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Edited on Sat Oct-03-09 02:44 AM by Oregone
Making it illegal for anyone to have private ownership in a company after 20 years, without being an employee of the company (there is a constant degradation in personal shares over an allotted time). Profits must only go to buying back old shares, or for dividends to current shareholders/employees. All employees are therefore issued bought back shares that correlate to some percentage of their pay.
Hence, after 20 years, all businesses will be entirely employee owned, more or less. When an employee retires, part of their pension consists of the company buying their built up ownership back to redistribute to current workers. No longer can a private person inherit the right to grossly profit off of other's labor. All employees with active shares will instead profit off their own labor (major incentive) in the form of dividends. The employees therefore control the board of directors, and business decisions will be focused on growing the company in the interest of the workers (short term and long, for when they retire).
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Example: Some investor Jake decides to create a gas station. You are the manager, and Ed is the assistant.
You get paid $20 dollars and hour, and Ed gets $5 an hour. The gas station makes about $100 K a year in profit (static)
After year one, Jake takes home $95K in profit (for being born rich!), the other $5K buys 1/20th of his stock from Jake (he gets $100K in all). You get 80% of that stock and Ed gets 20% of it. Your labor helped Jake's initial capital return a profit, so that is your payment.
The next year, Jake takes home $90K in profit, $5K buys 1/20th of his stock ($95K in all), $5K gets distributed to you and Ed (80/20), and you recieve another 5% of the stock (in 80/20 shares).
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After 20 years of grueling labor, Jake gets $0K in profits (but about $1 million in overall profit over 20 years), $5K buys the remaining stock (maybe more if stock went up!), and you now have 80% share of the company and Ed has 20% share (dividends of 95K divided equally). Hence, the next year, you take home $80K in profits, along with your pay. This happens until you retire.
But the moment you retire, you hit a sell back schedule. You may sell early at penalty. As long as the company exists, you get your extra money for 20 years. IF the company lacks the profits to buy back you stock, it would suggest and unprofitable company with a low stock value. The value of the stock can change, which provides a major incentive for workers to contribute.
I call it "Crapatalism". Although its crappy investors make a fortune by doing nothing but being born rich, dedicated employees eventually become the ultimate owners of companies and profit from their labor (as well as retire comfortably). Once a company is in the hands of the workers, by majority after 10 years, it will definitely operate in their bests interests. It leaves incentives for the investor class (although limited), but provides a massive incentive for workers, as well as an ethical incentive for businesses
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