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 2:21

Better Governance

Corporate governance tends to “gotcha” type oversight intended to catch somebody at something.  Here are three positive ways to improve corporate governance:

Distribution of surplus: Outside Directors of public companies should determine the distribution of surplus among growth, dividends, stock buy-backs, and non-strategic acquisitions. The first two should be favored because they help the job-growth economy. The latter two waste the surplus but are favored by CEOs under pressure to hype short-term earnings. Moving this responsibility away from the CEO to outside Directors can add a longer-term balance to corporate planning and neutralize the short-term pressure.

Compensation: Compensation Committees composed of outside Directors should be responsible for the compensation practices of all employees in order to assure an internal logic and encourage performance bonuses and ownership opportunities. At present, most Committees respond only to consultants’ recommendations for additions to the executive smorgasbord that feeds the compensation frenzy and alienates the people.

Internal audit: Company integrity should be monitored by the Internal Audit Department in its reports to both the CEO and the Audit Committee of outside Directors.  The CEO should provide quick and visible action in response to any violation of company ethics; the Audit Committee must guarantee to Internal Audit an unrestricted access to all operations.

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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