What would it be like if companies paid
their workers as much as they could rather than as little as they
can? This is a big step past Capitalism 101 but it is still free
market. It just places a higher value on the well-being of the
worker than on corporate wealth or some hedge fund manager who
contributes nothing. It is also a patriotic position because it
values the good of the nation above personal wealth. We tend to
think of capitalism as getting the most you can get for as little as
you can but there is no rule that mandates that. Valuing the lives
and well-being of employees is not socialism in any sense of the
word. It is just taking care of your workers in a way that allows
them to have meaningful lives free from financial hardship. It is
all about your value system. If you think this is crazy then
consider this. Dan Price who founded Gravity Systems in Washington
recently took a pay cut from $1,000,000 per year to $70,000 per year
to help fund a pay raise for his employees that lifted them from
about $48,000 per year to $70,000 per year. The boss will be making
the same as the employees. Oh, sure. No doubt he has equity in the
company and other investments but the gesture he makes is dramatic.
By comparison it is estimated that
companies based in the United States are sitting on two trillion
dollars in cash that they are desperately holding on to praying for a
political climate to emerge that will allow them to keep this money
with a lower tax burden. This is money that the free market people
tell us is to be used to “create jobs and employ workers.” Right
now all it is doing is sitting in money funds that attempt to offset
inflation which is very low at this time. If those companies were as
patriotic as Mr. Price they could raise the compensation packages for
millions of workers who could pay taxes and fund the rebuilding of
the infrastructure that buttresses our economy. But that would
require thinking more of their workers and the welfare of the United
States than the multi-million dollar compensation packages and golden
parachutes that have created an oligarchy. An oligarchy that is self
perpetuating by its ability to buy elections and lobbyists to direct
favorable legislation.
Into this toxic brew comes Dan Price,
entrepreneur and millionaire, who shows his appreciation for the
workers by putting his money where his mouth is. No claims of being
a self made man or libertarian concepts to justify keeping it all.
Can anyone argue that it is beneficial to his workers to receive a
greater portion of the fruits of their labor? Is there any dispute
that the distribution of higher wages will have a stimulative effect
on the local economy and help create a secure future for the just
recipients of this event? These people talk of starting a family or
being able to rent or purchase a place of their own. What they speak
of is what we used to call the American Dream, the dream that is
dying a slow and painful death.
In truth, these are the things that we
speak of when we refer to the greatness of America and the love that
people have for their home. So, how can Mr. Dan Price be wrong? Or
could we hold him up as a classic example of the good that exists in
the hearts of some people? Could he be an example of the
selflessness that we so treasure in others but find so rarely in the
hearts of the Captains of Finance and Industry? And if we find it so
valuable and pleasurable then should we not encourage people to
emulate the example for the good of the people and the good of the
country? Dan Price could just as easily found a good hedge fund
manager that would have used the money to finance arcane instruments
that are little more than legalized gambling, making bets on what
institution will fail at their endeavor. In the end his money could
have been used for no good end or for creation of anything other than
more wealth. But it was not used for no good end, it was used for a
very excellent end and that was to improve the lives of the people
who worked to generate it.
I saw a graphic the other day that
showed that there are 80 people, less than 100 people, in the world
that control more wealth than the bottom 50% of all humanity on the
globe. Pause just a moment to allow that to sink in. That half is
about 4 billion people compared to 80. And we now have
representatives of those people hard at work to influence legislators
to allow them to take more.
I am a capitalist. I believe that
allowing people to create and keep the profits from the products of
their creation is necessary to motivate economic prosperity. I don't
say growth because I don't think that infinite growth is possible.
At some point we have to move to sustainability. Capitalism is our
economic model but it is far from perfect and that is the role of
regulation. Without regulation to benefit the rest of society
capitalism is avaricious. There has to be regulation or all of the
wealth ends up in the hands of a very few.
I am also a socialist. I firmly
believe in the value of social programs such as Medicare, Social
Security and, yes, Obamacare. I believe in a tax system that funds
the essential services that only government can deliver and make
available to all. I believe that here in our country we are all in
league together and that means not allowing the least of us to do
without.
I imagine that at this time there are
millionaires everywhere who are saying, “Oh crap, look what that
Dan Price has done. He's going to get everyone stirred up and now
they are going to expect us to do be good to our workers and spend
our money.”
My Take on this is that we need to put
up a monument to this guy. Not only has he shown that private
enterprise can have a heart but he showed us where his is. It is
also My Take that if we had more Dan Prices that unions would not be
necessary.