David Schweickart's.

• Author: Branson, Walter
• Position: FROM READERS - Letter to the editor

David Schweickart's ideas for a democratic economy are interesting, but unlikely to be implemented in the near . term. However, he too quickly dismisses the possibility of sustainability within a capitalist system, based on his idea that investors in a capitalist system demand constant growth, and will fail to provide investment capital without that opportunity, leading to contraction and job losses.

In fact, profitable companies can, and often do, provide an adequate return to investors without growth. A properly structured industry allows participants to earn a sufficient margin on sales to pay labor costs, replace worn equipment, and pay a return to investors in the form of dividends. A company in an industry not subject to dramatic technological change can exist in this way indefinitely, providing jobs but not growth, without requiring additional investment capital. When technology does advance, requiring new enterprises to replace the old, investors will provide the necessary capital for start-up, without the need for constant growth, as long as an adequate cash-on-cash return can be expected.

We will need several adjustments to our economy to...