No one can earn a million dollars honestly.
William Jennings Bryan, 1860 – 1925,
an American lawyer, statesman, and politician, three times the Democratic Party nominee for President of the United States.

The decadent international but individualistic capitalism in the hands of which we found ourselves after the war is not a success. It is not intelligent. It is not beautiful. It is not just. It is not virtuous. And it doesn't deliver the goods.
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Capitalism is the astounding belief that the most wickedest [sic] of men will do the most wickedest of things for the greatest good of everyone.
John Maynard Keynes, 1883 – 1946,
a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory, as well as on many governments’ fiscal policies.  

We have noted many deficiencies in the capitalism which we practice.  The purpose behind such a look has been to encourage thought and action about how to make capitalism work better.  We are now looking at possible solutions.  

In the previous essay part, we looked at ESOPs as a possible solution to the deficiencies of present-day American capitalism.  An ESOP is a corporation owned in whole or in part by its employees.  But while an ESOP bring fairness to employees, it does not necessarily do the same for the community where the business is located or engages consumers.  So, can an ESOP be a better solution than what it now is?  

Yes, if one or more of the following takes place.  

·        The employees come from the same community where the business is located or engages consumers.  Thus, the employees, being part of the community, make business decisions with the community in mind.

·        The employees create an open forum, either in a community hall or online, for their neighbors to regularly opine on the business.  A bonus is that, staying continually in touch with the community builds consumer loyalty.

·        The employees agree to create voting rights for the community in decisions of the business which have an impact on the community, but without the community having a stake in profit.

·        The employees enable the community to buy shares in the business, with a share of profit then going into the community.  By “community” here, we refer to individuals, organizations, and government agencies.  

A retail establishment, a wholesaler or a factory can become an ESOP.  

What can accelerate the use of ESOPs?  When licensing a business to operate in its community, a municipality can require that the business operate as an ESOP.  On the assumption that consumer loyalty would build for ESOPs, businesses already established in the community might want to become ESOPs in order to stay competitive.  

But what about small businesses which have but a couple of employees or whose employees are, for the most part, students wanting a part-time, short-term job?  What can be done so that those businesses overcome the deficiencies of present-day American capitalism?

April 3, 2008