« Do You Let Your Employees Eat Lunch Together? | Main | Possible Tax Consequences of Seller Financing »

Socialism or Capitalism?

2679792681_6411771818_t The debate rages on.

Is socialism or capitalism the right approach to support the people in this country? Both have advantages and disadvantages. Is there something beyond both of them that could work better?

ESOPs (Employee Stock Ownership Plans) could be the solution. The idea is shared ownership not equal ownership. Ownership is typically distributed based on wages, but there are variations where ownership is distributed on hours worked. In either case, those that have a perceived higher value to the business (hours or wages), and stay with the company longer, receive a greater ownership stake.

Ownership implies that you accept the risks and rewards that come with it. The actions of the owners make a difference in the value of their company, whether it is the individual owner or the owners as an organization. 

The research shows that involvement by the owners creates better financial results. If an $8 an hour employee can build a retirement account of $30,000 in five years, is that success? If a company of eighty employees has a six-figure retirement account, is that success? There is no right answer, but these results are actual examples from ESOP companies. If an individual does not like the results, they have the choice to leave. There is no gun pointed at their head requiring them to stay.

It is time for owners, employees and companies to quit acting like there is a gun pointed at their head and realize that they have a choice to do something different and become something better - to go beyond socialism and capitalism.

Flickr photo by fenderjrp


TrackBack URL for this entry:

Listed below are links to weblogs that reference Socialism or Capitalism?:


The comments to this entry are closed.

« Do You Let Your Employees Eat Lunch Together? | Main | Possible Tax Consequences of Seller Financing »

Technorati Bookmark: Socialism or Capitalism?

This site is intended for informational and conversational purposes, not to provide specific legal, investment, or tax advice.  Articles and opinions posted here are those of the author(s). Links to and from other sites are for informational purposes and are not an endorsement by this site’s sponsor.