“The worst crime against working people is a company which fails to operate a profit.” — Labor leader Samuel Gompers
Last week, I published my article, “What’s Better Than Democratic Socialism?” My answer: Democratic Capitalism! See my article here in Skousen CAFÉ: What’s Better than Democratic Socialism? – Mark Skousen.
My article drew a lot of readers.
But nothing can compare to my op-ed in yesterday’s Wall Street Journal, which would ignite a firestorm of comments and make the “most popular” list.
The title is, “Share the Wealth, Don’t Redistribute It.”
In many ways, consider it Part II of the benefits of “Democratic Capitalism” or what Marty Cummins calls “Opportunity Economics.”
I’ve written over a dozen articles for the Journal over the years, but this one struck a chord, with over 1,000 comments so far (pro and con).
I’ve received rave reviews from Rick Santelli of CNBC… John Mackey (former CEO, Whole Foods Market)… Alex Green, chief investment strategist at the Oxford Club… Burton Malkiel, Princeton professor… Ron Robinson, former president of Young America’s Foundation… Jim Doti from Chapman University… money manager and ambassador Ron Spogli… and Nobel laureate Richard Thaler of the University of Chicago… and even many economists and readers from abroad.
You can read the #1 op-ed here: Share the Wealth, Don’t Redistribute It – WSJ. (Note, there is a paywall.) Please add a comment if you are so inclined.
The basic thesis is that there is no need to tax the rich or raise the minimum wage, as advocated by the democratic socialists.
Major corporations are quietly solving the inequality problem by offering ordinary employees generous 401(k) plans, stock grants and stock options that are making average workers millionaires.
I give plenty of examples. I estimate that Microsoft has been responsible for creating over 30,000 multimillionaires among ordinary employees due to stock options alone. Even Walmart offers to help workers start their 401(k) plans, and offers stock grants. Most major corporations offer these profit-sharing plans. Some smaller companies too.
The Emergency of 401(k) Plans
It was Richard Thaler (co-author of the book “Nudge”) who lead a group of economists to push corporations to automatically enroll their employees into 401(k) plans, but they could opt out if they so chose. By encouraging workers to engage in “automatic savings plans” (investing in the stock market every time they received a paycheck), 401(k) plans blossomed. Now the majority of workers have them, an independent source of wealth outside of Social Security.
It became an “easy” way to become financially independent. Thaler calls it “libertarian paternalism.”
Five Ways for Ordinary Workers to Engage in Profit-Sharing
There are a number of ways successful businesses help their employees become financially independent.
- 401(k) retirement plans: Most companies match employee contributions up to a limit. This is the fundamental way to earn long-term financial independence.
- Bonuses: Companies offer these kinds of incentives when there is a one-time event. For example, when Trump cut taxes in 2017, thousands of companies gave out $1,000 and $2,000 bonuses to all employees.
- Stock Restricted Units (SRUs): Companies grant a limited number of shares to employees. This method of profit-sharing has become increasingly popular.
- Stock Options: Many companies give some or all of their employees the right to buy their stock at a certain price, although most companies restrict options to executives and managers. Employees don’t exercise these options unless the price exceeds the strike price.
- Employee Stock Ownership Plans (ESOPs): There are over 6,500 ESOPs in the United States, and many of them are successful. My favorite example is Publix grocery stores in Florida, which are highly profitable and popular among workers.
Today, over half of all workers benefit from these lucrative benefits. Democratic capitalism works!
What Readers Are Saying
Several readers said my essay “should be included in the curriculum of the general business class every high school student should be required to take.” I handed out my op-ed to all my Chapman students.
Many readers say “Wow!” Beverly Hills money manager Ken Gerbino wrote, “What a brilliant and amazing op-ed. You really hit it out of the park. The title was brilliant [created by the Wall Street Journal editors — MAS]. You will inspire tens of thousands of entrepreneurs and business leaders, small and great, to try sharing their company’s success with employees. You are going to be picked up globally by zillions of opinion leaders.” I can only hope!
Author and entrepreneur Marty Cummins wrote, “Finally, there is an economist who knows how to market free market capitalism (WSJ, 11/12/2025, Share the Wealth, Don’t Redistribute It). Underlying Professor Skousen’s article is the fundamental truth that free enterprise allows business owners to create and share wealth, while socialism makes everyone equally poor, but for the government elites and their cronies. The Soviet Union, East Germany, North Korea, Cuba and Venezuela have proven that unequivocally. May I suggest this: ‘Workers and business owners of the world unite; there is nothing to lose but your government chains.’”
Long live democratic capitalism!
Upcoming Appearances
My wife and I will be attending the Baron Investment Conference on Friday in New York City. Elon Musk is making an appearance. I’ll have a full report on Monday.
Benjamin Franklin and the Birth of American Liberty — Nov. 21 Virtual Event
Next Friday, Nov. 21, I’m doing a live interview on my new book “The Greatest American” at 2 p.m. Arizona time (4 p.m. ET) with Tim Sandifur at the Goldwater Institute in Phoenix, Arizona. To watch it live, go to Webinar Registration — Zoom.
Sunday Fireside, Nov. 23, at the Heritage Academy in Arizona
I’ve organized a very important get-together in Arizona to discuss this vital topic: “America’s Divine Destiny: Is the Constitution Hanging by a Thread?”
Keynote speaker Congressman Andy Biggs, who is also running for governor next year, will join me and Jo Ann for speeches and a panel.
I will also be moderating a panel on “Trump and the Limits of the Constitution,” with Congressman Biggs, Floyd Brown (founder, Western Journal), Earl Taylor (president, National Center for Constitutional Studies) and Jo Ann Skousen.
Jo Ann and I will also be speaking about our book, “There Were Giants in the Land: Episodes in the Life of W. Cleon Skousen,” followed by an autograph session.
This is a free event, but space is limited; you must register at this event using code SKOUSEN1787 to join us. Use this code to get tickets for you and friends and relatives. Go here to register at https://www.eventbrite.com/e/americas-divine-destiny-tickets-1875631055979?aff=oddtdtcreator.
Copies of my books can be obtained at nice discount at www.skousenbooks.com.
Good investing, AEIOU,
Mark Skousen
You Nailed It!
Florida Brings Back Sanity to Tort Reform
Governor Ron DeSantis has done it again. In 2023, he pushed through a tax reform law that reduced the abuse of frivolous lawsuits by aggressive lawyers in the state of Florida.
The Republican-controlled Florida legislature eliminated one-way attorney fees and curbed a common practice by which attorneys inflated medical costs for injuries caused by car accidents.
They also passed reforms that stopped unscrupulous contractors and plaintiff attorneys from jacking up claim costs.
Result? Insurance rates on homes and automobiles are now coming down, and insurance companies are returning to Florida.
Progressive Insurance Company stated, “Since Florida insurance reform was enacted in early 2023, we have seen lower loss costs on certain types of personal auto accident claims and favorable reserve development, and we have experienced strong profitability in our Florida personal auto business.”
Recently, State Farm announced that it will cut auto rates in Florida by 10%. According to the Florida Office of Insurance Regulation, the state’s five largest auto insurers have reduced rates by 6.5% on average this year.
Since January 2024, 33 insurers have filed for rate decreases, and 17 new insurance companies have entered the market.
Meanwhile, insurance costs continue to rise in other states. They could learn something from the Sunshine State.
