The Public Interest

Pension fund "socialism"

Peter F. Drucker

Winter 1976

IF "socialism" is defined as "ownership of the means of production by the workers"-and this is the orthodox definition-then the United States is the most "socialist" country in the world. Through their pension funds, employees of American business own today at least 25 per cent of the equity capital of American business. The pension funds of the self-employed, of public employees, and of school and college teachers own at least another 10 per cent more, giving the workers of America ownership of more than one third of the equity capital of American business. Within another 10 years the pension funds inevitably will increase their holdings and will, by 1985 at the latest, own at least 50 per cent of the equity capital of American business.  And all of this, of course, excludes personal ownership of stock by individual American workers-a small, but not negligible, percentage of the total.

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