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Take Wall Street, Please!

Take Wall Street, Please!

Rethinking capitalism, OWS and 7B

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This is not about solidarity with the campers off Wall Street, Bay Street or any other street. It’s not about their manifestos, their motives, their methods, whether it’s the cool thing to do or the Woodstock of this generation. It’s about one thing only: Is there a problem with capitalism today?

And I think there is.

But before I explain why, first let me say this:

From where I’m looking right now, capitalism is good. Very good.

Look at the historical facts: Before commerce, industry and finance began to blossom, children were lucky to live past six years, the average life span was between 25–30 years, all but a small minority lived at bare subsistence levels or less, education was for the elite, and violent death, torture and barbarity was not something you watched on television, but witnessed firsthand on a frequent basis—whether in the name of warfare, crime, justice or entertainment.

Capitalism has been a—if not the—major force in diminishing war between nations and creating tolerance between peoples. It has allowed literally billions more people to share the planet and—percentage-wise—at a much greater standard of living. Today, thanks to capitalism, each year 70 million people leave hand-to-mouth living to become consumers-by-choice—and poverty rates are expected to continue their sharp decline.1 Without capitalism, democracy would never have proven successful, medicine could never have advanced, worldwide humanitarian efforts would be absurd and I would never have been able to compose this editorial and get it out to you so fast.

I’ll go further: Capitalism is not just “the best we got.” Capitalism is inherently good. Because capitalism, at its essence, is saying, “just as the earth can produce value and share that value with others, so too the human being.” Capitalism empowers each one of us.

And therein lies the problem with capitalism today. Because we’re grabbing the husk and leaving the fruit behind.

What went wrong?

Quite simply, we never let go of the crippling idea that equates making business with demonic greed.

And people act according to the role you give them.

There are those professions that society considers noble callings, such as doctors, judges and professors. Society respects them for what they do. Then there are business people. Society respects them, too—but are they respected for what they do, or for what they get? Do we respect their occupation, or do we see them as doing a worthless job—making money out of money?

Where is business respected? Take a look in the Talmud.

In the Talmud you’ll find spiritual and earthly duties lumped together in ways that sends the modern mind spinning:

Rava said, “When a soul stands before the heavenly court, it is asked, ‘Did you buy and sell fairly? Did you fix times for Torah study? Did you attempt to be fruitful and multiply? Did you look forward to the messianic redemption? Did you debate matters of wisdom? Did you understand one thing from another?’”2

Do you see that? Marrying, procreating and making an honest living are good and wonderful occupations—in the same breath as Torah study, gaining wisdom and keeping the faith.

Why? Because they benefit the world. As in the common talmudic term for making a living, that dignified and ennobled phrase, “settling of the world”3 —for, as the prophet states, “G‑d did not create emptiness; He formed a world to be settled upon.”4

Maimonides sums up the Jewish position with strong words:

Anyone who comes to the conclusion that he should involve himself in Torah study without doing work and derive his livelihood from charity, desecrates G‑d's name, dishonors the Torah, extinguishes the light of faith, brings evil upon himself, and forfeits the life of the world to come, for it is forbidden to derive benefit from the words of Torah in this world.

Our Sages declared: "Whoever benefits from the words of Torah forfeits his life in the world." Also, they commanded and declared: "Do not make them a crown to magnify oneself, nor an axe to chop with." Also, they commanded and declared: "Love work and despise Rabbinic positions." All Torah that is not accompanied by work will eventually be negated and lead to sin. Ultimately, such a person will steal from others.5

And so, the laws concerning earning an honest living and thereby making the world a more settled and civil place also belong in the holy books.

The medieval Augustinian view, on the other hand, saw all these as curses of the snake, the product of original sin—since they were directed by man’s evil impulse.6 Such, as well, was the view of the ancient Romans and Greeks, who looked askance at craftsmen, merchants and others who lived by toil.

And so, whereas the Jew saw work as good for the soul and moneymaking as of benefit to everyone involved, the society which enveloped them saw it as a tolerable sin. Not lending money alone, but almost every form of business was labelled “usury”—using someone else for one’s own benefit.7

Life began to change radically when European society adopted the Jewish attitude—that which Weber prudently coined “the Protestant ethic.” The Jews, wrote Montesquieu, “set the stage for the rebirth of European commerce, and with it the beginning of the decline of prejudice and the rise of a more gentle, less ferocious way of life.”8

How It Should Be

And yet, the ancient notion that making business is dirty business lives on.

If I would ask a class of medical students why they chose medicine, I wouldn’t be surprised to hear, “I think I would be fulfilled by a life of healing people.” Not just in 1967, but even today.

If I would ask a class in law school why they chose law, I wouldn’t be surprised to hear “I’m outraged at injustice in the world.” Yes, they are there, bless their souls.

What do I want to hear from the students in business school? I want to hear, “I’m going into commerce and finance because I want to fix the world.”

Because they can—in ways that no one else can. Capitalism brought us to this glorious world where (yes, there are problems, but the fact is) seven billion human lives can share the planet together, and capitalism is the solution to all the problems that come along with that 7b. Yes, we need doctors, we need social activists, we need political leaders dedicated to the welfare of their people. But more than any of those, it’s the manufacturers, the traders, the sellers and the financiers in whose hands the future of our planet rests.

Why? Because capitalism demands consumers, and the impoverished can’t afford to consume. Because capitalism demands an educated workforce, and that education has to start at an early age. Because capitalism demands renewable resources, which unsustainable practices cannot provide. Because capitalism, when done at its very best, benefits not only its shareholders, but all its stakeholders—which is every last one of us sharing this planet.

The highest form of charity, writes Maimonides, is when you give a person a partnership or find him work “…so that his hand will be fortified and he will not have to ask others.”9

Who does that? The entrepreneurs, the financiers, the people out there making business. They are blessed with the capacity to stand a human being on his own two feet, fishing rod and all—billions of human beings—and say, “Your life is in your hands.”

I can’t think of anything the world needs today more than a generation of idealist, foresighted, noble capitalists.10

Getting back to the garden

So have the tent-dwellers in Zuccotti Park got it right or wrong? As in most cases, probably both. You see, the change that’s needed is not the change that most imagine. It’s not the demise of capitalism we need, but its redemption. We need to stop equating finance with greed and start seeing it as a noble calling. And, as consumers, we need to demand it from our industries.

We need to teach that in our schools—and not just business school: Children in pre-school have to learn that firemen put out fires, doctors heal boo-boos, and people do business so they can share good things with others.

We need to give them that role, and learn to expect it from them.

One of the sitters, a 53-year-old carpenter by the name of Thomas Fox, seems to have gotten it right. As he explained to a journalist:

It's a Jeffersonian based political party uniting the youth of the world together. The key phrase is this, which Thomas Jefferson wrote to Madison, ‘the earth belongs in usufruct to the living.’ What usufruct means is stewardship. It means the older generation has a duty to turn over the earth and the financial system in a better situation than they got it.

Somewhat reminiscent of that line in Genesis, where the CEO of this universe places us in His garden “to serve it and to protect it.” In other words, to make His world even better.

At Woodstock we sang that we “have to get ourselves back to the garden.” Whether or not the occupiers of Wall Street have the same thing in mind, the garden is here now and waiting.

FOOTNOTES
1.

Goldman Sachs, Global Economics Paper No:170, page 5.

2.

Talmud Shabbat 31a

3.

See Sanhedrin 24b; Maimonides, Mishneh Torah, Sefer Mishpatim, Edut, 10:4, and the Kesef Mishnah ad loc: A person who is not occupied in “settling the world” is most likely engaged in thievery and cannot be trusted.

4.

Isaiah 45:18

5.

Mishneh Torah, Sefer Madah, Hilchot Talmud Torah, 3:10

6.

The Jewish sages, on the other hand, cite the verse from Psalms (128:2), “If you eat by the toil of your hands, you are praiseworthy, and it is good for you.” From this they understand that the reward for working for a living supercedes even the merit of “fear of heaven.” He who fears heaven has a reward in the world to come, but he who eats by the toil of his hands receives a reward in this world as well (Talmud Berachot 8a). The curse that resulted from original sin added the element of toil to that work, but the work itself is not a curse, but part of the human being’s original purpose on earth—as mentioned at the end of this essay.

7.

On this topic, see Jerry Muller, Capitalism and the Jews, Princeton University Press.

8.

Montesque, Spirit of the Laws (1748), part 4, book 20, chapter 1.

9.

Mishneh Torah, Sefer Zeraim, Hilchot Matnot Aniyim, 10:7

10.

If you think I’m the only one saying this, see Michael Porter and Mark Kramer, “The Big Idea—Creating Shared Value,” subtitled “How to reinvent capitalism and unleash a wave of innovation and growth” in Harvard Business Review, January, 2011. Also, a timely book by Joseph Bower, Herman Leonard and Lynn Paine, “Capitalism at Risk: Rethinking the Role of Business.” My idea that business should be seen as a “noble profession” is taken straight out of Cavico and Mujitaba, “The state of business schools, business education and business ethics” in the Journal of Academic and Business Ethics, vol. 2, July 2009.


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Discussion (97)
February 29, 2012
With Two Systems, We get Egg Scrolls
Gracias, Snr. Garcia. Absolutely true about there being dual tracks that may duel it out in our mental market place. What we must do is to use our mind to wend our way through the mined field. Some scrolls have only one end attached to a rolling pin. However, Torah is attached at both sides. Likewise, we show three columns when reading and even expose enough space when we read the first or last column to imply the other end.
The implication is that we must try to find the proper balance point with The Law as our guide. Extreme points should be the rarity. "If I am only....If not NOW, when!"
Z'ev Freed
באר שבע, ישראל
February 28, 2012
Lack of Econ 101
In many great schools they teach you about how capitalism thrives in conditions promotng Liberty, personal responsibility, protected property rights, and the rule of Law. In less stringent places they teach the socialist version of capitalism without the pre-requirements, as those elements are missing from today's marketplace in every western country - including Israel - where government became business's partner years ago and the two have helped each other flourish ever since.
If you are so eager to ban something, ban corporatism, ban statism, ban totalitarianism, ban mercantilism, ban fascism(the economic fashion, as most folks confuse the conflation of fascist economies and totalitarian government with the mere economic state by name), ban whatever, but know that capitalism does not exist in the general market today, corporatism and mercantilism do and the state is very happy to continue on that basis as are most corporate heads. It is only we worms, the consumers, who lose.
Dovid Druhl
Ottawa, Canada
February 28, 2012
systems of the world
You work, you get
You have, you share

There seem to be some basic assumptions here.
Life shows a basic dualistic competitive-co-operative, accumulative -consuming nature.
Is there any better economical system after all?
Communism proves to fail by lacking of undersatnding of the basic spiritual nature of mankind.
Are those jurrasic pals at wall street remaining the lesson on Nabucodonosor?
If we are to discuss the intrinsic value of capitalism we must relate it to its own pros-cons but: Can we do that without referring to other known options.
From a radical new-old framework we have the vision from the Baal Shem Tov's teachings.
Focus on our own necessity of going into a "new" paradigm,one pointing at the fact that we will never complete the unfamous Babel tower.
Let us use money To " help " G-d prepare a beautiful home in this world of His.
Now that is Big Business!
Any discussion on systems of the world should take into consideration this point.
All you need is love and a scroll.
Eugenoi Garcia Rivera
February 23, 2012
The Pupose of a business
is to earn a profit for its owners." Write on: Right on" Sarah ! That was upheld in the courts in a suit against Henry Ford who sought to reduce prices to make his automobiles more affordable at the cost of profits to other shareholders. They sued & he lost. The consumers also lost; their interest was of no interest to the court. The copllective farms in Israel were not made by removing people from their own farms or kidnapped from the cities. They lasted for more years than Galina knows. In addition for most of their existence, they were actually exclusive: You had to undergo a screening proccess to join one.
Today, we have the model of what unrefereed capitalism can produce. There are 6 six people (or families) who control major financial interests and product & service providers. Half of them have managed to cross a very high threshold on both sides while the other three just missed.
Z'ev Freed
נאר-שבע, ישראל
February 22, 2012
the purpose of a business is to make money
Businesses exist to make profit. If they can serve a benevolent purpose, fine, but that is not their aim. The goal is profit, and the way to that profit is to perform a service, or to supply an item or items for a price that is higher than the cost to the business. The only organizations that don't have profit (or benefit to stockholders/owners) in their "mission statements" are nonprofit/charitable organizations.

When business doesn't have laws, regulations, and sometimes union contracts limiting their options they will take advantage of any and all money saving methods, including a lack of safety for the workers and the environment, national security, and their customers. Think of factories during industrialization of any society (1800's to 1940's in the west, much of Asia now) Think of companies that sell arms to any paying country, even when at war to enemies. Remember, our food safety laws are reactions to incidents here, very like the melanin in milk incident in China.
Sarah
W Bloomfield, MI/USA
February 21, 2012
Benevolent Paul
Well written & valid. It should remind us about the reference to competition in the market place.
There are "command economy" markets where the governing powers have absolute (or nearly so)control.
There are totally free (civil libertarian =Libertine) markets where quite soon it will be controlled by the most powerful parties for their benefit to detriment of the majority under the banner & disguise of "Free Market"
with utter disgust for G*d`s morality.
There is the option of an observed market. The marketers & the consumers have some basic laws (an enforced moral code) which allows for competition while severely limiting cheating. Which role model would you prefer when you are about to roll down the streets? Imagine your favorite competition without any referee!
WM M F
באר שבע, ישראל
February 21, 2012
Thank you to #2, too.
By your leave, you will then accept La Cosa Nostra as just another business or enterprise?
There are businesses and there are businesses. There quite a few definitions to that word. A capitalist might invest in a factory that will produce goods or prepares natural resources. Perhaps there is an investment in land to produce food. Sometimes the purpose is to provide a service rather than objects. You will that many entrepreneurs will use some of their profits to secure their efforts. They might invest in their facilities, their staff, supplies, their employees and in security. Grand scale swindles & frauds that yield huge profits & power for the followers of the Prophets-of-Greed find that it is a good investment to buy a few politicians and law enforcement. That, too, is business. Just because it is 'legal' is it moral? Is it even moral to make it legal??
WM M F
באר שבע, ישראל
February 20, 2012
Benevolent?
Jean's observation that businesses serve a useful purpose is sensible. But I think applying the word "benevolent" is misguided.

Consulting a dictionary will show that benevolent means "kindly," "for the purpose of goodwill," or, to quote one source, "Serving a charitable rather than a profit-making purpose."

The fact that a business provides a valuable product or service, or plays a useful role, does not imply that it was created for charitable purposes or in order to be kindly. There is a big difference between being worthwhile and being benevolent. A company that makes something I want, need, or cherish is doing so (by legal mandate) in order to serve the interest of its shareholders, not out of any love for me.

The fact that selling products or services requires a company to offer things that its customers want is what makes capitalism useful, of course. But let's not naively confuse overlapping shareholder-customer interests, a simple profit/loss calculation, with benevolence.
Paul
New York, NY
February 19, 2012
Thank you!
Thank you for the outstanding article and perspective on the reality of capitalism. In discussing this topic with anti-capitalists I often point out that businesses exist to solve problems for people who are willing to pay for the solution. Too often, I'm met with a blank stare, as though this thought never entered into the person's mind. Entrepreneurs aren't likely to cite some benevolent purpose as their motivation, but they have to serve people and give them something of value in order to stay in business, so whether spoken or not, benevolent action is there.
Jean
Indianapolis, USA
February 19, 2012
after anon, on January 12, 21012:
Capitalism fails to be the system of automatic choice when there is a substantial breach of trust, in my opinion.

Either the TRUST betw man & brother, or man & wife ... for this drama is what most of the world believes their 'thirsting' is about ...

Its truly SAD when a few generations TRIP up here so substantially here on the planet. How did we get here? Good question!! When the few have the means & the nerve the make the beautiful colts fall on their expensive ankles on the racetrack of LIFE; then what?
Its more than greed; it's lust .

Confusion leads to blaspheme; not always revolution.

& "Love" NEEDS understanding or it cannot survive the illusions & ill begotten trials of one generation; w/out Divine intervention.

And that's the 'everyday miracle' of TORAH education
Christina & Cindy
Hope, BC, Cda
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