40 Questions
What was the author's primary concern when approaching Senator Russell Long?
Finding a champion for the ESOP bill
What was the author's initial concern about introducing a bill?
Getting the bill signed into law
What was Senator Long's response to the author's proposal?
He asked the author to bring him a package the next day
What was the core idea of the author's proposal?
Worker ownership of railroads
What was Senator Long's concern about the railroads?
Taxpayers would have to bail out stockholders
What did Senator Long do in the meeting of the Commerce Committee?
He waved papers around and presented the idea
Who was the chairman of the Commerce Committee?
Senator Warren Magnuson
What was Senator Long's response to Chairman Magnuson's comment?
He said he was very busy
What was the main purpose of Thevenot's trip?
To put questions to Kelso about his new idea
Why did Thevenot agree to help Kelso?
Because he was impressed by Kelso's idea
What did Senator Long say when he opened The Capitalist Manifesto?
I want to meet these people
What was Kelso's proposal for the Conrail system?
To let the workers become the owners
Who did Thevenot and the author meet to arrange for Kelso's meeting with Senator Long?
Wayne Thevenot
What did Eric Severeid deliver on the radio the day before the meeting with Senator Long?
An editorial supporting the proposal
Why did Kelso and the author go to the gallery to wait for Senator Long?
Because Senator Long was tied up in a debate
What was the significance of the event on the radio the day before the meeting with Senator Long?
It was a positive sign for the meeting with Senator Long
What was the main reason why Senator Long agreed to meet with Kelso and the others?
Because he wanted to understand how Kelso's idea could be related to his father's 'share the wealth' programs
What was the significance of Senator Long's dinner meeting with Kelso and the others?
It was a rare opportunity for Kelso to discuss his idea with a prominent politician
What was the main topic of discussion during the dinner meeting?
Kelso's general theory and logic of binary economics
Why did Senator Long's father, Huey Long, pose a threat to Roosevelt's political leadership?
Because he was a charismatic populist with a strong base
What was the outcome of Senator Long's meeting with Kelso and the others?
Senator Long listened to Kelso's idea and related it to his father's 'share the wealth' programs
What did Senator Long manage to get into law?
A study to determine the extent of employee ownership
Who signed the legislation into law on January 1, 1974?
President Nixon
What was Kelso's idea about economic ownership?
That every man should become a capitalist and own capital
What was the significance of Huey Long's assassination?
It led to Russell Long becoming the youngest Senator ever elected
What was the outcome of the ESOP study by E.F. Hutton and others?
It found that ESOPs would have no positive impact
What was the atmosphere of the dinner meeting between Senator Long and Kelso?
Engaging and interactive, with a focus on discussing ideas
Who provided a point-by-point rebuttal to the study's conclusion?
Senator Russell Long and Louis Kelso
How many ESOP companies exist today?
Over 10,000
What Act of 1974 promoted ESOPs?
Employee Retirement Income Security Act (ERISA)
At what age was Russell Long elected as a US Senator?
Before 30
What type of leaders are needed to move systemic change forward?
Authentic leaders with power, courage, and principle
What did Russell Long liken his father to?
A Robin Hood populist
What is the approximate number of employee-owners today?
Over 11 million
What was Russell Long's philosophy about ownership?
Every man should be a capitalist
Who opposed Kelso's economic theories?
Traditional economists, including Milton Friedman and Paul Samuelson
What was Russell Long's principle in politics?
I don't care who's right, I care what's right
What was the topic of the bill before Congress mentioned in the conversation?
Dealing with the railroads
Who were the co-sponsors of the bill from the Democratic party?
Senator Humphrey and Senator Metcalf
What was the prognosis of the bill before Congress?
It was not expected to go anywhere
Study Notes
ESOP Champion Russell Long
- Russell Long, a senator from Louisiana, played a crucial role in promoting the Employee Stock Ownership Plan (ESOP) concept.
- Long was convinced by Louis Kelso's idea of worker ownership and championed the cause, introducing a bill that led to the passage of the Employee Retirement Income Security Act (ERISA) in 1974.
The Meeting that Changed the Course of ESOP
- A meeting between Russell Long, Louis Kelso, Wayne Thevenot, and the author took place on November 27, 1973, at the Montpelier Room in Washington D.C.
- Kelso discussed his general theory, political theory, and the logic of binary economics with Long, who listened intently and compared Kelso's ideas to his father Huey Long's "share the wealth" programs.
- Long, unlike his father, was not a Robin Hood populist and believed every man should become a capital owner, which he called a "capitalist."
The Early Days of ESOP
- The concept of ESOP was met with opposition from traditional economists, including Milton Friedman and Paul Samuelson.
- Senator Long's support was instrumental in getting a watered-down version of the ESOP legislation passed, which called for a study to determine the extent of employee ownership.
- The study, which was awarded to E.F. Hutton and others, concluded that ESOPs would not be effective, but Kelso and the author later provided a rebuttal to this report.
Legacy of ESOP
- Today, there are over 10,000 ESOP companies and over 11 million employee-owners in the United States.
- Russell Long's support was crucial in establishing ESOP as a viable form of employee ownership, leading to the passage of over 20 laws promoting ESOPs.
A conversation about introducing a bill in the US legislation process, discussing the need for a powerful committee member to get it passed.
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