The Ownership Solution: Toward A Shared Capitalism For The 21st Century [Paperback]

Jeff Gates (Author)

Book Description

Publication Date: April 23, 1999

Capitalism now reigns triumphant—but in the process has created dramatic inequalities of wealth and left many individuals feeling disconnected. Backed by enthusiastic support from a wide array of legislators, corporate leaders, Nobel laureates, environmentalists, and social and political activists, The Ownership Solution shows how to humanize and localize free enterprise by using ownership as a means for engaging more people in its design.

Editorial Reviews

Amazon.com Review

Capitalism may have taken over the bulk of the modern world, writes highly regarded government and industry consultant Jeff Gates, but in its current incarnation it has created such dramatic inequities of wealth and power that more individuals than ever now feel detached from its inherent benefits and distrustful of its potential goals. In his revolutionary new book, The Ownership Solution: Toward a Shared Capitalism for the 21st Century, Gates outlines a wide-ranging plan to reverse this increasingly universal condition--and the result is a specific blueprint that, he argues, could easily be adopted around the globe. After bluntly describing precisely how things got to be the way they are, he straightforwardly explains how they could be reengineered to provide broad-based prosperity and true security for the disenfranchised in the U.S. and elsewhere (such as Europe, China, Latin America, and South Africa). Based on the premise that "contemporary capitalism is not designed to create capitalists, but to finance capital," Gates shows how today's "institutionalized indifference to the common good" might be reversed by public and private effort so that people and communities can regain control over their fates and subsequently work together for everyone's improved economic vitality. --Howard Rothman --This text refers to an out of print or unavailable edition of this title.

From Library Journal

Gates, a lawyer, investment banker, and consultant, finds that although capitalism dominates world economies, it is flawed owing to great inequalities of wealth that are politically and socially unsustainable. What is to be done? More employee-owners must be created, Gates contends, to humanize the free-enterprise system. Earlier solutions, such as ESOP (employee stock option plans), did not catch on. Other approaches must be tried, such as coupling lower corporate taxes, allowing larger depletion allowances, and granting greater earned-income tax credits with broad-based employee ownership. The thrust of Gates's argument is blunted by loose organization and turgid writing. An optional purchase for public policy collections of academic libraries.?Harry Frumerman, formerly with Hunter Coll., New York
Copyright 1998 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 416 pages
• Publisher: Basic Books (April 23, 1999)
• Language: English
• ISBN-10: 0738201316
• ISBN-13: 978-0738201313
• Product Dimensions: 9.2 x 6.1 x 1.1 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars  See all reviews (8 customer reviews)
• Amazon Best Sellers Rank: #1,254,850 in Books (See Top 100 in Books)

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Customer Reviews

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7 of 7 people found the following review helpful:

5.0 out of 5 stars How to save capitalism, November 6, 2002

By 

Malvin (Frederick, MD USA) - See all my reviews
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This review is from: The Ownership Solution: Toward A Shared Capitalism For The 21st Century (Paperback)

"The Ownership Solution" is written by Jeff Gates, one of the original forces behind the legislation that created employee stock ownership plans (ESOPs) in the 1970s. The book seeks to inspire decision makers and business leaders to build on the success of this innovative program. He proposes that similar projects should be launched with the goal of providing opportunities for employees and consumers to gain ownership stakes in the businesses in which they work and spend their money.

Gates argues that the increasingly finance-driven economy has changed the face of capitalism, a phenomenon that has accelerated in recent years. The author shows how the decisions made by detached financial managers results in a system that mainly rewards investors who, by definition, are already wealthy. The speed with which these investments can be reallocated purges the economy of do-good business managers who might choose to devote resources to so-called nonproductive means (such as worker benefits or environmental protections), meaning that workers and society consistently end up losers in this game. Gates believes that the resulting worker insecurity and the marginalization of ever-larger segments of the population ultimately threatens the long-term viability of our democracy.

In contrast, Gates believes that broadening ownership will allow more citizens to feel connected to their workplace and community. His proposals are imaginative but appear to be doable; in fact, some are being practiced in limited form in various places. Here, Gates' writing is at its best. You'll enjoy reading about how DSOPs, GSOPs, CSOPs, RESOPs, VSOPs and yes, ESOPs can help to revitalize the economy and repair our frayed society. Gates suggests that what is needed is the political will to promote these solutions on a larger scale in order to have greater impact and make a difference in people's lives.

Interestingly, a writer in Forbes magazine recently remarked in a condescending manner that ESOPs represent an odd mixture of capitalist and socialist ideas. This suggests to me that the idea has merit. A capitalism that only succeeds in rewarding the top executives of Enron and Citicorp with lavish pay-outs is not sustainable nor is it worth saving. But a capitalism that rewards hard-working employees and consumers with the greater prosperity that comes with earning an ownership stake, as envisioned by Gates, is certainly worth striving for. To that end, I heartily recommend Gates' book to all who are looking for ideas to help save capitalism and to secure the future of our society.

6 of 6 people found the following review helpful:

5.0 out of 5 stars A creative, yet credible strategy for empowering people., July 25, 1998

By A Customer

This review is from: The Ownership Solution: Toward A Shared Capitalism For The Twenty-first Century (Hardcover)

Somewhere in between unbridled capitalism and the welfare state, there has to be a more just and equitable economic system which provides genuine opportunities for all citizens, while preserving incentives for investment. In The Ownership Solution, Jeff Gates outlines a creative, yet credible strategy for empowering working people with a more vital interest in private enterprise. If capitalism can indeed have a human face, the reforms proposed in this provocative book merit careful consideration.

4 of 4 people found the following review helpful:

5.0 out of 5 stars Offers proven ways to marry capitalism to ethical values., December 30, 1998

By A Customer

This review is from: The Ownership Solution: Toward A Shared Capitalism For The Twenty-first Century (Hardcover)

The great value of Jeff Gates' book is that it offers proven and practical ways to untangle some of the most intractable knots in the world today: how to restore a sense of pride and ownership to industry, and how to marry capitalism to ethical values. It couldn't be more timely.