“So, I am to receive thirty percent for finance, for legal protection and political influence. Is that what you’re telling me?” – The Godfather
Hunter was so stoned he ate a kid’s meal at McDonald’s® yesterday. The kid’s mom was not happy.
I am a fan of capitalism, mostly. Over time it has proven to be the single best way to have people contribute. It gives them a reason – if they do well, they gain more. By combining lots of people competing fairly, the entire world gets wealthy enough to afford a full tank of gas. How we split it 8 billion ways is up to us, I guess.
It’s simple – with capitalism, people don’t try to get more of the cake, they make the cake bigger. Or they make more cakes. And it’s all voluntary, unless it’s for a gay person. I’ve been told that baking cakes for gay people is the one thing in capitalism that’s not optional.
Capitalism is so excellent that it (along with several thousand nuclear weapons) was the primary weapon that allowed the United States to not become fragmented into places like Collective Farm #1701 in the Nebraska Oblast of the Greater Soviet Union.
I saw a the Davis twins at my high school reunion. Those two sure looked the same!
However, there is a problem with pure capitalism.
Morality, or more specifically, the lack thereof.
I used to be a complete libertarian, and I thought that, generally markets would take care of any imbalances over time. They don’t. What has happened is that the economy has been warped.
When I graduated from college, I didn’t really have the vocabulary to describe the way that I felt about it, so I said, “I really don’t want to work for a financial company, I want to work for a company that makes something.” At 21, that was about all I could come up with to describe it.
Thankfully, I’ve spent more time out in the world and have come to understand what I was trying to say so inelegantly back when I was young. Here’s what I’d say today: “I don’t want to work for a company that’s a vampire leaching off the economy by providing nothing.”
Still better than Goldman Sachs®.
And that’s what a lot of the economy of the country has become. It’s led by companies that don’t fundamentally produce anything. Black Rock® financing private investors who bought hundreds of thousands of houses across the country is a great example of this. Why? To turn renters into profit centers.
They were creating no value for society, instead their entire idea was to turn a necessity – a place to live – into a profit center and create no value in doing so. And that’s the segment of society that’s increased – finance, real estate, and insurance. We make less stuff, but spend more time and effort on the segments of society that only leach off the cake, not make it bigger.
I hear the Vatican started an online bank. They call it Pa-Pal®.
I won’t argue that banking isn’t important as a way to store and fund money, but banking isn’t the purpose of the system. Banking, insurance and real estate are services to make food, to make cars, to make radios, to make planes, to make movies, and to make plants that make PEZ® dispensers.
Why is it like this?
The short answer is: because we let it be like this.
The long answer is that, since they had lots of money, they bought enough bureaucrats and legislators and judges that they changed all the rules of the game in their favor. And we let them do it.
The good news is that it wasn’t always like this. And there’s no reason that it has to be like this.
Now, I’ve seen plenty of blogs go off the rails when the writer comes up with a complex system that will be the one and only true system that will get the world out of difficulty. Uh-uh. Not this guy.
But throwing light on the problem is important, because after the system collapses (and it is collapsing) we should recognize the reason that it is collapsing and not let it get back like this again. Ever.
The signs are clear. Look at Boeing® – offshoring an entire industry to teach China how to make planes so China could learn to make planes so they could . . . make planes. I’m not sure exactly what Boeing™ makes anymore, but when they decided that having everyone else make all the parts instead of them was a good idea, they ceased to be a plane maker and began to be . . . a vampire.
Looks like Boeing® hired the Wrong Brothers?
Boeing© isn’t all the way there, but you can see it headed that way. They want the profits without making the plane. They have ceased to be a plane maker, and will take any profit that they can at any time. In a search for profits, they have lost their sense of self.
I believe there’s an old statement that covers this situation very well – “For what shall it profit a man if he shall gain the whole world, and lose his own soul?” And I think that particular quote covers a lot of the issues that we have as a country right now.
So, I guess if we have a vampire problem, we have a lot at stake.