Video “Men and Jobs” by The Economist

We found this interesting video on the contribution of capital and labor to work. Ryan Avent describes here that the share of capital is increasing while the share of labor is simultaneously decreasing. This decreasing share of labour was already observed by Louis O. Kelso, he claimed that employee ownership is a great tool that lets labour participate in the outcomes of productive capital via ownership. Ryan Avent from The Economist (Video below) seems to have the same thoughts as he says that employee ownership might function as one of the solutions by having ownership in the productive capital.

The best way to make this capital ownership available to all employees is by means of a leveraged ESOP model. The leveraged ESOP model allows the company to take on a bank loan in order to provide employees with shares of the company, by using the trust as the vehicle of holding shares. The leveraged effect originates from the loan repayment by future earnings.

Also see our previous blog posts:

The Economist: A shirnking slice – Labours’ share of national income has fallen

197 Words intro on leveraged ESOPs

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About Intercentar

Intercentar is devoted to dealing and promoting the idea of Employee Financial Participation for a more just society.

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