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 4:18


 “A Marxist in capitalist’s clothing” The Inquirer and Mirror, July 15, 2004

To the Editor:

Your article about my book Democratic Capitalism, The Way to a World of Peace and Plenty described the need for economic freedom to precede political freedoms in a system built up from the worth and great potential of each individual in an environment of trust and cooperation as well as my respect for Karl Marx as an author of these axioms. Marx also predicted that under these conditions the standard of living would go up, the violence would go down, and the warrior state would lose power.

The article mentioned my synthesis of Adam Smith, Karl Marx and John Stuart Mill but missed a vital part of the synthesis: Mill’s integration of these concepts with private property and competition into democratic capitalism. Mill’s solution was evolutionary and built on the free market momentum initiated by Smith. Marx, however, had no understanding of management of change and encouraged a revolutionary approach that tore down the whole structure.

The Marxist collectivism, in all of its forms, that resulted from this tragic error contradicted Marx’s concepts as top-down political structures suppressed the spirit of people and consequently suppressed the opportunity to create and distribute more wealth.  The challenge to the establishment from collectivism was also a root cause of the bloodiest century in human history, the 20th, during which 160 million people were killed by governments. For these reasons Marxism is the polar opposite of democratic capitalism.

The 21st century is well on the way to breaking the record for killing innocent humans in a world dominated by reciprocal atrocities.  A better understanding of Marx’s contributions in contrast to Marxism’s contradictions could break the intellectual and political grid lock. A consensus could then support economic common purpose as the reasonable alternative to a violent world.


Ray Carey

Nantucket, July 24,2004

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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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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