| merica be saved? Is Capitalism finished? The | | | | credit cards which no doubt increased the retail |
| Commies will say ‘No’ and | | | | spending, but this giving of liquidity to consumers |
| ‘Yes’ respectively, but | | | | can only ever be a short term fix (they have to |
| they’re wrong! | | | | pay the money back one day). The real fix is to |
| If the Elliot Wave theorists are to be believed | | | | get real money in their hands: their money. |
| then we have started wave four up of a five | | | | Now, there is an American Hero who is a real |
| wave bear pattern going down i.e. Wave 1 down, | | | | capitalist, he’s helped his workers become |
| Wave 2 up, Wave 3 down, Wave 4 up, then | | | | capitalist and set up on their own and supply him |
| Wave 5 down. | | | | with parts and services. This American Hero is |
| Certainly, as I write 16th March 2009, the Dow | | | | actually a South American Hero, Ricardo Semler |
| Jones Industrial Average (DJIA) has rallied 11% | | | | from Brazil, he ran (or may still run) the |
| and so it looks like wave 4 is underway and if it | | | | world’s most usual workplace SEMCO. |
| gets through 7240 on the Dow, it might make it | | | | In this company the workers ran the production, |
| to 8600 (and then start its wave 5 down from | | | | set the targets, and even evaluated their bosses. |
| the 8600-8800 region). | | | | They even, at one point, decided on the new site |
| If this comes to pass the wave 5 down could be | | | | for the factory. In other words Semler introduced |
| brutal and may go down for two years | | | | industrial democracy and the workers were given |
| (that’s what happened when stocks rallied | | | | 23% of the profits: that’s real money in |
| into April in 1930, after the 1929 crash ) : | | | | their hands: their money. The company grew |
| I’ve seen projected DJIA figures of 4700 | | | | many fold despite the turbulent Brazilian economy. |
| down to a pessimistic 2000. Now, when the wave | | | | Virtually every North American Major corporation, |
| five happens the Commies will come out of the | | | | from IBM to lesser Corporations, visited Semco in |
| woodwork (they did in the 30’s) and the | | | | Sao Paolo, Brazil and were amazed and mystified |
| message will be anything from ‘Capitalism | | | | that such a corporate culture could flourish. I |
| is Dead’ to ‘Break up the | | | | recommend anyone interested in Capitalism to |
| Union’. | | | | read Ricardo Semler’s book |
| They will point to the all too visible Banking failures | | | | ‘Maverick’. |
| and the on going credit crisis as Capitalist failures. | | | | So how can the US economy be saved? By |
| Now, a Capitalist is someone who carefully | | | | implementing Industrial Democracy and giving the |
| calculates the risks of their venture, minimises | | | | workers a percentage of the profits at least |
| them, and invests responsibly with a good | | | | 22%. Semco was going under when Ricardo |
| prospect of a profit. | | | | Semler implemented his industrial democracy plan: |
| The Banks failed to do that, they had little or no | | | | he had nothing to lose. |
| checks into the prospects of the lender actually | | | | Similar profit sharing schemes were implements |
| paying them back. In many cases the money was | | | | by dot com start ups in the US and some of |
| given to people who should have never have | | | | them were very successful. |
| received it: sub prime was an understatement, | | | | So, by implementing Industrial Democracy, the |
| the people given money were very unlikely to | | | | corporation is likely to flourish (grow many fold) |
| pay it back. | | | | along the way get more efficient (the workers will |
| A UK example was when a failed asylum seeker | | | | not tolerate waste when their 22% is on the line) |
| (shouldn’t have even been the UK) bought | | | | and the workers who really generate the profits |
| a new luxury apartment overlooking the River | | | | are rewarded. The stress levels of the workers |
| Thames: he had virtually no income, no job, no | | | | goes down (they can change the system): with |
| right to be in the country and no assets. The | | | | transparency they know the real financial situation |
| salesman then simply asked if he’d like to | | | | of the company and they’ll even find out |
| buy another apartment in the Block and the failed | | | | that the company operations are not as profitable |
| asylum seeker said ‘Yes’. | | | | as they thought: that tempers wage demands. |
| The result was the failed asylum seeker had two | | | | When a hard decision has to be made, i.e. lay offs, |
| riverside apartments worth over One Million | | | | the workers have to make the decision: cuts the |
| Pounds, the Salesman had his commissions, the | | | | stress the boss has, down considerably. |
| Bankers got their Bonuses and to hell with any | | | | You’re probably, thinking this is crazy |
| responsibility and the future. | | | | it’s socialism: no it’s not, its real |
| Some of the Banks acted like reckless, greedy | | | | capitalism and when you unleash the real |
| individuals with little or no responsibility: as long as | | | | creativity of the workforce the results will be |
| they got their cut (Bonus) they couldn’t | | | | way beyond expectation. |
| care less who got the money. My argument is | | | | Most companies have a hierarchic structure, with |
| that these people weren’t Capitalists they | | | | generally a few people at the top do the thinking, |
| were just Reckless and Greedy: in any political | | | | and the rest follow orders: that’s a feudal |
| system you care to mention they would have | | | | system. If you get everybody thinking in the |
| failed, they acted without care and responsibility. | | | | company, then things get much more interesting: |
| But did the Banks act alone? I don’t think | | | | inefficiencies can be resolved and the potential |
| they did: I think Governments printed money and | | | | cash cows will spring forth. |
| then told the Banks to get the money out there, | | | | In other words when most workers clock on their |
| we are stimulating the economy. Notably, the US | | | | brains clock off: that’s a serious waste of |
| stopped releasing M3 money supply figures | | | | resources (the few people at the top doing the |
| sometime ago (18+ months ago), that’s | | | | thinking). Now if everybody starts thinking, then |
| the amount of money that they are printing. | | | | the brain power the employer paid for starts to |
| So I don’t think Capitalism has failed, but I | | | | kick in, and the employer just may find the |
| do think it’s flawed. The problem is that if | | | | employees really know how to run their section |
| you run Capitalism long enough the few Capitalists | | | | and may be able to improve it markedly. |
| end up with virtually all the money and the | | | | And when the US workers have real money in |
| workers who really built the businesses end up | | | | their hands: their money, then retail spending will |
| with little financial reward for their efforts. Very | | | | take care of itself. |
| often they see the industrial process they helped | | | | Capitalism has saved America in the past, and in |
| develop being shipped off to third world countries | | | | terms of logistics America cannot be beaten: |
| along with their job. | | | | it’s the American strength. So if you want |
| In short, most of the people who call themselves | | | | to save America, become a Capitalist (and |
| Capitalists aren’t really Capitalists, if they | | | | don’t be selfish enough to stop at |
| were Capitalists, they would actively help other | | | | yourself, mentor others to do the same). |
| people become capitalists and mentor them in the | | | | I’m a Limey and I’m saying that: |
| process. | | | | if you’re a Yank you should be singing it |
| In the seventies in the US people were given | | | | from Times Square. |