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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Course 1:13

A New, Improved Capitalism

You never change the existing reality by fighting it.
Instead, create a new model that makes the old one obsolete.
Buckminster Fuller

The Information Age brought new opportunities for the people of the world to communicate and find common purpose. Included is the motivation for a democratic work culture needed to release the cognitive power of Information Age workers. The value system built on respect for the individual and an environment of trust and cooperation was now not only the ideal of religion and humanism but also one of competitive necessity in industry. The hypothesis that morality in the work place is economically determined, and that a concentration of companies with this work culture raises the moral level of the contiguous community, has enormous implications, and would, I propose, become even clearer through academic challenge and debate.

This evolution to the superior mode of production is exciting in itself but another powerful force is also at work democratizing capitalism. The Employees Retirement Insurance Security Act (ERISA) of 1974 mandated retirement savings. This vast sum of money--trillions-- became a major source of new investment capital and turned workers into the new capitalists. With the expected rewards from capitalism, wage earners could now live better from both the wages of their labor and a capital wage. The combined benefits of a democratic work culture and financial motivation of ownership participation seemed ready to bring a golden age of capitalism to citizens in America and the world.

It did not work out that way, however. Congress failed to direct this new source of capital into investment in the job-growth economy. Instead, the money stopped in Wall Street and helped fund the various speculative misadventures that have caused the current recession. Wage earners are again being treated as a disposable cost commodity and then forced to watch their life savings shrink dramatically. Instead of being paid a capital wage, wage earners have lost jobs and income. 

That, however, is history. The question now is how the American majority can cause government to “promote the general welfare” through support of democratic capitalism. Congress failed to do this in 1974, and the reforms now underway will reset the system back to pre- recession business as usual, an economy dominated by Wall Street.

A better model is available, a superior system that maximizes the building and distribution of wealth in a moral environment. Implementing the following citizens’ agenda will help shift government’s support away from domination by finance capitalism:

Citizens must tell the managers of their retirement funds to shift measurement of corporate performance from short-term to long-term:

Citizens must ask the colleges and universities to offer students a study of alternatives in capitalism. The curriculum now offered by the Carey Center for Democratic Capitalism can be used and improved. It includes the following:

The evolution of modes of production has moved from capital investment in things to investment in people, from demeaning the worker during the Industrial Revolution, to celebrating the worker in the Information Age. The work culture built on the worth and potential of each in an environment of trust and cooperation is innately moral and can unite people in economic common purpose, raise the standard of living, and stop the violence--the pragmatic results of a new, improved capitalism!

Ray CareyRay Carey

Ray Carey learned through managing companies for 33 years how to change the work culture to provide employees with their best opportunities to develop and contribute. This experience began as a 28 year old plant manager and later president of an electric motor company, and concluded with eighteen years as president , chairman, and CEO of ADT, Inc.

See Carey's autobiography of his work career in chapter two of his first book,

Democratic Capitalism, The Way to a World of Peace and Plenty.

For more information about Ray Carey and his advocacy of democratic capitalism, visit the pages of this website.

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CCDC 2/7/2018 - Rejection

Updated on February 8, 2018

Owen decentralized to the work station and let the workers run their jobs. This was the key to motivate the workers to produce and innovate more. It required a management that understood the philosophy and were trained and motivated in it themselves. The Mercantile philosophy, however, was still one of maximizing profits by suppressing wages and benefits. In contrast, Owen's capitalism added worker income that was spent to the benefit of economic growth called the "multiplier effect".

Owen understood that the "intellectual" community demeaned his proposals. Early in the 19th century Owen had demonstrated the capitalism in which capital and labor were synergistic.Owen also identified the intellectual negative attitude towards capitalism that continues to the present.

This is still the challenge to the intellectual community to study the alternatives in capitalism in order to promote the one that maximizes the amount of wealth and distributes it broadly.

Owen joined the Manchester Literary and Philosophical Society. Its members were the elite of the town whose manners had been acquired in respected schools. In their company Owen never forgot his origins: 

I was yet but an ill-educated awkward youth, strongly sensitive to my defects of education, speaking ungrammatically, a kind of Welsh-English …I felt the possession of ideas superior to my power of expressing them, and this always embarrassed me with strangers, and especially when in the company of those who had been systemically...

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