The Lord has warmed us to be on the alert when danger is ahead of us so we can avoid it, in proverbs 27. Can you operationalize the massive shift in wealth in America? Let me try to operationalize it to you, if I may
I’m seeing a colossally dangerous set of events these days below my eyes— A number of well (and not so well) intended people clinging to a past that is on its way to extinction. They hold the idea that capitalism is an economic system driven of profit only as defined by Adam Smith in his seminal book The Wealth of The Nations. His motto, “All for yourselves and nothing for other people” is a dated concept from an obsolete capitalist ideal.
Modern capitalism is society conscious and more honest. Simply making a buck on someone without investigating what the competition charges can and probably will backfire. The days of overcharging customers for financial gain are almost over, if the capitalist wants to be in business long term. Let me illustrate this former thought by asking you a simple question. How do you feel when a company charges you for a product twice the price of their competitors, after you find out the truth online?
Not sure about you. I felt pretty crappy about it this past week when I was charged nearly double the price for an Apple accessory in a retail store. Even though the company eventually matched the price offered by its two other competitors, I now distrust them. Why did the engage in such practice? Are they going to overcharge me for a product with the hopes that I don’t catch it next time? Do you see the problem that they now have?
Modern capitalism is more sophisticated. Supply chain is mostly an international process these days, Amazon’s reinvented/democratized modern inventory systems and introduced data driven customer led innovations. Growing Businesses offer more flexible on demand hours, not the typical 9-5 hours. A relation with its customers is paramount for success especially is an enterprise is small. The product(or the person) is now the marketing! The Capital + Labor = Production equation is now being challenged by the mass introduction of AI in the economy.
Tesla is now the most valuable car company in the world. The Associated Press now uses Automated Insights to write its stories. Let me write this loud and clear — robot journalists are now news stories for you and I to read. The age of sophistication is here to stay. How sophisticated are you?
We own the means of production for cheap. With a Macintosh computer and an entry level DSLR along with a decent microphone — a teenager can start a business at 16 with the training He gets from watching YouTube videos. Making the business profitable is another story because capitalism is now so much more complex than before. Let me explain: It’s easy to have a media business at 16 because media tools have become a commodity. However, it’s difficult to have a media business at any age because everybody can start one.
The game has changed. People now need to better understand the specificities of modern capitalism in order to have a shot in the game. At least, this is Warren Buffet stated in an interview with CNBC, along with Bill Gates.
The system is more specialized and too many people are incapable of seeing this tough to swallow reality. No wonder why inequality is increasing rapidly in the United States. A sizable number of Americans are playing the wrong capitalist game version. Capitalism 2.0 is fueled by 24/7 electricity. Many Americans are still living in a house running candle light. They still believe that capitalism 1.0 is mainstream.
This whole situation reminds me of what happened in the industrial revolution era back in 1760 England with the exception that those who are left behind in capitalism 1.0 develop a “Stockholm syndrome” like relationship with the same people who keep them blind to the realities of the current Capitalism 2.0 system.
It seems that there is much danger ahead of us all yet many still can see it. Tradition perhaps people’s inability to think objectively instead of emotionally are likely the reasons, in my options. Things in life evolve including capitalism.
Big system changes usually brings major pains along with it. The industrial revolution, French Revolution, the American revolution. Now, it’s the capitalist revolution.
That God be with us. We’re gonna need Him.