Rethinking trickle-down capitalism is the topic of this visionary talk, by the entrepreneur Nick Hanauerhe who dismantles the mantra that “greed is good”, or an idea he describes as not only morally corrosive, but also scientifically wrong, and lays out a new theory of economics powered by reciprocity and cooperation.
Human capitalism refers to an economic system that emphasizes the value of human capital, which includes knowledge, skills, and abilities, as a key factor in creating wealth and prosperity. It involves investing in education, training, and other forms of human development to improve the productivity and potential of individuals, leading to greater innovation and economic growth. In essence, human capitalism prioritizes people as the most important resource in an economy. This stands in start contrast with trickle-down economics where tax cuts for the rich, deregulation for the powerful, and wage suppression for employees have turned economic inequality into the defining issue of our time.
"People are angry. And they have a right to be angry. Because they've been taken advantage of for 40 years. Now, what we do with that anger, how we express it, what change we enact to remedy it: that's the question. Because if you don't get economics right, the pitchforks will come out."
Economic equality is important to businesses and society for many reasons. It promotes growth, makes everyone more tolerant, reduces fear and increases satisfaction with life. It helps to prevent people from falling into poverty, reduces the chances of violence, and makes a more environmentally sustainable world.
Income inequality is also an issue when it comes to ensuring that all members of society have opportunities for employment and education, and that they are not being left behind. This is why governments should invest in reducing inequality in a variety of ways, including through policies that support access to the labour market, education and healthcare. Other means to achieving economic equality include compulsory financial education for students focusing on money management skills, abolishing negative gender stereotypes and discrimination to work, home, academia and culture, among many others.
Fostering human capitalism requires a commitment to investing in people and recognizing the value that they bring to the economy. There are several ways to foster human capitalism, and these include:
The answer to this question is a resounding yes, and it’s important to note that rethinking trickle-down capitalism does not imply a zero-one game. Businesses can very much benefit from human capitalism in several ways, and these include:
In essence, human capitalism helps businesses to build a skilled and motivated workforce that is better equipped to drive growth and success in the long term.
In rethinking trickle-down capitalism there is a vast new space for what is called value-based businesses. These are companies that prioritize values and social impact alongside financial success. They aim to create shared value for all stakeholders, including customers, employees, suppliers, and communities, rather than solely focusing on maximizing profits for shareholders.
In a value-based business, the company’s values and mission guide decision-making, and the business seeks to create positive social and environmental outcomes while still generating profits. This can include initiatives such as reducing the company’s carbon footprint, investing in employee training and development, and supporting local communities through philanthropy or volunteering.
Value-based businesses often aim to balance financial success with a commitment to social responsibility, recognizing that sustainable growth is best achieved when all stakeholders benefit. This approach can help build long-term customer loyalty and trust, attract top talent, and improve the company’s overall reputation and competitive advantage.
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The FutureEdge CFO Academy (“aka” Blog) is our central repository for all meaningful information and content that FutureEdge CFO cares for and supports, which we package and make accessible to anyone who visits our site to facilitate creative thinking and inner reflection. We aspire to cultivate a growing body of knowledge that is uniquely our own, but is acquired externally, and we share it to promote the values we stand for, but also to help make sound decisions and take the most effective action.
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