You don’t need venture capital to change the world
Whatever happened to breaking even? Why do we see so few column inches devoted to the virtues of being able to pay your staff a fair wage and give them decent working conditions and still make a reasonable margin? Why have we turned into superstars employers who screw-over their staff, and often their customers, in the pursuit of dollars in profits and bonuses. Where did this new religion of money worship come from?
The late economist Hyman Minsky, said that capitalism can take many forms, and evolves over time.
He claimed that by the 1990s, capitalism had moved a long way from the ‘shared prosperity’ mixed economy the 1960s, where workers shared in the benefits of growing productivity. The Sixties were an era during which income and wealth became more evenly distributed than in previous generations, and the share of business profit in the economy had stabilised at a lower level. By the ‘90s, Minsky had identified a new financialised ‘money manager’ capitalism, a ‘Wall Street economy’, of dog-eat-dog profit chasing, with constant pressure to minimise wages and maximise returns to shareholders and bonuses to those right at the top.