This entry inspired by August 11, 2008 Time Magazine
Bill Gates, a multi-billionaire, penned an article for Time Magazine. So, after this 30-year business mogul made his mark, and committed his fortune to philanthropy, he embraces “conservative capitalism.” So while I applaud his sentiment and philosophy, I abhor his timing and newfound holier than I perspective.
Creative Conservatism is not some big new economic theory. It is an answer to “How can we most effectively spread the benefits of capitalism and the huge improvements in quality of life it can provide to people who have been left out?” To bolster the fact that this is not something new, in 1889, Andrew Carnegie, the richest man of the day, writes that he believes that millionaires ought to act as trustees for the poor and that man should feed capitalism by giving it away. Carnegie established institutions such as libraries, parks and universities – that help people better themselves.
Conservative capitalism is not an answer to the short-term ups and downs of the economic cycle. It’s a response to the longer-term fact that too many people are missing out on a historic, century-long improvement in the quality of life. The feeling that in general the world is getting better is supported by the general views (perception?) that life expectancy has increased, more people vote in elections, and they enjoy economic freedom and express their views. The problem is, it’s not getting better fast enough, and it is not getting better for everyone.
Today, one billion people live on less than a dollar a day :o(
In 1970, Milton Friedman argued that a firm’s duty is to its shareholders.
Capitalism harnesses self-interest in a helpful and sustainable way but only on those who can pay. Government aid and philanthropy channel our caring for those who can’t pay.
The improvements will happen faster and last longer if we can channel market forces to complement what governments and nonprofits do.
So where do we go today? It’s about giving companies a real incentive to apply their expertise in new ways, making it possible to earn a return while serving the people who have been left out. This can happen in two ways: companies can find these opportunities on their own, or governments and nonprofits can help create such opportunities where they presently do not exist.
The premise is that companies can profit by providing heavily discounted access to products (especially software and pharmaceuticals) that have low production costs, so companies can come out ahead by selling product for a bigger profit in rich markets and for a smaller profit (or at cost) in poor ones. The other option is to benefit from public recognition from enhanced reputation that come from serving those that cannot pay. The objective is for companies to be drawn into a good cause.
5 comments:
Is another word for incentive a tax break? Isn't that what
we are facing with the big oil companies reaping huge profits
while the little man pays at the pump? Philantrophy would
mean passing on those profits, not only to the shareholder,
but in lowering prices. While Wal-Mart gets a bad rap the
bigger they get, I admire the $4 prescription plan they put
into effect. And Food City's Gas Bucks were a blessing. A
drop in the bucket but at least a drop. Like Carnegie and
Gates, one can only make and spend so much money in
a lifetime, then time to pass it on in the form of JOBS. Pat
The statistic of 1 billion people living on 1 dollar a day...staggering.
I think part of it has to be compassion, and that can start at the top. If business leaders show by example that they are committed to their companies' philanthropist goals, others will join in. At least one would hope.
Beth
I do know there are already some tax breaks offered toward this goal. Tax breaks are frequently given for hiring a minority, or handicapped person. However if Companies were to offer helping out with classes or schooling to help give more experience and education, I believe it would go even further.
Companies can offer to have employees donate a small portion of their paychecks to a chosen charity with incentives and rewards given from time to time. The possibilities are endless, if only corporate America was willing to bend a little more. (Hugs)Indigo
WOW, interesting entry. I'm inclined to agree with Beth's summation.
Hugs, Joyce
are you talking about fair trade?
The Gates have been very responsible.. giving away tons of money(millions) for helping Aids and malaria victims in Africa...
perhaps one could acknowledge these gifts and make a separate recommendation for cheaper or fair trade products to be manufactured ata lower cost and donated to third world countries.. such as the computers that some companies give away for free in Africa right?
natalie
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