It's Time For A New Kind Of Capitalism

For years we have heard the mantra "Greed Is Good." The American people and the government have been told to get out of the way and let the free market govern itself. We've been told that if we hamper corporations and their ability to make profit with what they deemed as unnecessary regulations then we would be hampering the U.S. economy; this in turn would be a drag on the economic well being of the American people. We were told it was best for all of us to let corporations run free like wild stallions on a desolate tract of BLM land.

For decades it seems the basic force driving corporations has been the profit motive. Nothing else seems to matter any more. So long as a corporation is profitable by any legal means possible, it is considered successful; and when the laws are not favorable to corporations' methods for achieving profitability, they successfully lobby Congress to have those laws changed to their benefit.

This neo-capitalism is vile and corrosive and stains like battery acid on blue jeans, creating holes in everything it touches. For the corporation, nothing matters above profit — not the United States, not the people, and not the environment. It is the direct result of a business philosophy that posits the sole reason for a corporation to exist is to make profit by any means necessary, legal and — when possible — otherwise.

We have come to the exhaustive end of a corporate life cycle that has, like an algae bloom in a stagnant lake sucking up any remaining oxygen and nutrients, starved the world of capital to the point where the corporate beast is dying due to its own ravenous appetite. This has led some to proclaim that American capitalism is dead and that the American Empire is in its twilight.

Now more than ever, America needs a new corporate philosophy in order to re-establish itself as the economic powerhouse it once was. The entire paradigm of how the U.S. conducts business needs to be changed. The focus needs to be shifted away from profit and toward the People of the United States.

Here, I propose some basic tenets of what should be a new corporate philosophy that, in my view, will help move the United States into the 21st Century.

1) Profit motive must become secondary. While profit is important and a corporation certainly cannot long exist without positive earnings, it must not be the sole reason for the existence of a corporation.

2) Providing quality products and services vital to the economic and social interest of the people of the United States must be the number one priority for any and every corporation that comes into existence and wishes to do business in the United States.

3) The American worker must be respected and fairly compensated for her/his labor as we return to the old adage "an honest days work for an honest days wage." Nothing short of a living wage should be acceptable to any corporation.

4) Environmental impacts and concerns must figure heavily into a corporation's ability to exist.

Some of these points are already part of a corporation's operations. Due to either environmental restrictions, the requirement of EPA reports prior to any development, or the perceived benefit to marketing "environmentally friendly" products, many corporations have started to adopt eco-friendly philosophies. Many have found that their profit margin has improved as they have become more energy efficient, less wasteful, and recycle where possible.

The difference is that currently profit as seen as the number one priority. Thus, if manufacturing something in an environmentally friendly manner would cut into profit, then a corporation won't do it. If paying a living wage to its employees means missing quarterly profit expectations, then it isn't done. If increasing the quality of goods and services means cutting into profits then a corporation refuses to even consider product and service improvement.

The short-term result of cutting product and service quality, cutting wages, and not worrying about environmental impact is an increase in profit. The CEO is compensated by the board members for a job well done, where the job well done is measured only by increased profits. It matters not that product service and quality haves declined or quality workers have been lost due to low wages. All that matters at that time is the positive quarterly report, the spike in stock price, and the big bonus checks for upper management who made it all possible.

The long term result, as we have seen, is a disaster. It is not sustainable. Consumers lose confidence in a corporation's products and services. Employees with less take home pay have less money to spend in our economy. Our environment is poisoned with chemicals and noxious gases leading to ill health in communities which drives up healthcare costs and decreases worker productivity.

The corporate philosophy that states the only thing that matters is profit must die off lest we risk dying off ourselves. It should be replaced by a corporate philosophy that puts quality products and services, environmental concerns, and fair worker compensation ahead of profit motive. This is the only chance capitalism has at long term sustainability. It is the only way we can end the boom-bust cycle of laissez-faire, free market capitalism.

Profit is important, but it must become a secondary motive for the corporation if capitalism is to continue to exist. If product and service quality is high, if environmental concerns are addressed, and if workers are fairly compensated, then profit will naturally follow.

It is time to shift away from the paradigms of "Greed Is Good" and "Profit above all else." It is time to put product and service quality, the environment, and We the People of the United States above profit motive. If we fail to change, we shall surely die.

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