Series: Capitalism and the World Economic Forum « | Richard Telofski on "The War on Capitalism"

Business Needs Demand to Survive. Duh.

This entry is part 1 of 4 in the series Capitalism and the World Economic Forum

One of the first debates that will occur at today’s World Economic Forum (WEF) will be ”Is 20th-Century Capitalism Failing 21st-Century Society?” One of the presenters in that debate will be Sharan Burrow, the general secretary of the International Trade Union Confederation. Regarding the answer to that question, Ms. Burrow told Reuters ”It is too simplistic to say we need a new system. The system is not working because of extraordinary greed, extraordinary inequality and attacks on workers’ rights that are leading to a crash in demand. What business has to realize is that they will not survive if demand continues to collapse.”

It’s nice to know that at the WEF there is a union member reminding business managers that business needs product/service demand in order to survive.

Davos Needs an Open Mind Toward Freedom

This entry is part 2 of 4 in the series Capitalism and the World Economic Forum

This post opens up a series of short commentaries on the World Economics Forum (WEF), the annual economics and business conference convening today in Davos, Switzerland. These commentaries will continue through the end of the conference on January 29.

In a recent Reuters article, Klaus Schwab, the founder of the conference, was quoted as saying that he preferred that a company’s top managers not make more than 20 times what the lowest paid worker makes. Given that the WEF is a worldwide conference, one that we would hope would be approached by its participants with open minds, it’s unsettling to think that the conference founder has already set boundaries for a free market concept.

The WEF will help guide the future of capitalism. It’s imperative that its participants, and especially its founder, go the the conference with an open mind towards freedom.

The New Capitalism Will Not Be Engineered

This entry is part 3 of 4 in the series Capitalism and the World Economic Forum

Extending from yesterday’s World Economic Forum commentary, conference founder Klaus Schwab does not appear to be a fast friend of the free market.

A new capitalism cannot be engineered. Because capitalism is a system devised from human nature, it especially cannot be engineered. It must evolve. However, some will try.

The World Economic Forum founder and chairman, Klaus Schwab, recently stated:

“Capitalism, in its current form, no longer fits the world around us. We have failed to learn the lessons from the financial crisis of 2009. A global transformation is urgently needed . . .”

Mr. Schwab also said:

“We are looking desperately around the world for people who can offer solutions. We are in danger of losing the confidence of future generations.”

(Just a technicality perhaps, but yet one about which Mr. Schwab should know. The financial crisis began in 2008, not 2009.)

His remarks, though probably well-intentioned, smack of the desire for the centralized planning of an economic system. We know from history what happens when governments, especially those seeking global influence, endeavor to control economies.

Capitalism springs from the natural behavior of human beings. To engineer around that simply flirts with disaster.

No, Mr. Schwab. The best solution is to get global planning authorities out of the equation, and with the input of their constituents let nations and states figure out what’s best for their own people.

Billionaires Complain About Inequality

This entry is part 4 of 4 in the series Capitalism and the World Economic Forum

When billionaires talk about income inequality, it’s time for the people in the middle to hold on to their wallets.

Per a Bloomberg article, “Billionaires . . . Bemoan Inequality,” billionaires at the World Economic Forum are putting their heads together about income inequality. Proposed changes to capitalism will be discussed in a panel scheduled for today, “Remodeling Capitalism.”

On the subject of changes to the capitalist structure, the conference is highlighted by such quotes, per the Bloomberg article, as, “these growing inequalities are not acceptable,” from Rahul Bajaj, chairman of Bajaj Group, and that business should concentrate on “a more just distribution of wealth,” by Ukrainian billionaire Victor Pinchuk.

It will be interesting to see if their confabulation has any effect on the capitalist system, and if so from where the “redistribution” originates.