Moe and Philip Kotler talk about today’s critical dilemmas and solutions for returning to a healthier, more sustainable capitalism (that works for all).
The Good and Bad of a Capitalist Society
We’re fortunate to be living in a capitalist society, especially here in North America. While the dynamics of capitalism aren’t perfect, they trump the alternatives and have shaped our identities as Americans, entrepreneurs, and as a society that aspires for a greater sense of Freedom above all else. I recently received a copy of legendary professor, Philip Kotler’s latest book – Confronting Capitalism: Real Solutions For A Troubled Economic System, and not only did I find his point of view fascinating, but it was these fourteen shortcomings that he cites that put in context the true challenges our system is likely to face:
- Proposes little or no solution to persisting poverty
- Generates a growing level of income and wealth inequality
- Fails to pay a living wage to billions of workers
- May not provide enough human jobs in the face of growing automation
- Doesn’t charge businesses with full social costs of their activities
- Exploits the environment and natural resources in the absence of regulation
- Creates business cycles and economic instability
- Emphasizes individualism and self-interest at the expense of community and the commons
- Encourages high consumer debt and leads to a growing financially driven rather than producer-driven economy
- Lets politicians and business interests collaborate to subvert the economic interests of the majority of citizens
- Favors short-run profit planning over long-run investment planning
- Should have regulations regarding product quality, safety, truth in advertising, and anticompetitive behavior
- Tends to focus narrowly on GDP growth
- Needs to bring social values and happiness into the market equation