Book Cover

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

Hard/Softcover/Kindle - 5 May, 2004, Available on Amazon.com

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
www.democratic-capitalism.com
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.


Most Recent Post

CCDC 12/22/2017

Updated on December 29, 2017

Democratic Capitalism-- Book Review

Julia Sneden based her review of Democratic Capitalism on her reading as I had no communication with her. Her review supported my premise based on fifty years experience running companies that democracy and capitalism should be synergistic not in conflict as most academicians believed. This will be examined further in the next Carey Center article “Good Capitalism vs. Bad Capitalism.”
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Review of Democratic Capitalism by Senior Women Web
Culture Watch

Democratic Capitalism is a fascinating, important, erudite book that leads the reader through the history and development of capitalism making a clear case for what needs to be done in the future.

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...

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