I was visiting a town North of my house the other day and decided to stop into a few of the stores. The town, Yellow Springs, has been known for its liberal viewpoint for decades throughout Ohio, but it is an eclectic and interesting place to visit.
While browsing in one of the stores, I overheard a conversation.
One: “Trump was so horrible of President. He’s been a billionaire business owner for years – and you know how corrupt all of them are.”
Two: “You are absolutely right. It is disgusting how these capitalists believe they are the saviors of the world. The world would be so much better off without business owners and capitalists.”
One: “You are absolutely right. It’s amazing how many people who say they are for the country support these crooks.”
Several seconds later…
One: “Excuse me, how much for this ring?”
Shop Keeper: “That ring is sterling silver. It has been hand crafted in our studios using an investment casting process. Investment casting is the same process as…”
One: “How much?”
Shop Keeper: “Do you understand what you are looking at?”
One: “How much?”
Shop Keeper: “$129.”
One: “For a silver ring? Why are you trying to rip me off? Are you a capitalist or something?”
Shop Keeper: “Maybe you’d be interested in something more within your budget…”
The conversation continued as I distanced myself from them. A few minutes later, the two left the store without making a purchase. I approached the shop keeper and asked
“Do you have many problems like this on a daily basis?”
SK: “Not as many as you would think. It’s amazing, however, how many don’t understand foundational principles of a business.”
Me: “Why do you say that?”
SK: “Well, I overheard them talking about Trump and how corrupt he is. Although I do not embrace his policies, he is a business owner, like myself.
“And the first lesson any successful business owner learns is – be honest if you want to stay in business.
“Dishonest businesses tend to close as people find other choices they prefer. Choices where the customers are treated fairly, provided a good value and so on.
“It’s amazing how many believe that if a business is successful, it’s only because the owners are corrupt.”
Me: “Interesting.”
There you have it. In a nutshell, Capitalists and business owners have to be honest – actually holding themselves to a higher degree of integrity than the average person. Otherwise, when customers and clients find alternative businesses offering a similar product or service, they’ll become clients of the ethical business.
I recall a conversation I had with a local multi-millionaire I know several years ago. I mentioned a person I had worked with in the past. His response was “That business will grow substantially once it is sold to someone else as customers will no longer have to do business with him.”
In other words, the behavior and integrity of the business owner was limiting his business growth – and he was only attracting clients who had no alternative than purchase from him (the business was in a pretty exclusive niche with probably a dozen competitors worldwide).
That’s the good of capitalism. The cream, the best, rise to the top and get all the business they can handle. The businesses with the reputation of being less than stellar get the leftovers.
Conversely, under socialism, the government determines who gets to run the businesses. As long as the government is treated well by their cronies, that business gets the government sanctioned monopoly. Those who are not partners with government officials get the leftovers.
