Wednesday, January 26, 2011

Rethinking Capitalism

Capitalism has a bad reputation among some folks and a sort blind devotion from others. It is no secret that many suffer as a consequence of the system (though suffering isn't exclusive to this economic system) but a sentiment has grown among even the great fans of the system that most people are in some way swindled by the system. Leaders of business are called everything from cut-throats to crooks. Eventually, you have to ask why there is such a vitriolic divide between business and consumer. Mostly it is the result of an easily manipulated public and a business sector that eagerly jumps at finding a new way to manipulate that naivety. This has resulted in a very unhealthy relationship between producers and consumers.

A healthy relationship must be one of mutual benefit. Something like this simple model would do: The business provides something of real value for the community (product, service, jobs) and the community provides the business with patronage. It's a sustainable model and a healthy one. Businesses should not be trying to trick people into squandering their wealth and I really wish we as people could see through it. Anyway, Harvard professor Michael Porter can explain better and in more detail.

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