Chris.C
Top Contributor
I understand. I would like to clarify that I was speaking from a macro sense, where the individual stories shouldn't sway decision making or judgement.
If it were my friend or a family member going through that tough time I would definitely empathise and do whatever I could to help even if that meant listening to them pissing and moaning about how unfair the system was.
If someone wants to commit suicide over losing their job, whilst a tradegy, it is still completely irrational and ridiculous - you can't design systems for that. I'm not saying their "feelings" aren't real, but their negative "perception" of the future as a result of losing their job aren't real. So their friends and family need to be there to make sure they aren't being overly negative and to help reframe their perspective if they are.
I don't think we should all give up on capitalism and become a socialist country because the odd fruit loop jumps off a building because he "thinks" his life has ended because he lost his retail job.
As long as competition within the industry is still maintained efficiency gains will be passed onto consumers as businesses will continue to compete for market share and profits via price reductions.
Don't get me wrong, I think there is a REAL risk that the internet over consolidates industries, ie from my perspective the internet tends to create a winner takes all scenario, ie there is only one major search engine, one major video site, one major social network, one major online store, one major auction house, one major online payment system, etc and I know you all know who each of the above are, but I fear we will see the same effect begin to influence real world businesses as well over the next decade and this could cause some monopoly rent seeking behaviour, but we can cross that bridge when we come to it.
So I do have a real fear about the limitations of capitalism - but given the alternative options it is still HANDS DOWN the best and fairest model to conduct an economy.
Apple is one of the finest examples of capitalism out there... yes Apple shareholders have done well, but for Apple to have done so well many consumer tech companies had to go bust as a result of Apple's successes - so not ALL shareholders win - just the winning companies shareholders are overcompensate from an ROE perspective, but they are not overcompensate from a risk perspective given they are in more of high risk winner taks all industry, but ALL of the companies need to be able to raise capital and be funded to facilitate a competitive environment that brings about successes like Apple.
And I don't know about you but I think it's a small price to pay given that smartphones are freaking amazing! Ten years ago I'd literally have to carry around a large mobile phone, a camera, a laptop, a modem, calculator, a pocket organisers, a discman, a mini TV, etc to achieve what an iphone does very simply 10 years later... You can't tell me the WORLD isn't better off as a result of Apple and the iphone.
And don't worried Apple taking over the world, as a company they will probably be bust within your lifetime - its a tech company. They almost never last because they almost always move from a model of innovation to replication and rent seeking. Maybe Apple will be an exception, but it probably won't, but we will all definitely be the recipients of the great products they make.
These articles are written by journalists with a short term mindset who is overly focussed on the "poor American worker".
I tell you what, Steve Jobs is bloody right - the workers of the emerging world have a work ethic and skills that is just not seen these days in countries like ours.
I have had half a dozen or so Filipinos and Indians working for me for the last couple of years and they rip strips out of their Australian competition in terms of speed, cost, skill, everything. As a capitalist - it's a no brainer. The best capitalists in the world "at the moment" are now Indian and Chinese - no point arguing about.
The other day I had a client say they needed XYZ site completed within 5 days to present in a meeting with a major supplier to help close a major deal! I told them they were dreaming, but I'd try - with a lot of hustle and some double time by some of my emerging market contractors 5 days later they had their fully functioning site and content completed!
Wouldn't have been possible working with an Australian web design firm.
Emerging market workers rarely complain, their biggest complaint is that they always want more hours (most tell me they'd be happy working 12 hours a day 6 days a week) and I always have to say sorry, I love the commitment, but I'm not willing to work those hours myself and I run the business!
And don't get me started on what wage they will HAPPILY work for!
On the flip side, I sent an email yesterday morning to an Australia web design firm who does some work for one of my clients, just asking for a quote to fix up some of the poor design decisions they made when they originally designed the site for $15,000 - I finally got an email from them this afternoon saying they will try and get back to me sometime tomorrow.
So 48 hours later, the overcharging, mediocre web design firm will LOOK at my email... if they didn't have my client by the balls because they were the original designer of the site and talked them onto an uncommon content management system that they now have everything operating through I'd tell my client to cut them loose ASAP.
Anyway the point was Steve Jobs is right, the work goes overseas not just because Asia is cheaper, but also because they are BETTER.
The develop world needs to refind it's lost "work ethic".
I was ranting on a domain names forum, I didn't realise I was meant to use economic terms.
"Efficient markets" is one I would have used, but I think when you talk about the internet and innovation I think you can't skip Joseph Schumpeter's "creative destruction" theory.
I have one of his most famous books sitting 6 feet behind me "Capitalism, Socialism and Democracy" definitely worth a read.
As for making "an argument", I see it more as I'm "stating realities", but everyone is entitled to believe whatever they want to believe.
I'm not saying the transition isn't painless and I'm not saying no one is left behind, but we can focus on the couple that are worse off (albeit with their ongoing welfare payments which tend to increase over time anyway) or we can focus on the VAST majority who benefit from not only more economical goods and services freeing up capital which can be allocated elsewhere (including reallocation to welfare payments) but also from the freed up human capital that will go on to solve the higher order problems of the world.
I know which I prefer to focus on.
You can think I'm a cold heartless bastard, just because I'm aware of the brutal realities of the world, but I'm know I'm not. I just chose to reinterpret them as positives to be aspired for, because I know what's on the other side, rather than negatives to be feared and avoided.
That doesn't mean I'm a tyrant, it just means I see the bigger picture. I see what society COULD BE and I want to do everything in my power to help US ALL get there faster. If a few people have to be dragged kicking and screaming to a world of better living standards for all so be it, but don't expect me to join in on the pity party.
Last time I checked government only "redistributes wealth" it's not in the business of "creating wealth" I haven't spoken to any North Koreans in awhile (they don't get out and about often) but I don't think their communist government is doing well at the "creating wealth" game.
So government AT BEST helps eliminate/regulate some market inefficiencies and helps redistribute wealth to allow social harmony, but AT WORST they are a leech on economies that slowly bleeds them to death. They definitely don't create JOBS, ie real VALUE producing jobs, but they can definitely get in the way of job creation.
I hired an Australian assistant once, I put up with all the bureaucratic BS that went with that for a few months before I decided to offshore everything. Best thing I ever did.
With all that said, I'd describe the Australian government like this, "utterly crap, but much better than most". So you can look at it either way, most of the time I can't bare to watch the ineptness of politicians, but I'm grateful they are not worse.
If you don't like capitalism I hear North Korean or Cuba is good this time of year. Feel free to vote with your feet.
It's the best system we have by miles!
Also be careful not to confuse capitalism with mistakes of society and government. Capitalism works A LOT better when democracy is functioning well and the general voting population is well informed. The failings of society are rooted in poor governance and an under informed population - that's not capitalism fault.
I actually blame government - those "poor dumb saps" were busy working hard in their professions. Government should have stopped the sharks (even if well intentioned) from being allowed to advise or sell crap advice or products to Joe Public who didn't know any better.
That said, society does need to take a good look in the mirror and reflect on how much we ourselves were to blame, most people "allowed themselves" to believe the lies sold to them because they liked "sounds" of the lie that was being sold, even if it was ridiculous, because they didn't want to "hear the reality". So in that sense many were complicit in the lie.
Most Australian haven't been forced to look in the mirror yet, from a financial perspective, but over the next 5 years they will certainly get their chance, of course as per human instinct they will blame everyone else initially, but the penny will drop, and many will learn their life long lessons hard way, and after a decade or so of tough times we'll be better for the experience.
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The world has changed but the system is largely the same.
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