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 4:19


Subj:   Re: “Fair Shake or Shakedown” WSJ ED 7/8/04
Date:   7/19/2004 8:30:54 AM Easter Daylight Time

Sent from the Internet (Details)

Hi Ray,

Thanks for your kind words, and for your wonderful manifesto!

I share your enthusiasm for tax-free dividends for low-and-middle income citizens, but note that this Administration has got it backwards.  Great breaks on tax-favored dividend income for the super rich (Bill Gates, Sandy Weill, et al), but virtually nothing for the rest of America.  It’s not just that the rich get the lion’s share of dividends, but that the other investors get most of their dividends through mutual funds, which exact an 80% tax in the form of expenses before letting the remaining 20% “trickle down” to shareholders.

Think about it.  The average equity fund portfolio yields about the market yield of 1.8%, deducts an average expense ratio of more than 1.5%, and thus provides a dividend yield of 0.3% to its owners.  The dividend tax break, then , would amount to yield enhancement of less than 0.1%!

So for dividends to get back to their historic importance (the long term average yield level is 5%), we need lots of dividend increases (long overdue!) or, ulp, much lower stock prices.  But we also need mutual funds (such as index funds) that don’t rip-off the man in the street by confiscating the dividend income that ought to go to the owners.

Food for thought!


          Jack (Bogel)

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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