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No. 359

November 1, 1999

The Rise of Worker Capitalism

by Richard Nadler

Executive Summary

and mange the contents of their portfolios.

The most significant demographic shift of

Americans' increased involvement in capital

this century is the rise of history's first mass class

markets has affected other aspects of their lives:

of worker capitalists--men and women whose

notably, their retirement planning, job satisfac-

wealth-seeking activities include both wage earn-

tion, and productivity in the workplace. The

ing and capital ownership.

growth of investment has rewarded, and appears

Today, 76 million Americans, members of 43

to have thus encouraged, an orientation toward

percent of U.S. households, own stocks or stock

the future--the investor's own and his family's.

mutual funds. This represents a 126 percent

Finally, the study explores how capital owner-

increase in shareholding over 15 years.

ship affects opinions relating to public policy.

Demographically, capital ownership, once the

Shareholders display favorable attitudes toward

signature of wealth, has become widely diffused.

programs that reduce taxes on savings and invest-

From 1989 to 1995, shareholding increased dra-

ment for retirement, education, health care, and

matically among every age group, income brack-

other major life-cycle occurrences. At the same time,

et, racial cohort, and occupational category for

they register high levels of skepticism toward gov-

whom statistics are available. The rate of increase

ernment "investments" for these same purposes.

was particularly steep among laborers and farm

-

Original research is introduced that indicates

ers (106 percent), householders 34 years old or

that stock holding affects investor attitudes

younger (64 percent), and families with incomes

independent of race, age, sex, income level, or

under $25,000 (80.4 percent).

marital status.

Next the study chronicles the extent to

The growth of share ownership is changing

which members of this expanding shareholder

the values and perceived political interests of vot-

class have internalized their new role as capi-

ers--increasing the body politic's support for

talists. We find them actively utilizing new

investor-friendly policies.

sources of information to evaluate, reallocate,

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Richard Nadler is the executive director of American Shareholders Association and editor of K.C. Jones Monthly.