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Again, Capitalism is Not Just for the Few

Again, capitalism should not just be for the fewRead an article earlier in the week about an interview with a famous investment fund manager who always preached low-cost fund management and fiduciary duty to your investors. He said that financial management companies are now starting to have the philosophy of managing for your clients and not just for themselves. The article was investor this and investor that and then there was a throwaway line about all wealth flowing to just a few wealthy is very destabilizing and that productivity gains should also flow to the workers. Then it was back to investors again.

I realize that financial management companies are different in that investors are their customers and their employees are typically paid better than the average employee elsewhere. But this constant focus on returns accruing only to the shareholders probably stems from this fiduciary philosophy that has been pushed so hard, so that now, customers are secondary and employees are way down the line in terms of receiving any benefits to the productivity gain.

Financial types need to stop heiling (as in Heil, H***, not hail) to the shareholders and start thinking more broadly. You want employee engagement? Well, you need to broaden your allegiance.

 

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