, were not democratized. Wall Street “investment” banks, by then public companies dedicated to their own profitability, diverted trillions of dollars of this workers’ capital into speculative trading. On top of that, they charged management fees ten times index fund fees for no better performance. In 2013, three-quarters of big bank revenue, $105 billion, came from “trading” in everything from derivatives to currency.
The workers’ capital could have gone into economic growth, dividends, and profit sharing as well as bonds to pay for the trillions of dollars of overdue infrastructure repair. The workers’ capital was instead borrowed for trading which-along with nearly zero-cost money-caused the asset bubble crash and the 2007 recession.
Reform has been limited by arguments in Congress over the government’s providing money to stimulate consumer spending to grow the economy. One obvious source of investment money is the trillions of dollars of surplus built up in companies by years of no-growth investment. Instead of these funds being recycled into growth, much of it went into stock buy backs to hype the stock price, a self-serving action of “shareholder capitalism.” More money has been taken out of Wall Street for deals and stock buy backs than has been invested in new growth. Corporate CEOs had by then been seduced by huge stock options to align their priorities with Wall Street.
I argue in Democratic Capitalism that The Way to a World of Peace and Plenty (sub-title) is plenty through workers motivated by ownership, and that peace will result during the 21st century when nations unite in economic common purpose, the alternative to the stupidity and waste of war. This economic alternative, however, will depend on understanding and support by the educational community.