Saturday, December 04, 2004

Democratic Capitalism

Former CEO of ADT Ray Carey notes in his new book Democratic Capitalism that despite the evidence of the practical effectiveness of democratic capitalism, companies implementing such a strategy have proved the exception to the rule. The dominant business culture has instead trended towards what Carey calls 'ultra-capitalism,' the modern system of finance-driven capitalism that Carey believes places too great of an emphasis on speculation, individual greed and excess. This has led to a disconnect between ownership and control, a widening gap between the super-rich and the common working person, a shifting of the tax burden from capital to labor, and a deterioration of regulatory safeguards to protect workers and their companies.

In Carey's view, the lack of a strategic focus on integrating workers into the capital structure of the company makes it increasingly difficult to provide them with access to the wealth-creating power of private enterprise.

Carey believes that a "synergistic coupling of democracy and capitalism" offers a superior vision of global commerce that will more effectively spread the economic benefits of the free enterprise system by ensuring more workers have direct access, through ownership, to the wealth-creating capacity of the corporation. His vision of democratic capitalism advocates a systemic application of ideas involving broad-based ownership, profit sharing, and employee involvement.

More info on the book Democratic Capitalism plus ordering information can be found at