Theory of People’s Capitalism, one of the most widespread contemporary bourgeois apologetic theories. Its main contention is that the character of capitalist society changes as a result of the action of mechanisms inherent in capitalism. Its advocates maintain that capitalism gradually and automatically grows into a new social system similar to socialism. Among these mechanisms, the greatest significance is attached to the "democratisation of capital" or "diffusion of property”, " democratisation of the management" of production as a result of the "managerial revolution" (see Theory of Managerial Revolution) and the "incomes revolution" (see Theory of Revolution in Incomes), which allegedly reduce the differencies in the income levels of the various segments of the population. Bourgeois theorists hold that the " democratisation of capital" is the most important process. The wide spread of the joint-stock form of capitalist enterprises is supposed to engender the mass diffusion of shares among the working people. As a result, capitalist property allegedly loses its capitalist character and becomes popular, 369 collective. The fact that a factory worker or a small office employee buys shares is regarded as evidence that a growing number of workers are becoming capitalists, co-owners of enterprises. According to this theory, the gradual “transformation” of a growing mass of workers into capitalist owners is complemented by the growing role of the new stratum of managers of capitalist enterprises. According to bourgeois sociologists, these processes go hand in hand with a levelling out of the incomes of different social segments. Here it is the bourgeois state, with its policy of progressive taxation, public expenditure on education, public health and social insurance, that plays the most important role. The formal-juridical approach to the problem of share-owning is the key methodological flaw in the theory of "capital democratisation”. The fact that the worker buys a few shares does not grant him any real opportunities to influence the management of the joint-stock company and changes virtually nothing _in his social status as a worker. On the contrary, the mass spread of shares furthers the mobilisation of additional means of the population and makes it easier for big share-holders to control jointstock companies. Most of the working people in capitalist countries have no shares at all. Nor is there any levelling out of incomes. The theory of "people’s capitalism" is designed to distract the working class and all the working people from the need to eliminate the capitalist relations of production and to engender an illusion of the possibility of capitalism automatically growing into socialism.