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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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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