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Capitalism

Capital is wealth used in producing more wealth.

Capitalism is an economic system in which production, distribution, and finance are in large measure owned or directed by private individuals or corporations. Individual enterprise, encouraged by the prospect of profit, is allowed a maximum of leeway-- consistent with the rights of others and the public good-- in such matters as price, output, level of employment, source of supply, etc.

The Capitalist is the man who invests money in an enterprise from which he expects to make a profit. As a business progresses and a need for the capital to grow emerges, he may organize a corporation. As a corporation, the capitalist can now gain access to the capital of other individuals who are looking to invest money in the development of an enterprise in the hope of reaping a profit.

A corporation sells shares of stock to people who wish to invest their money. The management of the enterprise is entrusted to a board of directors. The profits are divided among the stockholders in the form of dividends. Practically all businesses of medium or large size are incorporated.

The Stock Exchange is a market for the sale and purchase of stocks and bonds. These groups originated in coffee houses and evolved into institutions. A trader would buy a seat on the stock exchange with a huge fee, and perform the buying and selling for groups of clients.

Capitalism is not a new theory. Capitalism has ancient roots. There are even stories in the Scriptures describing investments of capital. To NOT invest your money would bring eternal hell on you.

Matthew 25:14-29:
"For the kingdom of heaven is as a man traveling into a far country, who called his own servants, and delivered unto them his goods. And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. Then he that had received the five talents went and traded with the same, and made them other five talents. And likewise.... " (But the servant with only one talent buried it.)

(v. 27) Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury.
(v. 29) For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath. And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth."


There have always been men with "capital" who hired others to work for them, and there were always poor people who had only their labor to sell. It can be argued that much of mankind has been kept poor in order for them to be available to do servitude for those who DID have money and power.

The powerless masses were kept in a state of "need" ensuring that they would be available to perform the unpleasant and hard labor for their societies. This hard labor often exposed desperate workers to conditions that shortened their lives... or even took their lives. "Workers" have always been seen as disposable commodities... to be used and discarded as needed. This mentality of oppression took various forms, so that even workers often believed that they deserved nothing better.

It can be argued that absolute Capitalism is anathema to democracy.
Pure Capitalism exists only for the sake of profit. It is a system of the money, by the money, and for the money. Thus, the conflicts of the absoluteness of Capitalism with the basic concepts of social responsibility and human rights gave rise to government regulation as well as the formation of labor unions.

Since the Industrial Revolution of the 1700's and 1800's the workers and the government have emerged to cope with the problems of the Capitalistic system. Regulation includes the gearing of production to need, checks on stock market manipulations, minimum wage laws, pension systems, unemployment insurance, and public works programs.

There then emerged another animal... Corporatism.
In its basic concept, Corporatism is the very essence of Socialism. The difference lies in the fact that it is formed solely to benefit the producers of money... rather than for the benefit of the state. Socialism would be actually more preferable than Corporatism, in that its benefits would be distributed throughout the whole of society.

The arguments made against Socialism are that entrepreneurs do not receive the fruits of their efforts... that the government decides who will work where, how much profit will be made, and what direction the organization will take on production. In Socialism there is a bottom beneath which none would go, but there is also a ceiling beyond which few can aspire. Still, there would be the class of bureaucrats who make their own claim to power and wealth.

Corporatism claims power for the wealthy to make their own rules in order to pursue greater wealth and even greater power... to create its own laws of perpetuation... and to benefit only the powerful few. Workers and their rights are disposable and are seen as burdens and even potential enemies. Workers keep corporations from making even greater profits. Both of these systems work against the common laborers.

The Stock Exchange is the institutionalization of sport... with the horse race being the continuation or decline of whole companies. On any one day a company might have the resources to expand and increase benefits to its workers... and the next day there might be rumors that would cause those resources to disappear completely.

This argues the point that the gambling institution known as the "Stock Exchange" actually rules the lives of companies... of our citizens lives... and in the end, of our nation's economic security.

This further argues that it is the very existence of the Stock Exchange that distorts the entirety of our economy.

So... how do we address these distortions of economies and workers' rights?

If a person with the capital to invest in a company wishes to contribute to the growth of a company-- a company that he knows about and believes in... he should address his desires to own stock directly to that company. Purchasing stock would be a contract between the company and the investor. And, thus, the company might refuse to accept particular investors in their company to preserve its original directives and goals.

When an investor buys a company's stock to enable that company to meet its goals it is not a short-termed committment. A shareholder cannot withdraw his money in the midst of the expected planning and growth of the company. He must follow it through. Stock then should never be allowed to be traded as freely as it is. An investor must ensure that there is a replacement investor available to fulfill that contract.

The contract between a corporation and the stockholders must include an agreement to adhere to standards of social responsibility and to follow its established plan of growth. If its plans change, stockholders must be given the option to withdraw their money. This would include internal policies towards their workforce-- wherever that workforce may exist. It would also include access to the company books.

Shareholders have the right to know what their money is being used for and by whom it is being used. In essence, they are participants in what that corporation does and are equally culpable, just as the driver of a getaway car is equally guilty during a robbery. Investors must be considered participants in all the activities of the companies they invest their money in. They must be held responsible for its practices and liabilities just as equally as they benefit from its profits.

Workers for corporations are also investing their resources in the progress and profit of a company. Their dedication to the quality of their work should not rely solely on personal integrity or loyalty they might or might not possess. There is nothing more inspiring than to know that one's efforts will reap a profit along with the company they work to advance. They should have the right to stock in the company that their work benefits.

Thus... in the frame of reference of a "free market" it should be a "given" that all workers of a company will be entitled to a set portion of the total stock in it. A set percentage should be set aside solely for the workers. On hiring, they would be given a portion of those stocks, and as they remain with the company perhaps earn more stock. When they leave the company, the stocks will be sold back to the company... the earnings given to that worker... and the stocks reverting to the new replacement worker.

These "worker stocks" should be strong enough to allow the workers a voice within the company. In fact, there may be no greater wisdom in a company than that of those workers. They would know where efficiencies would lie. They would know where money would be saved. They would know what managers enhanced the well-being of the company and which ones did not. As worker-investors... they would be a valuable participant.

It is only within a framework where people are involved in the organizations where they have put their money... where they have put their sweat and personal enterprise... where they have invested their lives... that the resolutions of the pitfalls of Capitalism and Corporatism are made. Workers would have an inate and natural right to those issues that affect their livelihoods, their efforts, and their lives. Their investment is real... it should reflect that reality.

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