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Some thoughts on the future of capitalism...
In spite of some significant trade offs, free market capitalism has been THE primary force that has reduced human suffering to it's lowest point in history.
In spite of some significant trade offs, free market capitalism has been THE primary force that has reduced human suffering to it's lowest point in history.
2-As proof see this article which lists 23 ways the world is far better than it used to be, all of which are arguably caused directly or indirectly by free market capitalism. https://www.vox.com/2014/11/24/7272929/global-poverty-health-crime-literacy-good-news
3-How has capitalism been so powerful? In a free-market economy, competition for profit drives innovation, innovation drives economic growth, and economic growth drives up standards of living.
4-Innovations that start as expensive status symbols for the rich (electricity, refrigeration, airplanes, mobile phones) end up freeing millions from dangerous and tedious lives as life changing new products and services become affordable to the masses.
5-However, more and more people seem ready to blow it all up. (See Trump, Bernie, Brexit, numerous other far-right and far-left uprisings, drastically reduced trust in institutions, increasing anti-globalization, anti-science and anti-free speech sentiments, etc.)
6-The internet, social media, and smart phones have transformed the world into one community, where everything (bad) is published in real time. Things FEEL worse because we're AWARE of more suffering than ever. We've actually been here before. https://www.history.com/news/printing-press-renaissance
7-In the long-run, this increased transparency creates more accountability for those in power, so it will be a good thing. Powerful people and institutions that benefit to the detriment of others are being punished for anti-social actions and systems that prevent well being.
8-The most powerful institutions are governments, major religions and businesses. Each will be forced to reconcile with the new times by evolving to benefit the masses more and the powerful less. Failure to do so could lead to replacement, in some cases by force.
9-I believe we need more business owners (public and private, large and small) to voluntarily embrace elevated forms of capitalism in the coming years, or we risk losing out on the benefits of capitalism all together. Being a capital provider is a privilege, even if it's earned.
10-There are numerous elevated forms of business including B-corps, employee-ownership, co-ops, decentralized organizations, green certification, etc. Each in its own way can be very effective at making business a force for good in addition to profit.
11-Elevated forms of capitalism generally reject old school tenants assumed to be core elements of capitalism, but in reality are just short-term thinking. For instance, increasing shareholder value by any legal means necessary, or the adversarial employee/ownership relationship.
12-Elevated forms of capitalism are more long-term oriented, healthier and more sustainable, so this isn't a call to turn our backs on the profit motive. The longer a business exists the more profit it can earn. Investing in an elevated form of capitalism has a real return.
13-If you own or run a business, consider becoming a B-Corp. Consider selling a minority interest to the employees through an ESOP retirement plan. Consider getting certified as a green business. Pick at least one and make it happen.
14-I'm partial to ESOPs because if we want people to appreciate capitalism, why not create exponentially more capitalists by turning employees into owners? Employee-owned businesses tend to embrace sustainability and ethical business practices too so its a win-win.
15-Businesses need to voluntarily hold themselves to higher standards. This isn't just a PR issue that can be solved by green-washing or touting the benefits of capitalism. We shouldn't wait for govt to force the issue. Free market capitalism's reputation is at stake.
