Summary: Do you believe business is good or bad? By good I mean beneficial, helpful and useful for people and society. I’m not talking about whether sales and profits are up.
How can we solve our seemingly insurmountable social problems and make our society a better place? Only business is truly scalable and can create enough economic power, only business can do it. And that means only the private sector.
Where is the economic wealth to fix what is wrong? The government and non-government organizations (NGO’s) try, but we still have social problems. We are not wining.
First, let’s briefly clarify public sector vs. private sector. When I say public sector, I mean an entity that is funded directly or indirectly by taxes, duties and fees. This includes the military, government officials, law enforcement and the courts, firefighters, teachers in public schools and workers who manufacture and sell goods and services to the government, such as the defense aerospace industry. Some overlap, I know. And there are the NGO’s that try to tackle problems, getting funding from grants and donations.
That means all economic wealth is created by the private sector, by businesses that meet a need and make a profit. It is only the private sector that produces the goods and services that are the source of all taxes to pay for the NGO’s and the public sector. Yes, public sector workers pay taxes, but those dollars came from the private sector in the first place. In fact, it is foolish to make public the public sector pay any taxes. It just recycles the taxes and makes it necessary to employ more public sector resources to manage the system.
Here is where the money is in America in 2012 figures:
Non-Profits $1.2 Trillion
Government $3.1 Trillion
Business $20.1 Trillion
I’ll stop there for now, but I will have another article about this soon. I recommend a TED Talk, Why Business Can Be Good At Solving Social Problems, by Harvard Business School professor Michael Porter.
So, do you believe business is good? Honestly? Here is a quote about honesty and truth:
“The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is.”—Winston Churchill
I believe we need to tackle social problems with business. In fact, only business can do it. I believe BIG, business is good.
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