Anti-capitalists argue that current economic inequality shows that capitalism is “broken.” But this is a gross mischaracterization.
As Alexander Green explains, no system provides more opportunities to build wealth and achieve success.
In his excellent new book The United States of Trump, my friend Bill O’Reilly explains why the president refuses to admit it when he’s wrong.
The short answer is he views it as a sign of weakness.
I think this approach works against Trump rather than for him.
In any event, I don’t have that luxury. I pick stocks for a living.
When a recommendation goes south – as one will from time to time – it’s like backing over your neighbor’s mailbox while he’s standing in the driveway.
It isn’t hard to determine who’s responsible.
However, some business leaders today have the opposite problem.
They are trying to create goodwill by apologizing for things they didn’t do wrong. Like generating profits for shareholders.
A while back, I pointed out that the Business Roundtable – a group made up of the CEOs of 192 of the largest U.S. companies – made a strategic blunder when it issued this statement:
Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity… We commit to deliver value to all of them, for the future success of our companies, our communities and our country.
We already have a system that allows everyone to succeed, provided they work, save and invest. And the economy is hardly broken.
Unemployment is at a historic low. Household income is at a record high. So is household net worth.
This is the continuation of a long-term trend. American prosperity has been on the rise for well over a century.
No one talks about “the French dream” or “the Norwegian dream.”
No other country is universally recognized as the land of opportunity. And no country attracts more students, more immigrants or more foreign investment capital.
American businesses dominate the world.
It’s no coincidence that fantastic innovators like Amazon, Apple, Netflix, Google, Instagram, Twitter, Snapchat, Facebook, Uber, Airbnb and countless others were all founded here.
Our business leaders recognize that a company succeeds only if employees, suppliers and customers are satisfied, not just shareholders.
If you don’t agree, you’ve never run a business.
Undercompensate or disrespect your employees, and they will take their talents elsewhere. Bargain too hard with your suppliers – or pay them late – and they won’t trade with you.
As for customers, if they aren’t delighted – trust me – shareholders won’t be either.
Yet – by acting as if these things weren’t already the case – members of the Business Roundtable created an “aha” moment for socialists and anti-capitalists to proclaim that “even the billionaires” know the free market system needs to be reformed.
(And, indeed, a few actual billionaires, like Marc Benioff and Ray Dalio – who ardently want to sell their new books to the angry mob – …read more
Source:: Investment You