Warren Buffet recently had excellent quote about the debt ceiling during an interview on CNBC:
“I could end the deficit in five minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.”
Recent Pew poll indicated only 52% of Americans have a favorable view of capitalism.
Yet, according to United Nations, poverty has declined more in last 50 years than in the previous 500 years. Adjusted for inflation, incomes have tripled in last 50 years.
Human beings, technology combined with capital markets create a problem solving machine that enables the decline in poverty.
Free market system has a severe branding problem.
John Mackey, founder and CEO of Whole Foods has written excellent book, Conscious Capitalism. He points out four values of business:
1. Business is good because it creates value.
2. Business is ethical because it is based on voluntary exchange.
3. Business is noble. It can elevate our existence as high as our talents will take us.
4. Business is heroic because it lifts people out of poverty and creates prosperity.
Capitalism is about meeting people’s wants and needs.
Each of us in business need to start branding capitalism positively by reinforcing the above points with our employees and with social contacts we meet.
Dictum Number 1: People do not get what they want or what they expect from the markets; they get what they deserve.
Dictum Number 2: The force of a correction is equal and opposite to the deception that preceded it.
Dictum Number 3: Capitalism doesn’t always take an economy where it wants to go; but it always takes an economy where it ought to be.
Dictum Number 4: The severity of a depression is inversely correlated with government’s efforts to stop it.
From Bill Bonner onThe Daily Reckoning, Oct. 31, 2014.