Book Cover

Democratic
Capitalism,  The Way to a World of Peace and Plenty
by Ray Carey

Hard/Softcover/Kindle - 5 May, 2004, Available on Amazon.com

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

Letters

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.

Sincerely,

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.


Most Recent Post

CCDC 12/22/2017

Updated on December 29, 2017

Democratic Capitalism-- Book Review

Julia Sneden based her review of Democratic Capitalism on her reading as I had no communication with her. Her review supported my premise based on fifty years experience running companies that democracy and capitalism should be synergistic not in conflict as most academicians believed. This will be examined further in the next Carey Center article “Good Capitalism vs. Bad Capitalism.”
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Review of Democratic Capitalism by Senior Women Web
Culture Watch

Democratic Capitalism is a fascinating, important, erudite book that leads the reader through the history and development of capitalism making a clear case for what needs to be done in the future.

This fascinating, important, erudite book is not an easy, weekend read, nor a book you’d like to take on vacation for a beach read. It requires patience and hard thinking. Fortunately, it is written in a clear, accessible style that leads the reader, step by careful step, through the history and development of...

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