Money As A Measure of Individual Value

Money is a great development to humanity.

Humanity by nature is extremely judgmental and money at least is not personal. Utilizing money and wealth as a criteria for human judgement eliminates prejudices based on skin color, religion, geography, gender and this is a great thing. In our modern world, money trumps all else in terms of valuing people's worth and is a wonderful comparative tool such that we can individually get a sense of our worth and our placement in society.

Where this personal valuation has gone awry however is in terms of the origin of one's individual wealth. The mere possession of money has come to supersede the means of accumulating it. In our modern world any single person can accumulate wealth with no regard to the impact one makes on other individuals or society. The worst aspect of our current system though, is that one can accumulate wealth at the expense of others.

In my eyes, accumulation of wealth at the expense of others is not wealth that should be judged as valuable or honorable. I suggest, that wealth that is accumulated without adding value to individuals or society should be shunned and per my initial point regarding human judgment, should actually be judged as negative.

The effect of this negative label would be to encourage individual wealth-building as a result of benefiting a wider group of persons. It would also serve to keep those who have amassed their fortunes in a less than savory manner from having personal influence or access to broader political, business or social institutions.

Unsavory then becomes the criteria for valuation at this stage. Unsavory needs to defined as wealth-accumulation that derives from 1) illegal actions, 2) curtailing production, 3) reducing societal economic conditions or 4) detracting from the human condition. Recent examples of each would be as follows: 1) Bernie Madoff's 25 years of fraud, 2) stock market speculation, 3) Wall Streets debt mortgage products and 4) pornography. This is just a quick list.

Let me state clearly that anyone is still free to amass as large a fortune as they may want.

Ethics though need to be re instituted into wealth-building such that the amount of money that one accumulates is proportionate to that contribution that is made throughout that process.

Post from the Road: Dallas Morning News

I am on a mutli-city road trip for the next couple of weeks so I will take my inspiration from news stories found in the local newspapers:  As I am currently in North Texas I will comment on the Dallas Morning News cover story regarding the alleged bribery scandal at Walmart in their Mexican operations.
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One significant challenge all multinational companies face is adapting their current business practices to foreign cultures.

The Walmart story is a perfect example of just such a challenge. Walmart (it is claimed) paid bribes mostly in 2005 to local government officials in order to accelerate the process of Walmart expansion in Mexico.  Obviously bribery is an illegal business practice.

The second questionable behavior is in terms of Walmart's investigation of the in incident and the subsequent silence and evasion to regulatory agencies.

This second issue reflects the requirement for transparency in private companies and is testament to the need for the "Spirit of Law" mandate I set out in a prior post (April 12, 2012).  Companies need to at a minimum attempt to play by the rules and not try to hide findings purely for the desire of avoiding poor press and subsequent drops in share holder value.  It is inherent in any fairly run organization, that shareholders have access to truthful information in order to make educated decisions in terms of financial investment.  Executive level management has to come to believe in this philosophy and "the Spirit of Law" provisions would be useful in ensuring appropriate behavior. In instances like this though whereby obviously illegal activities are being undertaken then the Executives need to be liable and subject to criminal punishment.

The bigger issue of course goes back to the first point regarding the bribes. In the era when Sam Walton was in charge, Walmart was generally seen as an extremely admirable and ethical organization in context of its operations. Walton would never have authorized or condoned bribery as he knew that was bad for business in the long run. Short-term profiteering once again is just testament to the selfishness and shortsightedness of many of today's CEO's. It is also representative of the win at all cost too many of today's boomer possess overall in their attitude towards life in general.

American companies specifically have to become the role model for appropriate corporate behavior globally. There can be no challenge to put ethical agenda as a primary objective of business expansion. American companies have to be the benchmark on how foreign companies conduct their operations and also how foreign governments learn to work with them. Economic expediency can never be the only purpose of an American company in a foreign land. The era of exploiting foreign nations is long over.

Finally, as more and more countries around the world have access to capitalism then there is more and more competition for investment dollars. American companies have to be the ones that lead the way in making their profits honestly and ethically in countries where they operate. American companies have to embrace the mindset that if they do business in a foreign land then they have to bring the experience and advanced business knowledge to those regions in order to expedite global development. Successful business practices by these American companies will have positive influence over foreign areas and aide to bring them into a positive, honest and free market environment. Under this model, American companies can thrive by opering new markets without having to embrace the poor business environment that preceded them.

The notion of "ethical capitalism" I put forth earlier (February 28, 2012) is the future for American companies. Brand value and revenue streams will flow to the companies that operate in the most humane and honorable way possible. Corporate valuation and investor confidence will be given not from just domestic operations but international as well.

The New American Dream: Crafting Ones Own America

The American Dream is changing to one whereby individual citizens have input and control over their world such that they have the opportunity to live free and define their own measures for success.

The traditional dream of being free and working hard which subsequently leads to financial success has become antiquated as most people no longer feel that the system is fair or accessible to them. America's domestic economy has evolved into a tremendously inequitable system whereby a financial oligarchy has complete control over it and manipulates the system to their advantage at the expense of the many.  Many Americans do not even have the ability to strive for an improvement to their existing situation as the middle class formula for growth has diminished. Even a minimal goal of home ownership has eroded for way too many people.

Americans now feel the USA is a place where they are manipulated and controlled to the point that they have no contribution or input into the current system.  This unease with the current system is the root of the social unrest we are witnessing. The Tea Party movement is a social movement to affect political control and the 1/99 movement is a protest over economic inequality. Though each movement represents a very different philosophy, both are the same in their origins in that all the members are asking for is the same thing...access and influence for more American citizens.

The evolving new definition of the "American Dream" is one in which individuals feel they have the ability to influence and craft their own immediate community so that they can have a platform for success.  Success itself  is also being redefined as less of a financial reward but rather one in which American culture, society and the economy is more equitable and accessible to everyone.