The Economic Consequences of Sen. Sanders’ Stock Confiscation Plan

Bernie Sanders would confiscate 20 percent ownership stakes in 22,000 companies, distributing the stocks to workers through shared employee ownership funds. His “Corporate Accountability Plan,” announced yesterday, should lay to bed any lingering doubts that “democratic socialism” is just about social democracy, or a bigger welfare state. Rather, it amounts to a fundamental attempt to re-order the American economy through federal government edicts.

Under Sanders’ “Democratic Employee Ownership Funds,” all publicly traded companies and those with at least $100 million in annual revenue would have to contribute 20 percent of their stock to “workers” over a decade, creating an “employee-controlled fund” that distributes any dividends to employees. Unlike ordinary stocks, workers couldn’t sell or transfer the stocks in their name. Instead, the fund would be managed by elected worker representatives, with ordinary voting rights. Worker representatives would also make up at least 45 percent of boards in firms with at least $100 million in annual revenue, $100 million balance sheets, and publicly traded companies.
https://www.cato.org/blog/economic-c...fiscation-plan