Capitalism has Warts

Maybe it is time, or far past time, for a reality check and a morality check for capitalism. Like Warren Buffet has said, something to this effect, "you can tell who is swimming naked when the tide goes out"...you might also say as "you can see all of capitalism's warts when you throw back the covers". And right now, most of capitalism is laying partially paralyzed, naked, exposed and showing many, many ugly warts.

The reality check should, of course, include an examination of the salary and income differentials that exist. While I am no opponent of entrepreneurs and chiefs of industry making a potfull of cash, some of the differentials that exist are getting a little nutty. CEO's making 500 times the average workers pay? Is that really in the best interest of the company? From a stockholder perspective or a workers perspective I would have to say no. Actors, athletes and other performers making yearly salaries that most people won't earn in a lifetime - reality?

The reality check should also include a Wall Street mentality reevaluation. Maybe, just maybe, there should exist more socially responsible corporations that are not just worried about short term goals and this years bonuses. Maybe it is time to temper expectation of short term gains and concentrate on the long term health of a company...including products, facilities and employees. CEO's bowing to Wall Street demands have cost many jobs in this country.

Other reality checks should include: What should we really expect from our government? Shouldn't we be more forceful with demands of our government...like demanding less spending.

The morality check should examine greed. Greed, while pervasive on, though certainly not limited to Wall Street, isn't a virtue despite what might be taught at business schools and seminars. Our conspicuous consumption has led people to take risks and take on debt in the name of "having" that in no small part has gotten us into this credit mess. A nation of savers became a nation of net debtors.

And speaking of greed, another fraudulent scheme emerged today. I am not sure what the tally board total is up to right now, but it is bound to rise higher while the tide is still out.

All the above included, capitalism does have its share of warts. But, there is no system that produces as a whole, better results for more people in the long run. It justs needs some periodic tinkering with, and constant vigilance from its citizenry and elected officials. It ain't broke, but it does need a few warts removed to look a little better again.