ABSTRACT
Profit-sharing seemed to indicate the contradiction inherent in the capitalist system. Under profit-sharing, there would be no general redistribution of wealth, and the bulk of both capital and control would be left in the hands of the capitalist class. The rules of profit-sharing schemes in general stipulated that a bonus to employee would be declared "after the ordinary shares received the proper dividend". The situation of worker directors under the co-partnership scheme was not drastically different. Profit-sharing introduces a new phase in the conflict between capital and labor. Socialists showed keen interest in the development of profit-sharing and co-partnership, as they were fully aware of the fact that the system was advocated as the antidote to socialism. Some advocates claimed that profit-sharing was a "modified practical" form of Socialism as it would erode the difference between capital and labor and eventually raise the wage earner to the capitalist.
