Capitalism <> Greed — Capitalism = Service

I had to take a decent amount of time off this evening to get our harp restringed.? Beautiful instrument, but it requires a lot of maintenance.? While talking with the fellow who travels the East Coast restringing and retensioning/regulating harps, I made the comment, “Capitalism isn’t about greed, it is about service.”? He stopped for a moment, and said (something like), “More people need to hear that.”

Well, I’ll say it now, while Capitalism is at low ebb.? Capitalism at its best is run by idealists who have great ideas about how to make the world a better place by offering more and better choices to individuals.? They love their work, and are passionate about what they do.? They are lifelong learners, trying to better themselves and what they offer others.

The value proposition is simple: Capitalism offers more than you previously could have done with your resources.? For those willing to make the effort and run their own businesses, the principle can shine.? Serve others well.? There is no shame in service, as the Protestant Reformation taught, rather, it is the normal life for all people — we must do our duty in all of life, whether because of non-negotiable ties (Family, Church, State), or negotiable ties (Business Agreements).

Capitalism maximizes choice for those that study hard and work hard.? By meeting the needs of others, there is a reward.? The more people you help, and the greater the help offered, the better you can do.

Capitalism derives its moral legitimacy from service.? The idea that greed makes Capitalism legitimate should be discarded.? Greed is evil; it places personal well-being ahead of ethics.? Service places other people in front of our own interests, and promotes harmony.

I’ve been in the financial world for 22 years — I’ve seen real service.? I’ve seen greed.? I’ve seen managements that motivate to excellence, and those that cheat the customer (and employees — the two phenomena are correlated).? I have also succeeded in serving customers, and sadly, failed them (less often, thankfully).

It does not change my conclusion: Capitalism has moral legitimacy because it causes businessmen to deliver high-quality service to customers, not because it is the best way of channeling the energy of greedy men.

9 thoughts on “Capitalism <> Greed — Capitalism = Service

  1. Serivces also make the service provider’s life more meaningful and fufilling.

    Thanks for sharing your observations, thoughts and insights.

    -Wayne

  2. This is very interesting, thank you.

    I think this is a good way to be succesful when acting as a capitalist, but i’m not sure it’s what capitalism is about as opposed to the form many would like it to take.

    I find this post inspiring and will use it in my life.

    Thank you.

  3. Beatifully said! I couldn’t agree more.

    Entrepreneurial capitalism delivers value and service to customers, and prosperity and purpose to employees. The rewards so gained for owners are typically modest compared to the risk assumed and the value provided to others, particularly in smaller businesses.

    I had no idea you were of such a philosophical bent. Keep up the great work!

  4. Fantastic post and great statement, ?Capitalism isn?t about greed, it is about service.?

    I’m a pastor and have wondered whether Adam Smith saw a connection between his views and the Year of Jubilee which was supposed to be one of the foundations of ancient Israel’s economy (see Leviticus 25). I bring this up because ?Wealth of Nations? seems to be taken from a Messianic passage about the Jubilee, ?But you will be called the priests of the LORD; You will be spoken of as ministers of our God. You will eat the WEALTH OF NATIONS, And in their riches you will boast? (Isaiah 61:6; cf. Deuteronomy 8:18; Isaiah 60:5,11).

    Interestingly, Jesus took Isaiah 61 as one of the themes of His ministry (Luke 4:17-21) and Jesus was most certainly against greed and emphasized service.

    Can anyone shed some light?

  5. You write:

    “Capitalism has moral legitimacy because it causes businessmen to deliver high-quality service to customers….”

    I would agree if you had written: Capitalism has moral legitimacy WHEN it causes businessmen to deliver high-quality service to customers.

  6. Duncan, I like what you have to say, and next time I write something like this, I will reword it. The thing is, both are true, and complement each other. Competition, if allowed to work, drives those who don’t deliver high-quality (or low prices) to customers out of business, and promotes those who do deliver value.

    Capitalism gains practical moral legitimacy when it causes businessmen to deliver high-quality service to customers. But capitalism is morally legitimate in spite of bad capitalists and cronies that abuse the system.

  7. Dear Mr Merkel
    I thank and applaud you for writing this. I have been a reader of your blog for a long time. When i read your post today, it resonated with values and ethics that we all learnt and grew with up, but somehow lost among our leaders in this world of cut-throat business and politics, entirely due to greed.

Comments are closed.

Theme: Overlay by Kaira