THE 3rd WAY is a very big idea. In the information age, you simply cannot get ahead on wages alone. In addition to your labor, you must acquire capital (stock, real estate, technology, etc.). Now the middle class is in crisis. Median wages adjusted for inflation have decreased steadily for decades. The middle class is simply not sharing in the nation’s capital centered economic growth. Widespread current discontent is destined to lead to serious unrest unless we promptly put the correct solutions in place.
Exponential advances in technology relentlessly exacerbate the ever widening chasm between the productive power of capital vs. labor. An innovative system to re-link these fundamental forces must be expeditiously ordained to equitably share the capitalist blessings of wealth and avert a looming social calamity.
“Inclusive” capitalism would change the playing field by offering significant tax incentives to corporations willing to establish employee stock ownership plans (ESOPs), allowing employees to acquire capital shares without depleting their own savings. Stock holdings would provide the middle and lower classes with what they so desperately need: income capital in addition to earnings via their labor.
This week we speak with Veny Musum and Upendra Chivukula, co-authors of the brand new book, The 3rd Way: Economic Reform or Social Revolution. In this book, and in this episode, Veny and Upendra present a big, bold idea on how we can close the gap between the rich and the poor and how companies can benefit in the process.