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 1:7

Don’t Blame Capitalism

Protestors have blamed “capitalism” for the economic disaster. Blame instead the  money managers and traders who used the peoples’ capital to speculate. They are not capitalists, and the perversion they engage in is not capitalism. Capitalism is the peoples’ trillions of dollars invested in companies that produce and distribute goods and services.   Wall Street deflected this capital away from job growth exactly as Adam Smith warned that the “prodigals and projectors” would do.

Citizens should be angry about this deflection of capital to speculation, and even angrier that their government has spent trillions of dollars not on jobs but rather on putting the speculators back in business.  The $700 billion TARP money from the Treasury was pocket change compared to the $7.7 trillion the Fed pumped into finance capitalism. The banks borrowed at rates as low as .01% and then “earned” about $13 billion by “investing” in government bonds.

It is a scandal that the peoples’ capital was not invested for the benefit of the economy and retirees’ savings. An even greater scandal will be if the surplus cash is not now invested for the benefit of the economy and retirees’ savings. For a quarter-century, now, “Shareholder Capitalism” has sacrificed job-growth programs for the price of the stock, thereby building up enormous cash surplus from layoffs.  There is $1 trillion of corporate cash surplus in the domestic economy, with another $1 trillion abroad, about $3 trillion left in 401 (k) savings, and $1 trillion over required reserves sitting idle in the banks for lack of borrowers.

If your government had applied some of the energy and creativity to putting people back to work that they applied to putting the Wall Street speculators back in business, our economic crisis would be over. With a few changes in tax law, money could be moved out of Wall Street into infrastructure repair bonds, investment in growth programs, and additions to consumer demand from dividends. Please refer to essay #11 “Are You Angry Enough to Reform 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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