I wanted to share an interesting video from a lecture series at the National Constitution Center entitled "The Culture that Spawned the Crisis: A Closer Look." Several speakers argue that the changing culture of the United States led to the conditions that caused the financial crisis.
Some of these cultural changes include the concept of "thrift" which used to be an important part of American culture, but over a generation evolved into a culture of envy and personal gratification, where people expect something for nothing.
John Bogle, the founder of the Vanguard Group, speaks in this video. He uses the the term "pathological mutation" to describe the change in our capitalistic system, from a traditional owners capitalism where rewards went to the owner and providers of capital to a managers capitalism where the majority of rewards went to corporate managers and financial intermediaries.
Saturday, June 6, 2009
A Pathological Mutation of Capitalism
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1 comment:
This man is ignorant.
A person shouldn't be wealthy by virtue of being wealthy. Skill, ability, ambition--these are the things that should generate wealth. There's nothing special about owning a business or having money; however, making such a business successful is a feat worthy of praise.
To suggest that wealth should automatically generate more wealth is contrary to everything this country, and its vision of capitalism, stand for.
Cash to the wise and able, my friend... how much is the prowess of a brilliant executive worth to you? 80% of the earnings you'd never have made without him? If you answer no, you're a fool.
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