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.