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 1:8

New York Times, November 22, 2011

Headline on the front page of the New York Times:

“As Layoffs Rise, Stock Buybacks Consume Cash.”

It could have read: “Domination of the economy by exclusive concern with the short-term price of the stock continues,” or “Investment in job-producing growth sacrificed, as usual, for the price of the stock,” or “Cash in dividends not returned to build consumer demand and repair damage to retirement accounts.”

This stock buyback obscenity dramatizes the 99% versus 1% record wealth inequality. Direct quotes from the article can focus the protestors:

When Pfizer cut its research budget this year and laid off 1,100 employees, it was not because the company needed to save money. In fact, the drug maker had so much cash left over, it decided to buy back an additional $5 billion worth of stock on top of the $4 billion already earmarked.

When the nation is looking for ways to battle unemployment, big companies are neglecting to lay the foundation for future growth.

Stock buybacks have made a remarkable comeback in recent years with $445 billion authorized, the most since 2007.

The principle behind buybacks is simple. With fewer shares, earnings per share can rise smartly even if the growth is lackluster.

Executives are able to meet goals and earn bigger bonuses.

Campbell Soup said it would buy back $1 billion in stock; five days later it announced plans to eliminate 770 jobs.

Hewlett-Packard announced a $10 billion stock repurchase, and jettisoned 550 jobs.
Zimmer is on track to double its repurchases of $1 billion, more than twice its research and development. It actually borrowed money to achieve its repurchase goal. That helped CEO Dvorak to collect millions in bonuses.

Over the last decade, companies that spent the most on repurchases had a total shareholder return of 37% versus 127% for companies that spent the least.

Protestors should know that it was systemic sacrifice of job-growth programs that produced most of this surplus corporate cash now totaling $1 trillion domestically and $1 trillion abroad. Citizens can vote for laws that will move this money, tax free, into the job-growth economy, and vote their 401 (k) shares to declare special dividends, instead of wasting this money on stock buybacks.

Ray Carey
Carey Center for Democratic Capitalism
November 22, 2011


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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