The gap in wealth in the United States between the ultrawealthy and everyone else has reached its widest point in decades. One way to narrow the divide is through the use of worker buyouts, in which ownership of a company transfers from a single person or a small number of people to the workers of the company.
Why the U.S. Needs More Worker-Owned Companies
As the U.S. wealth gap expands, one promising way to narrow the divide is through worker buyouts. In this piece, the authors argue that employee-owned companies are likely to grow in popularity over the course of the next decade due to three mutually-reinforcing trends: First, many communities are experiencing renewed interest in ensuring the economic viability of local businesses. Second, research suggests that employee-owned enterprises outperform their competitors, especially during economic downturns. Finally, because of their high performance, these companies are often able to attract more and better financing, which in turn makes worker buyouts more feasible. Worker buyouts offer an effective, sustainable balance between workers who hope to become less paycheck-dependent, and shareholders who demand ever-higher returns.