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 2:1

Free Wage Earners’ Capital!

Wage earners have become capitalists from pension funding and 401(k) savings, but are not receiving a return on their capital. Large dividends can free this capital by adding a “capital wage” to the labor wage. 
A company’s surplus should be reinvested and paid in dividends to grow the economy. Instead, during the past quarter century, over a trillion dollars was wasted on stock buy backs, that hype the stock price and CEOs’ options, and acquisitions that make the deal-makers rich by cutting jobs. Combined with exorbitant mutual fund fees, and quicker turnover of stock sales by commission brokers, bad capitalism, the kind that traditionally exploited the workers’ labor, is now exploiting the workers’ capital.

Led by pension funds, companies should be pressured to maximize growth and dividends, and the government should be pressured to make dividends tax-free for wage earners. A secure double-digit return, balanced between annual income from dividends and appreciation in a growing economy, will reward the working owners of capital, not the handlers.                            

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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Democratic Capitalism: The Way to a World of Peace and Plenty

Capitalism produces wealth from market freedom and competition, democratic capitalism maximizes wealth from worker participation. Their sharing in the improvement sustains motivation and adds consumer income that increases economic growth. The value system is trust and co-operation, the impediments are mal-distribution of wealth and violence among nations and people.

Surplus wealth was built by firing workers engaged in growth programs and by not increasing wages for productivity gains. Corporations avoiding taxes left $6 trillion of this surplus sitting in foreign accounts. The distribution of this surplus depends on a critical Board decision. It should be returned to the workers in wages, dividends, and profit sharing that add to economic growth, but managers influence Boards to repurchase shares to hype the value of options while hurting economic growth.

The workers are now capitalists through their pension funding, but they are not yet organized to influence policy. Finance capitalism continues to dominate the economy and influence politicians. Reformers who should correct this capitalist perversion do not understand wealth production from democratic capitalism; instead they concentrate on the political structure that distributes wealth.

CCDC June 27, 2017

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