But, first, let’s look at an unusual way of running a business, by having your employees own the company. One popular craft brewery has made a name for itself in part by going that route, with strong results so far….
One of things that we think is a big societal issue is this widening gap between the haves and the have-nots. And we realized that we had an opportunity to support people owning something that was increasing in value. Shared equity has been an incredibly powerful engine for us….
The better I do, the better we do, and I personally take that to every day of my job, and it really does inspire us all to go above and beyond in a way that I haven’t experienced at other employers….
Shared equity vs pure capitalism is a very thought provoking idea to me. Especially in the circumstances where we find that today’s capitalism returns are overwhelmingly skewed to the top 1% of our citizens. It is just not being shared by the people who are actually creating the wealth as it once was. Will shared equity become the new capitalism in the future? I can only hope so; it would indeed solve many of the social issues of our times.
In my day “the three legged stool” was the symbol for a successful enterprise. The three legs were Owner/Employees/Customers. Each had equal weight in corporate prosperity. If something is beneficial to all three then it was quickly implemented. Over the years the Customer leg has been shortened. If something can be made for a penny less and the product will still last at least through its warranty period it is cost reduced. Product longevity and quality is missing from far to many capitalist institutions.
The Employee leg of the stool has been ruthlessly amputated. As profits rise they are never shared by those who generate them. In fact brutal downsizing has become the mantra. The median income for U.S. families has actually decreased significantly while profits sour.
The only leg getting attention now is the Owner or stockholder. He is the king of capitalism as shown by the massive increase in wealth of the ultra-rich in our society. It seems the only way to straighten out the three legs is to make the employees the owners. With shared equity another thing that diminishes is the constant need to grow profits. The new owners will usually be satisfied with a constant income and not be obsessed with more and more. It is obvious that many business fail because they tried to grow too fast.
Our industrial society started out as a cottage industry. Small businesses were built based on local needs. Maybe it is time to start heading back in that direction. If you ask me “Too Big To Fail” is a formula for the implosion of capitalism. How to make shared equity once again happen is the question of the day. The first answer is probably to force politicians to join Bernie Sanders and Elizabeth Warren in realizing that shared equity appears to be our only viable future.