Small c Capitalism

I tried to find a cartoon that demonstrated the capacity of Capitalism to bring people out of poverty. Apparently, all cartoonists are Communists. Instead, I made a quick list of people who have worked for my dad since I’ve known them. My dad passed away in 2012. He died of his third cancer. He was a generous boss. He paid for tuition (not reimbursed) as long as you carried a 2.0 GPA. He gave vehicles to his employees, carried notes on homes and forgave balances owed as parting gifts upon retirement. He was the kind of boss of whom you would never leave the employ. His employees now serve the family and operate the business in his absence for we children and trustees.

Mr. Handy talks about a different kind of Capitalism than I grew up with. I never saw cronyism, stock price manipulation, or anything like that. My father’s business was small and privately held. I think the answer to the issue is more small private business and less mega-corporations. I work for a Fortune 1000 Company. We do not have organic growth. We buy out competitors and quickly exhaust any benefit they brought with them in short order. Mergers and acquisitions look great to a shareholder, but to we employees, we know it will be another failed purchase robing us of our needed pay increases.

Mr. Handy suggests better corporate democracy or behavior and more altruism and philanthropy can save Capitalism. I’m not so sure it will. Reducing the scale of corporate entities from the global to the community level will do more. While prices may temporarily trickle up, salaries and labor prices will adjust, just as a lagging factor. The new opportunities in support providers will fill any remaining gaps before too long.

I agree more with allowing market forces to work. Even U2’s Bono has had to recognize the ability of capitalism to reduce poverty and improve living conditions. China’s “state” capitalism is a good example. We need entrepreneurs who are willing to stick it out, not cash out to get there.

Balance

This week, much of the reading and video material we covered in class was on achieving a work-life balance. I wondered at first if that were not a misnomer. The concept of separating work from life seems futile since so much of our lives are spent working.

I then came to understand that it is the focus that matters most. Are you focused on winning money, power, prestige, esteem of your fellow man? Are you trying to provide for your family in good stead? Are you striving to achieve financial independence for the benefit of serving the Church, God, and building Zion?

Many people get lost in the why while perfecting the how. If they could just keep sight ofboth I think they'd find what they are truly looking for. 

I would like to earn a complete grade by addressing the following questions:

1. What is your attitude toward money?
     A: Money is the physical representation of the value of my labor, compared to the labor of everyone else in my immediate labor market. I use it as a medium of exchange. I'd like to have more of it, but not too much at any one time.

2. How can your view of money affect the way you live?
     A: I think when someone begins to prioritize the quantity of money or the triumph of earning money over it's utility to honor God and provide for our families, they have entered a dangerous place. Money isn't evil, it's the love of money. Money is just an exchange medium for our labors. Where are we dedicating our labors?

3. What rules are recommended for prospering?
     The Richest Man in Babylon is a book by George Samuel Clason; it is a consummate classic in the recommended methods for sound financial decision making. There are no shortcuts, do-overs, or "mullligans" in life. You earn what you get, or you lose what you had. Nearly every lottery winner can attest to that. The principles taught in this book, saving, investing wisely, refraining from greed or miserly behavior. All are wonderful counsel.

Negative, Ghost Rider. The Pattern is Full!

What I learned from an amateur MiG 15 fighter pilot. 

I’ve known my friend for over a decade now. The first time I ever talked to him I thought he was funny and abrasive. He wasn’t anything special, just the “idiot that installs the fixtures”. Over the next decade, I discovered he is a highly educated aeronautical engineer, a self made multi-millionaire, owner of exotic cars, planes, properties, and loads of life experiences.

My friend came to me after about six years of working together and asked me what I was listening to on my laptop.  The answer, John Butler Trio, an Australian pop/rock band intrigued him. Where had I learned of them? Where did I get my musical tastes (very eclectic). Where did I go to school? What do you mean you never went to school?

His incredulity was flattering. He couldn’t fathom that a fellow like me: articulate, funny, smart, and well spoken, had not been formally educated. He then offered to back any business venture I brought to him which met his narrow profile of viability. He respected me. Me. 

Me?

I was taken a bit aback. I had always assumed I wasn’t that special. My wife told me other wise but, let’s be honest, she also thinks I’m charming and attractive. Obviously her taste and judgment are highly suspect.

Now that I’m at BYU-Idaho, I am doing relatively well. I still work full time (around 60 or more hours weekly) travelling the United States building data centers and pharmacies. I still work homeschooling my four children, sometimes coaching baseball and softball, sometimes working “side hustles”, and now taking three classes at a time. I see her point.

Being willing to work hard, every day, even when you don’t need to is what keeps you young, connected and successful. Someday, I hope I’ll just be the “idiot who installs the computers.”

Happy Customer, Happy Business

               I was reading quite a bit about finance this week as I pondered my end goal for my degree. I thought I might like to get my Emphasis in Entrepreneurship and perhaps add a Minor in Finance. I’ve always been fascinated with Finance. I was reading some opinion from financial giants and wizards and watching some videos on YouTube particularly focused on the bond market and business health indicators. It was interesting stuff which had me primarily looking at lagging indicators.

          Then I happened to start my schoolwork and watched a video by former Presidential hopeful Carly Fiorina. In her message she spoke of leading indicators, two specifically. They were customer satisfaction and innovation. I found her comments insightful and truly verifiable.

          I went on the internet and pulled a list from Forbes of the “Top 10 Best Businesses for Customer Satisfaction.” The top 5 were Amazon, Chick-fil-a, Apple, Marriott, and Kroger. I looked at all of their stocks (except Chick-fil-a which is privately owned and issues none). All were doing very well.

          This is an interesting tidbit of information for any long range investor. If you want to know a company’s future, look to their reputation. I looked at the 10 worst companies in this regard as well, they included Comcast, BP, American Airlines, Halliburton, and 6 big investment banks. That makes perfect sense. The worst cable company on earth, the spilling-est oil company to wreck a Disney vacation, A cruddy airline, A government crony of a contractor and the guys who wrecked the housing market by trading in mortgage backed securities and collateralized debt obligations and then made the taxpayers bail them out.

          I guess it’s not who you know, but who knows you; and what they think of you, that matters.