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Tuesday, November 15, 2011

HOW FAR APART IS THE TEA PARTY AND OWS?

Whereas the Occupy Wall Street (OWS) movement is generally regarded as the left wing of American politics, the Tea Party is considered its right wing counterpart. Although the media tries to draw comparisons between the two, both sides rebuff the other. Their tactics and general philosophy may be different, but the two are actually not as far apart as you might think. To illustrate, OWS organizers recently articulated a list of demands they want the government to implement (see "The 99 Percent Declaration"; alternate Site).

Interestingly, their grievances are essentially no different than the Tea Party's; for example:

* Both sides want to implement campaign reform and revision of lobbying laws.

* Both sides want to enact term limits for government officials.

* Both sides want to implement reforms to our current tax system.

* Both sides want to reduce the national debt.

* Both sides want more jobs for Americans, and curb outsourcing.

* Both sides want to reform our immigration policies.

* Both sides want to ease excessive costs resulting from our military policing of the world.

* Both sides want an end to currency manipulation.

* Both sides want to implement banking and securities reforms, not to mention ending the Fed.

* Both sides want to reform public education.

* And believe it or not, both sides are interested in protecting the planet.

The two sides are far apart on some issues though, such as universal health care, forgiving student loans, mortgage foreclosures, and abolishing the electoral college. However, they are actually not as far apart as you might believe.

The difference between the two groups though is HOW these issues should be addressed. The 99% Declaration lists specific remedies for solving these problems which I believe is a fatal flaw in their declaration. Instead, it should simply define what the problems are as they see it. Maybe their solutions are acceptable, and maybe they are not. The point is, there is too much of a temptation in this country to "leap before you look", to try to offer solutions before we understand the problem. That is like prescribing a treatment before having a doctor examine you. As a patient, it is your responsibility to try to articulate your perception of an ailment to a physician; in contrast, it is the doctor's responsibility to interpret your symptoms, diagnose the problem, and prescribe a suitable treatment, and there may very well be several different treatments to solve a particular problem.

Let me give you an example, Article 4 of the Declaration's grievances discusses, Term Limits: "Members of the United States House of Representatives shall be limited to serving no more than four two-year terms in their lifetime. Members of the United States Senate shall be limited to serving no more than two six-year terms in their lifetime." That is a solution. The problem is that people are tired of career politicians who make their livelihood from politics and become less responsive to the interests of their constituents. Their solution may be flawed as well, e.g., are terms to be consecutive? Can they go from one chamber of Congress to another? How about simply abolishing their Congressional pensions instead? Why this particular combination and not something like, "no more than twelve years in Congress" (and let them figure out how to spend it).

In other words, I believe the 99% Declaration should contain nothing but a definition of the problems and then hold a separate convention to discuss alternatives and formulate a suitable solution. Instead, the 99% Declaration is another prime example of "Fire, Aim, Ready" that plagues this country.

As someone who has taught planning and has read many feasibility studies over the years, I commend the OWS for their efforts in producing the 99% Declaration, and recommend all concerned parties read it carefully, including the Tea Party. It is a good first draft, but it needs a considerable amount of polish to make it palatable to Americans as a whole. My recommendation to the authors: concentrate on defining the problem as precisely as possible, deliberate on alternatives, select a suitable solution, and then pitch it to the country. Just remember, it's "Ready, Aim, Fire"; any other sequence is counterproductive.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 7:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

Sunday, November 13, 2011

BEWARE OF THE WHIZ KIDS

Back in the 1980's a generation of young MBA's were unleashed on the corporate world and turned it on its ear. These "whiz kids" slashed costs wherever possible, particularly in training programs, mentoring, and reduced administrative personnel. Although their tactics did indeed save money in the short run, they created long-term headaches down the road, such as creating morale problems which lead to a disconnect between workers and their employers, which ultimately lead to outsourcing many jobs overseas. Quality in manufactured goods and services also suffered as a result of less training. Whereas employees had previously been empowered to overcome problems under a spirit of teamwork, managers began to closely supervise workers which today is commonly referred to as "micromanagement." The point is, the whiz kids of the day made a name for themselves simply by implementing short term changes which were highly visible on the next quarterly P&L statement. Although they could show short-term benefits rather quickly, their bean counter approach had devastating long-term effects on many businesses which haunted companies for years.

Today, a new generation of whiz kids have emerged in corporate America who are again charged with turning things around in their companies. Basically, management is hoping to groom their next generation of managers by allowing these "phenoms" to shake things up. Whoever is successful moves up the corporate ladder in much the same way as Donald Trump's "The Apprentice." Realizing they have only a limited time to make a difference, such as six months before they have to move on to their next assignment, they tend to slash costs as opposed to nurturing something new, and God help anyone who gets in their way.

Case in point, I have a friend who for several years has been a supplier to a local division of a Fortune 500 company. Over the years he has developed an excellent relationship with the company who trusts him in terms of securing quality industrial supplies for their manufacturing floor at affordable prices. My friend's company devloped a reputation for going above and beyond the call of duty to serve his client and keep the Fortune 500 division happy. It wasn't cutthroat pricing that sustained the relationship, but competitive pricing coupled with excellent service and prompt delivery. Frankly, this was a classic example of a win-win relationship between two companies where everyone was satisfied until four whiz kids came to town and tried to make a name for themselves.

The company had allotted a sizable sum of money to refurbish the plant. Understandably, my friend's company wanted to bid on a portion of it. A detailed proposal was prepared and submitted by my friend who was told by his inside contacts that his bid looked to be the best. Regrettably, my friend's proposal was rejected by the whiz kids, not because it wasn't competitively priced, not because he couldn't deliver on time, and not because he was quoting inferior materials. Instead, the whiz kids explained to him that his company had won more than its fair share of bids with their company and, consequently, another vendor would be selected. This of course did not sit well with my friend, nor his inside contacts who knew the proposal was the best. Regardless, the whiz kids were bent on getting a lower bid thereby demonstrating their ability to cut costs regardless of whatever feathers they ruffled. After all, they knew they would be transferred somewhere to another division in a few months.

My friend was not going to take this rejection sitting down. Consequently, he arranged a meeting with the whiz kids, their superiors, and his inside contacts. During the course of the meeting, my friend provided a chronology of his company's relationship with the division. He enumerated the many projects his company had worked on, what they had saved the client in terms of money and the services they provided on a gratis basis. The testimonies by his inside contacts added to his credibility. Bottom-line, he gave evidence his company had worked in good faith with the division to save them money and provide quality materials to the satisfaction of all concerned. Management thanked my friend for his presentation and years of service, and informed him they would notify him soon of their decision.

One can only speculate as to what happened next. Suffice it to say, the whiz kids were reprimanded for threatening to disrupt a healthy business relationship, and sent packing to their next assignment. Had it not been for my friend's tenacity, not only would his company had lost considerable business, but the Fortune 500 division would have lost a trusted business partner.

The point is, whiz kids walk a dangerous tightrope. They cannot expect to simply come in and slash and burn existing programs and not expect someone to challenge them. True, large companies need to groom the next generation of managers but I question the wisdom of assigning people to such short term assignments where they may make some crippling decisions by mistake. In my friend's case, he took them to task, but there are a lot of people who would not, hence the problems we experienced in the 1980's. Perhaps the biggest problem I have with the whiz kids phenomenon is that it encourages quick and dirty thinking as opposed to long-range planning.

There is nothing wrong with having some young Mustangs running in the herd, they just need to be watched carefully or they'll start a stampede in the wrong direction.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 7:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

Thursday, November 10, 2011

EQUALITY OF DRIVING

Whenever I have somewhere to go with friends or family, I normally volunteer to drive. When people ask me why I do so, I explain it is not simply because I enjoy the act of driving, as much as I somehow appreciate the equality involved. Let me explain. It occurred to me a long time ago that driving is one of the few venues in the world that doesn't recognize a socioeconomic class structure, race or religion. Regardless if you are a multimillionaire driving a Rolls Royce or Lamborghini, a bum driving a jalopy, or anything in-between, driving requires everyone to behave equally. Rich man, poor man, beggar man, thief, everyone is on the level and must behave as such in order for this important transportation system to work. And for some reason, knowing I can start each day on the level with everyone else is encouraging to me.

Some people are easily wowed when they see an expensive automobile on the road. Frankly, I couldn't care less what you drive or who you think you are. We're all equal on the road as any member of the Law Enforcement community can attest. They only care the rules are being observed and traffic is flowing unimpeded. Other than that, they are unconcerned with your stature, regardless if you are a politician, celebrity, millionaire, or whatever.

Some see driving as analogous to socialism whereby we must all move along on the roadways equally. Well, not quite. I see it more akin to capitalism where I can drive as ambitiously or lackadaisically as I am inclined to be, not to mention courteous or rude. Nonetheless, I am responsible for my actions. If I decide to drive recklessly, I may incur a moving violation or perhaps worse, such as an accident. In this event, I will have to pay the bill, not the other motorists. To my way of thinking, I see each day as another chapter where I must get from point A to point B in the most efficient means possible. In other words, a capitalistic race to the top.

My grandfather, who moved to this country from England following the first World War, also loved to drive his car everywhere. So much so, he would even drive his car down the block just to post a letter in the mailbox. His car was his pride and joy, and he would go to great lengths to keep it clean and running smoothly. His pride of ownership clearly demonstrated he was a capitalist.

The one bit of satisfaction I get on the highway is when I either outmaneuver the millionaire in the Lamborghini or watch him get a ticket for speeding. Either way, I realize the system works. Yep, I'm a capitalist too.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 7:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

Tuesday, November 8, 2011

COLLEGE LOAN DEBT: DIGGING A DEEPER HOLE

Most Americans are familiar with the vast debt our country has compiled ($14.8T as of this writing and growing steadily). We are also acutely aware of the burden of mortgages and credit card debt, particularly in this age of high unemployment. As if things weren't bad enough, a new statistic has emerged courtesy of the College Board who reports student loans are about to cross the $1T threshold as students are borrowing twice as much as just a decade ago and the outstanding debt has doubled in the last five years alone. The debt is growing so rapidly that the Federal Reserve Bank of New York recently calculated this will make Americans owe more on student loans than credit cards, which is a frightening thought (see Northern Voices Online, 10/21/2011).

Not surprising, among the demands made by the young "Occupy Wall Street" protesters is to have their college loans expunged. Such loans are typically sponsored by the federal government and private financial institutions. To expunge them would mean the taxpayers and private financial institutions would get stuck with their bill which would obviously compound an already overbearing debt. Plain and simply, it wouldn't be fair; not fair to those who paid for their education, and not fair for taxpayers to pay a tab which others incurred.

Americans place a lot of emphasis on education but we should be mindful of the fact that attending college is not a right, but a privilege. During the Depression years prior to World War II, there was no more than 1.4M college level students attending approximately 1.7K institutions of higher education. Today, according to the Digest of Education Statistics, over 19.1M students attend 4.4K colleges, a quantum increase. Since the 1960's alone, when colleges experienced an influx of students seeking refuge from the Viet Nam war, enrollment has more than doubled. Back in the Depression, money was scarce and, as such, it was common for all of the members of a family to work, often sacrificing higher education in the process. Back then, a High School diploma was considered a prestigious achievement. Even a Junior High diploma was prized as some people could not afford to rise above this level.

Unless something radical happens to our economy, I suspect enrollment has peaked in this country and will likely begin to diminish sharply. This will inevitably lead to downsizing of faculty and administrative staff and some campus doors will be forced to close. We've already started to see this here in Florida and I suspect we're not any different than the rest of the country in this regard.

So, am I a fan of expunging college loans? Hardly, nor am I a proponent of waiving credit card debt. I can appreciate the dilemma people face in paying off such bills, but a deal is a deal. Where I come from, people who renege on their debt are called "deadbeats," and I fear we are grooming a generation of them, people who do not understand what it means to live within their means. The only benefit I see emerging from this is that people will begin to realize attending college is a privilege, not a right, and a college education will no longer be taken for granted.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 7:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

Monday, November 7, 2011

MY FIRST WEDDING

I conducted my first wedding ceremony recently. As a Notary Public in the State of Florida, you can perform such a service, and we are but one of three states that permit this (the other two are South Carolina and Maine). I became a Notary a couple of years ago as it comes in handy to process legal paperwork, but I had never imagined doing a wedding service. Earlier this year, a young friend approached me about doing a service for a friend of hers. At first I was startled by the request, but then said, "Why not?"

I take the institution of marriage rather seriously and figured I would not treat it as frivolously as some people do. As such, I sat down with the bride-to-be and had a heart-to-heart talk with her about why she wanted to get married. We talked for quite a long time. I discussed my marriage, which has lasted over 30 years so far, and the sacrifices, compromises and challenges involved. We also openly talked about religion, children, finances, commitment, even pets. After a lengthy discussion, she came to understand my point-of-view and I became convinced of her love and commitment to her fiancé who was just being transferred to another state as part of his job. As an aside, I wish someone would have consulted me in this manner prior to my wedding in order to solidify my intentions. Only after we felt comfortable with each other did she ask me if I would perform the ceremony for her. I informed her this would be my first such ceremony, but I would put forth my best effort for her.

Several months passed and the bride kept me updated of schedules. During this time I located a simple wedding oath that complies with Florida regulations. It was hardly lengthy, but quite respectable nonetheless. The whole service would take less than ten minutes to perform which made me a little nervous as I tend to think of traditional weddings in terms of at least an hour to perform, but such was not the case and certainly not what the couple wanted.

We conducted a rehearsal on the day before the wedding at the site, which was a prominent hotel located on Tampa Bay. The practice was held late in the day at approximately the same time it was to be held on the following day. It was here that I met all of the relatives, bridesmaids and groomsmen. The service was to be held on a private beach of limited size (approximately 30" X 60") which, at the time, still had beach chairs on it and two Corn Toss games in the middle of it. I tried to imagine how over 100 people would be seated on the beach, and if they would be playing Corn Toss during the ceremony. The wedding coordinator from the hotel assured me everything would be cleared and setup appropriately for tomorrow's service.

The rehearsal went off without a hitch and under ten minutes, much to the delight of the wedding coordinator and the bride and groom. My only concern was the prospect of the couple tearing up during the service as they warned might happen during the rehearsal (and did). Note to self: bring a pack of tissues tomorrow in case the waterworks get out of hand.

On the day of the wedding, my wife and I arrived an hour early so I could prepare myself and get the necessary paperwork in order. The reception was to be held immediately afterwards next to the hotel pool where staff was busy making last minute preparations. It was a beautiful Florida fall day with a slight sea breeze coming in off the water. Frankly, it was picture perfect, everything was in order, and attendees began to arrive for the ceremony.

As part of the service, the couple had two large bulldogs which were important to the family. One was dressed to represent the groom and sported a top hat, the other represented the bride and wore a light dress. My fear was that the dogs wouldn't behave properly or perhaps have an "accident" in front of the audience, which was a horrible mental image I worried about. Fortunately it was not to be, and the audience found them to be a rather charming addition to the wedding party.

As for me, a lot of people knew this was my first wedding service and kept asking me if I was nervous. Now I'll admit I would like to see the service come and go without any flaws, but having spoken in front of many audiences over the years, I hardly suffered from any stage fright. I just wanted to do my part as dignified as possible. As is common for Florida beach weddings, the wedding was somewhat casual in nature. Although the bride wore a beautiful white dress, the groom wore a comfortable Tommy Bahama outfit, also in white. The groomsmen and bridesmaids were quite casual as well, as were the dogs who behaved admirably. However, as the official in charge of the ceremony I resisted the temptation to go too casual and wore a suit and tie instead, thereby denoting an authoritative figure which I felt was important.

At the designated time, the service began and I took my position at the front of the audience on the beach who were seated in organized chairs in front of me. To my left was the groom and his groomsmen, along with the bulldog wearing a top hat. The bridesmaids then came down separately as is customary and positioned themselves to my right, with the other dog in tow. The bride was then escorted down the aisle by both her mother and father. I could see some slight moisture in her eyes and I reached in my pocket to check for the tissues.

We then began the service and I methodically delivered it speaking slowly but somewhat loudly as the acoustics were less than ideal on the beach. As we came to the portion of the ceremony for the couple to exchange rings and say, "I give you this ring as a token and pledge of our constant faith and abiding love," I could see the waterworks beginning to erupt, first the bride, then the groom. I went to reach for the tissues in my pocket but it was too late. I then quickly issued my pronouncement that the couple was legally wedded and invited the groom to kiss his bride, which surprisingly wasn't too hard for me to sell. The audience sprung to its feet and applauded. The wedding party then withdrew in an orderly procession and I concluded the ceremony.

Interestingly, several people in attendance assumed I was either a minister or holy man. I was receiving handshakes and nods of approval from different people much how I had seen people talk to members of the clergy after a church service. I relished the mistaken identity for a few moments, but then burst their bubble when I lit up a cigar and ordered a scotch from the bar. It was then that I began to overhear people saying, "You mean Notaries can marry people here in Florida?"

Towards the end of the evening, when my wife and I decided to depart, I stopped to talk to the newlyweds one last time. As I gave them their paperwork signed and sealed, I implored them to be good to each other, in good times as well as in bad. I also admonished them, "When a Bryce marries you, you stay married." Being a Notary Public is one thing, taking the institution of marriage seriously is something else. I would like to believe I was successful in my debut.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 7:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

Thursday, November 3, 2011

THE "99%" IS ONLY 65%

The people currently protesting under the banner of "Occupy Wall Street" contend they represent 99% of the people being ruled by the 1% super rich who somehow manipulates the government and the economy. This of course is a gross oversimplification of the class structure in our society. Back in 1897, Italian economist Vilfredo Pareto observed that 80% of the land in Italy was owned by 20% of the population. "Pareto's Principle," as it came to be known, or the "80/20 Rule" relates to the ratio of input to output; e.g. 20% of the people are normally responsible for producing 80% of the work, and from an economic perspective, 80% of the wealth is generated by only 20% of the people. This number has remained reliable over the years, which means under a capitalistic society there will always be a 20% group representing entrepreneurs and business leaders. Of the remaining 80%, there will always be approximately 15% who will remain poor. Despite the billions of dollars the country has spent on the war on poverty, this number has varied ever so slightly over the years. This leaves a middle class of approximately 65% of the populace.

Under capitalism a person is allowed to earn and spend money as he/she sees fit, which includes all classes, not just one. The only exception to this is when we pay taxes where the rules are established by the government. In a republic, which is what we have in this country and not a pure democracy, the people elect officials to represent their interests and make such decisions. From this perspective, the only control the people have over taxation is by electing effective representatives. As part of the 53% of the populace who pays taxes (47% do not), I make it a point to exercise my right to vote. Following the capitalist concept of what you spend, you own, it seems to me only true taxpayers should have the right to vote. After all, we're paying for the government aren't we?

The danger in establishing a country of "haves" and "have nots", of course, is that you establish an adversarial relationship which naturally leads to class warfare, a dangerous reality we currently face. Under capitalism, the one reality we must recognize is there will always be the rich (20%), there will always be the poor (15%), and everyone else represents the middle class (65%). As I have written, the problem is not with capitalism, but rather with government policies inhibiting capitalism to correctly function.

I am reminded of this quote attributed to Abraham Lincoln who said in this regard:

"You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people's initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves."

I may not be among the elite, but I do consider myself part of the 65% of the middle class who pays his taxes (you remember, the 53% group). Like the Occupy Wall Street protesters, I'm mad as hell as to what is going on economically in this country. The difference is, my anger is aimed at the government, not Wall Street, and those who are trying to undermine capitalism in this country. Make no mistake, I am an ant, not a grasshopper.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 7:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

Tuesday, November 1, 2011

IN DEFENSE OF CAPITALISM

As the country grows increasingly frustrated over its worsening economic condition, the public points an accusing finger at the super rich, and capitalism which is often vilified as the principal cause of the problem. Frankly, capitalism is getting a bad rap by its detractors and, unfortunately, there are naive people who gullibly believe it to be guilty of a number of sins. The fact is, capitalism propelled America past the rest of the world by creating a substantial middle class thereby creating an engine to power the world's economy. Unfortunately, capitalism is misunderstood. Some see it as nothing more than focused on profits at all costs. True, the goal of capitalism is to be successful and profits are a measurement of success, but there is more to it than just profits, much more.

First, capitalism coupled with America's interpretation of freedom means the country is the "Land of Opportunity"; that everyone has the freedom to try and improve their position in life by working at any endeavor of their choosing, either as an employee of a company or to start their own business. Either way, capitalism means you have a "right to try", nothing more, nothing less. You may be successful in your efforts or you may fail, and both extremes are essential for capitalism to succeed. Failure is every bit as important as success. Without failure, or at least the threat of it, you will not appreciate the concept of risk and it is unlikely you will change how you conduct business. Risk, therefore, is an essential part of capitalism.

Today, we hear of such things as government sponsored "bailout" and "stimulus" programs which have saved American banks, mortgage lenders, and the automotive industry. Under capitalism, these mega-companies should have been forced to either close their doors, restructure their operations, or find alternative financing. As executives of their businesses, it is their responsibility to steer the ship, nobody else. Having the government preempt failure of these businesses is unnatural and anti-capitalistic, simply because they have eliminated failure from the equation. If these companies had closed their doors, new ones would have doubtless emerged, and much smarter than their predecessors.

As an analogy, I am reminded of the game of Craps as found in casinos. Understand this, in all casino games, the house enjoys a winning percentage. They are certainly not going to offer a game they know will consistently lose money. So the trick is to find the game with the lowest house winning percentage. Me, I'm a Craps shooter. I understand the odds and the risks involved; I will either win or I will lose. If I begin to lose, I will change my strategy and play the game differently, but one thing is for certain, when I'm busted, nobody is going to bail me out, least of all the casino. I am solely responsible for my wins as well as my losses. That is as vivid an analogy to capitalism as I can think of.

The golden rule of any business is to maximize productivity and minimize costs. Failure to do so will naturally result in failure. This brings up an important aspect to capitalism, everyone participating in business is responsible for his/her actions and decisions, and must be held accountable for them. There is no free ride. Accountability is an inherent property of capitalism. If you are successful, you reap the rewards; if you fail though, you lose. This naturally scares people who are afraid of risk. Others thrive on it, particularly those with an entrepreneurial spirit. Regardless if you are successful or a failure, capitalism requires people to be personally responsible for their own actions, and nobody else.

Regardless of the equipment and advanced technology available, we must recognize all work is performed through people. The smart capitalist, therefore, respects the dignity of the human spirit and the importance of each person to lead a worthy and productive life. After all, if companies invest heavily in the tools of their trade, it would make sense they also invest in the people who will be operating the tools. The challenge becomes devising a suitable corporate culture for workers to productively work and thrive in, a culture empowering workers to excel and create superior work products at competitive prices. This means cultivating workers in terms of their training and education, working in accordance to high standards of excellence and moral values, and to compensate them with a fair and competitive wage. Plain and simply, investing in people is good business, as any successful capitalist can attest to.

When a company begins to cut corners and sacrifices workmanship, not just to save money but to increase profit margin instead, then in all likelihood greed is slowly creeping into the organization. True, capitalism is not impervious to greed and corruption, but neither is socialism as greed is a human frailty. As long as management makes smart business decisions and maintains high moral standards, greed can be kept at bay.

In my travels through the corporate world, I have seen capitalism do some great things in just about every field of endeavor imaginable. It produces products and services the public openly embraces, it has built impressive buildings and other structures we take pride in, and it has created the standard of living we are all familiar with today. Capitalism has proven itself as a viable economic engine time and again, and is rapidly being embraced throughout the world, even in Communist states, both former and current.

The only thing that can adversely affect capitalism is when the government intercedes and tampers with the underpinnings of it, such as inhibiting failure or piling on regulations choking it from behaving naturally. By its sheer nature, capitalism is an evolutionary approach to business whereby the strongest survive and the weaker companies disappear. When unleashed, capitalism promotes innovation and invention naturally. When inhibited by government though, capitalism stagnates and businesses face extermination. Government's role should be nothing more than to open doors and check for unscrupulous business practices. Other than that, they should stay out of the way.

No, capitalism is not the problem. It is a proven economic system if it is allowed to behave naturally. So, when casting aspersions as to who is at fault for our current economic woes, the fingers should be pointed at the nations capitol, not Wall Street. We also share a piece of the blame ourselves as we have become apathetic and, in the process, allowed the country to morally deteriorate before our eyes.

I am proud to call myself an unabashed capitalist. The fact that our small business has survived for over forty years, has serviced customers all over the world, and made money in the process without cheating anyone is a testament to capitalism.

"No politico-economic system in history has ever proved its value so eloquently or has benefited mankind so greatly as capitalism—and none has ever been attacked so savagely, viciously, and blindly. The flood of misinformation, misrepresentation, distortion, and outright falsehood about capitalism is such that the young people of today have no idea . . . of its actual nature."
- Ayn Rand, "Capitalism: The Unknown Ideal"

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
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