Wednesday Afternoon Ramblings

I’ve long believed that the future of this country, if we are to thrive and prosper, will require a transformation from top-down ownership/management to more employee-based ownership.  As the system is currently structured, the few thrive while the many struggle, which is a direct opposite to the spirit of a democratic republic.

If more companies adopt the structure of employee stock option (not just limited to management), more individuals will have incentives to work hard for the good of the company.  Instead of a CEO raking in the lion-share of profits and earning 400% more than the average employee, salaries can become more equitable without losing the inherent competitive edge a capitalist system offers.  Free market competition is a superior system, but when the consumer class becomes  eroded because of stagnant wages, the system breaks down.  In employee-owned businesses, the profits of the company are distributed more evenly, thus broadening the purchasing power of the consumer class.

Here is an article that provides a real-world example:

http://seattletimes.nwsource.com/html/businesstechnology/2011111010_birthdaygift18.html

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