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 4:37


To: Michael Gooch
From: Ray Carey
Re: “Next Bubble”

Dear Mr. Gooch:

At the end of your editorial in the February 13, 2009 Two River Times you express doubt that we have learned from this unnecessary economic disaster and warn: “Look out for the next bubble.”  There is no reason for another bubble. This time citizens are mad enough to demand that their government prevent asset inflation in stocks and real estate that cause the bubbles. People will learn that the government fights price inflation aggressively but even denies that it has the tools to fight asset inflation. That argument,  used by former Chairman of the Fed Greenspan with Congress, is nonsense. Tools include money supply, interest rates, margin requirements, bank reserve requirements, various taxes, and extension of bank regulation to all sources of credit.

The reason that government fights price inflation aggressively but not asset inflation is simple: They are responding to lobbying by Wall Street that loses money on price inflation and most make money on asset inflation. This present economic disaster has followed the same pattern of all other recessions: the rich get richer in the up direction and then the poor get poorer in the down.

In your article you talk of the “investing and speculating public.” Let’s talk, instead, about the wage earners who have lost $ 2 trillion of their retirement savings with more losses to come. They had no control of this money. Wall Street managers invested it at an annual cost ten times index funds. Considering that this money is needed for people to live on in retirement the investment strategy in the original pension law was very conservative.  Wall Street, however, persistently and successfully lobbied Congress to open up high-risk “opportunities” in hedge funds and derivatives that eventually decimated the pension savings.

You commented: “the public wants to hold the bank CEOs to blame.”  Why not? In the decades that they were pumping up their compensation to the tens of millions  didn’t any CEO, Board Director, or other executives ask these questions?

Bubbles will be prevented if democratic pressure can neutralize the lobby power of Wall Street. This goal has been examined in a paper by an economist on the staff of the BIS (Bank for International Settlement) in Switzerland, and another by a former vice president of a Federal Reserve Bank. Their conclusion is that there is no reason for the “next bubble” with the resulting loss of jobs, homes, and hope. Let me know if you want copies, perhaps you will be convinced and share this optimism with your friends on Wall Street.


Ray Carey
Feb 16, 2009
Carey Center for Democratic Capitalism





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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