Jefferson and Madison on Employee Ownership
Connecting ideas of land ownership and power to employee ownership
Did these two founders suggest the concept of employee ownership as a way to strengthen democracy? Here is how their ideas of land ownership and power reflect the concept of employee ownership.
Thomas Jefferson
— Jefferson believed that individual property ownership was crucial to driving the nation forward. He often connected land ownership to success and stability. However, he also believed that unequal distribution of this land could be troublesome as it could lead to social and economic problems. We see this in 1785 when Jefferson writes to Madison, “The property of this country is absolutely concentrated in a very few hands.” In these letters he points out the concentration of property and wealth being in the hands of very few, suggesting that this could lead to widespread poverty and unemployment. While he does not explicitly mention employee ownership, his views align with employee ownership models such as cooperatives or employee stock ownership plans (ESOPs) because they align with the idea that giving workers a stake in success can profit all. The idea of equal distribution of land aligns with the idea of giving employees a stake in their workplace and also highlights a commitment to reinforcing democracy through shared economic participation.
James Madison
— Like Jefferson, Madison also expressed concerns about the concentration of power. In Federalist No.10, Madison focuses on factions and the majority. He worried about the tyranny of the majority and the ability of one faction to completely dominate others and lead to unfair decisions. Madison also expressed concerns about few people owning most of the land and argued this would lead to inequality problems. He proposed a large republic that represented a diverse range of interests so that this would cancel out the power of the majority. His concerns along with this proposed solution are reflective of employee ownership models because they ensure that the employees are part of a more inclusive and fair form of governance that aims to prevent the tyranny of the majority within the workplace. By including employees in the decision-making process, companies also enable a diverse range of ideas to be presented. This incorporation of employee perspectives not only aligns with democratic views but also mitigates concerns about inequality, echoing the founders’ visions for a balanced society.