Capitalism: Wanna Save it Then Cultivate it: Wanna Save it Then Cultivate it

By Dan Hoeger

Today, we often hear "We are living in unprecedented times." When combining the crises of the pandemic, our social unrest, and all the political divisions, it provides for times and circumstances that most Americans have not experienced, any way to the degree we are today. 

America has faced numerous issues in its long his

• Language: English
• Publisher: DanHoeger.com
• Release date: Feb 25, 2022
• ISBN: 9780578379760

Book preview

INTRODUCTION

R

egardless of the circle or group we may travel in, the key phrase that is often heard today is We are living in unprecedented times. When combining the crises of the Covid pandemic, the social unrest, and the political division in virtually every sector of government, it provides for times and circumstances that most Americans has not experienced, anyway to the degree we are today.

We are now almost 240 years since our first president was inaugurated, during which time America has experienced all sorts of ups and downs. But due to our American resolve and resilience, we not only weathered the storms, but we stepped to the plate, made the necessary corrections, and came out ahead. While it is true that because of the ideology of some politicians they can certainly mess things up, but as a rule, in the overall scheme of things, due to the American spirit, our future usually had little to do with which political party in power or who occupied the oval office.

With all we are facing today, almost without doubt, we will see the day when the pandemic will be in the history books. As a society we will get the message and learn the lessons of the social unrest and make the necessary corrections and will be far better because of it. Elections will come and go and hopefully the politicians will wake up to the reality that the parties are not enemies and can accomplish more for the common good when they work together.

Yes, America has faced many issues in its long history, however in the past, regardless of the issue or crisis, one of the primary single elements that not only remained the same but also grew and became stronger was that of our Free Enterprise System of Capitalism. What is more, due in large part to our economic system, each generation found itself with a better way of life than that of the generation of their parents and grandparents’.

But the crisis we are facing in America today is different from anything we faced in the past. A crisis that if we do not take the necessary steps to correct, will change not only our way of life, but will alter the directions and future of our country for decades to come. The crisis we are facing is the threat of evolving away from our economic system of Free Enterprise Capitalism and turning instead to the system of Socialism, or equally as bad is to become a Social Welfare State. Today there is a growing number of politicians, elitist, media personnel, and citizens who are openly arguing against the freedom and opportunities that we Americans hold to be sacred to our democracy.

So, as it relates to Capitalism, why are things beginning to drift south? After having a successful track record for almost 240 years, why is Capitalism being called into question?  While true historians who accurately portray the facts will have the final say, yet one argument that is being made today against Capitalism is that opportunity is not available today as it was in the past. This argument further states that this is due in part to the greed and ethics of the rich and powerful. Some will further argue that the wealth is controlled by too few, of which is resulting in the stifling or even eliminating of the competition that is necessary for Capitalism to function properly.

The reality is such that Capitalism is only an economic system, and as an inanimate system, in and by itself it is devoid of morals and ethics. Therefore, when referring to the Ethics of Capitalism, it must ultimately boil down to the ethics, actions, and attitudes of the groups or individuals who are operating within that system. Because Corporate America touches the lives of everyday citizens in ways that no other entity can, the need for changes becomes more apparent and more pressing.

This book goes beyond the grocery list of do's and don'ts. It goes beyond the corporate rhetoric often found in a policy and procedure manual. This book focuses on the issues that can define the very culture and personality of an organization.  Because every businessperson and business entity play an essential role in determining how Capitalism is viewed in our society, the message of the book discusses various areas where weeds may have taken roots and where cultivation may be necessary so to protect our system of freedom and opportunity.

Every generation has had it challenges. Today we are facing ours. How we conquer and resolve the challenges we face will be determined based on the steps we are willing to take. This is our time to step forward to assure the freedom and opportunities that gave America the greatest standard of living ever known is also available for our children and grandchildren.

As you read the pages and chapters of this book, keep that goal in mind.

PART ONE:

THE SOIL

CAPITALISM

On the small family farm of which I grew up, the soil consisted primarily of good black dirt. It was ideal for growing the crops of corn, oats, soybeans, and quality alfalfa or clover hay.

But we also had a field that had a rather large gravel knoll. Although corn and other crops would grow on this knoll, yet the conditions had to be perfect. If there was not enough rain, the corn would wither and die. If the summer produced unusually hot weather, the corn would often burn up in the heat. Even under so-called perfect conditions, the stalks would be smaller, and the yield would be substantially less compared to the corn planted in that good black Iowa dirt.

The same could be said of any business enterprise. If it is not planted in the right soil and under the right conditions, it will, without a doubt, impede its ability to succeed and provide the goods and services to its customers and become a valued asset to society. So, if the economic system is the soil in which business is planted, and if the system is so important to its success, let’s then begin with a conversation on the merits of the economic system we refer today as Capitalism.

As with any asset, we can quickly turn a blind eye and take for granted its actual value. When we fail to recognize and appreciate its true value, it is then that we will fail to put forth the effort to cultivate it so it can maintain its productivity and remain the valued asset it is. Also, when we fail to understand its real value, it is then that we fail to fight to protect it, not only for ourselves but also for the security and future of our children and grandchildren.

It has been said that Capitalism is not a perfect system; it is just the best system that has ever been devised by humankind. For sure, hands down, it far outpaces any other system that may be in second place.

CHAPTER ONE:

THE NEED FOR CULTIVATION

OUR BEGINNING

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or us to fully appreciate the value we have with our Economic System of Capitalism, I think we must begin with some history that includes not only how our system started, but also the wisdom behind it. By doing so, we can better understand the critical role Capitalism has played in making our Country a great asset to the world that it has proven to be for several centuries.

The ideology of Capitalism can be traced back to Europe during the 17th Century when the system of Feudalism forced peasants to work the lands of their lords was beginning to break down and gradually replaced by a system of employment in exchange for either rent, salary, or a combination thereof. But this was by no means a smooth transition. Land and wealth became increasingly concentrated in the hands of fewer and fewer landholders. This was further complicated by the fact that in some area's peasants were not legally able to own land even if they could afford to purchase it.

By the mid-18th century, a new economic theory began to emerge. Today this system is known as Capitalism.  For the era, this was a radical proposal that promoted the removal of various restrictions that prevented the common man from owning land and capital goods and thus extending equality to the masses by providing the common man with the right to own the means of production.

At its core, this is what capitalism is all about. It simply means that individuals should have both the right and the freedom to own and manage their capital and economic resources as they feel will best meet their wellbeing.  The bottom line, Capitalism equates to freedom.

Then came the emergence of a new nation that would become known as the United States of America. When you think about it, it is almost mind-boggling as to the degree of wisdom that our Founding Fathers had as they struggled with all the aspects of putting together this new ONE nation consisting of independent and self-governing states.

Our Founding Fathers had the personal experience of other governmental systems, along with the knowledge of their success and failures. It was this knowledge and experience that they used to design and craft a new nation that has set itself apart from most other countries on this planet.

As they did so, as it relates to our current discussion, for us to be the free and productive society they had envisioned, there were two essential issues that they insisted upon as a must in their new American Constitution. Those two must have consisted of the protection of private property along with all the opportunities, rights, and privileges associated with it.  And second, they were convinced that for our Constitution and Bill of Rights to reflect the human dignity and the freedom they sought for this new Nation, it was imperative that each of these essential documents also reflect the Principles of a strong ethical mindset that would encompass the fundamental values and virtues of hard work and fair play. They contended that laws and Government alone could not solidify the foundation necessary to sustain us as a free society. Instead, it would necessitate for its citizens to possess strong Ethical Principles. It would be this mindset of what we stand for, that would define who we are, both as individual citizens as well as who we were as a Nation. It would be this mindset of strong ethical principles that would also be the foundation of our Economic System of Capitalism.

What they were promoting was the Principles of honesty and the integrity that surrounded it. What they were promoting was the Principles of Fair Play that dictates not only How we deal with each other in business, but also the why that motivates us to do so.  By promoting these Principles, our Founding Fathers were promoting a mindset of the Ethics that would develop the culture in business that they were convinced was necessary for both the economic and overall success of our developing Nation.

From its inception, our Nation has woven these two essential threads into the very fabric of who we are. Both issues are so critical, not only to our economic health and future but also to the importance of the very foundation of the culture of who we are as a nation. So, let's dig into it a little deeper and spend some time in a discussion of both. We will begin with why our Founding Fathers felt that the system of Capitalism was so critically important for the freedom we would enjoy as a nation.

On April 19th, 2006, Forrest McDonald, the then Professor of History at the University of Alabama, gave a speech to the Economic Club of Indianapolis. In his remarks, he stated, Americans were committed to John Lock's proposition that mankind has a God-given right to life, liberty, and property and that legitimate governments are required to protect those rights. McDonald further pointed out that, In the Constitution Convention of 1787 James Madison, Gouverneur Morris, and others listed the protection of property rights as one of the primary reasons for the institution of government.

Our Founding Fathers had the wisdom and foresight to understand that for democracy to survive and to have the free society they envisioned, a healthy and free economic system needed to accompany it. From both their personal experience and their knowledge of history, they were aware that most other republics failed, and their failure was primarily due to the envy among the classes of society, the poor against the rich, the elite against the working class, etc. When you really think about it, is that the level of envy we are experiencing in America today? Is that envy tearing us apart as a society?

But we need to go further into it. The founders had the wisdom to understand that people in the lower class do not expect a life of leisure or paradise, nor do most ask for or desire handouts. What most resides in the human heart is the ability to foresee tangible signs of improvement over time for themselves and their families. When people can understand and visualize the opportunity to move ahead in their position in life, it is then that the temptation to envy what others have because of what they had accomplished with their life is diminished. Instead of comparing themselves with others, they begin to examine where they are at today to where they hope to be in the future. They become people with goals, hope, and the confidence of relying on themselves and their talents and abilities to create a better tomorrow for themselves and their families. When such is the case, the cause for envy not only decreased but most often becomes nonexistent.

For citizens of a society to have a realistic hope for their future, it requires that they have, not only an authentic visualization of opportunity available to them but are also inspired by witnessing the success obtained by others. It appears that in our society today, for all too many, instead of being motivated and inspired by the success of others, they are instead being indoctrinated into the attitude of entitlement.

George Washington, our first President, verbalized this thought when he said, A people… who possess the spirit of commerce, who see and who will pursue their advantages may achieve almost anything.¹ Washington, along with the other founding fathers, knew the importance of Government promoting individual success, and reframe from anything that would impede it.  They knew well that it would be the combined successes of the individual citizen that would in turn guarantee the success of the Nation. For our nation to prosper and for its citizens to thrive it is important for our elected officials to promote the importance of individual success. Throwing buckets of money at able bodied folks only goes to impede motivation and self-fulfillment.

Adam Smith is considered the first theorist of Capitalism as we know it today and is also viewed as The Father of American Capitalism and the Father of Economics. He described his preferred economic system as the system of natural liberty. In his work of 1776 entitled An Inquiry into the Nature and Cause and the Wealth of Nations, Smith theorized that assuming no, or at least minimal State intervention, business and industry would produce more and become a greater value to society.  His systematic treatment of how a free market would create incentives would enhance not only the life of the individual but would also be in the general interest of advancing the community. This became the basis of what was then called political economy, and later became what we refer today as Economics.

Thomas Jefferson, in his First Inaugural Address on March 4th, 1801, stated, A wise and frugal government… shall restrain men from injuring one another, shall leave them otherwise free to regulate their pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.

But to assure both the viability and the stability of a free capitalist economic system, the Founding Fathers had the wisdom of knowing that it would take more than laws, rules, and regulations of the Government. They knew the success of such a system lies with the ethics that resides in the hearts and character of its citizens. It would be the character of its citizens that would ultimately determine the success or failure of not only the economic system but also of the Nation as a Republic.

It was their conviction that the very Principles that would best form the desired character of the citizens would be those as were promoted and taught by every major religion. To be clear, it was not religion that our founding fathers were promoting, after all, freedom of religion was paramount.  Instead, what they were promoting was the Principles as taught by every major religion. It would be these principles that would be necessary to be woven into the very fabric of the Nation.  Our Founding Fathers were convinced that these Ethical Principles would provide the foundation for a new Nation to not only survive but also to succeed and thrive in the future.

Although not everyone at the time professed to be religious, however, it was the foundation of the Ethical Principles of integrity, honesty, and fair play that were taught by religion that they were promoting, and of which prevailed in the culture of the new American society.

To further promote and assure that these principles would become and remain an essential ingredient in forming the very fabric of the foundation of our society, beginning with early colonial times, children attending public, private, and parochial schools were taught to read from The New England Primer. This became the first reading textbook designed for the American Colonies. Originally published in the 18th century, it became the most successful educational textbook of its time and became the foundation of most schooling before the 1790s. This book taught the very basics of the day. For example, the letter a was shown with the rhyme In Adams fall/We sinned all. Likewise, the letter b was illustrated with a picture of the Holy Bible, which was accompanied by the rhyme, Thy life to mend/This Book attend.

Following the New England Primer, the McGuffey Readers became the most widely used textbook in American schools from the mid-19th century to the mid-20th century. This book was used primarily in the formative years of our children who were in the grade levels of 1 thru 6. This book also taught the religious perspective as moral standards.

From an early age, our children were provided not only with the intellectual knowledge of reading, writing, and arithmetic but even more important, they were given the foundation of the moral and ethical standards necessary for the quality of character needed in a free society.

It cannot be denied that from the landing of the Pilgrims in 1620 to at least the 1950s or '60s, without any apologies, the perspective of ethics and accountability was most influential in the culture of America. For the first 350 years of our country’s existence, we had one mindset. However, during the last 50 to 75 years or so we have developed a somewhat new mindset.

SO WHY DID THINGS CHANGE

After all these years of validating the benefits associated with the connection between the Ethical Principles that were promoted by our Forefathers, along with our Free Enterprise System of Capitalism for commerce, what caused our society to shift? How have we come to the point of where such an essential and proven asset is being threatened to the point that we may be letting it slip through our fingers?

The dilution of our perception of this valued asset did not happen because of a takeover by a more superior earthly power; instead, it happened through a progression of events which one could point to that began at the end of the 19th Century. When one assembles all the pieces, and then stands back to look at the finished puzzle, it does not take a genius to see the regression of the ethical standards that we in our Country once held to be sacred in both our personal and professional lives.

The combination of these events changed the mindset of society to the point of not only diluting our fundamental principles and values from the culture of Corporate America, but in many ways, we have eliminated these all-important assets from many facets of our society altogether.

One could point to this regression beginning in the late 19th Century with the explosion of the Industrial Revolution. During this period, America experienced a significant increase in the development of manufacturing through the modernization and efficiencies of the factory system.

The Textile industry was one of the first to use several of the modern production methods. As a result, the industry had seen a massive expansion in the value of its output.  This led to an enormous increase in employment. Which naturally was followed by the rise in investment capital.

It was also during this period that Henry Ford's introduction of the first moving assembly line to manufacture his automobiles came onto the scene. His innovation reduced the time it took to