Economic ownership has re-entered the political mainstream. Senator Bernie Sanders is the latest politician to plant a flag in this debate with an ambitious plan, announced this week, to give workers a greater stake in their companies and the wealth they generate. Following the announcement of Labour’s Inclusive Ownership Fund policy in 2018, Sanders’ designs mark a decisive shift in policies to democratise ownership at scale. No longer content with regulating capitalism, progressives are instead directly confronting capital ownership.
Though the details of Sanders’ plans are yet to be hashed out, its direction of travel is clear. The plan would require businesses to contribute a percentage of stocks to a fund controlled by employees. In turn, the fund would pay a regular dividend to workers while making them a powerful voting shareholder. Analysis for Common Wealth, the think tank I co-founded that designs ownership models for a democratic and sustainable economy, suggests that granting 10 per cent of dividends would pay on average $2,725 per employee each year.
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