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Capitalism can be teamed as one of the economic system whereby, resources and means of production are owned by private sector or in other terms; privately owned and controlled by a few individuals or corporations in a society. This is prevalent especially in the current economy where as it is commonly said that ninety percent of a state or nation’s wealth is possessed by not more than one percent of a certain group of individuals while the remaining ten percent is to be shared among ninety nine percent of the population. This just shows how the wealth that is created ends up in the hands of very a small number of individuals and that the entrepreneurs and workers who took part in the production process get very little share of the outcome.           

This system, according to Cabral (Greider, P.243) is so disproportionate and unsustainable since the real wealth creators have not been done right and it will burst at some point. This is true since it is only fair that people get returns proportional to their efforts and also if resources are left in the hands of few people in the economy, it is possible that they may attempt to control and even dictate many activities which will definitely not be good. It is also important to note that if output is proportionally shared according to the input by an individual, this could be a real motivator which will even help further increase future output. Employee Stock Ownership plan (ESOP), invented by Louis Kelso and used by Joe Cabral in his company proved to be a great motivating tool as it helped increased profitability since the employees knew they were working for themselves and not an outside shareholder, (Greider, P.244) and as Cabral says this really makes sense because everyone is getting the wealth they are creating.           

Capitalism, however, if practiced in the right economic conditions and for the right reasons, then it has its own benefits to an economy and even individuals who might think it is an extorting system. Greider, P.246 argues that, “in the best circumstances an economy functioning with broadly shared ownership of enterprises would not eliminate the stark inequalities that already exist.” These inequalities could be as a result of choice of some people not just to work hard and hence in such situations it is only sensible and fair that the few who are hard working own the resources. In addition, Greider mentions that some steps to enhance shared ownership could be done for the wrong reasons, for example, an employee stock ownership plans as a way to evade paying tax.


In conclusion, shared ownership of resources is of great importance as it enhances fairness in wealth distribution. It also brings about democracy in the production system hence people will be able to realize their full capacities as human beings. In addition, shared ownership acts as a motivator in the production process especially in cases of employee stock ownership plan which helps to increase the profitability of an organization (Greider p 246). However, self ownership has its own benefits; for example, it encourages spirit of hard work among people, especially the non owners of resources, since they will strive to do their best so as to be able to at least increase their self ownership which in aggregate increases output. It also encourages innovation since resource owners will take advantage of the free market to make profits but also improving technology.

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