Words Of Wisdom that the labor movement should use as the basis for transforming the movement into Producers Ownership Unions. Walter Reuther was right in 1967 when he stated: Profit sharing in the form of stock distributions to workers would help to democratize the ownership of Americas vast corporate wealth which is today undemocratic and unhealthy. If workers had definite assurance of equitable shares in the profits of the corporations that employ them, they would see less need to seek an equitable balance between their gains and soaring profits through augmented increases in basic wage rates. This would be a desirable result from a standpoint of stabilization policy because profit sharing does not increase costs. Since profits are a residual, after all costs have been met, and since their size is not determinable until after customers have paid the prices charged for the firms products, profit sharing [through wider share ownership] cannot be said to have any inflationary impact upon costs and prices. (Hearings on the 1967 Economic Report of the President, Joint Economic Committee of Congress, p. 774.)
Posted on: Fri, 02 Jan 2015 17:42:16 +0000
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