The Unintended Consequences of Technology. Chris Ategeka

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Desperate times call for radical measures. This starts with redesigning a system that was built to redistribute wealth and power from the many to the few. If it's done correctly, working people and their families will not only survive, but thrive, from the jobs created by massive public investment in restructuring our systems such as the energy grid and transforming our world. And we know the only ones willing to make that demand are those of us who are currently being squeezed by private interests for every last drop of profit. It will take all of us. Rather than trying to fix capitalism, we should be seeking to modify it or replace the blueprint that created it.

       Stakeholder Capitalism versus Shareholders

      In the United States, the top 1 percent of households own more wealth than the bottom 90 percent combined Ingraham, (2017). This is in part a result of a winner-takes-all mindset in a capitalistic market.

      Furthermore, there is this myth of “pull yourself up by your bootstraps,” which assumes that we all come from the same starting point. Yet racism, sexism, and classism are all ignored. It's hard to win a race if you start off shackled and have to run through fire while others use turbo-charged engines to get there.

      It's time for all-hands-on-deck intervention to rethink our capitalistic system and make it work for everyone. That's why I am a proponent of stakeholder capitalism, which cares about humanity and our planet, rather than the current shareholder capitalism, which focuses on wealth maximization for a small number of elite individuals who own the company.

       Preventing the Negative UCOTs

      The COVID-19 pandemic has given us an opportunity to pause and think about the systems we want moving forward. Big ships are not easy to turn, but they are not impossible to turn either. We need to create a version of capitalism that focuses on the longer term and on the common good. That's why now is the right time to come up with innovative ideas.

      Myspace and Kodak both failed to adapt to the technological changes of their time and were replaced by superior products. We as a human species need to adapt or else we will soon be a Myspace.

We can create better systems if we have the will. For example, Walmart saved a billion dollars in fuel costs by increasing the efficiency of their trucking fleet. Elon Musk revolutionized the automotive industry by focusing on clean driving solutions. It can be done! We have seen some movement in the industry by top influential CEOs.

      Salesforce billionaire Marc Benioff says, “Capitalism as we know it is dead. The current system has led to profound inequality. To fix it, we need businesses and executives to value purpose alongside profit” (Benioff, 2019).

      Stakeholder purpose is becoming as important as shareholder value for many businesses. Inclusion and diversity are hot topics and recognized as levers that drive value both monetarily and in building a stronger, more sustainable future. If we are to have any humanity left on the planet, we must build a better economic system than we have today. Sustainable capitalism can only be achieved through balance and harmony among the individual, social, planet, and ethical dimensions of reality.

      In 2020, Walmart CEO Doug McMillon said, “It's time to reinvent capitalism post-Coronavirus. Big problems don't rest on the shoulders of government or corporations alone. I think the growing interest in stakeholder capitalism stems from companies genuinely invested in doing good for our world, because it's the right thing to do and because businesses who take this approach are stronger” (Eben, 2020).

      Ray Dalio, founder of Bridgewater, the world's biggest hedge fund, and a man worth about $20 billion according to Forbes, became the latest in a bank of billionaires to go public about his fears of widening income inequality (Dalio, 2021).

THE FUTURE OF CAPITALISM

      Business and technology leaders need to embrace a broader vision of their responsibilities by looking beyond shareholder return and measuring their stakeholder return. This requires that they focus not only on their shareholders but also on all of their stakeholders—their employees, customers, communities, and the planet.

      Capitalism in modern America is antithetical to the American Dream.

At first it sounds all fine and dandy, to each their own, whatever you can build for yourself you can have! But the American Dream is about starting with nothing. And it turns out that starting with nothing in a system that doesn't have adequate social programs is like being shackled.

      You have a much lower chance of success than if you were to start off in a country with great social systems or with a Inheritance and your dad's garage to set up a desk and start your next big thing. I believe that in America you have less of a chance of achieving the American Dream than in the more socialist/capitalist hybrid countries mentioned earlier in this chapter. A country that practices a mix of capitalism and socialism gives its citizens the freedom to do what they want, and the incentives to do so, but also ensures that everyone has a decent shot at making it big.

      Promoting individual happiness as our utmost ethos is self-defeating, as deeply divided societies turn unstable and unhappy. We need a new American Dream based on connection, equality, and sustainable growth. The cost of sharing opportunity and wealth may appear high for today's elites, but the alternative is far worse.

      So, as a business leader, if you are to design capitalism better, what do you need? Well, instead of a rather narrow unicorn mindset of building privately held startup companies valued at over $1 billion, we need to adopt a wider “zebra” mindset that thinks about all the stripes of humanity and our planet. This means we consider regenerative growth and think about the 3P win-win-win approach (profit, people, and the planet). Zebra companies put humanity and the planet at the center of their missions.

      The future of capitalism is human. Learning from history and reflecting on the legacy we will leave behind are keys to successful and responsible, conscious capitalism.

REFERENCES

      1 Ali, Waqas. (2016). “Top 5 Causes of the Great Depression – Economic Domino Effect.” https://www.warhistoryonline.com/history/top-5-causes-great-depression-economic-domino-effect.html

      2  Amadeo, Kimberly. (2020). “Boom and Bust Cycle, Causes, History, and How to Protect Yourself.” https://www.thebalance.com/boom-and-bust-cycle-causes-and-history-3305803

      3 As You Sow. (2021).“The 100 Most Overpaid CEOs” 2021 report. https://www.asyousow.org/reports/the-100-most-overpaid-ceos-2021

      4 Beer, Tommy. (2020). “Top 1% Of U.S. Households Hold 15 Times More Wealth Than Bottom 50% Combined.” https://www.forbes.com/sites/tommybeer/2020/10/08/top-1-of-us-households-hold-15-times-more-wealth-than-bottom-50-combined/?sh=6658f1a45179

      5 Benioff, Marc. (2019). “Capitalism Is Dead.” https://www.cnn.com/videos/business/2019/10/17/marc-benioff-capitalism-orig.cnn-business

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