Book Cover

Capitalism,  The Way to a World of Peace and Plenty
by Ray Carey

Hard/Softcover/Kindle - 5 May, 2004, Available on

Ray Carey presents the theory and practice of democratic capitalism by coupling his experience with a synthesis of the thought of Adam Smith, Karl Marx, and John Stuart Mill.  The empirical evidence is clear: democratic capitalistic companies produce superior results, and nations that support economic freedom and keep money neutral improve the lives of their people.

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6. Fair Distribution of Wealth

Updated on January 26, 2018

Thomas Piketty, professor at the university of Paris, proposed in his best selling book Capital that capitalism will generate unsustainable inequalities because the rate of return on capital will exceed the rate of growth of the economy. Piketty provided data from many countries about this alleged inherent weakness in capitalism but he did not explain why it was true.

The reason was deliberate action in Great Britain by finance capitalists supported by government. They were following the “Golden Rule: he who has the gold makes the rules.” Their mission was to purge the inflation effect of the Napoleonic Wars that had reduced the return on capital for the wealthy. To do this they slowed the economy by putting people out of work causing calamitous economic hardships.

A century later American bankers formed the Federal Reserve as the lender of last resort but with the same mission to prevent price inflation from hurting the capital return of the wealthy. For this purpose, they developed the Phillips Curve and later NAIRU (Non-Accelerating Inflation Rate of Unemployment) to identify how many people needed to be out of jobs to improve the return on capital.

Piketty’s capitalism tried to maximize profits by suppressing wages and benefits of the workers. The alternative maximized profits by giving the workers the opportunity to reach their potential. These alternatives are available for examination on our web site or in Ray Carey’s book Democratic Capitalism, The Way to a World of Peace and Plenty.





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