How Germany got it right on the economy by Harold Meyerson in The Washington Post
The above link is an article on a different form capitalism, one that values social democratic ideals. This is not the capitalism found in the good ole USA, but it is found in Germany. Despite the bad economic times, and the raising economic power of Asia, their economy is still doing very well.
I have had some of the same thoughts as the author of this article, only mine were about farming. I have occasionally had the same thoughts about small retail shops as Wal-Mart and other big box stores kill downtowns and mom and pop operations. I have just never made the logical progression to our manufacturing base.
The family farm has gone by the wayside as large corporations have taken over farming. It has not been a good move for our economy or our food supply. We are so intent on having cheap food that we have forgone quality, and increasing safety. We have left our food supply in the hands of entities concerned mainly with profit. I have no way of knowing but I do wonder how much labor we would need to import if family farms were the norm instead of these huge corporate behemoths. This site, (Link off web), among others claim that family farms are more efficient and better for the environment.
One of the results of the Wal-Martization of retail is a narrowing of choices. When all our shopping choices are big box stores we tend to have same choice at each place. We are left with shopping based on price. I can go to Wal-Mart or Bed, Bath & Beyond and find many of the same things. Just the prices differs.
Not only has Wal-Mart killed the mom and pop operations, but as the nation’s largest employer they have a workforce supported by the taxpayers. It is a well documented fact that Wal-Mart workers due to low pay and lack of benefits qualify for many government programs. I cannot help but believe that if you have a job it should pay at least well enough that you are not on the public dole.
We need desperately to get away from the quarterly profit merry-go-round. What is it they say about politics… it is all local. I’m thinking farming and manufacturing need to be the same. That is the point this article makes. Germany has kept its manufacturing base. Approximately 25% of its GDP comes from manufacturing. And it turns out that most of its manufacturing is small scale and locally owned. Because their manufacturing base is not tied to quarterly profit statements and keeping shareholders happy in the here and now they can think and plan long term. It really profits no one to operate many businesses from quarter to quarter…except the financial wizards that have gotten us into this mess.
The other point this article makes is that the German companies and government care about the workers. It has been a long time since I have felt any love from my government or any company. The article details how workers stay put, sometimes for decades. Heck, I have worked for 3 companies in 7 months and I never got out of my desk chair.
We could be doing things so much better, but we need to remember what Mr. Spock so eloquently said, “The good of the many outweighs the good of the few, or the one.”
Somehow we have to get away from making one or two percent of our population very wealthy at the expense of the rest of us. We have got to stop greed from ruling the day.
Excellent, David.
THINGS ARE TO FAR GONE IN THE US. IT WILL NOT CHANGE ANY TIME SOON. THERE MUST BE A CHANGE. BUT THE FEW DON’T WANT IT. THEY ONLY WANT MORE MONEY. THE HELL WITH THE REST OF US.
I think the key point is the stakeholder vs the shareholder mentality. Our perverted system is centered on the shareholder with only a monetary interest in a company. A stakeholder has a lot more invested in the success or failure of a company, an economy, and a nation.