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Wednesday, June 24, 2009
Michael Medved :: Townhall.com Columnist
Why Should So Many Americans Feel Threatened by Business?
by Michael Medved
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DISMISSING AND DISTRUSTING THE PROFIT MOTIVE

In most quarters of our society there’s no shame in possessing money (or the flashy signifiers of wealth and comfort) but there is an odd unease over admitting the means by which those resources were acquired. We all benefit from the unparalleled and prodigious productivity of the capitalist system but feel uncomfortable in embracing the pursuit of profit at its very core.

Recent surveys, for instance, display startling levels of contempt for leaders of business, reflecting the assumption that entrepreneurs and executives count as sleazy, greedy, selfish and unreliable. In February, 2009, a Harris Interactive poll asked 1,050 respondents if “people on Wall Street” were “as honest and moral as other people”; a stunning 70% said “no.” In November of 2008, a Gallup Poll evaluated the “Honesty and Ethics of Professions.” The category “business executives” ranked near the bottom --- even below such frequently reviled occupations as “Lawyers,” “Labor Union Leaders,” “Funeral Directors” and “Real Estate Agents.” (The businessmen beat out only “Congressmen,” “Car Salesmen,” “Telemarketers,” “Advertising practitioners” and, at the very bottom of the barrel, “Lobbyists”.)

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In a similar survey of “America’s Most Admired Professions” for the Harris organization, the designation “Business Executive” fared even worse. The bulk of 1,020 respondents felt that these capitalist commanders deserved “hardly any prestige at all,” ranking them 21st out of 23 categories – barely outpolling only “Stock Broker” and “Real Estate Agent.” The most prestigious professions, in order, were “Firefighter,” “Doctor,” “Nurse,” “Scientist,” “Teacher,” “Military Officer,” “Police Officer,” “Clergyman,” “Farmer,” and “Engineer.” As Forbes Magazine aptly observed, “none of top-ten most admired jobs can be accurately described as being driven by the profit motive – quite a contradiction in a country that was built on it. The A-list is comprised of those who serve others, including engineers (they build things) and farmers who ‘feed the world.’)”

Surprisingly, this survey appeared in the summer of 2006 – well before the financial meltdown of September, 2008 and the beginning of the most recent recession provoked a fresh tidal wave of stories about corporate malfeasance and the collapse of capitalism. In the last generation, public attitudes toward the business community have remained unexpectedly consistent and overwhelmingly negative, regardless of the vagaries of the stock market or the unemployment rate. For most Americans this antagonism begins in childhood, with school curricula that downplays the prominent participation of corporations, free enterprise and the accumulation of wealth in the development of the United States.

CENSORING AND SLANTING THE AMERICAN STORY

Even the most cursory examination of elementary and middle school textbooks reveals the present tendency to distort or ignore the role of business in building the country. Consider the national holidays celebrated in the course of an academic year.

--For Thanksgiving, kids learn all about the idealistic Pilgrims and their interaction with the Indians, but hear nothing about their obsessive concern to make their colony profitable or their sponsorship by a for-profit corporation back in England, the London Company.

--Our little ones prepare for Presidents Day by studying Lincoln the Great Emancipator and Washington, the military hero and Father of Our Country, but they spend no time acknowledging the deep business involvements of both men. Lincoln became prosperous and prominent (by the standards of his time and place) by pursuing a career as a corporate lawyer, specializing in representing railroads and other dynamic enterprises. Washington, meanwhile, became one of the richest plantation owners in the colonies through his land investments and the canny, hard-headed management of the resources he acquired after marriage to the wealthy widow, Martha; in contrast to his careless Virginia colleague, Thomas Jefferson, he cared deeply about his financial status and avoided debt and money-losing ventures.

-- In preparing for the fireworks of the Fourth of July, most kids get some exposure to the revolutionary slogan “no taxation without representation,” but never connect it to the background of nearly all our Founders as entrepreneurial merchants and farmers ready to risk their lives to prevent undue governmental interference in their business affairs.

-- Finally, we focus on the nation’s military history on Memorial Day and Veterans Day, but seldom acknowledge that all the greatest victories of the United States owe as much to economic power and prosperity as to battlefield courage. The Union forces prevailed in the War Between the States because the industrial might of the North easily out-produced the Confederacy. In World War I, America rescued our struggling British and French allies as much with financial support as with a massive expeditionary force, and 27 years later the unprecedented manufacture of planes, war ships, tanks, landing craft and, ultimately, atom bombs played an utterly decisive part in crushing the Germans and the Japanese. In the forty-five year struggle against Communism in the Cold War, Americans shed blood (in Korea, Vietnam and elsewhere) but finally prevailed through the vastly superior productivity and prosperity of our economic system.

When social studies classes teach stories about American heroes they will naturally include inspiring tales about the civil rights activism of Martin Luther King, of the pioneering feminism of suffragists like Susan B. Anthony, or the fierce resistance of Indian warriors like Tecumseh or Sitting Bull (who actually slaughtered members of the American military, but never mind). It’s even possible that new generations will discover the amazing contributions of “inventor” Thomas Edison, but they learn nothing about the fact that he actually spent most of his time and energy building major corporations to make sure he enjoyed the monetary rewards of his technological breakthroughs. No business leader currently occupies a place on the A-list in the American pantheon and if youngsters hear anything at all about the builders and bosses who made the nation the world’s dominant power they will study sneering accounts of their predations as “Robber Barons.”

By the time Franklin Roosevelt took over the White House for the first of his four elected terms, the hostility and scorn for the captains of capitalism had migrated from the magazines and salons of radicals and mandarins into the larger society’s cultural and political mainstream.

In his celebrated inaugural address of 1933, FDR himself not only warned about the paralyzing impact of “fear itself,” but denounced “the rulers of the exchange of mankind’s goods” in harsh and sweeping terms unthinkable for a major American politician of the 21st century. “Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men,” thundered the new president, in unmistakably Biblical terms. “Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored conditions. They know only the rules of a generation of self-seekers.

“They have no vision, and when there is no vision the people perish.

“The money changers have fled their high seats in the temple of our civilization. We may now restore that temple to the ancient truths.

“The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.”

Amazingly, at a moment of acute financial crisis and uncertainty in the business community, Roosevelt sought to return confidence and vitality to the free market system by denouncing (repeatedly) the pursuit of profit. In his stirring speech, he presented no specific cures for the devastation of the Depression but he affixed unequivocal and exclusive blame for the national catastrophe on the “unscrupulous money changers.”

“CORRUPTION IS WHY WE WIN!”

Growing up in a family that worshipped Roosevelt (my immigrant grandmother kept a framed photo of the late president on her living room wall till the day of her death in 1961), I saw no reason to question FDR’s indictment of the “economic royalists”—that capitalist class denounced by the president’s distant cousin Theodore as “malefactors of great wealth.”

Cultural encounters – particularly at the movies --- reinforced the notion that great power in the business world normally meant great (and appalling) compromises in terms of basic decency and morality.

The most common template for Hollywood’s business-bashing involves some unlikely, underdog hero or heroine (generally played by a glamorous star, of course) digging deep for unexpected reserves of courage and pluck to do battle against some evil, all-powerful corporation. In “Norma Rae” (1979), Sally Field stands up against a corrupt, rapacious, union-busting textile mill; in “The Verdict” (1982), Paul Newman stands up against the corrupt, rapacious health care industry; in “Silkwood” (1983) Meryl Streep stands up against a corrupt, rapacious nuclear power company; in “A Civil Action” John Travolta stands up against corrupt, rapacious conglomerates associated with a polluting Massachusetts tannery; in “American Beauty” (1999) Kevin Spacey stands up against the corrupt, rapacious values of his supposed suburban paradise (and his corrupt, faithless realtor wife); in “The Insider” Al Pacino AND Russell Crowe stand up against a corrupt, rapacious tobacco company. Just in time for the upcoming market meltdown, 2007 brought two business-bashing Oscar nominees for Best Picture. In “Michael Clayton”, George Clooney stands up (somewhat reluctantly) to a corrupt, rapacious drug company, but in “There Will be Blood” no one can possibly stand up to Daniel Day Lewis, a flamboyantly villainous monster who becomes a wealthy, 1920’s oil tycoon by overwhelming everything else on screen (including the handsomely photographed natural scenery).

Lewis won the Best Actor Academy Award for his ferocious performance as an implacably evil entrepreneur (and fulfilling the prophecy, “There Will Be Oscars”), and in 2005 George Clooney won Best Supporting Actor for his role as a disillusioned CIA operative in yet another condemnation of corporations, “Syriana.” In this unapologetically anti-American film, U.S. oil companies represent the ultimate source of cruelty and injustice on the planet and earn even less sympathetic treatment than the CIA or blissfully determined, suicidal jihadists. Tim Blake Nelson plays an energy protective whose corrosive cynicism seems designed to make Gordon Gekko seem idealistic and pure-hearted. Rather than praising greed, Nelson’s character hails the power of corruption itself: “Corruption is our protection,” he helpfully explains. “Corruption keeps us safe and warm. Corruption is why you and I are prancing around in here instead of fighting over scraps of meat out in the streets. Corruption is why we win!”

Meanwhile, no big studio film went further in demonstrating the prevailing fear and loathing of big business than the 2004 remake of “The Manchurian Candidate,” with a glittering cast including Oscar winners Denzel Washington, Meryl Streep, and Jon Voight. The original 1962 film (and the 1959 Richard Condon novel that inspired it) centered on a Communist assassination plot that exploits an American GI brainwashed by the North Koreans. In the remake, the International Communist Conspiracy gives way to the International Corporate Conspiracy. The malevolent, brainwashing force in the new film (directed by “Silence of the Lambs” Oscar-winner Jonathan Demme) is a multinational business behemoth called “Manchurian Global” determined to seize total control of the American government. The film’s tagline, “Everything is under control,” made its underlying message unmistakable.

“THE PATHOLOGICAL PURSUIT OF PROFIT AND POWER”

In the same year, an acclaimed documentary, “The Corporation,” explicitly explored the same notion that big business had taken over from Communism as the true Evil Empire of our time, and a potent threat to all humane values. Screenwriter Joel Bakan wrote a book to accompany the film’s release, with a subtle subtitle -- “The Pathological Pursuit of Profit and Power” – that concisely summarized its point of view. Focusing on the legal theory that treats a corporation as a “person” before the law, the film argues that nearly all these business entities deserve diagnosis as dangerous, even murderous psychopaths. In praising the film, reviewer Mick LaSalle of the San Francisco Chronicle wrote that “viewers come away with the uneasy sense that the defeat of communism may very well have cleared the way for another form of heartless, godless totalitarianism to threaten freedom – governments of the corporations, by the corporations and for the corporations.”

Some of those same diabolical corporations obviously dominate the television industry (as well the world of motion pictures), yet the tube has offered several decades worth full of negative stereotypes and sleazy plot twists involving businessmen. As long ago as 1987, a controversial PBS documentary called “Hollywood’s Favorite Heavy: Businessmen on Prime Time TV” (hosted by movie legend Eli Wallach) pointed to the tendency of major networks to portray corporate executives as felonious, ruthless, blackmailing, violent, lecherous, unfaithful, greedy and, frequently, murderous. The program cited studies at the time showing that on fictional network series (including dramas, soap operas, and even comedies), no occupational group so frequently committed major crimes so frequently as wealthy business leaders.

In 1994, the principals of the nonprofit Center for Media and Public Affairs, S. Robert Lichter and Linda S. Lichter, reported on the results of thirty years of analyzing network TV shows in “Prime Time: How TV Portrays American Culture.” They concluded that “across the entire three decades of our study, business characters were consistently depicted more negatively than those in other occupations…The proportion of bad guy businessmen is almost double that of all other occupations… Businessmen are over three times more likely to be criminals than are members of other occupations…. Although businessmen represent 12 percent of all characters in census-coded occupations, they commit 40 percent of the murders and 44 percent of vice crimes like drug trafficking and pimping.”

The scope of the Lichter study (going all the way back to the presumably less cynical era of mid ‘60’s) and the date of its completion some fifteen years ago destroys the claim that lurid portrayals of corporate executives represent an appropriate and inevitable response to the devastation of the 2008 financial meltdown. All attempts to quantify the treatment of business characters demonstrate that even in eras of prosperity and progress (the “Go-Go ‘80’s,” the bubbly champagne years of the Clinton Boom in the late ‘90’s) the portrayal of the business world remained relentlessly and consistently disapproving.

Most recently, the Emmy nominations of 2008 showed that series which focus on corporate corruption win a disproportionate share of critical praise. “Damages” on FX won seven nominations (including Outstanding Drama Series) for its celebrated non-linear presentation of Glenn Close as a crusading attorney pursuing a class action lawsuit against a vicious CEO (Ted Danson) on behalf of his workers in season one, while season two focused on another “cutthroat case” against a greedy energy company. Another nominee for Outstanding Drama (and in fifteen other categories) was “Mad Men,” a dark, jaded, stylized look at the soulless manipulation and rampant, adulterous sexual exploitation in a New York advertising agency of the ‘60’s. “Dirty Sexy Money” (ABC, 2007-2009) won its own Emmy attention for its lurid portrayal of the fabulously wealthy, scandal-plagued Darling family, and made clear its cynical attitude toward the pursuit of profit in its very title. “Arrested Development” on Fox (2003-2006) received even more critical praise (including six Emmy Awards and a Golden Globe) for its off-kilter presentation of yet another deeply dysfunctional, criminally corrupt business family.

The television news departments affiliated with these same entertainment conglomerates powerfully and predictably reinforce the negative messages about the capitalist system. The Business and Media Institute sponsored a yearlong study of evening news programming on ABC, CBS, NBC, CNN and Fox, monitoring the treatment of business issues between January 1 and December 31, 2006. Amazingly, in nearly two thirds (63%) of all business stories, business men or women never appeared to comment, even briefly. In those stories, a clear majority 57% (481 of 848) featured negative treatment of the commercial figures involved – employing terms like “corporate fat cats” or “crooks heading to the slammer.” The most popular attacks centered on monetary transgressions – unfair pricing, overly lavish CEO pay, or “obscene” corporate profits.

The bitterly negative portrayals of business ethics and accomplishment continue to bombard the public, unaccompanied by contrasting or countervailing visions of heroism or dynamism in the corporate world –a surprising imbalance considering that the source of all these entertainments remains one of the most ruthlessly competitive and globally consequential of all US enterprises.

BITING THE HAND THAT IS YOU

Why would Hollywood, dominated by a handful of shamelessly capitalistic conglomerates, regularly trash the free market system which allowed American media companies to conquer the globe? Why should movie directors, TV producers or Tinseltown stars, all of whom have benefited spectacularly from the business of entertainment, display such consistent negativity to the free market opportunities that made it all possible?

This isn’t merely an example of “biting the hand that feeds you.” In terms of the entertainment companies, it amounts to a case of biting the hand that is you.

According to Larry Ribstein, who teaches business law at the Illinois College of Law in Champaign, it’s not “business per se” that raises the objections of filmmakers, but the specific business people who control their projects. “Filmmakers’ main problem with capital being in control seems to be that the filmmakers are not.”

Every writer, director and actor in Hollywood cherishes stories about cruel, crude, exploitative treatment by lunk-headed executives and for many people in the creative community these encounters represent their only personal experience in the world of business. They naturally extrapolate recollections of these often unpleasant interactions toward a dim view of the free market system in general. As many entertainment insides will concede, the vicious, selfish caricatures of corporate bosses that turn up so frequently on TV and in films bear more than a passing resemblance to the studio or network honchos who may have cheated or disappointed by the projects’ principals in the past.

But if these business-bashing efforts amount to a form of revenge against the greed and ruthlessness of entertainment executives, why should those same executives grant regular approval to projects meant to attack them? Omnipotent corporate titans, in Hollywood and elsewhere, aren’t generally associated with a robust sense of humor about their own values and habits. The consistent investment in anti-capitalist diversions remains especially perplexing in light of the frequently disappointing box office returns for movies that demonize big corporations. Few movie-goers ever bought tickets (or rented the DVD) to see the propagandistic provocation “The Corporation,” for instance, while the big budget, high profile “The Manchurian Candidate” remake qualified as a major flop.

In part, the ugly view of the corporate system that emerges with such consistency from big corporations in Hollywood reflects the distinctively irrational and unpredictable nature of show business. As Academy Award-winning screenwriter William Goldman famously concluded, the operating assumption for the entire industry is “Nobody knows anything.” In other words, each studio’s superhighway of gleaming, high-powered can’t-miss hits is littered with the twisted wreckage of costly and heart-breaking bombs, while sloppy stinkers that deserve neither respect nor affection often startle their own creators by earning inexplicable millions. Unlike the widget manufacturing business, the entertainment assembly line uniquely lacks any objective criterion of excellence. If a company succeeds with its new line of widgets, it’s generally an indication of the worthiness or at least the predictable public appeal of the product. If, on the other hand, you turn out inferior or unreliable widgets you stand a real chance of going broke.

No such logic applies to the entertainment industry, where Dreamworks executive Jeffrey Katzenberg freely acknowledges that success or failure depends on the inscrutable, erratic “movie gods” as much as any reasonable calculation, craft or planning. Every actor or actress, no matter how accomplished, realizes at the deepest level that his or her popularity may owe as much to a winning smile or burning blue eyes or long, lovely legs as to painstakingly developed thespian skill. In fact, many multimillionaire performers understand that undiscovered but ambitious young people who earn their few bucks as waiters or parking attendants might easily compete with the best in the business if ever given a proper chance.

The rewards of Hollywood, in other words, flow to studio executives and to the creative community alike in a random, fickle and manifestly unfair manner, which leads pop culture powerhouses who’ve gained their primary business experience within the entertainment arena to assume that capitalism at large is similarly random, fickle and unfair. If leading celebrities condemn the entire economic system as unreasonable, exploitative, ridiculous and deceptive they do so because they’ve experienced these qualities directly in the industry in which they toil.

A NATION OF EXCEPTIONAL BOSSES

The members of the mass media audience generally accept these stereotypical visions of corporate America in spite of personal experience that contradicts pop culture’s prevailing cynicism. Though every citizen cherishes at least a few horrifying or amusing stories about egotistical and abusive bosses, the overall levels of job satisfaction in the United States remain shockingly high. In his indispensable 2008 book “Gross National Happiness,” my friend Arthur Brooks of Syracuse University and the American Enterprise Institute collates a huge volume of data to reveal the underlying American attitudes toward work. “Dilbert cartoons, the sitcom The Office, and Barbara Ehrenreich’s bestselling book, Nickel and Dimed notwithstanding, Americans like or even love their jobs,” he writes. “Among adults who worked ten hours a week or more in 2002, an amazing 89 percent said they were very satisfied or somewhat satisfied with their jobs.”

What’s more, this overwhelming sense of contentment with their participation in the economic system cuts across all distinctions between blue collar and white collar, between the privileged and the powerless. “There is no difference at all in job satisfaction between those with below-and above-average incomes: Eighty-nine percent are satisfied in both groups. Similarly, 88 percent of people without a college education are satisfied. And people who specifically call themselves working class, those ‘nickel-and-dimed’ folks? Eighty-seven percent. The middle class, who television pundits and politicians say are so increasingly dispirited, are satisfied with their jobs as well, to the tune of 93 percent.”

Since many, if not most, of these respondents pursue their employment in the business world these upbeat attitudes appear to contradict the surveys that show overwhelmingly negative views of business executives. How could Americans report such high levels of pride and pleasure in their jobs when they express so little respect for the ethics or honor of the big shots for whom they toil?

The answer involves a media driven syndrome that spreads confusion in every corner of American life. Forty years ago Dr. Thomas Harris published “I’m OK, You’re OK,” one of the bestselling self-help books in the history of civilization. Unfortunately, most members of the public now embrace a very different concept – “I’m OK, but you’re in a world of hurt and trouble.” The great majority of people say they’re hugely pleased with their own family life, for instance, but then declare (by similarly huge margins) that the general state of the family is dire and desperate. Most parents express pride and satisfaction with their own children’s public schools, but assume that the rest of the education system does a horrible job. Voters overwhelmingly re-elect their own Representatives in Congress, but tell pollsters that Congress on the whole counts as a disgrace; they love their doctors and feel pleased (some 77%!) with their health insurance, but still assume that the system itself is broken and needs radical change.

The chief cause of these contradictions involves the common reliance on media for information about the world beyond personal experience. The individual American never counts on Brian Williams (or his colleagues) to assess the state of his own marriage, or health, or financial well-being, but still uses the images and messages from television to evaluate the situation in society at large. Inevitably, the media reports always emphasize dysfunction and difficulty and despair—tornadoes get better ratings than sunshine, and torture-murder attracts more attention than acts of kindness or philanthropy. The networks and the newspapers (as well as the new medium of the internet) don’t constitute a news business as much as they comprise a bad news business. When we acknowledge our blessings, and revel in our own freakishly fortunate lives, we become convinced that we’re far removed from our neighbors --- surviving on a tiny sun-kissed island of good fortune, while surrounded by turbulent and toxic oceans of despair. Regarding our elected representatives, or our children’s teachers, or our physicians, we assume that we’ve secured the only good and wholesome apple in a vast barrel crammed with rotten fruit. In the world of business, it’s far easier to assume that the head of your own company stands apart from all his colleagues rather than to challenge the prevailing assumptions about the corporate system itself. Like the smug citizens of Garrison Keillor’s fictional Lake Woebegon, we’re convinced we live in a setting where “all the children are above average,” and function in a nation where all the bosses are exceptional.

GRATITUDE ABOVE GUILT

The prevailing view of a dysfunctional and desperate business system flows from widely accepted, endlessly repeated lies that directly conflict with the actual economic engagement of most Americans.

The crucial lies insist –

That capitalism and the free market system are dead – or dying
That when the rich get richer, the poor get poorer
That business executives receive gross overpayment for empty, lazy, corrupt and unproductive lives
That big business, with its global reach, is inherently worse for both consumers and workers than small business
And that government responds to public needs more reliably, more compassionately than the private sector

These pillars of conventional wisdom go largely unchallenged in academia and media where various experts and traditional critics of the free market eagerly emphasize the bad news about business. Nevertheless, many Americans feel instinctive doubt or at least discomfort with the ubiquitous smears against an economic system that allows us to plan, produce and dream.

Despite more than a century of socialist agitation aiming to purge “selfish” motives from every aspect of our society, we still rely on for profit companies in every moment of our lives. I couldn’t be writing these words without the computer company that produced the word processor, or the publishers who printed my sources, or the coffee distributor who provided fortification for the work. Even if you work at some supposedly noble non-profit enterprise, every element of your work depends on some productive capitalist venture --- from the car (or bike, or bus) that took you to work, to the lights and phones and desks and electricity essential to any office, to the building itself, to the food and plates and glasses in the lunch room. For entertainment, we’re utterly dependent on the competitive business system – to organize a nice restaurant, or a good movie at the local multiplex, or a trendy club, or a major league baseball game (and think of all the companies that worked on that scoreboard with its jumbotron, or the retractable roof, or the increasingly exotic fare available between innings, or the exercise equipment that trains the athletes, or their beautifully crafted mitts and bats and cleats.

One could argue that we only avoid the blessings of business in those hours that we manage to sleep, but even then we need someone to provide the bed, and sheets, and pillows, and alarm clock, and heating, and windows with screens, and Ambien (as needed). The literally hundreds of thousands of people required to delivery these goods and services may not see themselves as our benefactors, but they help and serve us nonetheless. As Adam Smith, the pioneer philosopher of capitalism, summarized human motivation more than 200 years ago: “It is not from benevolence of the butcher, the baker, or the brewer that we expect our dinner, but from their regard to their own interest.”

To satisfy each of our needs in daily life requires processes of overwhelming complexity that for-profit business provides in seemingly effortless, organic fashion. The companies that serve themselves by serving others manage to bind us together in an intricate system of mutual demand and satisfaction. The pursuit of profit allows us to depend on one another and, in most cases, to rely on one another.

Far from the heart-hardening and spirit-killing processes cited by poets or movie producers who loudly lament the central role of business in our society, the capitalist system actually opens us to a greater sense of connection and even community.

And to a richer, more constructive, more youthful chance for risk and daring, applied to the ongoing romance of building a business.

I should have recognized these qualities in my father’s many decades as an independent businessman. It wasn’t just scientific breakthroughs that let him relish every day as a new adventure, nor was it the satisfaction of profit and financial progress (he did not die a wealthy man). He loved the sense of creativity, nourishing institutions that grew out of his own energy and imagination, turning out nifty high tech products that no one had ever shaped before. He also enjoyed the relationships, with colleagues, employers, even competitors.

He didn’t have time for the big lies about American business and so simply disregarded them even as he discredited them with his example. Even at a time of financial hardship and menace, a similar celebration about the big truths of our free market system will enable us to face the years ahead with inspiration rather than insecurity, and with gratitude above guilt.

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About The Author
Michael Medved's daily syndicated radio talk show reaches one of the largest national audiences every weekday between 3 and 6 PM, Eastern Time. Michael Medved is the author of eleven books, including the bestsellers What Really Happened to the Class of '65?, Hollywood vs. America, Right Turns and, most recently, The Ten Big Lies About America.
 
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The True Money Changers
Your article is the perfect complement to Michelle Malkin's.

There is an isidious force in this nation trying to poison the well of plenty. Never was Atlas Shrugged more relevant.

I suspect that Hollywood does not bite the hand that feeds it, but like their sleazy democratic brethren in New York and DC - the true money changers - uses government to the full extent. They just hide it well.

FDR led the way
in changing the minds of Americans. He convinced the luckiest people in the world that they were unlucky victims. He did it so he could then convince them he would save them. And they would vote for him. Barry has taken this concept to new heights, and more importantly, has implemented the false policies of this false doctrine. As Medved notes, military power rests on economic power. The USSR collapsed as an economic system, not militarily. We are headed for the same irrelevance now shared by France , German, and Britain. For hundreds of years, anytime these three countries got together, their will was done. If they had been democracies and attended to business, we'd still all be colonies. But monarchs are much more likely to fall out among themselves, and when domocracy arrived it concentrated on getting a free lunch instead of learning to cook one. Now its America's turn to join the slide.

Medved
It is not business we fear, or capitalism. It is
Reaganomics. It got us where we are today.

There is nothing wrong . . .
with a business making a "profit". However, there is another aspect that deserves looking at.
A company (Electrolux) moves its manufacturing operation to mexico (cheaper wages) putting several hundred Americans out of work. Will these Americans be able to by Electrolux products? Will Electrolux lower its prices due to the "competitive cost advantage" that it now possessses? Probably not.
Businesses tout cheaper products as a reason for offshoring labor. However, they are biting one of the hands that feeds it (the consumer/employee).
What is the difference in making 10 million in profits by offshoring your labor and making 9 million by keeping your labor here? In the grand scheme of things not much. A moral component is what is missing in this whole capitalism (profit) system. Maximizing "profits" at the expense of HUMAN CAPITAL is not only morally wrong but a poor business practice. Add to the mix, corporate influence on our (lack of) immigration policy and you see a recipe for disaster (for American workers). Example: bill gates "greed" in not wanting to pay American programmers; forcing down wages by importing foreign workers (when American workers ARE available).
Henry Ford had it right when he decided to pay his employees $5.00 per day. The average wage was $1.50 per day. The wall street types howled that his decision woud wreck capitalism. Even with his labor costs, the price of his product WENT DOWN. He created a market where none had existed.
It's funny how the wall street types criticize Home Depot and Costco for "paying their employees too much" while they make millions for shepherding their firms into bankruptcy.
Capitalism IS the greatest system devised by man. It's time to bring decency to the mix. (Yes, WITHOUT "government intervention").

Big Business
Reaganomics and the Trickle Down Theory became the Trickle Up Theory. And then came deregulations! As a result, Big Business has become too big and now rule the country giving the average citizen very little voice.

Six in the "x" ring, Pistol!!!!
That was the best encapsulation of the O'Vomit/FDR link I've read here yet.


-Ray
NRA Life Member
Soli Deo Gloria!!

Big business
Have nots are jealous of the haves. Have nots do not want to study or work hard but want monetary rewards. It's the same sentiment that drives lottery style litigation - you have some and I want/deserve it. And FDR was just a power hungry meglo-maniac.

Watch What You Wish for
Watch what you wish for, Mr. Medved.

Suppose we told the true story of how Washington and Jefferson attained their wealth in the movies?

Slaveholding is disguised by the polite term 'planter,' especially since the slaves did all the planting, along with all the other labor. And especially with Washington, there's the small matter of acquiring Indian land by military force, trickery and sham treaties, all of which have been trashed.

We won't even get into the ethnic cleansing and nationalization of white supremacy of Andrew Jackson.

The A-Bomb ended the war with Germany? You need a refresher course, since it ended before Hiroshima and 20 million Soviet losses had something to do with it, don't you think?

I'll agree that there are important stories to tell about the truly innovative entrepreneurs in the business world. But the problem with too many of the 'old wealth' families, is once you go back a bit, you find the captain of a slave ship, an Indian killer and a thief of public land and monies.

Here's the problem from the view of those down below.

We know there are two kinds of people--those who work for their money, and those whose money works for them. In the latter category are good many people who do very little work themselves, but turn money into more money by tapping those who do work.

In other words, if your aim is to teach the virtues of hard work, you have very mixed results. Many work very hard, and are rewarded only slightly, while more than a few others work very little, and are rewarded greatly. And if you look at the effort going into holding back the trade unions, you'll see that some folks on top, too many of them, want to keep it that way.

The Deregulation Myth
Popular sentiment would have you think that deregulation has created the mess we are currently suffering, but economic fact says otherwise. Government regulation ALWAYS hancuffs economic growth & is the problem, not the solution.

Most large corporations that are considered "Free Market" are actually Mercantile, accepting favors from the government to get a leg up on competition in one way or another. There is a huge difference between the 2 & that difference was pointed out by our Founders. They were trying to escape the mercantile policies of England. That difference is not recognized today.

Deregulation stimulates competition & brings about economic growth. One piece of proof is our use of cell phones, blackberries, computers, GPS & the internet can be directly attributed to deregulation. Up till the 80's AT&T was a mercantile company given monopoly control of the communications industry by government decree. When the government broke up the monopoly it created by dregulating the industry & introducing competition, our current telecommunications boom ensued. Had those regulations stayed in place, how many fewer jobs & less wealth would there be today?

Wow
This is a work of genius.

Tanny

What, precisely, is Reaganomics? Can you explain that term to me? You throw it around as if you know what it means.

And don't throw "supply-side" economics back at me because you have no clue what trhat is either.

But WHY is there an anti-profit mindset?
Michael makes a good case, proving that there is an anti-profit mindset that is loose in our culture.

But he doesn't go into the ROOT CAUSES that makes such a mindset exist in our culture:

1) The popular view is that wealth is static, hence a zero-sum game requiring that there are losers for every winner. The reality is that [in a free economy] wealth is CREATED by voluntary actions of people who are pursuing their self-interest.

Example: if I build a house, converting $100K of material & labor [land, lumber, labor etc] into a $300K house - I just CREATED $200K of wealth that did not exist previously. If someone buys that house [presumably because they could not BUILD such a house for less], they are investing $300K, which could become $400K in a few years. Another $100K of wealth was CREATED.

2) The concept of ALTRUISM as virtue, as preached by politicians, clergy, teachers. Self-interest (profit) is considered a pejorative when compared to Sacrifice, Renunciation, Selflessness.

ALTRUISM is
* akin to tear-gas, undercutting the MORAL principles [freedom, justice, fairness] behind the profit motive
* a Trojan Horse, that was smuggled into our system of ethics

Hey Medved!
The characters in your article are curious. Spacey, Clooney, Crowe, Pacino, etc., are Holywood actors -- the films are not real events, they are dreamed up by people with fantasies. FDR who your Jewish family adored brought us the worst marxist-socialist government programs we Americans now "enjoy."

Capitalism Problems
The problem with our form of Capitalism is when corporations get so big they are run by accountants rather than entrepreneurs who know the business.

An engineer working for one of these companies creates and idea and gets a patent. Does he/she profit? Likely only a little. The majority of the profits go to stockholders and the accountants running the company.

It's financially more advantageous to climb the corporate ladder than to be creative. Because of this, our Capitalist system actually discourages the most creative people and rewards the corporate politicians.

To The Author

Mr. Medved, if you haven't read it, Ludwig von Mises "The Anti-Capitalistic Mentality" brilliantly explains the underlying pathology of the haters of capitalism and businessmen.

Here is a link to a (free & legal) PDF of the essay.

http://mises.org/etexts/anticap.pdf

voice of reason

VOR asks, "But WHY is there an anti-profit mindset? Michael makes a good case, proving that there is an anti-profit mindset that is loose in our culture. But he doesn't go into the ROOT CAUSES that makes such a mindset exist in our culture:"

There are two reasons: ignorance of basic economics and the following PDF will explain the rest:

http://mises.org/etexts/anticap.pdf

Profits
By law corporations are required to earn profits to be divided among their shareholders. This system have made the American middle class the envy of the world.Only large coporations can afford to do the research and marketing required to bring a new product to market. Whether or not one approves of B. Gates and microsoft you have to admit they and have brought major improvements in every aspect of our lives.

BREAD&ROSES
Michael, don't forget Adrian Brody in "Bread&Roses"......American biznesses have earned their spot, greed, just look at Wall St.

where do you get your news Medved?
I read and see numerous forward thinking and entrepreneurial hero stories every week.

Last weekend I saw a report on Sunday Morning about a new manufacturer of a home size wind turbine being made by former auto plant workers. It was a real American Spirit moment.

Yet, here you are with an near to pathological rambling of nonsense about Americans losing that spirit for profit as they fear certain types of business profits.

Utter nonsense. Every American dreams of making business profits. You are making a story from thin-air meddling into a psyche you do not understand. STOP IT!

I will not tolerate this inane style, it's ridiculous.

many Americans feel threatened
by business because they have been told to feel threatened and due to the intentional dumbing down process many of them do what they are told.

Right off the bat
Wall Street is simply and honestly the Las Vegas of the East; nothing more than a legal gambling bazaar but done with your money.
Anybody who hasn't figured that out yet better get cracking on it.
Any legit goings on over at Wall Street are buried by the sheer volume of gambles on nothing more intricate than which way the trades will go. Has nothing to do with the underlying business.

Voice of Reason
You need to read more carefully. Mr Medved listed a number of things, like tanks, ships, AND the A bomb that defeated the Axis in WWII.

And a greedy Bill Gates, who has given a half billion dollars to charities, many of which are in Africa? Explain please.

Catfish Keith

"American biznesses have earned their spot, greed, just look at Wall St."

Can I ask you a question? Why are you working for an evil, greedy businessman?


A voice of Reason
Great words Mr. Medved, they should be read by all!

I ask you plainly
How can one make a profit in a free market without helping others? (Outside of politics and tort law)

Wall Street that collapsed was all run
by Dimowits: Merrill, BOA, Goldman Sachs (see; Jon Corzine, gov. of NJ), and yadda. If Wall Street had been run by good Rep./cons. principles, the credit crunch would have been much less.

You would always eventually have a housing crash due to GOV'T laws like FreddieMac, FannieMae, the three CRA's, and Cong. meddling.
You cannot mandate financials lend to bad credit risks and outright crooks and expect financials to remain healthy.

Hollywood and the media have been busy since the end of the Cold War portraying business as greedy, corrupt, and anti-green. It is too much in bed with the left and multiculturalism to use Muslim Arabs as bad guys, no longer has the KGB to kick around, and wants to indoctrinate their audiences to their ideology.

I.E.: no *good* guy smokes any more, only villains.

The fact that the media is BIG BUSINESS (and losing some of it as fewer and fewer theatrical releases are made each year and the tv networks are losing more and more viewers each year) never impinges on their propaganda.

Second reason
Too many so-called businessmen are nothing more than rent seekers from the government. They couldn't compete without it.
Corporate welfare/socialism is just as rampant as the individual welfare/socialism.
Why should government give any business a tax break? I'll tell you why. So they can accumulate power through their grants of favors.
This tax system flies in the face of free trade. The public senses this intuitively and resents it. So then some of the anti-profit sentiment in the country is really a reaction to unseemly rent seekers and the power brokers that feed them.

Really binc? "many", you're sure it's
"many"?

That's great you know it's "many".


Business is the Boogeyman
Or at least one of the boogeymen, since business = oppressive white males, right?

For a refreshing dose of Obama-bashing, go here http://www.theblacksphere.net! You will laugh your butt off!

About the trials of the good guys
The millions of good businessmen and women are, I believe, oppressed by taxation, regulation and a sue happy legal system. Here is how I surmise that this even works to their detriment in the eyes of the profit haters.
In order to succeed in this enviornment even the good guys have to be crafty. The public hates crafty business people.
Whereas the real blame lies with the government strangulation of business it has become so accepted that the means of survival and prosperity tend to sway into tacky, small print, evasive business methods.
The public might not have the blame game exactly right but they're not so dumb as to be unable to detect "funny business" and they don't like it.

Rick
you'd probably be able to answer your question better than me as you are one of the many I spoke of.

Remember the old adage
One bad apple spoils the bushel. When I look at the markets for oil, stocks, real estate, currencies, credit, banking, insurance, pharmaceuticals, military goods, transportation then couple them with all the crud that government brings to the table is it any wonder that profit has a bad name? The biggest money is made in the least honorable ways.

It makes everybody else tainted by the same broad brush or as the adage says spoiled also.

I disagree in part Para-Dimz.
The part I disagree is that we can blame government for shaddy business. The part I agree is that taxation is too complicated and burdensome.

Barry
Hey Guys. I ask a big favor of you all. Please stop referring to BHO as "Barry". Please?!?!?

It's giving me a bad name!

Thanks,
Barry

Silly Question
"Why do so many Americans despise Corporate America?" I should think the answer would be obvious: greed has led it to do so many things that are not in the interest of the American people. At random:

1) Outsourcing US manufacturing jobs to Asia in order to increase proft, while laying off millions of American workers and meanwhile rewarding executives with obscenely high compensation. People would understand layoffs if the execs were equally affected and hard times were for all, but it's not so.

2) Keep a worker on for 30 years with the promise of a retirement pension then in the 29th year dissolving the pension.

4) Not offering the same benefits that are offered in all other industrialized nations (paid sick days, vacation, maternity leave, retirement, medical insurance) in order to maintain or increase a high level of profit. In fact, telling a worker that if he takes his contractually-guaranteed vacation, his job won't be here when he gets back and, meanwhile, expect to work every weekend.

5) Allowing unsafe working conditions (for a famous example, google Triangle Waist Company Fire). For a more recent example, google Black Lung Disease).

The US version of capitalism was run by pure greed in the late 19th Century then was tamed by unions and by federal intervention. I did not think ever to see us return to the 1880s but we did, starting in 1980 with Reagan's religion of deregulation. A partnership between business and government is Obama's vision. This is demonized by the Right as pure Socialism or even Communism. Lower middle-class Americans who stand to benefit from Obama's interventions are propagandized to identify with the very rich who have money that Joe the Plumber will never see. A brilliant success for propaganda.

Fear of change
Negative attitudes toward business executives stem from one thing: If you work for a company, you can get a pink slip at any time. For the company, that may be a necessary part of restructuring. But for you, it may be devastating to your family's future.

Even the very nature of "layoffs" have changed.

In my dad's time, a layoff meant that the company was temporarily slowing down production. My dad would get laid off, but when the company picked up business again, he would get re-hired because he had been a good worker.

But in the last 25 years, a "layoff" has come to mean a permanent loss of the job. Layoff ==> downsizing ==> rightsizing ==> outsourcing.

The jobs in manufacturing of shoes, textiles, and perhaps even cars, are NOT going to come back, not ever.

To binc re Fear of Business
A lot about business has changed in my long lifetime. It used to be that John Smith could run the hardware store down on Main Street that was started by his father or grandfather and would be passed on to his son. The Smiths made a decent profit but were not hugely rich.

But now John Smith is bought out by Home Depot or Lowe's (or just put out of business by them when they open out on the highway with larger inventory and lower prices than the Smiths can do). John may even be hired by them as a department manager so now instead of an independent businessman he is a flunky. And the biggies aren't satisfied with "a decent profit"---they constantly strategize on how to increase market share and how to run their colleagues out of business. Business has changed from simple commerce into warfare. So yes, we feel threatened by hungry behemoths that we can't control or sympathize with or understand.

We knew the Smiths. They went to our church. We were in Kiwanis with them. We appreciated the service they offered us. Big business just wants to eat us up. Everybody fears monsters.

To Raymond
Are you conscious? Have you been alive in the United States in recent years? Shareholders have not been allowed to exercise due diligence over the obscene compensation gobbled up by the guys at the top. For many and complex reasons, shareholders have gotten screwed and have been astonishingly complacent about this. When the CEO is hired on a contract that promises him $100 million severance even if he does such a lousy job that he is invited to scram after six months, that awful money might be going to the shareholders. It's not. It's going to the incompetent who then laughs all the way to the bank.

Business is not an end-all
The business sector is the engine of our economic might, a stout pillar of our capitalistic system, and should not be seriously hamstrung BUT it should not be venerated to the point of letting them have free run over our lives either. Business is mostly one-dimensional; it’s all about the pursuit of profit with greed as the motivator; very else matter except what might affect profits. The humane dimension is pushed so far back in their priorities that it usually dies of neglect. Hence, exploitation is the order of the day for business: Be it exploiting the workforce to extract maximum labor at lowest cost, or beat down the competition with anything goes tactics, to exploiting the customer base with anything goes marketing techniques. There MUST be checks and balances and these must be in light of the end-state society wants for itself and wealth is not the whole answer by any means. Business is only part of the mix in the complex equation that makes a society successful and its citizens relatively satisfied if not “happy” which is a personal pursuit. The end-state must address the QUALITY of our lives versus the quantity and other crass goals. The blind support of quantity over quality is what is destroying the planet, our life support system. This is apple pie in the sky thinking and counter to our very selfish impulses but what the world needs is a thousand year plan that includes ALL our collective aspirations in an earth friendly balance. Broken down into five year increments and with good metrics and we can be on our way to a better, saner world. What can I say? I’m a realist, fact-based dreamer.

Drew
I won't speak about deregulation of finance as I know nothing about it, but I can say something about deregulation of the Food and Drug Industry as my husband was an officer of that agency for nearly thirty years. What Reaganomics did there was definitely not in the interest of the American people. Formerly, when a pharmaceutical company wanted to market a drug, it had to present all its research data to FDA scientists who would evaluate the drug for efficacy and safety and say, yes or no, whether it could go to market now or whether further testing and proof were required. Reagan changed this so that companies could evaluate their own drug and decide whether it was ready to be marketed. Naturally they wanted to get the drug out ASAP so they could start making money from it. This led to drugs going to market before issues of potential toxicity had been resolved, and we have all seen the results on the evening news.

Our son, who worked in retail for many years, once brought me up sharp for saying that business doesn't look out for the public good: that's not its job, he explained. Its job is to make money. Fair enough, and I stand corrected. But then, who is looking out for the people? An individual cannot protect himself from the dangerous potential in a pill or the contaminants in food. He can't take a lab trailer or a food chemist with him to the store. Protection of the public health must properly be the job of government, and that is why the regulatory agencies were formed. There has to be a balance: on one side, the motivation for wealth, and on the other side, the motivation for protecting the public health.

for lilly
What Mr. Medved is saying is that we need some balance.

You dislike Home Depot for buying out Mr. Smith. But I, as a consumer, could never find the tools I needed in one mom-and-pop hardware store. I had to shop in many stores. Home Depot, like Wal-mar, offers one-stop shopping at decent prices. That's why consumers patronize those stores. No one forces anybody to shop there.

And as for "doing things that are not in the interest of the American people":

You don't think Apple did something in the interest of the people when they created and marketed the first truly user-friendly personal computer?

You don't think those much-maligned pharmaceutical companies are doing something in the interest of the people with their life-saving drugs? I have kidney failure. Without modern drugs from these pharma companies, I might be dead by now.

You don't think that America's capitalist system gave it the economic strength to defeat the Axis powers and the Communist bloc?

We only hear the negative side. But there is an enormous positive side that isn't being told.

I'm sick and tired of seeing movies and TV about greedy pharma companies creating dangerous drugs to kill people for gross corporate profit. Without those greedy pharma companies and the drugs they market, I would likely have died this year. That's right, me.

lilly

You'd be interested in this as well, since you suffer from it.

Carefull, it contains big words and while not lengthy as books go, is heavier reading than you're used to, Im sure.

http://mises.org/etexts/anticap.pdf

To RJB
My husband is a scientist who once worked for a pharmaceutical company. The first thing they handed him to sign was an agreement that he would not profit from any discoveries he made while working for them. Any patents would be only in the name of the company; he would not profit in any way from a product resulting from his discovery.

What happens when a discovery does lead to a big payoff? I personally know of examples going both ways. In one case, the company has made gazillions and never did anything for the scientist who made the breakthrough; in the other, the company has taken care of the scientist. But there is no obligation.

for Lilly
I certainly am not arguing the need for regulations to protect the public health and safety. I doubt Medved is either.

What he is arguing about is perception: *On balance*, don't you agree that the American free enterprise system has done much more good than harm?

And if so, why isn't that the message that our children are receiving?

Like I said, you keep talking about pharma companies rushing to market and putting some drugs on the market that were later shown to be too risky. But against that, there are success stories. Carl Sagan's life was extended by years due to new drugs that fought his myodisplasia. My life has been extended by new drugs. This part of the story doesn't get told.

I remember classic movies of the 1930s like "Dr. Ehrlich's Magic Bullet" in which they showed scientists racing against time to develop drugs against life-threatening illnesses. That type of story isn't told anymore. Some years ago, a made-for-TV movie, "Pirates of Silicon Valley" (notice the title), portrayed Steve Jobs, inventor of the Apple II, as a dictatorial and near-paranoid junkie. Why such a negative attitude toward the guy who almost single-handedly launched the personal computer revolution?


lilly
Got a hot flash for you. If your husband had been working for the US Government, the EXACT SAME THING WOULD HAVE HAPPENED. Any discoveries made by employees/inventions even if unrelated to their job belong to the US Government.

To SteveL
Re "Why are businessmen shown as greedy tycoons?"

Maybe it's a case of art reflecting life.

Not clear what you mean by "new drugs" but from your context I infer your meaning to be unapproved drugs. The problem there is usually that, as the saying goes, the plural of anecdote isn't data. FDA answers to Congress, and Congress mandates that new drugs be studied according to scientific protocol---by law, they can't be approved on anecdotal evidence. The fact that Mary Smith swears she took the stuff and it cured her doesn't constitute a lawful basis for approving a drug---there must be data from controlled studies.

In other cases the unapproved substance has been shown to have side effects that occur with statistically significant frequency. Personal example: once on a vacation in Holland I had a terrible sore throat that sent me to a doctor. She prescribed a wonderful antibiotic that cured me in two doses, and it happened to be a drug unavailable in the US. When I got home I asked some FDA people why we don't have that drug here. The answer was quick: in 25% of patients it causes exfoliative dermatitis (your skin peels off in big pieces).

Medved
Not that any leberal will read this, but the "excessive" compensation of business executives is a direct relationship to Pres Clinton's taxing of executive comp over $1 million and disallowing companies to take a deductions. Therefore non-qualified incentive stock options were used in lieu. Those options in some cases became worth millions, tens of millions of dollars, many, many more became worth zero, but you don't read about them. And the options became valuable because stockholders made money along side, when the stock prices increased. Government's unanticipated consequences.

And do you read about capping sports or movie star's comp? WHy not? Because they are typically liberals who donate to Democrats.

Truth.

http://www.periodictablet.com

To SteveL
I wish you the best of luck with your kidney failure and I hope you will not take wrong what I am going to say. But an economic system that champions only business at the expense of the public health does little to assist the chronically ill patient, in fact it is more likely to exclude him from coverage. It is government programs that come to his aid.

Imagine Sam, a middle-class guy age 42 who works full-time at a job that pays $40K and has no medical insurance. Not offering insurance is financially good for his company. It's not good for Sam. When Sam needs 3 x week dialysis, only the fact that he will in fact qualify for government assistance as an end-stage renal disease patient will save his family from financial disaster.

All Obama wants to do is widen the safety net. Because business, no matter how inventive and tough it may be, is not going to give a damn about Sam. Even if his company suddenly got religion and started offering insurance coverage, Sam (with an expensive pre-existing condition) would be persona non grata with that insurance company. The pills you speak of would be great and may even be available free through a compassion program offered by the company. Dialysis, doctor's visits, hospitalization, transplant surgery and labs, and other meds would not be covered: good luck paying.

Left wing propaganda
Why is Medved surprised? Public opinion of business leaders is low because of:

1. A dedicated campaign by the Left leaning MSM to deride capitalism...as part of their plan to bolster Obama and the Dem's election chances.
2. 40 yrs of Hollywood films/TV that denigrate businessmen. Again, politically motivated as Hollywood is on the Left and denigration of anything associated with Republicans benefits the Left.
3. MSM hyping of business corrpution; Madoff, Enron, etc.
4. The recent fiscal meltdown; regardless of who was responsible, business leaders are highly visible targets.
5. Obscenely high salaries at the very top...at the same time their companies were failing. Hard to justify this in the eyes of the layman.

So...corporate leaders aren't liked very much. No big surprise. But...I don't think it means people reject market economies.

If big Business is bad
Why dont we simply eliminate it, along with all profit motive. Oh, that been tried, in the Soviet Union. Can anyone recall how that worked out???

The irony here is that two countries (Russia/China) are moving towards Free market priciples and the United States is moving to the left with Obama!!!

*******
Unrelated; but people say the flat tax wont work in large countries... Russia Does it:

Who would have thought it — that America would beat the Soviets to the moon, but Russia would become the first to adopt the ideal free-market tax system? (What's next — France becomes a military superpower? The Congo wins the Winter Olympics?)

http://healthcare-economist.com/2008/01/18/russias-flat-tax /


@ Lilly
If your hypothetical diabetic employee is working in a job that offers health insurance, it is ILLEGAL for him to be excluded from coverage for pre-existing conditions. Employer insurance will cover him, including his dialysis. Please stop repeating worn out lies in an attempt to bolster your position.

respected professions
within the next five years scientists will be removed from the top ten for their uncritical support of the global warming fiasco.

corporations
here's what they do now. the company i used to work for gets bought by a huge european conglomerate. so they lay off most of the employees but then offer them their jobs back at 10 dollars an hour with no benefits. they aren't doing that to their european employees. so essentially the american worker is subsidizing the companies european workers high wages and generous benefits. nice huh? its gonna get worse too.

5 stars
Excellent historical and cultural survey.

Here is an excellent article on why this dichotomy of thinking about the morality vs. the practicality of money-making exists:

http://www.theobjectivestandard.com/issues/2007-fall/morali ty-of-moneylending.asp

With regard to Hollywood, the reason why some films succeed and others do not is not a mystery at all. These people are simply refusing to face (what are to them) some unpleasant facts about the nature of art.

(Cont'd)

Sample size
1040 people is not an adequate sample size for a survey of this scope. Totally worthless.

roy

"the company i used to work for gets bought by a huge european conglomerate. so they lay off most of the employees but then offer them their jobs back at 10 dollars an hour with no benefits."

That, sir, is a pantload. Name the company.

Hollywood cont'd
The truth is that the aesthetic formula delineated in "The Romantic Manifesto" by Ayn Rand is what determines good art, and good art is generally commercially successful, with the usual caveats.

Let's take three movies as examples: The Watchmen, the latest Star Trek, and The Curious Case of Benjamin Button. All three of these movies have the opposite aesthetics of Rand. They are Hegelian-Kantian-Heisenbergian. That crappy and self-indulgent worldview does not resonate with Americans, so it will not sell. The makers of these movies are being pretentious and narrow-minded when they say that such movies are superior art.

The Watchmen was a commercial failure, getting some box office only because of special effects. Word of mouth tanked it, despite an extensive, deliberate word-of-mouth counter-campaign. No one wants to pay $9 to see those kind of "heroes" on screen. The CCOBB had exceptional special effects, but barely broke even (officially), and only after many months of over-the-top promotion and contorted and bitter finagling behind the scenes (esp. Academy Award arm-twisting).

But what about Star Trek? Didn't that do well? Relatively speaking, no. A new Star Trek movie should have been MUCH bigger, given the IMAX niche, modern SE, and other economic factors that favor the industry these days. Observe why it got the $70M opening that it did: Because the original Star Trek franchise is saturated with the aesthetics described by Rand. The Star Trek fan base was won by that aesthetics. Leonard Nimoy even put his reputation behind this film.

In other words, this movie parasitized off the success of the franchise built on the right aesthetics. Had it not had that franchise to base itself on, the movie would have tanked, because it was an abomination.

Tycoons
Okay, I read the rest of the article, in spite of the bugs in the web page.

How odd that people on the left are so willing to forget that George Soros is one of the worst of the worst, according to their own value system.

To the poster who commented on the people named being actors: Well, yes, so they are. They are paid to lie to the public for entertainment. Such lies bypass the critical function of the brain and get planted where they effect decisions without the person being aware of the fact, unless challenged, but only if they are truthful with themselves. That lets out many on the left. ("Oh, Hi Lilly")

In my humble opinion
I feel the resentment has to do with two major things.

1) I cant remeber the article, and please correct me if im wrong, but i remember reading that the avg US corp. exec. makes about 420 times the wage of the avg. worker working for them. And the next closest country is something like 40x the avg. worker. That is a HUGE amount - and while any logical person understands that the execs make more - 4 hundred times the avg guys wage is a lot, and understandably breeds resentment.

2) In my personal life experiences, i have seen a lot of take from the worker to give to the exec. Workers have to take a pay cut, or get no wage increase, or have more work slapped on them while the execs always seem to get their cut.

My father's company instituted a company wide 10% pay cut - except for the execs, who actually all got raises. I understand that this is just one example, but its pretty easy to see how something like that would breed resentment.

It has been (in my experience) been approached as a "take it or leave it" option as well, which breeds the selfish, uncaring attitude.

Very good article, but Mr. Medved must either associate with VERY nice companies, or not associate with bad companies at all.

Keith

Keith laments, "That is a HUGE amount - and while any logical person understands that the execs make more - 4 hundred times the avg guys wage is a lot, and understandably breeds resentment."

That's your opinion. The FACT of the matter is those CEO's, who're making 400 times that of their employeee are worth what they're getting paid, whether you like it or not. The people who're paying them think thet're worth it and thet're the only ones who count.

I don't happen to think that members of Congress should be paid $165,000 plus millions more in bennies and pensions. They do, and since they set their own salaries, my opinion doesn't count for much.

The mean salary in the USA hovers around $25,000. Fortune 500 CEO's average around $10 million, which would make your figures correct.

However, most corporate execs don't make anywhere near that amount. Most corporate execs average less than $250,000. Outrageous?

Then why aren't you screaming about NBA, NFL and MLB salaries as well? Those guys are getting paid CEO salaries for producing NOTHING. They run around a field or court for a couple of hours playing kids games and get paid millions. At least a CEO has a hand in directly or indirectly producing something - a car, a toaster or financial services, for example.

Do you get it? Pointing fingers at what people make is an absurd, ignorant and useless exercise.


Simple Answer....
The reason businessmen and big business corps are portrayed in film and thought of by the average person as evil, shoddy, manipulative, etc is very simple. Because someone could not accomplish something themselves they have to attribute the success to being achieved by other than honest means. Here is a simple analogy for those who cannot grasp complex ideas....

Remember in high school when someone passed a REALLY hard test and everyone else did poorly...Someone, usually the person who didn't do their homework, didn't pay attention in class or take notes, but would cram the night before would decry that person's achievement by saying.."He must have cheated. I studied ALL night and got an F. How could he get an A?" It didn't matter that the student who did well on the test did ALL the homework, paid attention in class, took notes furiously, and studied a bit every night so that the night before they could just review. The ONLY way that could justify the achiever's accomplishment was that he did so by being crooked.

We see that same jealousy and rationalization in today's corporate environment. It gives the underachievers a way to make themselves feel better for not being accomplished.

not really very complicated
For the first question raised, the reason that Americans prefer people who provide services to others over those whose primary motivation is self-interest is that we derive our values from a judeo-christian tradition. That really seems enough to explain that mystery.

With regard to the movies, the answer seems to have more to do with dramatic issues than ideological ones. The wealth of the Bluth family provides the opportunity for humor in areas that a poor family could not. Of course Married with Children mined even more humor from a working class family.

But David beating Goliath is dramatic. Goliath stomping on David is not. Medved seems to be reading to much into these things.

Sarah - 4:07 post

Sarah, perfect post, Perfect analogy.

http://mises.org/etexts/anticap.pdf

Thanks Bob_C
It's nice to know that people read the posts where you are trying to be constructive rather than just antagonistic (see the exchanges between Lilly) I read all the comments so that I can get others' viewpoints.

Bob_C
Firstly, the FACT is - Im not lamenting anything, im simply stating my opinion as to why people resent corporate america. I wasnt even arguing the right or wrong of it, just a reason why i think people resent corporate execs. I thought this forum was for discussing the article that was written?

I never said that they should or should not get paid that much - i simply stated that with wage differences of that much disparity you can see why people are resentful. I said nothing of the right or wrong etc.

Secondly, i didnt mention sports people or actors (celebrities) because i was simply discussing reasons why people are resentful of corporate execs., i wasnt discussing celebrities. While i understand that the celebrities work for corporations, i am discussing the corporations themselves. The pay scale of celbrities are a different issue.

Since i was only stating reasons WHY i feel people are resentful, i dont see the point to your response. I didnt realize that you were the authority on other peoples personal opinions. Ill be sure to check with you going foward.

Keith

You're right. I have no excuse. I apologise.

Bob_C
Thank you for the apology - its all good.

Remember, the corporate Am. that
caused the credit crunch and housing failure were mostly Dems.:

Most of the people who causedthe housing collapse and developed the credit crunch of 2007 were Democrats (even the Wall Streeters, who are too often associated with the Republicans):

AIG’s Joseph Cassano donated exclusively to Democrats.

Countrywide’s Angelo Mozillo is a Democrat who gave sweetheart loan deals to Democratic Senator Chris Dodd (CT), chair of Senate Banking Committee, and Democratic Senator Kent Conrad (ND) chair of the Senate Budget Committee, and a Barack Hussein Obama campaign aid, Jim Johnson, left his position for being a “friend of Angelo.”

Fannie Mae ‘s (created by President Johnson and Democrats to help low-income debtors buy houses) Frank Raines is a Democrat who received $20,000,000 in bonuses alone from Fannie Mae and then moved on the be an economic adviser to Barack Hussein Obama’s campaign.

Fannie Mae’s Daniel Mudd, a Republican appointee in 2005 to replace Frank Raines, claimed in a video in 2005 that Democrats were his “family,” especially Barack Obama.
Bear Stearn’s Jim Cramer is/was a life-long Democrat.

Blame placed on Republicans and/or conservatives for Wall Street’s financial problems were mostly generated by Democratic Party members and Democratic banking regulations: Freddie Mac (President FDR and the Democratic Congress of 1938), Fannie Mae, and the Community Redevelopment Acts of 1977 (President Carter and a Democratic Congress) and 1992 (President Clinton and a Democratic Congress).

I would never say that both political parties’ representatives did not do their utmost to damage American financials, but prime influences were Dems. (and I don't even have Barney Frank listed here).


Case in point...
If you want to see a laboratory-grade experiment between a free market economy and a nationalized economy, look no further than Korea. The north have embraced many of the same attitudes Mr. Medved's excellent article discusses, and have taken the profit motive out of virtually all they do. The south, OTOH, has embraced the free market economy with gusto. Having lived there (in the south, of course) for a couple years, I can tell you there is no comparison at all. In fact, after just a couple generations, the average height in the south is a couple inches taller than the north! The satellite picture of the Korean peninsula at night is also a telling indication (the south lit up like the US, the north virtually black).

When a corporate employee tells me what a soulless, heartless bunch of greedy monsters the corporate leaders are, I always ask them how many promotions they are away from that state themselves, and ask what they're doing to prevent those promotions from happening.

As if it wasn't already obvious...

The culture of Mediocrity
Mediocrity is the norm preached by modern pop culture. To Get to the top you have to have drive, ambition, and a desire to excel at all you do.
This flies in the face of our modern society. Just do your best, doesn't matter if you succeed. Just do the best you can.
The Captains of business and industry are those who would not settle for just doing the best they could. That is why they are resented.

Beats me...
I feel threatened by government. Only it has real power to destroy. Businesses are doing what must be done - labor for a profit. Government itself does not exist without that means of existence. It therefore is dependent upon business and industry - entirely.

Want an EASY $10,000?
Come on all you Obama lovers! Step up to the plate. Surely ONE of you, somewhere on this planet can prove that Obama is who he says he is .... because he can't ... or won't ... hmmmm I wonder why ...

NEWS Flash ....

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Go here and make an easy $10,000 ...

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId= 101892

WHERE"S THE BIRTH CERTIFICATE?

USPatriot56

bob c
people aren't paying to watch these execs either. when 40,000 a people a night come out to watch you do whatever it is you do then you can command million of dollars a year. oh by the way henkel north america.

the bottom line

As an independent with definite conservative leanings, I find myself conflicted when the market talks about the bottom line.

What bothers me, is not the profits - hooray for profits - but as an example of of what conflicts me is the rise of the stock prices when companies move, cut employees, and cut wages.

I know it is the practical thing for companies to do - especially with world wide competition - if we don't sell, we have no employment at all.

Still, I find it hard to swallow that bad news for the average man is money in the pocket of the corporations.

I don't know the answer - I wish I did.

One thing I know - Obama and whoever, keep your nose, your big feet and your ever-present mouth - out of the discussion, the process and preferably out of our life.

Re: Lilly
Relying on the government to regulate business sets a dangerous precedent.

No matter how bad, evil, or dangerous you think a business is, that business cannot FORCE you to buy its products. Government is the only entity that has the power to force people at the point of a gun to do its bidding. No business or corporation can do that.

The free market has its own set of checks & balances to punish bad corporate behavior. A drug company that poisons its customers would soon have no customers. They would either be dead or would avoid the company like the plague due to its reputation for poisoning its customers. Laws are in place to punish companies that break them. The government need only enforce existing laws.

The FDA forces natural holistic cures off the market in the guise of "keeping the public safe". Some of these cures could save many lives, but they never make it to the market. The big drug companies are Mercantilists who are in bed with the FDA to keep competition out.

This is not the free market, it is corporations currying favor from the government to monopolize a market. Mercantilism is being portrayed as "capitalism" to uninformed citizens to promote socialism & ultimately enslavement.

All of the current economic problems in the US today are caused by MERCANTILISM, not Capitalism. Free markets with no government intervention will cure all economic ills. Is the free market perfect? No. But the problems created by free markets are small compared to the poverty, enslavement, & loss of life that is the end result of all socialist policies.

roy

"bob c people aren't paying to watch these execs either. when 40,000 a people a night come out to watch you do whatever it is you do then you can command million of dollars a year. oh by the way henkel north america."

Gee, roy, you have a firm grasp of the obvious.

So I assume you're convinced that CEO's do nothing to earn their millions? Is that what you're saying? I can play a kids game, but I can't run a multi-billion dollar corporation and neither can you. Yet you feel qualified to comment on what these CEO's should be paid. Perhaps that's why you're making $10 an hour with no bennies.

Henkel is a European comapany. It came here to do business. It didn't move to Europe, it was there already.

I don't know what Henkel product you were making or what the problem was. There is always two sides to the story and I suspect that yours is just a bit biased. I don't believe that Henkel simply laid you off to cut your wages. There's way more to the story than you're letting on, isn't there? Union involved? Competition making that Henkel product uncompetitive? Henkel was going to shut the plant down?

I own my own business and I'm telling you that unless your job consists of nothing but unskilled labor, no company would do that. So unless you want to be honest and give the whole story, let it be known that I think you're flinging BS.

Re: Pat The Bottom Line
A company's #1 responsibility is to deliver profits & dividends to its shareholders. There are only so many ways to trim fat from the bottom line.

The progressive US tax system forces a fixed amount of money to be taken out of a company's profits. This is done under threat of the use of force by the government; you don't get out of paying your taxes.

Higher & higher tax rates by state & federal gov'ts is what forces jobs overseas. Companies do whatever they have to do to stay alive.

Implementing a national sales tax to replace the progressive income tax would make the US the most attractive place to do business on the planet. Trillions of dollars in tax sheltered money overseas could safely make its way back into the US. Small business would explode all over the country. Jobs that are now overseas would migrate back. And best of all, it would be VOLUNTARY. If you did not want to pay the tax, you could buy used stuff. Secondary markets like eBay & flea marketswould see their popularity hugely magnified.

Most all of the evils attributed to the free market are caused by government intervention. Thomas Sowell calls this stage 1 thinking. You have to look beyond the stage 1 cause to see the real effect. Sometimes the large time between the two distorts the cause & effect view. Politicians are notorious for taking advantage of this to scapegoat the effects of their detrimental policies. Business & the Free Market are frequent scapegoats.

bob c
well you can think what you want corky but its still the way it is. and speak for yourself when you say we can't run a corporation. you could switch the janitor and the ceo of most companies and the only thing you would notice is that the floors don't get swept anymore. so spare me your tripe about how smart these guys are. you know and i know its not what you know or who you know but who you bl*w.

The bottom line
DREW

Trouble is, I can't find a thing wrong with what you say.

I suppose that in the years to come, global competition will flatten the differences from country to country and everyone willing and able can make a living.

The one thing that industry should remember is that if they pay their employees as well as possible, those employees have money to spend and are consumers. The money gets back.

If only a few are rich, only a few can buy - think how big Walmart is - there are many more non-rich.

Ability, industry and intelligence will almost always have its market - not all people are equally endowed, nor will they be equally compensated.


I Disagree With Mr. Medved
There are PLENTY of cases where you can brag about the source of your money:

1) Winning the lottery - in other words, making no more effort than it takes to buy a ticket.

2) Earnings from anti-social hip-hop "music" (in fact, the less "musical" you are, the more you are lauded for it).

3) Suing the pants off a major corporation, and being awarded more money than the CEO of that corporation. That seems to be a noble thing to do.

And I'm sure we could think of many, many other ways to "make money" that involve little or no risk, or investment, or ingenuity. Those kinds of things are very much CELEBRATED in our society.

ONLY working hard for it, building a business, directing a corporation successfully so that the shareholders profit, etc. - those kinds of activities are abused and castigated by all and sundry.

Don't ask me for the logic. There isn't any.

Wonder what's on TV tonight?

A Rising Tide Floats ALL Boats
Selfishness & the profit motive in the private sector is the primary driving force of the free market, but the secondary & tertiary benefits make things better for EVERYONE.

Contrast that with GREED in the government. Government tries to foment class envy amongst the masses in order to increase its hold on power. By promising to cut the productive in the private sector down to size, government destroys wealth & makes things WORSE for everyone.

Adam Smith said 300 years ago that it is not from the bemnificence of the butcher & the baker that we get our meat & bread, but from their own self interest. When everyone minds their own shop, things are better for ALL. When the butcher looks at the banker & says "he makes more money than me; there ought to be a law against that", GREED makes things worse for all.

Selfishness & profit motive is looking after your own interests, GREED is looking at what others have & COVETING it.

Checks and Balances
In Medved's eyes, as in the eyes of so many conservative commentators, calling attention to imperfections in business or businesspeople equates to attacking the free-market system.

I'm sure that most thoughtful observers who are not caught up in Mr. Medved's kind of uncritical free-market worship recognize that capitalism can bring many benefits, but that concentrations of corporate power and lack of proper oversight are invitations to greed and stupidity. Thanks to conservatives who have worked tenaciously to remove regulation and who see no benefit to enforcing the Sherman Anti-Trust Act, we now have a system of businesses "too big to fail" that are (in some cases) sorry examples of greed and wrecklessness.

Is it really too much for Mr. Medved to recognize that any concentration of power---be it corporate or governmental----requires careful oversight and correction from "we the people"?

Why should Americans Distrust Business
Through our school system, they have been indoctrinted in Marxism. Marxists hate free economic activities. Please see Bye-Bye Sweet Liberty; Chapter 10, Economics vs Politics. Just look for 'JWThinkwright' on Google.
----JWThinkwright

Liberal Hate and Ignorance
Mr. Medved is right on with this. No place in this article does he say business is perfect like johninoregon seems to believe. His point is we need to appreciate business and those who create jobs and improve our society, which business does. Business is not perfect as the men and women who create it are not. Liberalism loves to trash business yet champion the corruption that comes from government. I have news for you for all its faults business is much more efficient then government and I'll take business over government any day. As the rich get richer so does the poor. Compare our poor to the poor of 100 years ago and our poor live like kings. Yes, there are corrupt business men but there are many more poor who lie and steal. It is human nature to have bad eggs in any group. There are laws to deal with those who are corrupt. We don't need more oversight to tear down what builds this country up.

If you're angry with business . . .
Let me make a suggestion. How about boycotting some of the following corporations: 1) Next time you boot up your computer, remember the HUGE corporation that created the first Personal Computer (PC's), IBM. Of course, let's not forget the dozens of PC manufacturers riding on IBM's coattails. 2) How can we forger Steve Jobs and Steve Wozniak for the illustrious "iMac", still one of the major computer makers in the world. 3) Watch commercial TV, better stop! ABC.NBC,and CBS. These are are all multi-million dollar corps! 4) How about the recording industry?. Buy CD's? Better stop! This industry is a multi BILLION dollar a year industry!5) Is anybody going to watch fireworks this year? You better not! There are only three major fireworks manufacturers in the U.S., One in Ohio and two Italian family-owned, one in Mew York and the other one in New Jersey! and, finally, 5) The film industry! Huge studios make billions, every years. Do you know that there are companies out there that do only one thing . . . produce (putt up the front money for) movies to be made. I mean, how do they get the money to make these pictures costing Millions of dollars, HMMMMM!, and lest I forget, the actors and actresses that star in these films. Do you think they work for peanuts? Each and every one of them is a millionaire! I have NO sympathy for these millionaire actors who gibe thousands to charities, when their PERSONAL wealth is more than twenty times or more than the measly, paltry sum that they give to smooth over their consciences. Yes, to pry our lives away from the heartless corporations and big businesses would mean drastically altering their lifestyles, forever! Are you willing?

I forgot something . . .
Have any of you ever been to Disneyland or Disney World and their more than dozens of hotel resorts? Walt Disney Corporation is HUGE! Just the two parks together takes up more than 1,000 acres between the two parks! Disney also Owns Disney Cruise Line with two ships almost 1,000 feet in length, and two new shops to make voyage, soon . . . one in 2011 and the other one a year later! Disney, several years ago, introduced something new for its patrons . . . time-share vacations. Visit such places as Disney parks around the world and dozens of other vacation spots. Oh yes, did I forget to mention that Walt Disney Corporation also owns ABC Television, lock, stock and barrel?

The list of major corporations and big businesses grows larger and larger!

Just a few more fallacies shot down
Tammy:
Reaganomics didn't us into the shape we're in. The failed policies of Jiminy (or, rather Jimmy) Carter, and George W. Bush. There, I said it, a Republican mentioning the name of G.W.Bush!

Rick:
What's your problem, man. All investors in the Stock Market are well aware of its volatile nature.

Tammi:
ALL drugs, with the exception of drugs made for one or more persons suffering with an uncommon malady, must be approved with the FDA. Even Over-the Counter drugs , not including vitamins and herbal preps, must be receive FDA approval.

The German armed forces and those of the Japanese did not surrender at the same time. The Germans surrendered first! The Japanese were willing to fight "until the last man", and it is unknown whether they would have surrendered if not bombed. Remember, China was our ally against the Japanese, and if the constant bloodshed of their troops, it is highly likely that the Japanese were ready to surrender any time in the near future. The huge losses of life at Hiroshima and Nagasaki are grievous, at least. but the tenacity and pride of a nation to whom sacrifice was the highest honor, makes me believe that the Japanese would have kept going until they were LITERALLY down to the last man!




Failed policies of George Bush?
Donald where were you the 8 years of George Bush and what failed policies are you referring to? If you recall the economy started going south after Democrats were elected to congress. For most of Bush's presidency we had a growing economy. Yes, it took a bit after 911 to recover but we did. By no means was Bush perfect and I disagreed with No Child Left Behind and Prescription Drug Plan. Yes he spent too much and did not cut as a conservative should have but tax cuts did work. I would give Bush a mixed grade domestically and an A with foreign policy. Plus, why not mention Clinton in failed policies as his failed foreign policy led to 911? Please, let’s not put it all on the President too as without Congress nothing gets done (good or bad...mostly bad).

What is Profit?
The implied, often explicit, definition used by the left is "unjustified markup and gains".

Core examples could be taught to combine this. E.g.: buy $10 worth of food, spend 2 hours preparing a fine meal, and sell it for $50. That's a $40 'profit'. Is it unjustified? Your 2 hours and rare chef's talents produced something your diners were happy to pay for.

And so on. I.e.: profit is not theft, despite all the insistence of the socialists that it is. Their alternatives, when implemented, resulted in Soviet workers saying, "The government pretends to pay us, and we pretend to work."

Correction:
"...examples could be taught to COMBAT this."

roy

"well you can think what you want corky but its still the way it is. and speak for yourself when you say we can't run a corporation. you could switch the janitor and the ceo of most companies and the only thing you would notice is that the floors don't get swept anymore."

Well, royboy, you can think what YOU want, but on this subject, you're an outclassed ingnoramous. In fact I do run a corporation - my own. But it's small potatoes compared to the multi-billion dollar corporations I was talking about. What I said was: "I can play a kids game, but I can't run a multi-billion dollar corporation and neither can you." And no matter how much you cluck like a chicken, the fact remains that you can't - in fact I suspect you'd be hard-pressed to run a lemonade stand.

Your ignorance and arrogance is astounding. Ignorance because you have no idea what's involved in running even a small business like mine, never mine a multi-billion dollar, multi-national business. Arrogance because you're so comfortable in your stupidity you feel free to parade your ignorance in front of the world.

As I said in my last post, there's a lot more to your claim than you're telling us. I know it and you know it. For one thing, what you described is against the law. There's something much more involved that you don't have the balls to admit.

bob c
you don't know what you are talking about,man. you are assuming i've never run a business before. well i have. it didn't work out but sam walton went bankrupt 6 times before wal-mart. would you say sam was an ignoramus too?

The old lizard was RIGHT!!!!
Gordon Gekko was right. Just substitute "profit" or "growth" or "prosperity" for "greed" and his "Greed is good" speech resonates with anyone not a die-hard socialist or mentally defective liberal. Redundant I know.

Too many people, like O'Vomit himself, think there should be NO profit and companies should only work to break even. WHERE is the future growth and prosperity in THAT? O'Vomint sees corporations as private sector jobs programs to fund his union cronies NOT as private enterprises at all.

We have elected a cross between Jim Jones and Karl Marx.

-Ray
NRA Life Member
Soli Deo Gloria!!

Brian, that's a full mag in the "x" ring
I had a friend from the Soviet Union who got out one step ahead of the KGB. He is almost lucky to have died three years before this buffoon was elected.

Remember, to a community organizer profits are "evil" and the money "has to return to its rightful owners" (i.e. the unions). Gag me with a shovel!!

Maybe we should all wear little "gekko" pins in honor of Gordon Gekko. The last media figure who really got it even if he was an Oliver Stone caricature.

-Ray
NRA Life Member
Soli Deo Gloria!!

What is profit?
When a chef buys $10 of food, cooks it for 2 hrs and then sells it for $50, that is called getting paid for working. Profit is something entirely different. The capitalist buys $10 worth of food, pays $5 to a chef to cook it, $5 to a manager to run the place, $1 to a waitress to serve it, $1 to a clerk to take the check,$1 to a dishwasher, $5 to the landlord and utility company, $1 for taxes, etc. His total outlay is
$29. He sells the dinner for $50. The profit is $21. Now where exactly does that $21 come from? Please don't insult us by telling us that the capitalist earned it by using his superior restauranteur skills, because the chef and the manager will tell you that he (the capitalist) doesn't have any skills; or that his knowledge of the restaurant market is superior to other capitalists, because next week the market may change and he may have to sell at a loss. The capitalist put up $29 and made a profit of $21 without doing one second's worth of work. How do you explain this?

Profit... the answer
AR the capitalist took the initiative and risk to put everything together so the customer could have food. Without his money (risk) the Chef would not have a job, the customer would not have a place to eat,the manager would not have a job. If no customer's come not only are the chef and manager out of a job (which can be replaced) the capitalist is out his investment (which is much harder to replace). If the capitalist does not price the food offered at the right price and/or put together a winning combination of everthing (chef/manger/concept) customer's won't come. The captialist deserves the bigger payout as without him or her the rest won't exist!

Profit....the answer
"Without the capitalist nothing would exist." That is an interesting way to view the world. Do you really think that chefs and restaurant workers suddenly came into being with capitalism? I am sure you don't believe such nonsense. You might check with the previous poster who at least had his chef earn his reward honestly. However, you still have not answered my question: Where does the $21 profit come from? The capitalist put his $29 investment at risk; he paid for all the parts of the investment. He put not an additional dime at risk. Yet he got $21 back. We may agree that he deserved the reward; I just want to know where it came from. Or do you think it came out of thin air, like magic? Some people do think it is magic, like our former beloved supreme leader, Ronald Reagan, who was fond of extolling the virtues of the magic of the market place.

What nonsense? Are you unamerican?
Air, I feel truly sorry for you if you are disputing my answer. Are you un-American or just ignorant as that can be the only reasoning for what you write? The $21 profit come from the reasonably pricing of what is being sold. The capitalist has every right to earn as much profit as he can as without him there would be nothing to sell. Yes, the chef can make food but he is not taking the risk of buying the supplies or providing a place to eat. Thus, he would have nothing to make food with or place to sell it without the Capitalist. If competition provides better food at a lower price there will be less profit, which is ok. That is what the free market is about. If customers don't want to pay the price even without competition that is ok too and the capitalist loses his investment and the chef and manager are out of work. If the chef feels so strongly about his skills why does he not find the capital to invest and become a capitalist himself? Some actually do. You obviously do not understand the free market. It is not magical and you clear misunderstand the great Ronald Reagan. In a sense the free market is magical as all forces working together are a wonderful thing but not in the sense of pure magic. Get a grip on reality and appreciate what the free market has brought this country through its up and downs. The pure opportunity to take an idea and run with it, earning as much profit as possible is what makes this country great. Even with the downs we are much better off as a society through the innovation and competition the free market provides. The greatest danger to this country, the economic terrorist "O" should well learn this lesson as his desire to kill the dream through his anti American polices is despicable.

To: AIR
Let me give this a try.

The $21 dollar profit came from the restaurant customer, who decided she wanted a steak dinner for two more than her $50.

I notice you minimize the risk taken by the business owner and thereby miss an important point. You say the owner didn't do anything to earn his profit, but he did. He risked his money, without which the other players could not have had their jobs and earned their wages. Neither could the customers have enjoyed their fare.

Two things here. First, your numbers are wrong because they give the owner a 42% profit (21/50). Restaurants turn more like 3% to 5% profit - just ask any restaurant owner. Your costs are too low. Paying all these people, and the many others you left out, would cost $45 to $47 dollars.

Second, small businesses fail at a 60-65% rate after 5 years, and then 60-65% again after the next 5 years. Many people try to earn that profit by assembling a business they think will work, but only a few ever see a profit. It is the possibility of turning a profit that brings on all these takers in the first place.

It’s a polar expedition.
It’s a polar expedition.

We do live in a land of thieves and exploiters but as in today’s political arena the math does not support the implied symptom.

Business exploiters who excel in the art of manipulation of the cattle know as the staff of today’s working force is not all as prevalent as we are led to believe. To think that all of America is the stereotype of

Hollywood’s vision of underdog is convincing only in the box office of video sales. It can be called trappings and trimmings, but in reel life does not reflect all of America

Inclusion, clubbing, focus groups have something in common, they are marketing tools. So how does the transfer into the Boss and work that are just oppressive.

Conditioning using market programming and controlled education sales media or just the vacuum know “LOP” (Least Obligatory Path) to respond instinctively not intellectually use our responses, are part of marketing used today. Targeting and cascading marketing trends that build on proven themes such as the assumption for higher self esteem, class raising, becoming more attractive to say a few are part of the tools used to motivate or encourage selling of products as well as non tangibles such as service or status. Constantly using physiological foundation enforces this behavior so without success we are left to travel with the baggage of guilt. Michel has brought out that we are projected in the low end of the scale for greater than 87 and 88% of the working public does not depend on the marketing of Hollywood and Madison Ave hype to understand that “we are not our jobs, we are not what we drive or live in” but are in most part Moral, Family loving, workers struggling to learn from our mistakes to enrich our knowledge base of life. We do not need a life style presented by the minority who are in fact the noisy politicians who are trying to run this Polar Expedition.
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